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Today, several benchmark refinance rates went down.
Both the 15-year fixed and 30-year fixed saw their mean rates drop. At the same time, average rates for 10-year fixed refinances remained unaltered.
Refinancing interest rates are constantly changing. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this may be the perfect time to secure a record-low rate.
The average mortgage refinance rates are as follows:
- Today, the average 30-year fixed refinance rate is 2.99%
- 15-year mortgage refinance rate: 2.29%
- The average 10-year fixed refinance rate is 2.27%
What this means for homeowners
If you haven’t refinanced in the past few years, rates are still historically low, so it’s worth considering. But the decision to refinance isn’t just about the rate, there are closing costs to consider as well. So be sure that you’re saving more in the long run than you’re paying upfront. And don’t forget that even a “no-closing-cost” refinance still has fees, they are just typically added to your loan balance instead of being paid out of pocket.
Average 30-Year Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 2.99%, a decrease of 1 basis point from what we saw last week.
You can use our mortgage calculator to price out your monthly mortgage payments and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed Refi Rates
For 15-year fixed refinances we’re seeing an average rate of 2.29%, a decrease of 1 basis point from what we saw last week.
Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.
Average 10-Year Fixed Refinance Rates
The average 10-year, fixed refinance rate is 2.27%, unmoved from a week ago.
Monthly payments with a 10-year refinance term would cost a lot more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
Refinance Rate Trends
Even with a moderate increase, rates could still remain favorable for borrowers. Experts see rates staying low throughout 2021, and that toward the end of the year it’s more likely that rates will make steady gains. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.
How we calculate our refinance rates
Our refinance rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refi interest rate averages are based on a customer profile of the following:
- Loan to value (LTV) or 80% or less
- Principal residence
- Credit score 740 or higher
- Single-family home
The information provided to Bankrate from lenders across the nation is provided in the table below:
|30-year mortgage refinance rate||2.99%||3.00%||-0.01|
|15-year fixed refinance rate||2.29%||2.30%||-0.01|
|10-year fixed refinance rate||2.27%||2.27%||N/C|
Rates as of September 15, 2021.
Does Refinancing Still Make Sense?
Record low refinance rates drove a surge in mortgage refinancing over the past year. But as interest rates have rebounded from all-time lows, the number of borrowers looking to refinance has begun to shrink.
However, even with the downturn, the interest in mortgage refinancing remains stronger than it was before the pandemic drove rates into the ground. This is because refinance rates are hovering at just over 3%, which is still a historically good deal, even if it’s higher than the recent lows.
So as we turn our backs on record-low interest rates, many borrowers are still able to save with a refinance. But many experts forecast that rates will continue to trend upward throughout 2021. So it’s reasonable to expect refinancing to get more expensive for borrowers as the year progresses.
How to Ensure You Get the Best Refinance Rate
Refinance rates vary depending on your personal financial situation. If you have a higher credit score and lower loan-to-value (LTV) ratios will typically receive a larger markdown on the mortgage refinance rates they are offered.
Your personal finances aren’t the only factor that impacts your interest rate. Your property’s value compared to your loan balance also factors into the decision. Having at least 20% equity in your property is ideal.
The type of mortgage loan can determine what your interest rate will be. A loan with a shorter repayment term generally has lower rates than a longer-term loan. Also, if you want to turn your equity into cash with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.
How Much Does It Cost to Refinance?
What you’ll pay to refinance your mortgage can vary widely depending on these factors:
- Where the property is located
- Type of refinance loan
- What lender you choose
- Size of loan
- Your credit score
- Home’s equity
In general, refinance closing costs are 3% to 6% of the loan balance. The type of the loan you are refinancing into can impact its cost in a few different ways. Certain government-backed refinance loans, like the FHA Streamline or VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but could come with hefty upfront fees to cover the mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to possibly get rid of the mortgage insurance requirement.