In general, refinance rates for mortgage were varied with one notable rate advancing.
The average rate nationwide for a 15-year fixed refinance trailed off, while 30-year fixed-rate refinances advanced. At the same time, average rates for 10-year fixed refinances decreased.
Refinancing interest rates are constantly changing. However, they are currently very low. For those looking to refinance their existing mortgage, this may possibly be a great opportunity to reduce your interest rate.
Check out mortgage refinancing rates for your area here.
30-Year Fixed Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.09%, an increase of 9 basis points over the previous week. Just last month a 30-year fixed refinance had a smaller average rate of 1.00%.
You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed-Rate Refinance
Right now, average 15-year fixed refinance rates are 2.52%, a decrease of 2 basis points from a week ago.
Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.
10-Year Fixed-Rate Refinance
The average 10-year, fixed refinance rate is 2.54%, a decrease of 2 basis points what we saw last week.
Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.
Where Are Rates Going
To determine refinance rate trends, we use data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders nationwide supply information to Bankrate, which is provided in the table below:
| Product | Rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed refi | 3.09% | 3.00% | +0.09 |
| 15-year fixed refi | 2.52% | 2.54% | -0.02 |
| 10-year fixed refi | 2.54% | 2.56% | -0.02 |
Rates as of November 27, 2020.
Take a look at mortgage refinance rates for a number of different loans.
Is This the Right Time to Refinance?
For many borrowers, now is an excellent time to refinance because rates have been near historic lows. While refinance rates change day to day, if you can lock in a rate near 3%, that’s an exceptionally low interest rate. Keep in mind, you will need a high credit score to qualify for these ultra-low rates. Also, if you’re closing on a refinance after Dec. 1, 2020, your loan might end up being more expensive. That’s when the Federal Housing Finance Agency is adding a new refinancing fee of 0.5% on conventional refinance loans of $125,000 or more.
Current Landscape for Refinance Rates
Recently, lenders have been exceptionally busy thanks to the inundation of mortgage refinance applications propelled by the low interest rates. So while many homeowners can save with a refinance, the time it takes to close on a loan can be longer than usual under normal circumstances. Thanks to the economic downturn, some lenders tightened their lending standards. That means those with weaker financial profiles or less equity in their homes may find it more difficult to qualify for a refinance loan.
When Should You Refinance?
Refinancing a mortgage is a great way to cut your interest cost by getting a lower rate or opting for a shorter repayment term.
Obtaining a better interest rate can reduce your monthly payments and save you on interest in the long haul. You can also accomplish the same goal by changing your repayment terms. If you opt for a longer term, you could lower your monthly payments. The trade off to this strategy is you’ll end up paying more interest over the life of the loan. On the other hand, if you refinance to a shorter term loan, say a 15-year mortgage, you’ll pay off your loan sooner and end up paying less interest as a result. Of course, 15-year mortgages have noticeably higher monthly payments compared to 30-year loans. The historically low interest rates that are currently available may allow you to take advantage of a shorter repayment term without increasing your monthly payments by an unreasonable amount. It just depends on how much you’re able to reduce your interest rate by.
If you have a home improvement project you’ve finally got the time to finish, you may be able to fund it with a cash-out refinance. A cash-out refinance enables you to convert the equity you’ve built up in your home into cash. You’ll be taking out a bigger mortgage, but with interest rates where they are, it can be a low-cost way to fund a costly home upgrade.
How to Refinance Your Mortgage
Comparing offers from multiple lenders is essential to getting the best deal on a refinance. To compare offers from every lender you need to look at more than just the interest rate. You should carefully look at the Loan Estimate form each lender will provide after you apply and be sure you’re paying reasonable fees.
What do You Need to Refinance?
Refinancing is a similar process to taking out a mortgage for a home purchase. During the underwriting process, your lender will review your employment, check your credit, and you’ll be required to provide documents to verify your income. To avoid unnecessary delays communicate with your lender and have the documentation you need ready to go ahead of time.
How We Got These Rates
The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.
National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.
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