Several closely followed refinance rates dropped today. Both 15-year fixed and 30-year fixed refinances saw their mean rates decline. At the same time, average rates for 10-year fixed refinances also slumped. Although refinance rates fluctuate, they have been quite low recently. If you're looking to get a good rate, now is an excellent time to refinance a home. But as always, make sure to first think about your personal goals and circumstances before getting a refinance, and compare offers to find a lender who can best meet your needs.
30-year fixed refinance rates
For 30-year fixed refinances, the average rate is currently at 3.14%, a decrease of 3 basis points over this time last week. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. However, interest rates for a 30-year refinance will typically be higher than rates for a 15-year or 10-year refinance. It'll also take you longer to pay off your loan.
15-year fixed-rate refinance
For 15-year fixed refinances, the average rate is currently at 2.44%, a decrease of 4 basis point compared to one week ago. With a 15-year fixed refinance, you'll have a larger monthly payment than a 30-year loan. But you'll save more money over time, because you're paying off your loan quicker. You'll also typically get lower interest rates compared to a 30-year loan. This can help you save even more in the long run.
10-year fixed-rate refinance
The average 10-year fixed refinance rate right now is 2.39%, a decrease of 3 basis points compared to one week ago. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much quicker and save on interest. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.
Where rates are headed
We track refinance rate trends using data collected by Bankrate, which is owned by CNET's parent company. Here's a table with the average refinance rates reported by lenders across the country:
Average refinance interest rates| Product | Rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed refi | 3.14% | 3.17% | -0.03 |
| 15-year fixed refi | 2.44% | 2.48% | -0.04 |
| 10-year fixed refi | 2.39% | 2.42% | -0.03 |
Rates as of April 27, 2021.
How to find the best refinance rate
When searching for refinance rates online, it's important to remember that your specific financial situation will influence the rate you're offered. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.
Generally, you'll want a high credit score, low credit utilization ratio, and a history of making consistent and on-time payments in order to get the best interest rates. You can generally get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. Also remember to account for potential fees and closing costs.
You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months. This means that if you don't have great credit ratings, you might not be able to take advantage of lowered interest rates -- or qualify for a refinance in the first place.
One way to get the best refinance rates is to strengthen your borrower application. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. Also be sure to compare offers from multiple lenders in order to get the best rate.
Is now a good time to refinance?
In order for a refinance to make sense, you'll generally want to get a lower interest rate than your current rate. Aside from interest rates, changing your loan term is another reason to refinance. While interest rates have been low in the past few months, you should look at more than just the market interest rates when deciding if a refinance is right for you.
Make sure to consider your goals and financial situation, including how long you plan to stay in your current home. It's helpful to have a specific goal for a refinance -- such as decreasing your monthly payment or adjusting the term of your loan. And don't forget about fees and closing costs, which can add up.
Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don't have a solid credit score, you may not qualify for the best rate.Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that doing so makes sense.
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April 27, 2021 at 06:00PM
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Current refinance rates on April 27, 2021: Rates decline - CNET
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