A number of important mortgage refinance rates made gains today. Both 15-year fixed and 30-year fixed refinances saw their mean rates climb. In addition, the average rate on 10-year fixed refinance also moved up. Refinance interest rates are never set in stone -- but rates have been at historic lows. If you're looking to get a good rate, now is an excellent time to refinance a house. Before getting a refinance, remember to consider your personal needs and financial situation, and speak with different lenders to find the best one for you.
30-year fixed refinance rates
The current average interest rate for a 30-year refinance is 3.15%, an increase of 6 basis points compared to one week ago. (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. If you're having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you'll pay off your loan at a slower rate.
15-year fixed-rate refinance
The average rate for a 15-year fixed refinance loan is currently 2.44%, an increase of 5 basis points compared to one week ago. With a 15-year fixed refinance, you'll have a larger monthly payment than a 30-year loan. However, you'll also be able to pay off your loan quicker, saving you money over the life of the loan. 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 rate for a 10-year fixed refinance loan is currently 2.44%, an increase of 6 basis points compared to one week ago. A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. 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 information 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 US:
Average refinance interest rates| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed refi | 3.15% | 3.09% | +0.06 |
| 15-year fixed refi | 2.44% | 2.39% | +0.05 |
| 10-year fixed refi | 2.44% | 2.38% | +0.06 |
Rates as of May 21, 2021.
How to find the best refinance rate
It's important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and application.
Having a high credit score, low credit utilization ratio, and a history of consistent and on-time payments will generally help you get the best interest rates. Researching interest rates online is always a good idea, but you'll need to connect with a mortgage professional to get your exact refinance rate. Also remember to account for potential fees and closing costs.
Since the beginning of the pandemic, a lot of lenders have been stricter with who they approve for a loan. As such, you may not qualify for a refinance -- or a low rate -- if you don't have a solid credit rating.
To get the best refinance rates, you'll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. Don't forget to speak with multiple lenders and shop around to find the best rate.
When should I refinance?
Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. Interest rates in the past few months have been at historic lows, but that's not the only thing you should be looking at when deciding whether to refinance.
A refinance may not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan on staying in your home? Are you refinancing to decrease your monthly payment, pay off your house sooner -- or for a combination of reasons? 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 can be a great move if you get a good rate or can pay off your loan sooner -- but consider carefully whether it's the right choice for you.
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May 21, 2021 at 06:00PM
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Current refinance rates on May 21, 2021: Rates ratchet higher - CNET
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