In general, refinance rates for mortgages were varied Thursday, with one notable rate receding. The national rate average for a 15-year fixed-rate refinance advanced, while 30-year fixed refinance rates shrank. At the same time, average rates for 10-year fixed refinances moved up. Although refinance rates are always moving, they have been quite low recently. For those looking to get a good rate, now is an excellent time to refinance a home. But as always, make sure to first take into account your personal goals and circumstances before refinancing, and shop around for a lender who can best meet your needs.
30-year fixed refinance rates
The average 30-year fixed refinance rate right now is 3.21%, a decrease of 1 basis point over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15- or 10-year refinance. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. In exchange for the lower monthly payments though, rates for a 30-year refinance will typically be higher than 15- and 10-year refinance rates. You'll also pay off your loan more slowly.
15-year fixed-rate refinance
The average rate for a 15-year fixed refinance loan is currently 2.50%, an increase of 1 basis points compared to one week ago. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. On the other hand, you'll save money on interest overall, since you'll pay off the loan sooner. 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 2.51%, an increase of 2 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 a higher monthly payment. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.
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 US:
| Product | Rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed refi | 3.21% | 3.22% | -0.01 |
| 15-year fixed refi | 2.50% | 2.49% | +0.01 |
| 10-year fixed refi | 2.51% | 2.49% | +0.02 |
Rates as of June 24, 2021.
How to find personalized refinance rates
It's important to understand that the rates advertised online may not apply to you. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.
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. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.
Since the beginning of the pandemic, many lenders have been stricter with who they approve for a loan. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.
Before applying for a refinance, you should make your application as strong as possible in order to get the best rates available. If you haven't already, try to improve your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully. Also be sure to compare offers from multiple lenders in order to get the best rate.
When to consider a mortgage 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. It's true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.
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? Also keep in mind that closing costs and other fees may require an upfront investment.
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. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But carefully weigh the pros and cons first to make sure it's a good fit for your situation.
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June 24, 2021 at 08:00PM
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Current refinance rates on June 24, 2021: Rate falls - CNET
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