Numerous benchmark refinance rates receded today. Both 15-year fixed and 30-year fixed refinances saw their mean rates recede. At the same time, average rates for 10-year fixed refinances also slumped. Refinance interest rates are never set in stone -- but rates have been historically low. If you plan to refinance your house, now might be an ideal time to lock in a good rate. Before getting a refinance, remember to take into account your personal needs and financial situation, and speak with various lenders to find the right one for you.
30-year fixed refinance rates
For 30-year fixed refinances, the average rate is currently at 3.20%, a decrease of 5 basis points from what we saw 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. Because of this, a 30-year refinance can be a good idea if you're having trouble making your monthly payments. Be aware, though, that interest rates will typically be higher compared to a 15- or 10-year refinance, and you'll pay off your loan at a slower rate.
15-year fixed-rate refinance
The average 15-year fixed refinance rate right now is 2.50%, 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. On the other hand, you'll save a money on interest, since you'll pay off the loan sooner. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you'll save even more in the long run.
10-year fixed-rate refinance
The average 10-year fixed refinance rate right now is 2.51%, a decrease of 7 basis points over last week. 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 be a good deal, since paying off your house sooner will help you save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you'll be able to afford the 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 | A week ago | Change |
|---|---|---|---|
| 30-year fixed refi | 3.20% | 3.25% | -0.05 |
| 15-year fixed refi | 2.50% | 2.54% | -0.04 |
| 10-year fixed refi | 2.51% | 2.58% | -0.07 |
Rates as of June 29, 2021.
How to find personalized refinance rates
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.
To get the best interest rates, you'll typically need a high credit score, low credit utilization ratio and a history of making consistent and on-time payments. 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.
To get the best refinance rates, you'll first want to make your application as strong as possible. If you haven't already, try to improve your credit by monitoring your credit reports, using credit responsibly and managing your finances carefully. You should also shop around with multiple lenders and compare offers to make sure you're getting the best rate.
Is now a good time to 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.
Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates -- or even a refinance at all -- if you don't meet their standards. 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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June 29, 2021 at 08:00PM
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Current refinance rates on June 29, 2021: Rates slide - CNET
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