Today, multiple closely followed refinance rates slumped.
Both the 15-year fixed and 30-year fixed saw their average rates decrease. The average rate on 10-year fixed refinance mortgages also declined.
Mortgage refinance rates are constantly shifting. However, they’re still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this might be a great opportunity to reduce your interest rate.
Take a look at today’s refinance rates:
You can discover the right refinance rate for you here.
What this means for homeowners
If you haven’t refinanced in the past few years, rates are still historically low, so it’s worth considering. However, the fees to refinance normally range from 3% to 6% of the loan balance. So be sure that you plan on staying in your home long enough for the interest savings to outweigh the fees. And remember, even if you don’t pay anything upfront, the refinance closing costs are typically rolled into your loan balance. So you’re paying for it one way or another.
30-Year Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 2.94%, a decrease of 6 basis points from what we saw last week.
You can use our mortgage calculator to price out your monthly mortgage payments and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
Average 15-Year Refinance Rates
Right now, average 15-year fixed refinance rates are 2.25%, a decrease of 5 basis points from what we saw last week.
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 save you thousands of dollars interest over the life of the loan.
Average 10-Year Fixed Refinance Rates
The average 10-year, fixed refinance rate is 2.28%, a decrease of 4 basis points from a week ago.
Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
Mortgage Refi Rate Trends
The days of record-low mortgage rates look to be behind us. In early March, mortgage rates inched above 3% for the first time since July, according to Freddie Mac’s weekly survey.
But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.
We determine refinance rate trends using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders from across the nation supply information to Bankrate, which is provided in the table below:
Rates as of August 4, 2021.
Take a look at mortgage refinance rates for a number of different loans.
Is It Still a Good Time to Refinance?
Record low refinance rates drove a surge in mortgage refinancing over the past year. But as interest rates have rebounded from all-time lows, the number of borrowers looking to refinance has begun to shrink.
However, even with the downturn, the interest in mortgage refinancing remains stronger than it was before the pandemic drove rates into the ground. This is because refinance rates are hovering at just over 3%, which is still a historically good deal, even if it’s higher than the recent lows.
So as we turn our backs on record-low interest rates, many borrowers are still able to save with a refinance. But many experts forecast that rates will continue to trend upward throughout 2021. So it’s reasonable to expect refinancing to get more expensive for borrowers as the year progresses.
How to Get the Lowest Refinance Rate
Mortgage refinance rates are influenced by your personal finances. If you have a higher credit score and lower loan-to-value (LTV) ratios will typically be able to obtain better refinance rates.
Your situation isn’t the only consideration that affects the refinance interest rate you qualify for. Your home’s equity also factors into the decision. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
The type of mortgage loan can determine what your interest rate will be. A loan with a shorter repayment term generally has lower interest rates than loans with longer repayment terms, all else equal. Also, if you want to turn your equity into cash with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.
Mortgage Interest Rates by Loan Type
Mortgage Refinance Rates
Home Loan Interest Rates
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August 04, 2021 at 06:45PM
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