Several benchmark refinance rates dropped today. Both 15-year fixed and 30-year fixed refinances saw their average rates slump. The average rate on 10-year fixed refinances, however, saw a slight increase. Although refinance rates fluctuate, they have been lower than they've been in years. Because of this, right now is a good time for homeowners to get a good refinance rate. Before you refinance, remember to take into account your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.
Read more: How to finance a home renovation
30-year fixed refinance rates
The average rate for a 30-year fixed refinance loan is currently 3.00%, a decrease of 4 basis points compared to one week ago. (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. 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- or 10-year refinance, and you'll pay off your loan at a slower rate.
15-year fixed refinance rates
The average rate for a 15-year fixed refinance loan is currently 2.29%, a decrease of 4 basis points over last week. 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. Fifteen-year refinance rates are typically lower than 30-year refinance rates, which will help you save even more in the long run.
10-year fixed refinance rates
The average 10-year fixed refinance rate right now is 2.32%, an increase of 1 basis point from what we saw the previous week. Compared to a 30- or 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 country:
Average refinance interest rates
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed refi | 3.00% | 3.04% | -0.04 |
| 15-year fixed refi | 2.29% | 2.33% | -0.04 |
| 10-year fixed refi | 2.32% | 2.31% | +0.01 |
Rates as of Aug. 19, 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.
Having a high credit score, a 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.
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. You can do that by monitoring your credit, taking on debt responsibly and getting your finances in order before applying for a refinance. You should also shop around with multiple lenders and compare offers to make sure you're getting 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. 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.
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 during the pandemic, 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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August 19, 2021 at 08:00PM
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Current refinance rates on Aug. 19, 2021: Rates slide - CNET
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