Today, multiple benchmark mortgage refinance rates increased.
Both the 15-year fixed and 30-year fixed saw their average rates go higher. The average rate on 10-year fixed refinance mortgages were stable.
Refinancing rates are constantly shifting. However, they’re currently very low. For those looking to refinance their existing mortgage, this can be the perfect time to secure a record-low rate.
Here are the average rates for 30-year, 15-year, and 10-year refinance loans are:
Check out mortgage refinancing rates for your area here.
What this means for homeowners
If you haven’t refinanced in the past few years, rates are still low enough that it’s worth looking into. But the decision to refinance isn’t just about the rate, there are closing costs to consider as well. So be sure that you’re saving more in the long run than you’re paying upfront. And don’t forget that even a “no-closing-cost” refinance still has fees, but instead of paying them upfront, they’re added to your loan.
30-Year Refinance Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.07%, an increase of 8 basis points from what we saw last week.
You can use our mortgage calculator to get an idea of what your monthly payments will be 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
Currently, the average rate for a 15-year fixed refinance loan is 2.37%, an increase of 7 basis points from a week ago.
Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build up equity in your home much more quickly.
10-Year Fixed Refi Rates
The average 10-year, fixed refinance rate is 2.33%, unmoved from what we saw last week.
Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.
Refi Rate Trends
Right now, refinance rates are extremely low compared to recent mortgage rate history. Rates have been close to 3% since April 2021, according to Freddie Mac’s weekly survey.
Even with a moderate increase, rates could still remain favorable for borrowers. Experts see rates staying low throughout 2021, and will only start seeing consistent gains in the second half of the year. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
How we determine refi rates
The table below shows refinance rates trends from the past week.
These refi rates are provided by Bankrate. The information is based on homeowners that fit a certain profile, such as a credit score of 740+ with a loan-to-value ratio of 80% or better. So you’ll be eligiblefor different rates if your personal circumstances don’t align with the survey criteria..
Bankrate is owned by Red Ventures, Nextadvisor’s parent company.
Rates as of September 3, 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 Qualify for the Best Refinance Rate
Your financial situation has a big impact on the refinance rate you get. Having more equity in your home and a better credit score typically translates into a lower mortgage refinance rate.
But your personal financial situation isn’t the only consideration that affects the interest rates you’re offered. The amount of equity you have in the home also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
Even the mortgage itself has an affect on what your mortgage refinance rate will be. A loan with a shorter repayment term typically has better rates than refinance loans with longer repayment terms, all else equal. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.
How Much Does Refinancing Cost?
If you refinance your mortgage, closing costs typically range from 3% to 6% of the loan amount. For a $300,000 loan that’s $9,000 to $18,000 in fees.
But, each lender will assess your personal situation differently. So it’s important to shop around and compare offers. Everything from where the property is located to the type of loan you’re refinancing into can change what you’ll pay to refinance.
Mortgage Rates by Loan Type
Mortgage Refi Rates
Home Loan Interest Rates
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