Today, multiple benchmark mortgage refinance rates have gone up.
The 15-year and 30-year fixed rates have seen their average rates increase. The average rate for 10-year fixed-rate refinancing mortgages has remained stable.
Refinancing rates are constantly changing. However, they are currently very low. For those looking to refinance their existing mortgage, this may be the perfect time to get a record high rate.
Here are the 30-year, 15-year and 10-year average refinance loan rates:
Find mortgage refinancing rates in your area here.
What this means for owners
If you haven’t refinanced in the past few years, the rates are still low enough that it’s worth thinking about. But the decision to refinance isn’t just about the rate, there are also closing costs to consider. So make sure you save more in the long run than you pay up front. And remember that even a “no closing cost” refinance still has fees, but instead of paying them up front, they are added to your loan.
30-year refinancing rate
Right now, the 30-year average 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 tell you how much interest you will be charged over the life of the loan.
15-year average refinancing 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 more difficult to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build equity in your home much faster.
Refi rates fixed over 10 years
The 10-year average fixed refinance rate is 2.33%, unchanged from what we saw last week.
Monthly payments with a 10-year refinance term would cost even more than what you would pay with a 15-year loan. The advantage is that you will end up paying even less interest over the life of the loan.
Trends in refi rates
Currently, refinancing rates are extremely low compared to recent history of mortgage rates. Rates have been close to 3% since April 2021, according to Freddie Mac Weekly Poll.
Even with a moderate increase, rates could still remain favorable to borrowers. Experts see rates staying low throughout 2021 and won’t start to see consistent gains until the second half of the year. The evolution of long-term refinancing rates will depend on general factors, such as inflation and our economic recovery.
How we determine refi rates
The table below shows the refinancing rate trends for the past week.
These refi rates are provided by Bankrate. The information is based on homeowners who match a certain profile, such as a credit score of 740+ with a loan-to-value ratio of 80% or better. You will therefore be entitled to different rates if your personal situation does not meet the criteria of the survey.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Prices as of September 3, 2021.
Take a look at the mortgage refinance rates for a number of different loans.
Is it still a good time to refinance?
Record refinancing rates have led to an increase in mortgage refinancing over the past year. But as interest rates rebounded from their historic lows, the number of borrowers looking to refinance began to decline.
However, even with the downturn, interest in mortgage refinancing remains higher than it was before the pandemic brought rates down. In fact, refinancing rates hover at just over 3%, which historically remains a good deal, even if it is higher than recent lows.
As we turn our backs on record interest rates, many borrowers are still able to save with refinancing. But many experts predict that rates will continue to rise through 2021. So it’s reasonable to expect refinancing to become 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 refinancing rate you get. Having more equity in your home and a better credit rating usually results in a lower mortgage refinance rate.
But your personal financial situation is not the only consideration that influences the interest rates offered to you. The amount of equity 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 effect on what your mortgage refinance rate will be. A loan with a shorter repayment term generally has better rates than refinance loans with longer repayment terms, all other things being equal. Additionally, if you want to withdraw money from your home with withdrawal refinance, you should expect to pay a higher mortgage rate for this lien.
How much does refinancing cost?
If you refinance your mortgage, the closing costs typically range between 3% and 6% of the loan amount. For a loan of $ 300,000, this represents $ 9,000 to $ 18,000 in fees.
But, each lender will assess your personal situation differently. It is therefore important to shop around and compare offers. Everything from the location of the property to the type of loan you refinance can change what you pay to refinance.
