Mortgage Refinance Rate Today, September 15, 2021 | Lower rates
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Today, several benchmark refinancing rates have fallen.
Both the 15-year fixed and the 30-year fixed have seen their average rates fall. At the same time, the average 10-year fixed refinancing rates remained unchanged.
Refinancing interest rates are constantly changing. However, they are exceptionally low at the moment. For those looking to refinance their existing mortgage, this may be the perfect time to get a record high rate.
The average mortgage refinancing rates are as follows:
Check out mortgage refinance rates for your area here.
What this means for owners
If you haven’t refinanced in the past few years, rates are still historically low, so 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, even a “no closing cost” refinance still comes with fees – they’re just added to your loan balance instead of being paid out of pocket.
30-year average refinancing rates
Right now, the 30-year average fixed refinance has an interest rate of 2.99%, down 1 basis point from what we saw last week.
You can use our mortgage calculator to calculate the price of your monthly mortgage payments 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.
Refi rates fixed over 15 years
For fixed 15-year refinances, we see an average rate of 2.29%, down 1 basis point from what we saw last week.
The monthly payments on a 15-year refinance loan can be much higher than what you would get on a 30-year mortgage. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.
10-year average fixed refinancing rates
The 10-year average fixed refinance rate is 2.27%, unchanged from a week ago.
Monthly payments with a 10-year refinance term would cost a lot more per month than with a 15-year term, but you’ll pay less interest in the long run.
Trends in refinancing rates
Right now, refinance rates are extremely low compared to historical mortgage rates. Rates have been equal to or less than 3% since April 2021, depending on Freddie Mac Weekly Poll.
Even with a moderate increase, rates could still remain favorable to borrowers. Experts believe that rates will remain low throughout 2021 and that towards the end of the year rates are more likely to rise steadily. Whatever happens with long-term refinancing rates will depend on general factors, such as inflation and our economic recovery.
How we calculate our refinancing rates
Our refinancing rate trends are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These daily average refi interest rates are based on one of the following customer profiles:
- Loan to value (LTV) or 80% or less
- Principal residence
- Credit score of 740 or higher
- Single family Home
The information provided to Bankrate by lenders across the country is provided in the table below:
Prices as of September 15, 2021.
Take a look at the mortgage refinance rates for a number of different loans.
Does refinancing still make sense?
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 Make Sure You Get The Best Refinance Rate
Refinancing rates vary depending on your personal financial situation. If you have a higher credit score and lower loan-to-value ratios (LTVs), you will usually receive a larger discount on the mortgage refinance rates offered to them.
Your personal finances aren’t the only factor that affects your interest rate. The value of your property relative to your loan balance is also a factor in the decision. Having at least 20% equity in your property is ideal.
The type of mortgage loan can determine what your interest rate will be. A loan with a shorter repayment term usually has lower rates than a longer term loan. Also, if you want to turn your equity into cash with cash out refinancing, you will have to pay a higher interest rate than other types of refinancing.
How much does it cost to refinance?
What you will pay to refinance your mortgage can vary widely depending on these factors:
- Where is the property
- Type of refinancing loan
- Which lender you choose
- Amount of the loan
- Your credit rating
- Home equity
Typically, the refinancing closing costs are 3-6% of the loan balance. The type of loan you refinance can impact its cost in a number of ways. Some government-backed refinance loans, such as the FHA Streamline or the VA Interest Rate Reduction Refinance Loan (IRRRL) may not require appraisal, but may come with high upfront fees to cover mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to eventually get rid of the mortgage insurance requirement.