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Many base refinancing rates have dropped today.
Both 15-year fixed rates and 30-year fixed rates have declined. And the average 10-year fixed refinancing rates have also declined.
Refinancing rates are constantly changing. However, they are still close to minimums that we have never seen before. For those looking to refinance their existing mortgage, this may be the right move to lock in the bulk of the interest rate.
Take a look at today’s refinancing rates:
What does this mean for homeowners
If you haven’t refinanced in the past few years, rates are still low, so it’s worth considering. But the refinancing decision concerns not only the rate, but also the costs of closing the deal. So make sure you plan on staying in your home long enough that the interest saved outweighs the fees. And remember, even if you don’t pay anything out of pocket, the closing refinancing costs are usually added to your loan balance. So you pay for it anyway.
Average 30-year fixed refinancing rates
Right now average 30 year fixed refinancing the interest rate is 2.94%, which is 6 basis points lower than in the previous week.
You can use our mortgage calculator to determine how much your mortgage will cost each month and how the monthly additional payments will affect your mortgage. Our mortgage calculator will also show you how much interest will be charged for the entire loan term.
Average refinancing rates over 15 years
Right now, on average 15 year fixed refinancing rates are 2.24%, which is 5 basis points less than last week.
The monthly payments on a 15 year refinancing loan can be a significant amount more than what you get with 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 fixed refinancing rates
Average 10 year fixed refinancing rate is 2.27%, which is 4 basis points less than a week ago.
Monthly payments with a 10-year refinancing term will cost significantly more than a 15-year term, but you will pay less interest in the long run.
Mortgage Refinancing Rate Trends
But rates should still remain favorable for borrowers throughout the year. Some experts predict that mortgage rates will remain lowand that by the end of the year it is more likely that rates will rise steadily. Changes in refinancing rates in the long term will depend on general factors such as inflation and our economic recovery.
We identify trends in refinancing rates using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders from all over the country provide Bankrate information, which is presented in the table below:
Tariffs as of August 6, 2021.
Is it still a good time to refinance?
Last year has been a historically great time to refinance because rates have never been lower. However, since January, mortgage rates have jumped and for the first time since last summer exceeded the 3 percent threshold.
While the days of record refinancing rates are behind us, this is still an exceptional time for many homeowners to refinance. If you can lock in today’s rates, which are just above 3%, you are entering a trade at a near-record low rate.
So there is still time to save on refinancing, but that window is closing. Many experts predict the numbers will continue to rise as the economy returns to pre-pandemic levels next year.
How to qualify for the best refi rate
Refinancing rates depend on your personal finances. Having a healthier credit rating and a lower credit-to-value (LTV) ratio usually gives a bigger discount on their refinancing rate.
But your personal financial situation is not the only consideration that affects the mortgage refinancing rate you are eligible for. The best loan-to-value (LTV) ratio can help you qualify for a lower refinancing rate. So it’s better to have more funds. It is ideal to own at least 20% of the capital.
Even the mortgage itself can dictate your mortgage refinancing rate. A short term refinancing loan usually has a better refinancing rate than refinancing loans with longer maturities, all else being equal. Plus, if you are looking to get cash out of your home using cash refinancing, you should look forward to a higher mortgage rate for this privilege.
Mortgage interest rates by loan type
Mortgage refinancing rates
Home loan purchase rates