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Today, several base mortgage refinancing rates have increased.
Both 15-year fixed rates and 30-year fixed rates increased. The average rate on 10-year fixed-refinancing mortgages remained stable.
Refinancing rates are constantly changing. However, they are currently very low. For those looking to refinance an existing mortgage, this may be the perfect time to secure an all-time low rate.
Here are the average rates for 30-year, 15-year and 10-year refinancing loans:
What does this mean for homeowners
If you haven’t refinanced in the past few years, the rates are still quite low and worth looking into. But the refinancing decision concerns not only the rate, but also the costs of closing the deal. So make sure you end up saving more than paying up front. And don’t forget that even “no closing costs” refinancing still requires fees, but instead of paying them up front, they are added to your loan.
30 year refinancing rates
Right now average 30 year fixed refinancing has an interest rate of 3.07%, which is 8 basis points more than last week.
You can use our mortgage calculator to get an idea of what your monthly payments will be 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
Currently, the average rate for 15 year fixed refinancing loan is 2.37%, which is 7 basis points more than a week ago.
Monthly payments on a 15-year refinancing loan are more difficult to budget for a monthly budget than a 30-year mortgage payment. However, a shorter loan term can help you build up capital in your home much faster.
10-year fixed refinancing rates
The average 10 year fixed refinancing rate is 2.33%, which is no different from what we saw last week.
Monthly payments with a 10-year refinancing period will cost even more than what you would pay on a 15-year loan. The good news is that you will end up paying even less interest over the life of the loan.
Refinancing rate trends
Even with a moderate increase, rates may remain favorable for borrowers. Experts believe that rates will remain low in 2021., and stable growth will begin only in the second half of the year. Changes in refinancing rates in the long term will depend on general factors such as inflation and our economic recovery.
How we determine refinancing rates
The table below shows the trends in refinancing rates over the past week.
These refinancing rates are provided by Bankrate. The information is based on homeowners who fit a specific profile, such as a 740+ credit rating with a loan-to-value ratio of 80% or higher. Thus, you will be eligible for different rates if your personal circumstances do not meet the survey criteria.
Bankrate is owned by Red Ventures, Nextadvisor’s parent company.
Tariffs as of September 3, 2021.
Is it still a good time to refinance?
Record low refinancing rates have led to a sharp increase in mortgage refinancing volumes over the past year. But as interest rates bounced off record lows, the number of borrowers looking to refinance began to decline.
However, even amid the economic downturn, interest in refinancing mortgages remains higher than it was before the pandemic cut rates. This is because refinancing rates hover at just over 3%, which is still a historically good deal, even if it is above recent lows.
Therefore, when we move away from record low interest rates, many borrowers can still save by refinancing. But many experts predict that the upward trend in rates will continue in 2021. Therefore, it is reasonable to expect refinancing to become more expensive for borrowers over the course of the year.
How to qualify for the best refinancing rate
Your financial position has a big impact on the refinancing rate you receive. Having more equity in your home and a better credit rating usually translates into a lower mortgage refinancing rate.
But your personal financial situation is not the only consideration that affects the interest rates offered to you. Equity capital also plays an important role. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.
Even the mortgage itself affects what the mortgage refinancing rate will be. Loans with a shorter maturity usually have better rates than refinancing loans with longer maturities, all else being equal. Plus, if you are looking to get your cash out of your home using cash-to-cash refinancing, you should look forward to a higher mortgage rate for this privilege.
How much does refinancing cost?
If you are refinancing a mortgage, the closing costs are usually between 3% and 6% of the loan amount. For a $ 300,000 loan, these are fees between $ 9,000 and $ 18,000.
But each lender will assess your personal situation differently. So it’s important to look closely and compare offers. Everything from the location of the property to the type of loan you refinance into can change what you pay to refinance.
Mortgage rates by type of loan
Mortgage loan repayment rates
Home loan interest rates