Several important refinancing rates have dropped today. Average refinancing rates for both the 15-year fixed rate and 30-year fixed rate declined. At the same time, the average rates on fixed refinances for 10 years remained the same. Refinancing interest rates have never been set in stone, but they have been historically low. If you are planning to refinance your home, this may be the right time to lock in a good rate. But, as always, remember to take your personal goals and circumstances into account first before refinancing and find the lender who is best able to meet your needs.
30 year fixed refinancing rates
For a 30-year fixed refinance, the average rate is currently 2.99%, down 5 basis points from what we saw a week ago. (The base point is equivalent to 0.01%.) One reason to refinance a 30-year fixed loan with a shorter loan term is to lower your monthly payment. Because of this, a 30 year refinance can be a good idea if you’re having trouble making monthly payments. However, interest rates for a 30 year refinance are usually higher than for a 15 or 10 year refinance. It will also take you longer to pay off the loan.
15 year fixed rate refinancing
The current average 15-year refinancing rate is 2.30%, down 1 basis point from a week ago. With a fixed refinancing for 15 years, the monthly payment will be higher than with a 30-year loan. On the other hand, you will save on interest as you pay off the loan earlier. You also usually get lower interest rates compared to a 30 year loan. This will help you save even more in the long run.
10 year fixed rate refinancing
The current average interest rate on 10-year refinancing is 2.33%, which is unchanged from what we saw in the previous week. Compared to 30-year and 15-year refinancing, 10-year refinancing usually has a lower interest rate, but a higher monthly payment. 10 year refinancing will help you recoup your home faster and save on interest. Just be sure to carefully review your budget and current financial situation to make sure you can afford the higher monthly payment.
Where are the rates going?
We monitor trends in refinancing rates using data collected by Bankrate, owned by parent company CNET. Here is a table showing the average refinancing rates quoted by US lenders:
Average refinancing interest rates
|Product||Pace||A week ago||Change|
|30 year fixed return||2.99%||3.04%||-0.05|
|Fixed return for 15 years||2.30%||2.31%||-0.01|
|10 year fixed return||2.33%||2.33%||N / C|
Tariffs as of 23 August 2021
How to find the best refinancing rate
When looking for refinancing rates online, it is important to remember that your specific financial situation will affect the rate offered. Your interest rate will be affected by market conditions as well as your credit history and application.
Typically, you need a high credit rating, a low credit utilization rate, and a history of making consistent and timely payments in order to get the best interest rates. It is always helpful to research interest rates online, but you will need to contact a professional mortgage specialist to find out the exact refinancing rate. You should also consider any closing fees and costs that may offset potential savings from refinancing.
It is also worth noting that in recent months, lenders have become stricter in their demands. Thus, you cannot qualify for refinancing – or at a low rate – unless you have a solid credit rating.
Before applying for refinancing, you must make your application as strong as possible in order to get the best rates available. If you haven’t already, try improving your credit by tracking your credit reports, using credit responsibly, and managing your finances carefully. Also, don’t forget to compare offers from multiple lenders to get the best rate.
When should I refinance?
Generally, refinancing is recommended if you can get a lower interest rate than your current interest rate, or if you need to change the loan term. Although interest rates have been low in the past few months, you should look beyond market interest rates when deciding if refinancing is right for you.
To decide if refinancing is right for you, take all factors into account, including how long you plan to stay in your current home, the length of your loan, and the size of your monthly payment. Also keep in mind that closing and other fees may require upfront investment.
Some lenders have tightened their requirements in recent months, so you won’t be able to get refinancing at announced interest rates – or even refinancing at all – if you don’t meet their standards. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan earlier. But a careful cost-benefit analysis is needed to confirm that this makes sense.