Mortgage refinancing rates on July 9, 2021: rates decline

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Several important refinancing rates have stalled today. Average refinancing rates at fixed rates for 15 and 30 years have decreased. At the same time, the average refinancing rates with a fixed maturity of 10 years also decreased. While refinancing rates fluctuate, they’ve been pretty low lately. If you are planning to refinance your home, this may be the right time to get a good rate. But, as always, remember to think about your personal goals and circumstances first before refinancing, and talk to several lenders to 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 3.13%, down 2 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. This makes 30 year refinancing useful for people who are struggling with monthly payments or just want a little respite. However, keep in mind that interest rates will usually be higher compared to 15 or 10 year refinancing and you will pay off your loan more slowly.

15 year fixed rate refinancing

For 15-year fixed refinancing, the average rate is currently 2.44%, down 1 basis point from a week ago. Refinancing a 15 year fixed loan from a 30 year fixed loan will likely increase your monthly payment. On the other hand, you will save on interest as you pay off the loan earlier. Interest rates for 15-year refinancing are also generally lower than for 30-year refinancing, so you will save even more in the long run.

10 year fixed rate refinancing

The average rate on a 10-year fixed refinancing loan is currently 2.47%, down 1 basis point from a week ago. You will pay more each month for a fixed refinance for 10 years compared to refinancing for 30 or 15 years, but you will also have a lower interest rate. A 10 year refinance can be a good deal as paying off your home earlier will help you save on interest in the long run. However, you should 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 information compiled by Bankrate, owned by parent company CNET. Here is a table showing the average refinancing rates provided by lenders across the country:

Average refinancing interest rates
Product Indicator Last week Change
30 year fixed return 3.13% 3.15% -0.02
Fixed return for 15 years 2.44% 2.45% -0.01
10 year fixed return 2.47% 2.48% -0.01

Tariffs as of July 9, 2021.

How to shop at refinancing rates

When looking for refinancing rates, be aware that your specific rate may differ from the rates advertised online. Market conditions are not the only factor affecting interest rates; your specific application and credit history will also play a big role.

To get the best interest rates, you will generally need a high credit rating, a low credit utilization rate, and a history of making consistent and timely payments. 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. Also, do not forget to consider the possible commissions and costs of closing the deal.

It is also worth noting that in recent months, lenders have become stricter in their demands. This means that if you have a low credit rating, you may not be able to take advantage of the lower interest rates or even qualify for refinancing.

One way to get the best refinancing rate is to leverage your borrower application. The best way to improve your credit score is to get your finances in order, use credit responsibly, and monitor your credit regularly. You should also shop with multiple lenders and compare offers to make sure you are getting the best rate.

When to consider refinancing your mortgage

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. It is true that interest rates were at historic lows last year. But when deciding to refinance, be sure to consider factors other than market interest rates.

Refinancing doesn’t always make financial sense. Consider your personal goals and financial circumstances. How long do you plan to stay in your home? Are you refinancing to reduce your monthly payment, pay off your house faster – or for any number of reasons? Also keep in mind that closing and other fees may require upfront investment.

Note that some lenders have tightened their requirements since the start of the pandemic. Unless you have a solid credit rating, you cannot qualify for the best rate. If you can get a lower interest rate or pay off your loan earlier, refinancing can be a great move. But first, carefully weigh the pros and cons to make sure it is right for your situation.



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