We want to help you make better decisions. Some of the links on this page – clearly marked – may lead you to an affiliate website and may result in us receiving referral commissions. For more information see How do we make money.
In general, mortgage refinancing rates were changing, while the rate increased noticeably.
The average national rate for 15-year fixed rate refinancing fell, while 30-year fixed rate refinancing saw an increase. At the same time, the average refinancing rates with a fixed maturity of 10 years decreased.
Mortgage refinancing rates are constantly changing. However, they are now extremely low. For those looking to refinance their existing mortgage, this may be the perfect time to secure an all-time low rate.
The average mortgage refinancing rates are as follows:
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 end up saving more than paying up front. And it’s important to know that even “no closing costs” refinancing still requires fees, but instead of paying them up front, they are added to your loan.
Average refinancing rates over 30 years
Right now average 30 year fixed refinancing has an interest rate of 3.00%, which is 1 basis point more 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.
Refinancing rates for 15 years
Right now, on average 15 year fixed refinancing rates are 2.31%, which is 1 basis point less than we saw last week.
The monthly payments on a 15-year refinancing loan are harder to fit into 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.
Average 10-year fixed refinancing rates
Average 10 year fixed refinancing rate is 2.32%, which is 2 basis points below the level of the previous week.
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.
Refinancing rate trends
But rates should still remain favorable for borrowers throughout the year. Experts believe that rates will remain low in 2021and that much later this 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.
The table below shows the trends in refinancing rates over the past week. This information is provided by Bankrate, which collects data from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
Tariffs as of July 27, 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 with the downturn, interest in mortgage refinancing 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 that refinancing will become more expensive for borrowers over the course of the year.
How to qualify for the lowest refinancing rate
Mortgage refinancing rates vary depending on your personal financial situation. Having a healthier credit rating and a better credit-to-value (LTV) ratio usually qualifies for a larger discount on their proposed mortgage refinancing rates.
But your personal financial situation is not the only consideration that affects the interest rate to which you are entitled. The best loan to value (LTV) ratio can help you secure a lower refinancing rate. So the more capital you accumulate, the better. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.
Even the mortgage itself will affect your refinancing interest rate. A short term refinancing loan usually has lower refinancing rates than a loan with a longer maturity. In addition, if you want to turn your capital into cash through cash-to-cash refinancing, you will be charged a higher interest rate compared to other types of refinancing.
Current mortgage rates by loan type
Mortgage refinancing rates
Home loan interest rates