Numerous benchmark refinance rates decreased today. Both 15-year fixed and 30-year fixed refinances saw their average rates fall. At the same time, average rates on 10-year fixed refinances also fell. Although refinance rates are dynamic, they have been quite low lately. Because of this, now is a good time for homeowners to get a good refinance rate. But, as always, be sure to think about your personal goals and circumstances first before refinancing, and shop around to find a lender who can best meet your needs.
30-year fixed refinance rates
The average rate for a 30-year fixed refinance loan is currently 3.14%, a decrease of 6 basis points from what we saw a week ago. (One basis point equals 0.01%). Refinancing to a 30-year fixed loan from a shorter loan term can lower your monthly payments. If you are currently struggling to make your monthly payments, a 30-year refinance might be a good option for you. Keep in mind, however, that interest rates are typically higher compared to a 15- or 10-year refinance, and you will pay off your loan at a lower rate.
15-year fixed rate refinancing
The average 15-year fixed refinance rate at this time is 2.45%, a decrease of 5 basis points from last week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. But you will save more money over time, because you are paying off your loan faster. 15-year refinance rates are typically lower than 30-year refinance rates, helping you save even more in the long run.
10-year fixed rate refinancing
The current average interest rate for a 10-year refinance is 2.47%, a decrease of 4 basis points from what we saw the previous week. Compared to a 30- and 15-year refinance, a 10-year refinance will generally have a lower interest rate but a higher monthly payment. A 10-year refinance can help you pay off your home much faster and save on long-term interest. But you must confirm that you can afford a higher monthly payment by evaluating your budget and your overall financial situation.
Where the rates are heading
We track trends in refinance rates using data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table of average refinance rates provided by lenders across the country:
|Product||Velocity||In the past week||Change|
|30-year fixed refi||3.14%||3.20%||-0.06|
|Fixed Refi to 15 years||2.45%||2.50%||-0.05|
|10-year fixed refi||2.47%||2.51%||-0.04|
Rates as of July 6, 2021.
Finding Custom Refinance Rates
When looking for refinance rates online, it is important to remember that your specific financial situation will influence the rate that you are offered. Your interest rate will be influenced by market conditions, as well as your credit history and your application.
To get the best interest rates, you will typically need a high credit score, a low credit utilization rate, and a history of consistent and on-time payments. To get your personalized refinance rates, you will need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. Also remember to consider potential closing fees and costs.
You should also know that many lenders have had stricter requirements when it comes to approving loans in recent months. If you have a low credit score or poor credit history, you may have trouble getting a refinance at the lower interest rates.
One way to get the best refinance rates is to strengthen your borrower application. The best way to improve your credit rating is to get your finances in order, use credit responsibly, and monitor your credit regularly. Be sure to talk to multiple lenders and shop around to find the best rate.
When to consider a mortgage refinance
Generally, it is a good idea to refinance if you can get an interest rate lower than the current interest rate, or if you need to change the term of your loan. It is true that in the last year, interest rates have been at historic lows. But when deciding whether to refinance, be sure to consider factors other than market interest rates.
Be sure to consider your goals and your financial situation, including how long you plan to stay in your current home. It helps to have a specific goal for a refinance, such as lowering your monthly payment or adjusting the term of your loan. Also keep in mind that closing costs and other fees may require an initial investment.
Be aware that some lenders have tightened their requirements since the beginning of the pandemic. If you don’t have a strong credit score, you may not qualify for the best rate. If you can get a lower interest rate or pay off your loan earlier, refinancing can go a long way. But first carefully weigh the pros and cons to make sure it’s a good fit for your situation.