Several benchmark refinance rates decreased today. Both 15-year fixed refinances and 30-year fixed refinances saw their average rates fall. At the same time, the average rates for 10-year fixed refinances remained the same. Refinancing interest rates are never set in stone, but the rates have historically been low. For those looking to get a good rate, now is the ideal time to refinance a home. Before getting a refinance, remember to consider your personal needs and financial situation, and talk to different lenders to find the right one for you.
30-year fixed refinance rates
The current average interest rate for a 30-year refinance is 2.97%, a decrease of 2 basis points compared to a week ago. (One basis point equals 0.01%). One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. This makes 30-year refinances good for people who are struggling to make their monthly payments or just want a little more breathing room. However, in exchange for lower monthly payments, the 30-year refinance rates will typically be higher than the 15- and 10-year refinance rates. You will also pay off your loan more slowly.
15-year fixed rate refinancing
The current average interest rate for 15-year refinances is 2.28%, a decrease of 2 basis points from what we saw the previous week. With a 15-year fixed refinance, you will have a higher monthly payment than a 30-year loan. But you will save more money over time, because you are paying off your loan faster. Typically, you will also get lower interest rates compared to a 30-year loan. This can help you save even more in the long run.
10-year fixed rate refinancing
The average rate for a 10-year fixed refinance loan is currently 2.31%, regardless of what we saw last week. You’ll pay more each month with a 10-year fixed refin compared to a 30- or 15-year refinance, but it will also have a lower interest rate. A 10-year refinance can help you pay off your home much faster and save on long-term interest. However, you should analyze your budget and your current financial situation to make sure you can afford the highest monthly payment.
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 with the average refinance rates provided by lenders across the country:
|Product||Speed||A week ago||Change|
|30-year fixed refi||2.97%||2.99%||-0.02|
|Fixed Refi to 15 years||2.28%||2.30%||-0.02|
|10-year fixed refi||2.31%||2.31%||N / C|
Rates as of August 2, 2021.
How to find the best refinance rate
When looking for refinance rates online, it is important to remember that your specific financial situation will influence the rate that you are offered. Although current market conditions will be a factor, your particular interest rate will largely depend on your application and credit history.
Having a high credit score, a low credit utilization rate, and a history of consistent and on-time payments will generally help you get the best interest rates. 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. You should also be aware of fees and closing costs that could offset the potential savings from a refinance.
It’s also worth noting that in recent months, lenders have been more stringent with their requirements. This means that if you don’t have good credit scores, you may not be able to take advantage of the lower interest rates, or qualify for a refinance in the first place.
One way to get the best refinance rates is to strengthen your borrower application. You can do this by monitoring your credit, taking on debt responsibly, and getting your finances in order before applying for a refinance. You should also shop around with various lenders and shop around to make sure you get the best rate.
When to consider a mortgage refinance
For a refinance to make sense, you will generally want to get an interest rate lower than the current rate. Aside from interest rates, changing the term of your loan is another reason to refinance. 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.
A refinance may not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan to stay at home? Are you refinancing to lower your monthly payment, pay off your home sooner, or for a combination of reasons? And don’t forget about fees and closing costs, which can add up.
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. Refinancing can be a great move if you get a good rate or can pay off your loan sooner, but consider carefully whether it is the right option for you. .