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Refi rates on June 30, 2021: rates go down

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Joe Sohm / Getty

Several benchmark refinance rates fell today. Both 15-year fixed and 30-year fixed refinances saw their average rates fall. At the same time, average rates for 10-year fixed refinances also decreased. Although refinance rates are dynamic, they are lower than they have been in years. For those looking to secure a good rate, now is the ideal time to refinance a home. But, as always, be sure to consider your personal goals and circumstances first before obtaining a refinance, and talk to multiple lenders to find the lender that can best meet your needs.

30-year fixed refinance rates

For 30-year fixed refinances, the average rate is currently 3.20%, a decrease of 5 basis points from this period last week. (One basis point equals 0.01%). A 30-year fixed refinance will generally have lower monthly payments than a 15- or 10-year refinance. 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, the interest rates for a 30-year refinance will generally be higher than the rates for a 15- or 10-year refinance. It will also take longer to pay off your loan.

15-year fixed rate refinancing

The average 15-year fixed refinance rate at this time is 2.50%, a decrease of 4 basis points compared to a week ago. 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 average 10-year fixed refinance rate at this time is 2.51%, a decrease of 7 basis points from last week. A 10-year refinance will generally feature the highest monthly payment of all the refinance terms, but the lowest interest rate. A 10-year refinance can help you pay off your home much faster and save on 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 reported by lenders across the country:

Average interest rates on refinancing

Product Velocity In the past week Change
30-year fixed refi 3.20% 3.25% -0.05
Fixed Refi to 15 years 2.50% 2.54% -0.04
10-year fixed refi 2.51% 2.58% -0.07

Rates as of June 30, 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. Your interest rate will be influenced by market conditions, as well as your credit history and your application.

Overall, you’ll want a high credit score, a low credit utilization ratio, and a history of consistent and on-time payments to get the best rates. It’s always a good idea to research interest rates online, but you’ll need to contact a mortgage professional to get your exact refinance rate. You should also be aware of fees and closing costs that could offset the potential savings from a refinance.

Since the beginning of the pandemic, many lenders have been stricter with whom they approve a loan. As such, you may not qualify for a refinance, or a low rate, if you don’t have a strong credit rating.

Before applying for a refinance, you should make your application as robust as possible to get the best rates available. If you haven’t already, try improving your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully. Be sure to talk to multiple lenders and shop around to find the best rate.

Is now a good time to 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. While interest rates have been low in recent months, you should consider more than just market interest rates when deciding if a refinance is right for you.

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? 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.

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