Current refinancing rates, September 24, 2021 | Prices increase
Today, a few closely watched mortgage refinancing rates have increased.
The 15-year and 30-year fixed rates have seen their average rates increase. The average rate for 10-year fixed-rate refinance mortgages has gone down.
Mortgage refinancing rates are constantly fluctuating. However, they are currently very low. For those looking to refinance their existing mortgage, this may be the right decision to lock in a lot on an interest rate.
The average mortgage refinancing rates are as follows:
You can find the refinancing rate that’s right for you here.
What this means for owners
While refinancing rates remain close to 3%, homeowners who were waiting to refinance still have a chance to potentially save with a new home loan. However, the refinancing fees normally range from 3% to 6% of the loan amount. So make sure you save more in the long run than you pay up front. And it’s important to know that even a “no closing cost” refinance still has fees, but instead of paying them up front, they are added to your loan.
Fixed refinancing rates over 30 years
Currently, the 30-year average fixed refinance has an interest rate of 3.01%, an increase of 4 basis points from the previous week.
You can use our mortgage calculator to figure out how much your mortgage will cost you each month and find out how much less interest you will pay by making additional payments. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.
15-year average fixed refinancing rates
Currently, the average rate for a 15-year fixed refinance loan is 2.28%, an increase of 1 basis point from the previous week.
Monthly payments on a 15-year refinance loan are more difficult to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build equity in your home much faster.
10-year refi rate
The 10-year average fixed refinancing rate is 2.25%, down 1 basis point from the rate observed the previous week.
Monthly payments with a 10-year refinance term would cost even more than what you would pay with a 15-year loan. The advantage is that you will end up paying even less interest over the life of the loan.
Mortgage refinancing rate trends
Currently, refinancing rates are extremely low compared to the recent history of mortgage rates. The rates have been equal to or less than 3% since April 2021, depending on Freddie Mac Weekly Poll.
Even with a moderate increase, rates could still remain favorable to borrowers. Experts believe that rates will remain low throughout 2021, and that much later this year, rates are more likely to rise steadily. The evolution of long-term refinancing rates will depend on general factors, such as inflation and our economic recovery.
How we calculate our refinancing rates
The table below shows how the refinance rates have changed over the past week.
These daily refinancing rates are provided by Bankrate. The information is based on consumers who fit a certain profile, such as the loan is for a primary residence and their FICO score is 740 or higher. You will therefore be able to benefit from different rates if your financial situation does not correspond to the criteria of the survey.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Prices as of September 24, 2021.
Take a look at the mortgage refinance rates for a number of different loans.
Is it still a good time to refinance?
The past year has historically been a great time to refinance as rates have never been so low. However, since January, mortgage rates have climbed and crossed the 3% threshold for the first time since last summer.
Even though the days of record refinancing rates are behind us, it is still a great time for many homeowners to refinance. If you can lock in today’s rates that are just north of 3%, you get a deal near the historic low.
So there is still time to save with a refinance, but this window is closing. Many experts predict that rates will continue to rise as the economy returns to pre-pandemic levels over the next year.
How to get the best refinance rate
Your personal situation has a big impact on the refinancing rate you can get. Having more equity in your home and a better credit rating usually translates into a better mortgage refinance rate.
But your personal financial situation is not the only factor that influences the refinancing rate for which you are eligible. A lower loan-to-value ratio (LTV) will help you get a lower refinance rate. So it is better to have more equity. Having at least 20% equity in your property is ideal.
The type of mortgage loan will affect your interest rate. A loan with a shorter repayment term generally has lower interest rates than loans with longer repayment terms, all other things being equal. Also, if you want to turn your equity into cash with cash out refinancing, you will have to pay a higher interest rate than other types of refinancing.
Average cost of refinancing
The cost of refinancing can vary widely depending on these factors:
- Where is the property
- Type of refinancing loan
- Your lender
- Amount of the loan
- FICO score
- Home equity
Typically, the refinancing closing costs are 3-6% of the loan balance. The type of loan you refinance can impact its cost in a number of ways. Some government-backed refinance loans, such as the FHA Streamline or the VA Interest Rate Reduction Refinance Loan (IRRRL) may not require appraisal, but may come with high upfront fees to cover mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to eventually get rid of the mortgage insurance requirement.