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In general, refinance rates for mortgage were varied with one notable rate going higher.
The national rate average for a 15-year fixed refinance saw a decrease, while 30-year fixed-rate refinances moved higher. In addition, the average rate on 10-year fixed refinance stayed the same.
Although refinance rates are always changing, they have been at historic lows. If you plan to refinance your home, now might be an excellent time to secure a good rate. Before refinancing, remember to take into account your personal needs and financial situation, and speak with multiple lenders to find the right one for you.
30-year fixed refinance rates
The average 30-year fixed refinance rate right now is 3.00%, an increase of 4 basis points compared to one week ago. (A basis point is equivalent to 0.01%.)
One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. Because of this, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. In exchange for the lower monthly payments though, rates for a 30-year refinance will typically be higher than 15-year and 10-year refinance rates. You’ll also pay off your loan slower.
15-year fixed-rate refinance
The average 15-year fixed refinance rate right now is 2.29%, a decrease of 3 basis point over last week.
A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. However, you’ll also be able to pay off your loan quicker, saving you money over the life of the loan. You’ll also typically 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 refinance
The average 10-year fixed refinance rate right now is 2.31%, unmoved over last week.
You’ll pay more every month with a ten-year fixed refinance compared to a 30-year or 15-year refinance — but you’ll also have a lower interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.
Where rates are headed
We track refinance rate trends 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 nationwide:
| Product | Rate | A week ago | Change |
|---|---|---|---|
| 30-year fixed refi | 3.00% | 2.96% | +0.04 |
| 15-year fixed refi | 2.29% | 2.32% | -0.03 |
| 10-year fixed refi | 2.31% | 2.31% | N/C |
Rates as of July 29, 2021.
How to find personalized refinance rates
It’s important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and application.
Generally, you’ll want a high credit score, low credit utilization ratio, and a history of making consistent and on-time payments in order to get the best interest rates. Researching interest rates online is always a good idea, but you’ll need to connect with a mortgage professional to get your exact refinance rate. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.
You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months. As such, you may not qualify for a refinance — or a low rate — if you don’t have a solid credit rating.
Before applying for a refinance, you should make your application as strong as possible in order to get the best rates available. You can do that by monitoring your credit, taking on debt responsibly, and getting your finances in order before applying for a refinance. Don’t forget to speak with multiple lenders and shop around to find the best rate.
When should I refinance?
Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. Interest rates in the past few months have been at historic lows, but that’s not the only thing you should be looking at when deciding whether to refinance.
To decide whether a refinance is right for you, consider all of the factors including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.
Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates — or even a refinance at all — if you don’t meet their standards.If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But carefully weigh the pros and cons first to make sure it’s a good fit for your situation.
