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In general, refinance rates for mortgage were varied with one notable rate trending up.

The average rate for a 15-year fixed refinance decreased, while 30-year fixed-rate refinances advanced. In addition, the average rate on 10-year fixed refinance decreased.

Refinancing rates are constantly shifting. However, they are still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this might be a great opportunity to reduce your interest rate.

Compare refinance rates for a wide range of different loans here.

30-Year Fixed Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 3.08%, an increase of 9 basis points what we saw last week. Just last month a 30-year fixed refinance had a smaller average rate of 1.00%.

You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed-Rate Refinance

Currently, the average rate for a 15-year fixed refinance loan is 2.52%, a decrease of 1 basis point from a week ago.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.53%, a decrease of 3 basis points what we saw last week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

Where Are Rates Going

To determine refinance rate trends, we use data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders nationwide supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
Product Rate Last week Change
30-year fixed refi 3.08% 2.99% +0.09
15-year fixed refi 2.52% 2.53% -0.01
10-year fixed refi 2.53% 2.56% -0.03

Rates as of November 30, 2020.

Take a look at mortgage refinance rates for a number of different loans.

Is This the Right Time to Refinance?

In many cases, now is the right time to look into refinancing your existing mortgage. Over the last few months we’ve seen rates drop to record lows. One caveat is that in order to be eligible for the historically low rates you’ll need a strong financial profile. Having a low debt-to-low income ratio, strong credit score, and a healthy down payment is essential. One thing to keep in mind is the Federal Housing Finance Agency has enacted a new 0.5% refinancing fee as of Dec. 1, 2020. This extra cost will apply to conventional refinance loans worth $125,000 or more. You’re likely to find many mortgage lenders that will add the additional fee into their loan offers in one way or another.

Current Refinance Rate Market

Recently, lenders have been exceptionally busy thanks to the inundation of mortgage refinance applications propelled by the low interest rates. For many borrowers now is a good opportunity to refinance, but you should expect to have a longer wait than usual to close on your new mortgage. And as some mortgage lenders become more risk averse you’re more likely to run into stricter lending guidelines. So borrowers with blemishes on their credit report or who have recently changed jobs may find themselves unable to qualify for a refinance.

When Should You Refinance?

Refinancing a mortgage is a great way to cut your interest cost by getting a lower rate or opting for a shorter repayment term.

Getting a lower interest rate can reduce your monthly payments and save you on interest in the long haul. You can also accomplish the same goal by changing your repayment terms. If you opt for a longer term, you could lower your monthly payments. The trade off to this strategy is you’ll end up paying more interest over the life of the loan. On the other hand, if you refinance to a shorter term loan, say a 15-year mortgage, you’ll pay off your loan sooner and end up paying less interest as a result. Of course, 15-year mortgages have noticeably higher monthly payments compared to 30-year loans. The historically low interest rates that are currently available may allow you to take advantage of a shorter repayment term without increasing your monthly payments by an unreasonable amount. It just depends on how much you’re able to reduce your interest rate by.

If you have enough equity in your home, you could also do what is known as a cash-out refinance. With this particular refinance option, you’ll be taking out a bigger mortgage, but you’ll walk away with a chunk of cash. Because interest rates are so low, this is a decent opportunity to consolidate high-interest debt or finance a home improvement project.

How to Refinance Your Mortgage

The first step to refinancing your mortgage is to shop around with multiple lenders to find the best offer. To compare offers from every lender you need to look at more than just the interest rate. You should carefully look at the Loan Estimate form each lender will provide after you apply and be sure you’re paying comparable fees.

What do You Need to Refinance?

Refinancing is a similar process to taking out a mortgage for a home purchase. During the underwriting process, your lender will review your employment, check your credit, and you’ll be required to provide documents to verify your income. To avoid unnecessary delays communicate with your lender and have the documentation you need ready to go ahead of time.

How We Got These Rates

The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders that the “Bankrate.com Site Average” tables include are not the same every day.

National lenders provide this mortgage rate information to Bankrate.com. It is possible the mortgage rates we reference has changed since this was published.

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