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Today several closely followed refinance rates trailed off.
Both 15-year fixed and 30-year fixed refinances saw their mean rates sink. At the same time, average rates for 10-year fixed refinances also decreased.
Refinancing interest 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.
The average mortgage refinance rates are as follows:
- 30-year mortgage refinance rate: 2.90%
- 15-year fixed refinance rates are averaging 2.41%
- 10-year mortgage refinance rate: 2.43%
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 2.90%, a decrease of 5 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 price out your monthly mortgage payments 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
For 15-year fixed refinances we are seeing an average rate of 2.41%, a decrease of 2 basis points from a week ago.
Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.
10-Year Fixed-Rate Refinance
The average 10-year, fixed refinance rate is 2.43%, a decrease of 4 basis points from the rate observed over the previous week.
Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
How Mortgage Refinance Rates Have Changed
Last year, we saw the lowest average mortgage rate trendson record. This trend could continue, some experts see rates staying low throughout this year, with the possibly that rate will climb a bit higher toward the end of the year. Where rates are trending, will largely depend on broader economic factors, government policies, and decisions made by the Federal Reserve.
We determine refinance rate trends using 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:
Rates as of January 27, 2021.
Take a look at mortgage refinance rates for a number of different loans.
What Influences Today’s Refinance Rates?
Refinance rates are impacted by your finances and what’s going on with the economy. Beyond that, your home and the type of refinance also make a difference.
Factors that influence refinance rates include:
- The type of refinance loan
- Your loan-to-value ratio
- U.S. Treasury bond Yields
- Individual circumstances: Credit history, income, and debt
- Health of the economy
Is Now the Right Time to Refinance?
For many borrowers, now is an excellent time to refinance because rates have been near historic lows. While refinance rates change day to day, if you can lock in a rate near 3%, that’s an exceptionally low interest rate. Keep in mind, you will need a high credit score to qualify for these ultra-low rates. 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.
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.