Several benchmark mortgage refinance rates went up today. Both 15-year fixed and 30-year fixed refinances saw their mean rates trend upward. In addition, the average rate on 10-year fixed refinance also increased. Although refinance rates are dynamic, they have been at historic lows.
If you plan to refinance your house, now might be a good time to secure a good rate. But as always, make sure to first think about your personal goals and circumstances before getting a refinance, and compare offers to find a lender who can best meet your needs.
30-year fixed-rate refinance
The average 30-year fixed refinance rate right now is 3.17%, an increase of 5 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. 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
For 15-year fixed refinances, the average rate is currently at 2.41%, an increase of 3 basis points over last week. With a 15-year fixed refinance, you'll have a larger monthly payment than a 30-year loan. On the other hand, you'll save money on interest, since you'll pay off the loan sooner. 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save even more in the long run.
10-year fixed-rate refinance
The average rate for a 10-year fixed refinance loan is currently 2.37%, an increase of 5 basis points compared to one week ago. You'll pay more every month with a 10-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 term. But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.
Where rates are headed
We track refinance rate trends using information collected by Bankrate, which is owned by CNET's parent company. Here's a table with the average refinance rates provided by lenders nationwide:
Average refinance interest rates
|Product||Rate||A week ago||Change|
|30-year fixed refinance||3.17%||3.12%||+0.05|
|15-year fixed refinance||2.41%||2.38%||+0.03|
|10-year fixed refinance||2.37%||2.32%||+0.05|
Rates as of Oct. 14, 2021.
How to find the best refinance rate
When looking for refinance rates, know that your specific rate may differ from those advertised online. Your interest rate will be influenced by market conditions as well as your credit history and application.
Having a high credit score, low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. To get your personalized refinance rates, you'll need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. And don't forget about fees and closing costs which may cost a hefty amount upfront.
It's also worth noting that in recent months, lenders have been stricter with their requirements. So 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. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Also be sure to review offers from multiple lenders in order to get the best rate.
Is now a good time to refinance?
In order for a refinance to make sense, you'll generally want to get a lower interest rate than your current rate. Aside from interest rates, changing your loan term is another reason to refinance. While interest rates have been low in the past few months, you should look at more than just the market interest rates when deciding if a refinance is right for you.
Make sure to consider your goals and financial situation, including how long you plan to stay in your current home. It's helpful to have a specific goal for a refinance -- such as decreasing your monthly payment or adjusting the term of your loan. And don't forget about fees and closing costs, which can add up.
Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don't have a solid credit score, you may not qualify for the best rate. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that doing so makes sense.