Two key mortgage refinance rates went up today. Average rates for 15-year fixed refinances didn't change, but average rates for 30-year fixed-rate refinances rose. In addition, the average rate on 10-year fixed refinances increased. Although refinance rates fluctuate, they're lower than they have been in years. If you're hoping to refinance, now might be an opportune time to lock in a low rate. As always, consider your personal goals and finances before refinancing 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 3.01%, an increase of 2 basis points from what we saw one week ago. (A basis point is equivalent to 0.01%.) Refinancing to a 30-year fixed loan from a shorter loan term can lower your monthly payments. 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 current average interest rate for 15-year refinances is 2.30%, unmoved over last week. With a 15-year fixed refinance, you'll have a larger monthly payment than 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 current average interest rate for a 10-year refinance is 2.27%, an increase of 1 basis point compared to one week ago. A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can help you pay off your house much faster and 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:
Average refinance interest rates
|30-year fixed refi||3.01%||2.99%||+0.02|
|15-year fixed refi||2.30%||2.30%||N/C|
|10-year fixed refi||2.27%||2.26%||+0.01|
Rates as of Sept. 9, 2021.
How to find personalized refinance rates
It's important to understand that the rates advertised online may not apply to you. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.
Having a high credit score, a low credit utilization ratio and a history of consistent and on-time payments will generally help you 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. Also remember to account for potential fees and closing costs.
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.
One way to get the best refinance rates is to strengthen your borrower application. If you haven't already, try to improve your credit by monitoring your credit reports, using credit responsibly and managing your finances carefully. Don't forget to speak with multiple lenders and shop around to find the best rate.
Is now a good time to refinance?
Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. 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.
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 really 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. Refinancing can be a great move if you get a good rate or can pay off your loan sooner, but consider carefully whether it's the right choice for you.