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Refinance rates on June 8, 2021: Rates slide

Several benchmark refinance rates were down today.

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- 04:31
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Numerous benchmark refinance rates dropped today. Both 15-year fixed and 30-year fixed refinances saw their average rates trail off. At the same time, average rates for 10-year fixed refinances also shrank. Although refinance rates are dynamic, they have been lower than they've been in years. Because of this, right now is an optimal time for homeowners to get a good refinance rate. But as always, make sure to first consider your personal goals and circumstances before you get a refinance, and shop around for a lender who can best meet your needs.

30-year fixed refinance rates

For 30-year fixed refinances, the average rate is currently at 3.12%, a decrease of 2 basis points over this time last week. (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. If you're having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. 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 2.40%, a decrease of 2 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

For 10-year fixed refinances, the average rate is currently at 2.38%, a decrease of 4 basis points over last week. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much quicker and save on interest. 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 across the US:

Average refinance interest rates
ProductRateA week agoChange
30-year fixed refinance3.12%3.14%-0.02
15-year fixed refinance2.40%2.42%-0.02
10-year fixed refinance2.38%2.42%-0.04

Rates as of June 8, 2021.

How to shop for refinance rates

When searching for refinance rates online, it's important to remember that your specific financial situation will influence the rate you're offered. 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. 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. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.

Since the beginning of the pandemic, a lot of lenders have been stricter with who they approve for a loan. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.

To get the best refinance rates, you'll first want to make your application as strong as possible. 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.

When should I refinance?

Generally, it's a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your 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.

A refinance may not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan on staying in your home? Are you refinancing to decrease your monthly payment, pay off your house sooner -- or for a combination of reasons? Also keep in mind that closing costs and other fees may require an upfront investment.

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.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.