Multiple closely followed refinance rates trailed off today. Both 15-year fixed and 30-year fixed refinances saw their mean rates trail off. In addition, the average rate on 10-year fixed refinance also shrank. Refinance interest rates are never set in stone -- but rates have been historically low. If you plan to refinance your house, now might be an optimal 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 shop around for a lender who can best meet your needs.
30-year fixed-rate refinance
The current average interest rate for a 30-year refinance is 3.13%, a decrease of 3 basis points over this time last week. (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. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you'll pay off your loan at a slower rate.
15-year fixed-rate refinance
The current average interest rate for 15-year refinances is 2.44%, a decrease of 1 basis point from what we saw the previous week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. However, you'll also be able to pay off your loan quicker, saving you money over the life of the loan. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you'll save even more in the long run.
10-year fixed-rate refinance
The current average interest rate for a 10-year refinance is 2.42%, a decrease of 1 basis points over last week. You'll pay more every month with a ten-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 help you pay off your house much faster and save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.
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 reported by lenders across the US:
Average refinance interest rates
|Product||Rate||A week ago||Change|
|30-year fixed refi||3.13%||3.16%||-0.03|
|15-year fixed refi||2.44%||2.45%||-0.01|
|10-year fixed refi||2.42%||2.43%||-0.01|
Rates as of Nov. 25, 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. Market conditions aren't the only factor in interest rates; your particular application and credit history will also play a large role.
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. 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. This means that if you don't have great credit ratings, you might not be able to take advantage of lowered interest rates -- or qualify for a refinance in the first place.
To get the best refinance rates, you'll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. Don't forget to speak with multiple lenders and shop around to find the best rate.
Is now a good time to 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. It's true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.
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. Also keep in mind that closing costs and other fees may require an upfront investment.
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 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.