Current Refinance Rates, February 16, 2021 | Rates move higher

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Today, multiple closely followed mortgage refinance rates ticked up.

Both 15-year fixed and 30-year fixed refinances saw their average rates go up. And, average rates for 10-year fixed refinances didn’t fluctuate.

Refinancing rates are constantly changing. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this might be the right move to lock in a great deal on an interest rate.

The average mortgage refinance rates are as follows:

Take a look at local refinance rates.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 2.92%, an increase of 4 basis points over the previous 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 how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed-Rate Refinance

Currently, the average rate for a 15-year fixed refinance loan is 2.40%, an increase of 3 basis points from what we saw last week.

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 2.38%, unmoved from a week ago.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How Mortgage Refinance Rates Are Changing

In 2020, we saw the lowest average historical mortgage rates on record. This trend could continue, as some experts predict mortgage rates will stay low in 2021, with the possibility that they will climb a bit higher toward the end of the year. The direction rates end up going, 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 from across the nation supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate2.92%2.88%+0.04
15-year fixed refinance rate2.40%2.37%+0.03
10-year fixed refinance rate2.38%2.38%N/C

Rates as of February 16, 2021.

Take a look at mortgage refinance rates for a number of different loans.

Factors Behind Today’s Refinance Rates

Refinance rates are impacted by your finances and the direction of the economy. Beyond that, the property and the type of refinance also make a difference.

Factors that influence refinance rates include:

  • Refinance loan type
  • Amount of equity in your home
  • U.S. Treasury bond Yields
  • Inflation rates
  • Individual circumstances: Credit history, income, and debt
  • Strength of the economy

Is Now the Right Time to Refinance?

In many cases, now is the right time to look into refinancing your existing mortgage. Over the last few months, we’ve seen rates drop to record lows. One caveat is that in order to be eligible for the historically low rates you’ll need a strong financial profile. Having a low debt-to-low income ratio, strong credit score, and a healthy down payment is essential. Another thing to keep in mind: 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 Landscape for Refinance Rates

The historically low interest rates we’ve experienced have helped fuel a hot market for mortgage refinancing. So at the same time that many homeowners can save with a refinance, the time it takes to close on a loan can be longer than usual under normal circumstances. Because of the economic downturn, some lenders tightened their lending standards. That means those with weaker financial profiles or less equity in their homes may find it more difficult to qualify for a refinance loan.

How to Qualify for the Best Refinance Rate

Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and better debt-to-income ratios will usually be able to obtain better interest rates.

Your personal finances aren’t the only factor that impacts the refinance interest rate you qualify for. The amount of equity you have in the property also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will impact what your mortgage refinance rate will be. Shorter-term refinance loans typically have lower rates than refinance loans with longer repayment terms, all else equal. The type of refinance loan you need makes a difference in the mortgage refinance rate. Cash-out refinance loans have higher refinance interest rates because they are viewed as riskier.

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.

Mortgage Interest Rates by Loan Type

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