Refi Rates Today, February 17, 2021 | Rates advance

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Today, multiple notable mortgage refinance rates increased.

Both 15-year fixed and 30-year fixed refinances saw their mean rates increase. The average rate on 10-year fixed refinance also inched up.

Refinancing interest rates are constantly changing. However, they’re currently very low. For those looking to refinance their existing mortgage, this can be a great opportunity to reduce your interest rate.

Refinance rates currently are:

You can discover the right refinance rate for you here.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 2.99%, an increase of 13 basis points from a week ago. 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 2.43%, an increase of 6 basis points from a week ago.

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 save you thousands of dollars interest over the life of the loan.

10-Year Fixed-Rate Refinance

The average 10-year, fixed refinance rate is 2.42%, an increase of 6 basis points 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. Where rates are trending, will largely depend on broader economic factors, government policies, and decisions made by the Federal Reserve.

The table below shows refinance rates trends from the past week. This information is supplied by Bankrate, which aggregates data collected from lenders across the country. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate2.99%2.86%+0.13
15-year fixed refinance rate2.43%2.37%+0.06
10-year fixed refinance rate2.42%2.36%+0.06

Rates as of February 17, 2021.

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

What Influences Today’s Refinance Rates?

While there’s no single entity that determines refinance rates, the Federal Reserve plays a big role. When it decides to increase its purchase of mortgage-backed securities, that puts downward pressure on mortgage rates. The Federal Reserve’s policies also impact inflation, which can influence the direction refinance rates are heading in.

The good news is, there are things you can control when you’re shopping for the best refinance rate. How much equity you have in your home is important. Aim for at least 20% equity if you want to get the lowest possible rate. Having your finances in order is also key, and the best refinance rates are usually available to those with better credit scores and less debt.

Is Now the Right Time to Refinance?

For many borrowers, now is an excellent time to refinance because rates have been near historic lows. While refinance rates change day-to-day, if you can lock in a rate near 3%, which is an exceptionally low interest rate, you can save a lot of money. Just remember, you’ll need a high credit score to qualify for these ultra-low rates. Also, if you’re closing on a refinance after Dec. 1, 2020, your loan might end up being more expensive. That’s when the Federal Housing Finance Agency is adding a new refinancing fee of 0.5% on conventional refinance loans of $125,000 or more.

Current Landscape for Refinance Rates

The historically low interest rates we’ve experienced have helped fuel a hot market for mortgage refinancing. So while 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 Get the Lowest Refinance Rate

Your finances have a big affect on the refinance rate you’ll be able to secure. Having less debt and a better credit score ordinarily translates into a better refinance rate.

But your personal financial situation isn’t the only factor that impacts your mortgage refinance rate. A lower loan-to-value ratio (LTV) may help you get a lower refinance rate. So it’s better to have more equity. Having at least 20% equity in your property is ideal.

Even the mortgage itself can determine what your interest rate will be. Shorter-term refinance loans usually have better refinance rates than longer term loans. Your mortgage refinance rate is also impacted by the type of mortgage refinance you plan on taking out. Cash-out mortgage refinance loans have higher mortgage refinance rates because they are viewed as more risky.

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.

Bankrate receives this mortgage rate information from lenders across the nation, but it is possible that the referenced rates have changed since publishing this article.

Mortgage Interest Rates by Loan Type

Mortgage Refinance Rates

Home Purchase Rates

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