Current Refinance Rates, February 18, 2021 | Rates tick higher

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Today, a number of benchmark mortgage refinance rates advanced.

Both 15-year fixed and 30-year fixed refinances saw their average rates go up. The average rate on 10-year fixed refinance also made gains.

Refinancing interest 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 can be the right move to lock in a great deal on an interest rate.

The average mortgage refinance rates are as follows:

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 3.00%, an increase of 16 basis points from what we saw last week. Just last month, a 30-year fixed refinance had a smaller average rate of 1.00%.

You can use our mortgage calculator to get an idea of what your monthly payments will be 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 8 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. 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 2.44%, an increase of 12 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.

How Mortgage Refinance Rates Have Changed

Last year, we saw the lowest average mortgage rate trends 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, such as unemployment and inflation.

The table below shows where refinance rates were headed in the last week. This information is provided by Bankrate, which compiles 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 rate3.00%2.84%+0.16
15-year fixed refinance rate2.43%2.35%+0.08
10-year fixed refinance rate2.44%2.32%+0.12

Rates as of February 18, 2021.

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

How Are Refinance Rates Determined?

Refinance rates are impacted by your finances and broader economic factors. Beyond that, the property and the type of refinance loan also make a difference.

Factors that influence refinance rates include:

  • Refinance loan type
  • Your loan-to-value ratio
  • 10-year U.S. Treasury yields
  • Inflation rates
  • Personal financial situation: Credit history, and debt-to-income ratio
  • 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. 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

Recently, lenders have been exceptionally busy thanks to the inundation of mortgage refinance applications propelled by the low interest rates. For many borrowers, now is a good opportunity to refinance, but you should expect to have a longer wait than usual to close on your new mortgage. 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

Your personal situation has a big affect on the refinance rate you’ll be able to secure. Fewer monthly debt payments and a better credit score typically translates into a lower mortgage refinance rate.

But your personal financial situation isn’t the only consideration that affects your mortgage refinance rate. A lower loan-to-value ratio (LTV) may help you qualify for a reduced refinance rate. So it’s better to have more equity. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

The type of mortgage loan has an affect on what your mortgage refinance rate will be. A loan with a shorter repayment term typically have lower rates than 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 increased 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.

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