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Today, multiple notable mortgage refinance rates grew.
Both 15-year fixed and 30-year fixed refinances saw their average rates go up. And, average rates for 10-year fixed refinances also increased.
Refinancing interest rates are constantly fluctuating. However, rates have been hovering near historic lows for quite some time. For those looking to refinance their existing mortgage, this might be the perfect time to secure a record-low rate.
Refinance rates currently are:
- Today, the average 30-year fixed refinance rate is 3.01%
- Currently, the average 15-year fixed-rate refinance is 2.45%
- Today, the average 10-year fixed refinance rate is 2.43%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.01%, an increase of 15 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 get an idea of what your monthly payments will be and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed-Rate Refinance
Right now, average 15-year fixed refinance rates are 2.45%, an increase of 10 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 2.43%, an increase of 9 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
Last year, we saw the lowest average historical mortgage rates on record. This trend could continue, and some experts see rates staying low throughout this year, 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 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.
|30-year mortgage refinance rate||3.01%||2.86%||+0.15|
|15-year fixed refinance rate||2.45%||2.35%||+0.10|
|10-year fixed refinance rate||2.43%||2.34%||+0.09|
Rates as of February 19, 2021.
How Are Refinance Rates Determined?
There’s no single factor that determines mortgage refinance rates. Instead, a variety of personal components and economic factors come into play.
These factors include:
- Refinance loan type
- Your loan-to-value ratio
- U.S. Treasury bond Yields
- Rate of inflation
- 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. Just remember, you’ll need a high credit score to qualify for these ultra-low rates. 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 Refinance Rate Market
Recently, lenders have been exceptionally busy thanks to the inundation of mortgage refinance applications propelled by the low interest rates. 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 Get the Lowest Refinance Rate
Your financial situation has a big affect on the refinance rate you’ll be able to secure. Less debt and a healthier credit score usually will get you a better mortgage refinance rate.
But your personal financial situation isn’t the only consideration that affects the refinance rate you qualify for. A lower loan-to-value ratio (LTV) can help you qualify for a better refinance rate. So the more equity you’ve built up, the better. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
The type of mortgage loan can determine your refinance interest rate. A loan with a shorter repayment term usually have lower interest rates than mortgage refinance loans with longer repayment terms, all else equal. Your refinance interest rate is also impacted by the type of refinance loan you plan on taking out. Cash-out mortgage refinance loans have increased refinance interest 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
- 30 Year Fixed Mortgage Rates
- 20 Year Fixed Mortgage Rates
- 15 Year Fixed Mortgage Rates
- 10 Year Fixed Mortgage Rates