Current Mortgage Refinance Rates, February 22, 2021 | Rates move higher

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Today, a number of benchmark mortgage refinance rates moved up.

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

Refinancing rates are constantly fluctuating. However, they’re still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this might be the right move to lock in a great deal on an interest rate.

Take a look at today’s refinance rates:

Check out mortgage refinancing rates for your area here.

30-Year Fixed Refinance Rates

Right now, the average 30-year, fixed refinance has an interest rate of 3.07%, an increase of 18 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 price out your monthly mortgage payments 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

Currently, the average rate for a 15-year fixed refinance loan is 2.47%, an increase of 11 basis points over the previous 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 2.47%, an increase of 10 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a lot 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

In 2020, we saw the lowest average mortgage rate trends on record. This trend could continue, and some experts see rates staying low throughout this year, with the potential for slight gains later in 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 rate3.07%2.89%+0.18
15-year fixed refinance rate2.47%2.36%+0.11
10-year fixed refinance rate2.47%2.37%+0.10

Rates as of February 22, 2021.

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

Factors Behind 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 ramp up its purchase of mortgage-backed securities, you’ll normally see mortgage rates drop. The Federal Reserve decisions can also impact inflation, which can influence where rates are headed.

The good news is, there are things you can control when you’re shopping for the best refinance rate. Your home’s equity 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, a high credit score and low debt-to-income ratio will help you qualify for a lower rate.

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. 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

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 Qualify for the Best Refinance Rate

Refinance rates vary depending on your personal financial situation. Those with higher credit scores and better debt-to-income ratios will typically qualify for a larger markdown on their refinance interest rate.

Your personal finances aren’t the only consideration that affects the mortgage refinance rate you qualify for. The 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 has an affect on what your mortgage refinance rate will be. A loan with a shorter repayment term generally have better refinance rates than longer term loans. Your refinance rate is also impacted by the type of mortgage refinance you plan on taking out. Cash-out mortgage refinance loans have larger 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 “ 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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