Refi Rates Today, February 23, 2021 | Rates trend higher

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Today, several notable mortgage refinance rates ticked up.

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

Refinancing 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 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 3.13%, an increase of 21 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 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

For 15-year fixed refinances we’re seeing an average rate of 2.52%, an increase of 12 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 2.53%, an increase of 15 basis points from the rate observed over the previous week.

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 Are Changing

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 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 nationwide supply information to Bankrate, which is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.13%2.92%+0.21
15-year fixed refinance rate2.52%2.40%+0.12
10-year fixed refinance rate2.53%2.38%+0.15

Rates as of February 23, 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 sets refinance rates, the Federal Reserve has an outsized influence on them. When it decides to increase its purchase of mortgage-backed securities, that puts downward pressure on mortgage rates. Inflation is also impacted by the Federal Reserve, 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. How much equity you have in your home is important. Having at least 20% equity will help you to get the lowest possible rate. Your personal finances are also important, 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?

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 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. And as some mortgage lenders become more risk averse, you’re more likely to run into stricter lending guidelines. So borrowers with blemishes on their credit report or who have recently changed jobs may find themselves unable to qualify for a refinance.

How to Get the Lowest Refinance Rate

Refinance rates vary depending on your personal financial situation. If you have a higher credit score and better debt-to-income ratios will generally get a larger markdown on the mortgage refinance rates they are offered.

But your personal financial situation isn’t the only factor that impacts the mortgage refinance rate you qualify for. Your house’s equity also factors into the decision. Having at least 20% equity in your property is ideal.

The type of mortgage loan will impact what your refinance rate will be. Shorter-term refinance loans usually have lower refinance rates than loans with longer repayment terms, all else equal. Also, if you want to turn your equity into cash with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.

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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