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In general, refinance rates for mortgage were varied with one notable rate advancing.
The national rate average for a 15-year fixed refinance remain unaltered, while 30-year fixed-rate refinances saw growth. The average rate on 10-year fixed refinance mortgages didn’t change.
Mortgage refinance rates are constantly shifting. However, they’re presently low, making them a potentially great deal for borrowers. For those looking to refinance their existing mortgage, this may possibly be the perfect time to secure a record-low rate.
Refinance rates currently are:
- 30-year fixed refinance rates are averaging 3.16%
- 15-year mortgage refinance rate: 2.42%
- 10-year mortgage refinance rate: 2.43%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.16%, an increase of 3 basis points from a week ago.
You can use our mortgage calculator to determine how much your mortgage will cost you every month 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 Rates
Currently, the average rate for a 15-year fixed refinance loan is 2.42%, unmoved from what we saw last week.
Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can help you build up equity in your home much more quickly.
10-Year Fixed-Rate Refinance Rates
The average 10-year, fixed refinance rate is 2.43%, unmoved from the rate observed over the previous week.
Monthly payments with a 10-year refinance term would cost a massive amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
Mortgage Refinance Rate Trends
But rates should still remain favorable for borrowers throughout this year. Experts see rates staying low throughout 2021, and that toward the end of the year it’s more likely that rates will make steady gains. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
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:
|30-year mortgage refinance rate||3.16%||3.13%||+0.03|
|15-year fixed refinance rate||2.42%||2.42%||N/C|
|10-year fixed refinance rate||2.43%||2.43%||N/C|
Rates as of June 7, 2021.
Is Now Still a Good Time to Refinance?
Record low refinance rates drove a surge in mortgage refinancing over the past year. But as interest rates have rebounded from all-time lows, the number of borrowers looking to refinance has begun to shrink.
However, even with the downturn, the interest in mortgage refinancing remains stronger than it was before the pandemic drove rates into the ground. This is because refinance rates are hovering at just over 3%, which is still a historically good deal, even if it’s higher than the recent lows.
So as we turn our backs on record low interest rates, many borrowers are still able to save with a refinance. But many experts forecast that rates will continue to trend upward throughout 2021. So it’s reasonable to expect refinancing to get more expensive for borrowers as the year progresses.
How to Qualify for the Best Refinance Rate
Your finances have a big impact on the refinance rate you can qualify for. Less debt and a healthier credit score ordinarily will get you a lower mortgage refinance rate.
Your situation isn’t the only factor that impacts your refinance interest rate. Your property’s equity also factors into the decision. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
Even the mortgage itself can determine your mortgage refinance rate. A shorter-term refinance loan generally has better refinance rates than refinance loans with longer repayment terms, all else equal. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.