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Today, several closely followed refinance rates declined.
Both 15-year fixed and 30-year fixed refinances saw their mean rates sink. At the same time, average rates for 10-year fixed refinances also trailed off.
Mortgage refinance rates are constantly changing. However, they’re still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this might be a great opportunity to reduce your interest rate.
Refinance rates currently are:
- The average 30-year fixed-rate refinance is 3.12%
- Today, the average 15-year fixed refinance rate is 2.40%
- Today, the average 10-year fixed refinance rate is 2.38%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.12%, a decrease of 2 basis points over the previous week.
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 Rates
Currently, the average rate for a 15-year fixed refinance loan is 2.40%, a decrease of 2 basis points from a week ago.
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 Rates
The average 10-year, fixed refinance rate is 2.38%, a decrease of 4 basis points from what we saw last week.
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.
Mortgage Refinance Rate Trends
But rates should still remain favorable for borrowers throughout this year. Some experts predict mortgage rates will stay low, and will only start seeing consistent gains in the second half of the year. 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 from across the nation supply information to Bankrate, which is provided in the table below:
|30-year mortgage refinance rate||3.12%||3.14%||-0.02|
|15-year fixed refinance rate||2.40%||2.42%||-0.02|
|10-year fixed refinance rate||2.38%||2.42%||-0.04|
Rates as of June 8, 2021.
Is Now Still a Good Time to Refinance?
The past year was a historically excellent time to refinance because rates had never been lower. However, since January mortgage rates have crept up and crossed the 3% threshold for the first time since last summer.
Even though the days of record breaking refinance rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in today’s rates that are just north of 3%, you are getting a deal with a close to all-time low rate.
So there is still time to save with a refinance, but that window is closing. Many experts are predicting rates to continue to increase as the economy returns to pre-pandemic levels over the next year.
How to Get the Lowest Refinance Rate
Your personal situation has a big impact on the refinance rate you’ll be able to secure. Having less debt and a higher credit score generally translates into a better mortgage refinance rate.
Your situation isn’t the only thing that will impact your refinance interest rate. The equity you have in the home also comes into play. Having at least 20% equity in your property is ideal.
The type of mortgage loan can determine your mortgage refinance rate. A loan with a shorter repayment term generally has lower rates than a longer term loan. The type of refinance you need makes a difference in the mortgage refinance rate. Cash-out refinance loans have higher refinance rates because they are viewed as more risky.