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Today, multiple notable refinance rates slumped.
Both 15-year fixed and 30-year fixed refinances saw their average rates trail off. The average rate on 10-year fixed refinance mortgages also went down.
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 might be the right move to lock in a great deal on an interest rate.
Take a look at today’s refinance rates:
- 30-year mortgage refinance rate: 3.13%
- The average 15-year fixed refinance rates is 2.40%
- The average 10-year fixed refinance rates is 2.40%
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.13%, a decrease of 1 basis point from what we saw last week.
You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand what the effects of making extra payments would be. 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
Right now, average 15-year fixed refinance rates are 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 2.40%, a decrease of 2 basis points from the rate observed over the previous 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. Experts see rates staying low throughout 2021, and will only start seeing consistent gains in the second half of the year. Whatever ends up happening with refinance rates in the long term will depend on broad factors, such as inflation and our economic recovery.
The table below shows refinance rates trends from the past week. This information is supplied by Bankrate, which aggregates data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
|30-year mortgage refinance rate||3.13%||3.14%||-0.01|
|15-year fixed refinance rate||2.40%||2.42%||-0.02|
|10-year fixed refinance rate||2.40%||2.42%||-0.02|
Rates as of June 9, 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 Qualify for the Lowest Refinance Rate
Your personal situation has a big effect on the refinance rate you get. Having less debt and a higher credit score typically will get you a better refinance rate.
But your personal financial situation isn’t the only factor that impacts the mortgage refinance rate you qualify for. Your home’s value compared to your loan balance also factors into the decision. Having at least 20% equity in your property is ideal.
The type of mortgage loan will impact your mortgage refinance rate. A loan with a shorter repayment term usually has better interest 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.