Current refinance rates on Oct. 19, 2021: Rates mixed, one key rate drops


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In general, refinance rates for mortgages were different with one notable rate declining. The average rate nationwide for a 15-year fixed-rate refinance grew, while 30-year fixed refinance rates decreased. At the same time, average rates for 10-year fixed refinances saw growth. Refinance interest rates are never set in stone — but rates have been historically low. Because of this, right now is a good time for homeowners to secure a good refinance rate. But as always, make sure to first take into account your personal goals and circumstances before you get a refinance, and compare offers to find a lender who can best meet your needs.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 3.16%, a decrease of 1 basis point over this time last week. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. Because of this, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. However, interest rates for a 30-year refinance will typically be higher than rates for a 15-year or 10-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

For 15-year fixed refinances, the average rate is currently at 2.44%, an increase of 3 basis points from what we saw the previous week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. But you’ll save more money over time, because you’re paying off your loan quicker. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.

10-year fixed-rate refinance

The current average interest rate for a 10-year refinance is 2.41%, an increase of 4 basis points over last week. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.

Where rates are headed

We track refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates provided by lenders nationwide:

Average refinance interest rates

ProductRateA week agoChange
30-year fixed refinance3.16%3.17%-0.01
15-year fixed refinance2.44%2.41%+0.03
10-year fixed refinance2.41%2.37%+0.04

Rates as of Oct. 19, 2021.

How to shop for refinance rates

When looking for refinance rates, know that your specific rate may differ from those advertised online. Market conditions aren’t the only factor in interest rates; your particular application and credit history will also play a large role.

Generally, you’ll want a high credit score, low credit utilization ratio, and a history of making consistent and on-time payments in order to get the best interest rates. To get your personalized refinance rates, you’ll need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. Also remember to account for potential fees and closing costs.

It’s also worth noting that in recent months, lenders have been stricter with their requirements. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.

To get the best refinance rates, you’ll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. Also be sure to compare offers from multiple lenders in order to get the best rate.

Is now a good time to refinance?

Generally, it’s a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term. Interest rates in the past few months have been at historic lows, but that’s not the only thing you should be looking at when deciding whether to refinance.

To decide whether a refinance is right for you, consider all of the factors including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.

Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates — or even a refinance at all — if you don’t meet their standards. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that doing so makes sense.



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