Jim Lane/Getty
Mortgage refinance rates today were mixed. One key rate did drop: the 30-year fixed refinance. However, average rates increased for 10- and 15-year fixed refinances. Refinance interest rates generally fluctuate, but rates are currently at an all time low. If you’re looking to lock in a low, fixed rate, now is an excellent time to refinance. As always, consider your personal goals and circumstances before refinancing, then shop around to find a lender who can best meet your needs.
30-year fixed-rate refinance
The average rate for a 30-year fixed refinance loan is currently 3.16%, a decrease of 1 basis point compared to one week ago. (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 payments. This makes 30-year refinances good for people who are having difficulties making their currently monthly payments — or want more breathing room. 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 longer to pay off the loan.
15-year fixed-rate refinance
The average rate for a 15-year fixed refinance loan is currently 2.44%, an increase of 3 basis points compared to one week ago. 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. Typically, 15-year refinance rates are lower than 30-year refinance rates, which will help you save more in the long run.
10-year fixed-rate refinance
The current average interest rate for a 10-year refinance is 2.43%, an increase of 6 basis points over last week. You’ll pay more every month with a 10-year fixed refinance compared to a 30-year or 15-year refinance, but you’ll also have a lower interest rate. A 10-year refinance can help you pay off your house much quicker and save on interest. 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 supplied by lenders across the country:
Average refinance interest rates
| Product | Rate | Last week | Change |
|---|---|---|---|
| 30-year fixed refinance | 3.16% | 3.17% | -0.01 |
| 15-year fixed refinance | 2.44% | 2.41% | +0.03 |
| 10-year fixed refinance | 2.43% | 2.37% | +0.06 |
Rates as of Oct. 21, 2021.
How to find personalized refinance rates
It’s important to understand that the rates advertised online may not apply to you. Market conditions aren’t the only factor in interest rates; your particular application and credit history will also play a large role.
To get the best interest rates, you’ll typically need a high credit score, low credit utilization ratio and a history of making consistent and on-time payments. Researching interest rates online is always a good idea, but you’ll also need to connect with a mortgage professional to get your exact refinance rate. And don’t forget about fees and closing costs which may cost a hefty amount upfront.
It’s also worth noting that in recent months, lenders have been stricter with their requirements. As such, you may not qualify for a refinance — or a low rate — if you don’t have a solid credit rating.
Before applying for a refinance, you should make your application as strong as possible in order to get the best rates available. If you haven’t already, try to improve your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully. You should also shop around with multiple lenders and compare offers to make sure you’re getting the best rate.
When should I refinance?
Most people refinance because the market interest rates are lower than their current rates or because they want to change the loan term. It’s true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.
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 at all — if you don’t meet their standards. Refinancing at a lower interest rate can save you money long term and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that it makes sense for you.