We want to help you make better informed decisions. Certain links on this page – clearly marked – may take you to a partner website and may lead to us earning a referral commission. For more information, see How we make money.
Today, a few notable refinancing rates have declined.
The 15-year fixed and 30-year fixed refinancing have seen their average rates fall. The average rate for 10-year fixed refinancing mortgages remained stable.
Refinancing rates are constantly changing. However, rates are near their historic lows for some time. For those looking to refinance their existing mortgage, this can be a great opportunity to lower your interest rate.
Here are the average rates for 30-year, 15-year and 10-year refinancing loans:
Check out mortgage refinance rates for your area here.
Fixed refinancing rates over 30 years
Right now, the 30-year average fixed refinance has an interest rate of 3.13%, down 2 basis points from what we saw last week.
You can use our mortgage calculator to figure out how much your mortgage will cost you each month and to understand how much you could save if you make additional payments. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.
Refinancing at a fixed rate over 15 years
Right now, the 15-year average fixed refinance rates are 2.42%, down 1 basis point from what we saw last week.
The monthly payments on a 15-year refinance loan will be larger compared to a 30-year refinance at the same rate. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.
10-year fixed rate refinancing
The 10-year average fixed refinance rate is 2.43%, unchanged from a week ago.
Monthly payments with a 10-year refinance term would cost even more than what you would pay on a 15-year loan. The advantage is that you will end up paying even less interest over the life of the loan.
Mortgage refinancing rate trends
The days of historically low mortgage rates seem to be behind us. In early March, mortgage rates slightly exceeded 3% for the first time since July, according to Freddie Mac Weekly Poll.
But rates are expected to remain favorable for borrowers throughout this year. Some experts predict that mortgage rates will stay low and that towards the end of the year, rates are more likely to rise steadily. Whatever happens with long-term refinancing rates will depend on general factors, such as inflation and our economic recovery.
The table below shows the refinancing rate trends for the past week. This information is provided by Bankrate, which compiles data collected from lenders nationwide. Bankrate is owned by Nextadvisor’s parent company, Red Ventures.
Prices as of May 25, 2021.
Take a look at the mortgage refinance rates for a number of different loans.
What influences current refinancing rates?
Refinance rates depend on your finances and what’s going on with the economy. Beyond that, the property and the type of refinance loan also influence the rate.
Factors that influence refinance rates include:
- Type of refinancing loan
- Your loan-to-value ratio
- 10-Year Treasury Bill Yields
- Inflation rate
- Personal financial situation: credit history and debt ratio
- Strength of the economy
Now is the time to refinance?
The past year has been a historically excellent time to refinance, as rates have never been lower. However, since January, mortgage rates have climbed past the 3% threshold for the first time since last summer.
Even though the days of record high refinancing rates are behind us, this is still an exceptional time to refinance for many homeowners. If you can lock in the current rates which are just north of 3%, you get a deal with an almost always low rate.
So there is still time to save with refinancing, but this window is closing. Many experts predict that rates will continue to rise as the economy returns to pre-pandemic levels over the next year.
What drives the increase in refinancing rates?
Over the past few months, we have seen a steady increase in refinancing rates.
This rate hike is attributable to several factors, including inflation and the economy. As the economy begins to show signs of life and spending rises on a new round of economic stimulus, investors expect inflation to rise. And when inflation rises, rates follow suit.
While refinancing rates haven’t hit higher levels than many experts predicted, they rose sooner than expected. Keep in mind that historically, refinance rates are still exceptionally low. So the window of saving money with mortgage refinance is still open for many homeowners.
How to qualify for the lowest refinance rate
Refinancing rates are influenced by your personal finances. Having a better credit score and better DTI ratios will generally lead to better interest rates.
Your personal finances are not the only factor that influences the mortgage refinancing rates available to you. The equity in your property is also factored into the decision. Having at least 20% equity in your property is ideal.
The type of mortgage loan affects your mortgage refinance rate. A short-term refinance loan generally has better interest rates than refinance loans with longer repayment terms, all other things being equal. Also, if you want to withdraw money from your home with cash refinance, you should expect to pay a higher mortgage rate for this lien.
How we got these rates
The rates we have included are averages provided by Bankrate and are calculated after the close of the previous business day. The lenders included in the “Bankrate.com Site Average” tables are not the same every day.
Bankrate receives this information on mortgage rates from lenders across the country, but the rates referenced may have changed since the publication of this article.
Mortgage interest rate by type of loan
Mortgage refinancing rate
Home buying rates
More articles on refinancing home loans: