MMA loans

Refi prices today, October 14, 2021 | Rates are increasing


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Today, several closely watched mortgage refinancing rates have climbed.

Both the 15-year fixed rate and the 30-year fixed rate have seen their average rates rise. And the average 10-year fixed refinancing rates have also increased.

Mortgage refinancing rates are constantly fluctuating. However, rates have been hovering near their historic lows for some time. For those looking to refinance their existing mortgage, this may be the perfect time to get a record high rate.

Here are the 30-year, 15-year and 10-year average refinance loan rates:

Find mortgage refinancing rates in your area here.

What this means for owners

As refinance rates stay close to 3%, it’s still possible to get a low rate for homeowners who haven’t refinanced in the past few years. But the decision to refinance isn’t just about the rate, there are also closing costs to consider. So make sure you plan to stay in your home long enough that the interest savings outweigh the costs. And remember, even if you don’t pay anything up front, the refinancing closing costs are usually added to your loan balance. So you pay it one way or another.

Refi rate over 30 years

Right now, the 30-year average fixed refinance has an interest rate of 3.17%, an increase of 5 basis points from last week.

You can use our mortgage calculator to figure out how much your mortgage will cost you each month and to understand what it would be like to make the extra payments. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.

Refi rates fixed over 15 years

For fixed 15-year refinances, we see an average rate of 2.41%, an increase of 3 basis points compared to a week ago.

The monthly payments for a 15-year refinance loan will be larger than for a 30-year refinance at the same rate. However, a shorter loan term can help you build equity in your home much faster.

Refi rates fixed over 10 years

The 10-year average fixed refinance rate is 2.37%, an increase of 5 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a lot more per month than with a 15-year term, but you’ll pay less interest in the long run.

Mortgage refinancing rate trends

Currently, refinancing rates are extremely low compared to recent history of mortgage rates. Rates have been close to 3% since April 2021, according to Freddie Mac Weekly Poll.

Even with a moderate increase, rates could still remain favorable to borrowers. Experts see rates staying low throughout 2021 and won’t start to see consistent gains until the second half of the year. The evolution of long-term refinancing rates will depend on general factors, such as inflation and our economic recovery.

How are our refi rates calculated

Our daily refinance rates are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These daily refi interest rate averages are based on a client profile that meets the following criteria:

  • At least 20% + equity
  • Owner-occupied house
  • 740+ credit score
  • Single family Home

The information provided to Bankrate by lenders across the country is displayed in the table below:

Prices as of October 14, 2021.

Take a look at the mortgage refinance rates for a number of different loans.

Is it still a good time to refinance?

The past year has historically been a great time to refinance as rates have never been so low. However, since January, mortgage rates have climbed and crossed the 3% threshold for the first time since last summer.

Even though the days of record refinancing rates are behind us, it is still a great time for many homeowners to refinance. If you can lock in today’s rates that are just north of 3%, you get a deal near the historic low.

So there is still time to save with a refinance, 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.

How To Make Sure You Get The Best Refinance Rate

Your finances have a big impact on the refinance rate you get. Having a lower loan-to-value ratio for your home and a higher credit rating usually results in a lower mortgage refinance rate.

But your personal financial situation is not the only consideration that influences the interest rates offered to you. The equity you have in the property also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will have an impact on your refinance rate. A short term refinance loan generally has lower interest rates than a long term loan. Also, if you want to withdraw money from your home with withdrawal refinance, you should expect to pay a higher mortgage rate for this lien.

Average cost of refinancing

The cost of refinancing can vary widely depending on these factors:

  • Where is the property
  • Type of refinancing loan
  • Your lender
  • Loan balance
  • Your credit rating
  • Home equity

Typically, the refinancing closing costs are 3-6% of the loan balance. The type of loan you are refinancing can impact its cost in a number of ways. Some government-backed refinance loans, such as the FHA Streamline or the VA Interest Rate Reduction Refinance Loan (IRRRL) may not require appraisal, but may come with high upfront fees to cover mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to eventually get rid of the mortgage insurance requirement.

Mortgage rates by type of loan

Mortgage refinancing rate

Mortgage purchase interest rate