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Today, multiple benchmark mortgage refinance rates advanced.
Both 15-year fixed and 30-year fixed refinances saw their mean rates go higher. At the same time, average rates for 10-year fixed refinances also increased.
Refinancing interest rates are constantly changing. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this may possibly be the right move to lock in a great deal on an interest rate.
Here are the average rates for 30-year, 15-year, and 10-year refinance loans are:
Check out mortgage refinancing rates for your area here.
30-Year Fixed Refinance Rates
Right now, the average 30-year, fixed refinance has an interest rate of 3.15%, an increase of 6 basis points over the previous week.
You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Fixed-Rate Refinance
For 15-year fixed refinances we’re seeing an average rate of 2.43%, an increase 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
The average 10-year, fixed refinance rate is 2.43%, an increase of 5 basis points from a week ago.
Monthly payments with a 10-year refinance term would cost a massive amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.
How Mortgage Refinance Rates Have Changed
The days of all-time historically low mortgage rates look to be behind us. In recent weeks, mortgage rates topped 3% for the first time since July, according to Freddie Mac’s weekly survey.
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. Where refinance rates move in the long term will depend on broad factors, such as inflation and our economic recovery.
We determine refinance rate trends using data aggregated by Bankrate, which is owned by the same parent company as NextAdvisor. Lenders nationwide supply information to Bankrate, which is provided in the table below:
Rates as of May 18, 2021.
Take a look at mortgage refinance rates for a number of different loans.
What Influences Today’s Refinance Rates?
Refinance rates are determined by a number of factors, including your personal situation. You’ll also need to consider the type of refinance and loan term because that can also impact your rate. For example, if you want to pull cash out of your property with with a cash-out refinance, you can expect to pay a higher refinance rate. And loans with longer repayment terms, typically have higher interest rates.
However, everything isn’t in your control when it comes to interest rates. General economic influences, like inflation, play a big role in determining the market for refinance rates. Government policies also factor into the equation, when government spending goes up, it can put upward pressure on inflation and cause rates to climb.
Refinance Rate Predictions
Mortgage refinance rates fluctuate from day to day and week to week, but in the coming months the overall trend is going to be rising mortgage rates.
In 2020, refinance rates fell to the lowest levels on record. The Federal Reserve bank would like to keep rates low in order to stimulate the economy, but in order to accomplish its goal we don’t need to have all-time low interest rates. And as unemployment continues to drop and people have more money to spend, inflation should rise. This is one factor that will push refinance rates higher over the long haul, even though they are currently favorably low.
Is Now the Right 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.
Why Are Refinance Rates Increasing?
Since the beginning of 2021, refinance rates have been making a steady march upward.
This increase in rates has been driven by several factors, including inflation, and the economy. As the economy begins to show signs of life and spending increases thanks to a new round of economic stimulus, investors are expecting inflation to increase. And when inflation goes up, rates follow suit.
With more and more people getting vaccinated everyday, there is hope that the worst is behind us. So the days of all-time low rates look to be over. However, even with refinance rates making strong gains, they still remain low. So for many homeowners, now is still a good time to refinance, even if rates aren’t as low as they were just a few months ago.
How to Get the Lowest Refinance Rate
Mortgage refinance rates are influenced by your personal finances. Those with higher credit scores and better DTI ratios will generally be able to secure better refinance mortgage rate.
But your personal financial situation isn’t the only factor that impacts the interest rate you qualify for. Your house’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 refinance interest rate. A shorter-term refinance loan typically has lower refinance rates than a loan with longer terms. Also, if you want to pull cash out of your home with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.
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 that the “Bankrate.com Site Average” tables include are not the same every day.
Bankrate receives this mortgage rate information from lenders across the nation, but it is possible that the referenced rates have changed since publishing this article.
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