Current Mortgage Refinancing Rates, October 5, 2021 | Prices slide
Some benchmark refinancing rates fell today.
We found that the nationwide averages for 15-year fixed rate refinancing did not change while the 30-year fixed rate went down. The average interest rate on 10-year fixed-rate mortgages with refinancing has decreased.
The refinancing rates are constantly changing. However, they are currently very low. For those looking to refinance their existing mortgage, this may be the perfect time to secure a record low interest rate.
Take a look at today’s refinance rates:
Find out the mortgage refinancing rates for your region here.
What that means for homeowners
With refinance rates staying close to 3%, homeowners who have been waiting for a refinance still have the chance to land an exceptional rate. However, the fees for refinancing are usually between 3% and 6% of the loan balance. So make sure what you save in interest outweighs the fees you pay. And don’t forget that even with no-closing-cost refinancing, fees still apply; these are usually just added to your credit balance rather than being paid out of pocket.
Average 30-year fixed refinancing rates
Right now, the average 30 year fixed refinance has an interest rate of 3.07%, a 4 basis point decrease from what we saw last week.
With our mortgage calculator you can get an idea of your monthly payments and find out how much less interest you are paying by making back payments. Our mortgage calculator also shows you how much interest you have to pay over the entire term of the loan.
15-year fixed refinancing rates
For 15-year fixed refinancing, we see an average interest rate of 2.37%, unchanged from the previous week.
Monthly payments for a 15 year refinance loan are more difficult to fit into a monthly budget than a 30 year mortgage payment. However, a shorter repayment period can help you build equity in your home much faster.
Average 10-year refinancing rates
The 10-year average refinance rate with fixed funding is 2.28%, a decrease of 4 basis points from the previous week.
Monthly payments with a refinancing term of 10 years would cost a lot more per month than with a term of 15 years, but you will pay less interest in the long term.
Mortgage Refi Interest Trends
Currently, refinancing rates are extremely low compared to recent mortgage rate history. According to Freddie Mac’s weekly poll, rates have been hovering around 3% since April 2021.
Even if refinancing rates have risen higher, borrowers should still have access to favorable interest rates. Some experts believe that mortgage rates will remain low and will not see steady growth until the second half of the year. Where refinancing rates move over the long term depends on general factors such as inflation and our economic recovery.
This is how we calculate our refinancing rates
The following table shows where the refinancing rates have developed in the past week.
These refi rates are charged by Bankrate. The information is based on consumers who match a certain profile, e.g. B. a creditworthiness of 740+ with a loan-to-value ratio of 80% or better. So you can qualify for other tariffs if your personal circumstances do not match the survey criteria.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Prices from October 5th, 2021.
Check out the mortgage refinancing rates for a number of different loans.
Does refinancing still make sense?
Last year was a historically excellent time to refinance, as interest rates had never been lower. However, mortgage rates have risen since January and exceeded 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 hold onto today’s interest rates, which are just over 3%, you can get a deal at an almost unprecedented low.
So there is still time to save with a refinancing, but this window is closing. Many experts predict that interest rates will continue to rise when the economy returns to pre-pandemic levels over the next year.
How to get the best refi price
The refinancing rates vary depending on your personal financial situation. Those with higher creditworthiness and lower mortgage lending value (LTV) will usually be able to refinance lower mortgage rates.
But it is not just your personal financial situation that affects your mortgage refinancing rate. A lower loan-to-value ratio (LTV) can help you qualify for a better refinance rate. So it is better to have more equity. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.
Even the mortgage itself has an impact on how high your mortgage refinancing rate will be. A loan with a shorter term usually has better interest rates than a loan with a longer term, all other things being equal. If you want to convert your equity into cash with a cash-out refinance, you should expect a higher mortgage rate for this privilege as well.
How much does the refinancing cost?
When you refinance your mortgage, the closing costs are typically between 3% and 6% of the loan amount. For a $ 300,000 loan, that’s $ 9,000 to $ 18,000 in fees.
But every lender will assess your personal situation differently. It is therefore important to look around and compare offers. Everything from the location of the property to the type of loan you’re refinancing into can change what you pay for the refinance.