In general, refinance rates for mortgage were varied with one notable rate trending up. The national rate average for a 15-year fixed refinance remain the same, while 30-year fixed-rate refinances moved up. At the same time, average rates for 10-year fixed refinances trailed off. Refinance interest rates are never set in stone — but rates have been historically low. For those looking to lock in a good rate, now is an optimal time to refinance a home. Before you refinance, remember to consider your personal needs and financial situation, and shop around for various lenders to find the best one for you.
30-year fixed refinance rates
For 30-year fixed refinances, the average rate is currently at 3.14%, an increase of 1 basis point over this time last week. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. If you’re having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you’ll pay off your loan at a slower rate.
15-year fixed-rate refinance
The average rate for a 15-year fixed refinance loan is currently 2.42%, unmoved from what we saw the previous week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. However, you’ll also be able to pay off your loan quicker, saving you money over the life of the loan. 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save even more in the long run.
10-year fixed-rate refinance
The current average interest rate for a 10-year refinance is 2.42%, a decrease of 1 basis points compared to one week ago. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. 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 provided by lenders nationwide:
Average refinance interest rates
|30-year fixed refi||3.14%||3.13%||+0.01|
|15-year fixed refi||2.42%||2.42%||N/C|
|10-year fixed refi||2.42%||2.43%||-0.01|
Rates as of June 2, 2021.
How to shop for refinance rates
When looking for refinance rates, know that your specific rate may differ from those advertised online. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.
Having a high credit score, low credit utilization ratio, and a history of consistent and on-time payments will generally help you get the best interest rates. To get your personalized refinance rates, you’ll need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.
It’s also worth noting that in recent months, lenders have been stricter with their requirements. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.
To get the best refinance rates, you’ll first want to make your application as strong as possible. You can do that by monitoring your credit, taking on debt responsibly, and getting your finances in order before applying for a refinance. Don’t forget to speak with multiple lenders and shop around to find the best rate.
Is now a good time to refinance?
Generally, it’s a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term. While interest rates have been low in the past few months, you should look at more than just the market interest rates when deciding if a refinance is right for you.
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.
Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don’t have a solid credit score, you may not qualify for the best rate.If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But carefully weigh the pros and cons first to make sure it’s a good fit for your situation.