Refinancing rate on October 12, 2021: Rate hike

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A few closely watched mortgage refinancing rates have climbed today. Fixed 15-year and 30-year refinances have seen their average rates rise. In addition, the average rate on 10-year fixed refinancing has also increased. Refinancing interest rates are never set in stone, but rates have reached historic lows. If you are considering refinancing your home, this might be a great time to get a good rate. Before you get refinancing, don’t forget to think about your personal needs and financial situation, and compare the offers of several lenders to find the one that’s right for you.

Read more: 7 things to do before moving into your new home

30-year fixed rate refinancing

The current average interest rate for a 30-year refinance is 3.17%, an increase of 10 basis points from what we saw a week ago. (One basis point equals 0.01%.) Refinancing a 30-year fixed loan from a shorter loan term can lower your monthly payments. This makes 30-year refinances good for people who are having trouble making their monthly payments or just want a little more leeway. Be aware, however, that interest rates will generally be higher compared to refinancing over 15 or 10 years, and you will pay off your loan at a slower rate.

Refinancing at a fixed rate over 15 years

For fixed 15-year refinances, the average rate is currently 2.41%, an increase of 4 basis points from a week ago. Refinancing a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. But you will save more money over time because you pay off your loan faster. Interest rates for a 15-year refinance also tend to be lower than for a 30-year refinance, so you’ll save even more in the long run.

10-year fixed rate refinancing

The current average interest rate for a 10-year refinance is 2.37%, an increase of 9 basis points from what we saw the week before. A 10-year refinance will usually have the highest monthly payment of all the refinancing terms, but the lowest interest rate. 10-year refinancing can be a good deal, because paying off your home sooner will help you save on interest in the long run. Just be sure to take a close look at your budget and current financial situation to make sure you can afford a higher monthly payment.

Where are the rates going

We track refinancing rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinance rates reported by lenders nationwide:

Average refinancing interest rates

Product Rate A week ago Switch
30-year fixed refi 3.17% 3.07% +0.10
15-year fixed refi 2.41% 2.37% +0.04
Refi fixed 10 years 2.37% 2.28% +0.09

Prices as of October 12, 2021.

How to Find Custom Refinance Rates

When looking for refinancing rates, be aware that your specific rate may differ from those advertised online. Your interest rate will be influenced by market conditions as well as your credit history and demand.

To get the best interest rates, you’ll generally need a high credit score, low credit utilization rate, and a consistent, on-time payment history. You can usually get a good idea of ​​average interest rates online, but be sure to speak to a mortgage advisor so you know the specific rates you qualify for. And don’t forget the fees and closing costs that can get expensive up front.

You should also be aware that many lenders have had more stringent loan approval requirements in recent months. If you have a low credit score or a bad credit history, you might have a hard time refinancing at the lowest interest rates.

Before you apply for refinancing, you need to make your application as strong as possible in order to get the best rates available. The best way to improve your credit rating is to get your finances in order, use credit responsibly, and monitor your credit regularly. You should also shop around several lenders and compare offers to make sure you get the best rate.

When should I refinance?

Most people refinance because market interest rates are lower than their current rates or because they want to change the term of their loan. Interest rates over the past few months have hit all-time lows, but that’s not the only thing you should consider when deciding to refinance.

Be sure to consider your goals and financial situation, including how long you plan to stay in your current home. It helps to have a specific goal for refinancing, such as lowering your monthly payment or adjusting the length of your loan. Also keep in mind that closing costs and other costs may require an initial investment.

Some lenders have tightened their requirements in recent months, so you may not be able to refinance at the posted interest rates – or even refinance at all – if you don’t meet their standards. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great initiative. But weigh the pros and cons first to make sure it’s right for your situation.


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