Refinancing rates for September 17, 2021: Low rates
Many of the standard refinancing rates are down today. Both 15-year and 30-year fixed refinancings saw their average rates decline. At the same time, the average 10-year fixed refinancing rate has also fallen. Although refinancing rates are always changing, they have been very low lately. For this reason, now is an excellent time for homeowners to secure a good refinance rate. Before refinancing, remember to take into account your personal needs and financial situation, and shop with several lenders to find the right lender for you.
Fixed refinancing rates for 30 years
The average 30-year fixed-rate refinancing loan is currently 2.97%, down 4 basis points from what we saw a week ago. (Base point is 0.01%). One reason to refinance a 30-year fixed loan from a shorter loan term is to lower the monthly payment. If you are currently having difficulties making your monthly payments, 30 year refinancing may be a good option for you. However, interest rates for 30-year refinancing will usually be higher than 15-year or 10-year refinancing rates. It will also take longer to pay off your loan.
Refinance at a fixed rate for 15 years
The average 15-year fixed refinancing rate is currently 2.27%, down 3 basis points from a week ago. With a 15-year fixed refinancing, you’ll get a larger monthly payment than a 30-year loan. On the other hand, you will save money on interest, because you will pay off the loan sooner. 15-year refinancing rates are usually lower than 30-year refinancing rates, which will help you save more in the long run.
Fixed rate refinance for 10 years
For 10-year fixed refinancing operations, the average rate is currently 2.26%, down 1 basis point from a week ago. A 10-year refinancing usually features the highest monthly payment of all refinancing terms, but the lowest interest rate. A 10-year refinancing can help you make your home payments faster and provide long-term interest. Just be sure to carefully consider your budget and current financial situation to make sure you can afford higher monthly payments.
Where do rates go?
We track refinancing rate trends using information collected by Bankrate, which is owned by the parent company of CNET. Below is a table of average refinancing rates reported by lenders across the United States:
Average interest rates on refinancing
|the product||Rate||Since a week||they change|
|Steady reference for 30 years||2.97%||3.01%||-0.04|
|Fixed reference for 15 years||2.27%||2.30%||-0.03|
|10 years fixed reference||2.26%||2.27%||-0.01|
Prices as of September 17, 2021.
How to shop for refinancing rates
When researching refinancing rates online, it is important to remember that your specific financial situation will affect the rate offered to you. Your interest rate will be affected by market conditions as well as your credit and application history.
Having a high credit score, a low credit utilization ratio, and a history of consistent and on time payments will generally help you get the best interest rates. You can generally get a good feel for average online rates, but be sure to speak with a mortgage professional to find out what specific rates you qualify for. You should also take into account any closing fees and costs that may offset potential refinancing savings.
Since the beginning of the pandemic, many lenders have been much stricter with who they approve of the loan. This means that if you don’t have great credit ratings, you may not be able to take advantage of lower interest rates — or qualify for refinancing in the first place.
Before applying for refinancing, you should make your application as strong as possible in order to get the best rates available. You can do this by monitoring your credit, taking on debt responsibly, and arranging your finances before applying for refinancing. Don’t forget to talk to several lenders and shop around to find the best rate.
Is now a good time to refinance?
Most people refinance because market interest rates are lower than their current rates or because they want to change the term of the loan. It is true that in the past year, interest rates have been historically low. But when deciding on refinancing, be sure to consider other factors besides market interest rates.
To determine if refinancing is right for you, consider all factors including how long you plan to stay in your current home, the length of the loan and the amount of your monthly payment. And don’t forget about fees and closing costs, which can accrue.
Some lenders have tightened their requirements in recent months, so you may not be able to get refinancing at the stated interest rates – or even refinance at all – if you don’t meet their criteria. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But weigh the pros and cons first to make sure it’s a good fit for your situation.