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Mortgage Refinance Rates Go Up Today, October 26, 2021


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Several closely watched mortgage refinancing rates have climbed today. The 15-year fixed and 30-year fixed refinances saw their average rates increase, in addition to the 10-year fixed refinancing. Refinancing interest rates are never set in stone, but rates have been historically low. For those looking to get a good rate, now is the time to refinance a home. Before you refinance, remember to consider your personal needs and financial situation, and speak with several lenders to find the right one for you.

30-year fixed rate refinancing

The current average interest rate for a 30-year refinance is 3.24%, an increase of 8 basis points from 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. If you’re having trouble making your monthly payments, a 30-year refinance might be a good option for you. In return for the lower monthly payments, the 30-year refinance rates will generally be higher than the 15- and 10-year refinance rates. You will also pay off your loan more slowly.

Refinancing at a fixed rate over 15 years

For fixed 15-year refinances, the average rate is currently 2.51%, an increase of 7 basis points from last week. A 15-year fixed refinance will most likely increase your monthly payment compared to a 30-year loan. However, you will also be able to pay off your loan faster, which will save you money over the life of the loan. 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

For fixed 10-year refinances, the average rate is currently 2.52%, an increase of 11 basis points from last week. Compared to a 30 and 15 year refinance, a 10 year refinance will generally have a lower interest rate but a higher monthly payment. 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 information collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinancing rates provided by lenders across the country:

Average refinancing interest rates

Product Rate A week ago Switch
Fixed refinancing over 30 years 3.24% 3.16% +0.08
Fixed refinancing over 15 years 2.51% 2.44% +0.07
Fixed refinancing over 10 years 2.52% 2.41% +0.11

Prices as of October 26, 2021.

How To Buy Refinance Rates

When looking for refinancing rates, be aware that your specific rate may differ from those advertised online. While current market conditions are a factor, your particular interest rate will largely depend on your demand and credit history.

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. You should also consider the fees and closing costs that could offset the potential savings of a refinance.

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.

One way to get the best refinance rates is to strengthen your borrower demand. If you haven’t already, try improving your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully. You should also shop around several lenders and compare offers to make sure you get the best rate.

When should I refinance?

For refinancing to make sense, you will generally want to get an interest rate lower than your current rate. Besides interest rates, changing the term of your loan is another reason to refinance. Interest rates over the past few months have been low, 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. And don’t forget the fees and closing costs, which can add up.

Some lenders have tightened their requirements, so you may not be able to get refinancing at the posted interest rates – or even refinancing at all – if you don’t meet their standards. Refinancing can be a good decision if you get a good rate or can pay off your loan sooner, but think carefully about whether it’s the right choice for you.

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