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Today’s Average Mortgage Refinance Rate Still Below 2.5% for 18th Day in a Row | August 11, 2021

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View mortgage refinancing rates for August 11, 2021, which are mostly unchanged from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates have remained the same as yesterday, with the exception of 20-year rates, which increased.

  • Refinancing at a fixed rate over 30 years: 2.875%, unchanged
  • Refinancing at a fixed rate over 20 years: 2.750%, compared to 2.625%, +0.125
  • Refinancing at a fixed rate over 15 years: 2.125%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.125%, unchanged

Prices updated on August 11, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

Average mortgage refinance rates have remained well below 2.5% for 18 straight days, meaning homeowners looking to refinance could find interest savings regardless of the length of time they choose. Although the 30-year terms, which are the most common, hit 2.875% earlier this week, the rates for that duration have not reached 3% since July 2. 20-year, 15-year and 10-year rates also fluctuated slightly from day to day, but all terms continue to hold historic lows.

If you are thinking about refinancing your mortgage, consider using Credible. Whether you want to save money on your monthly mortgage payments or consider refinancing with cash, Credible’s free online tool will allow you to compare rates from multiple mortgage lenders. You can see prequalified fares in as little as three minutes.

Current fixed refinancing rates over 30 years

The current rate for a 30 year fixed rate refinance is 2.875%. It’s the same as yesterday.

Current 20-year fixed refinancing rates

The current rate for a 20 year fixed rate refinance is 2.750%. It’s since yesterday.

Current fixed refinancing rates over 15 years

The current rate for a 15 year fixed rate refinance is 2.125%. It’s the same as yesterday.

Current fixed refinancing rates over 10 years

The current rate for a 10 year fixed rate refinance is 2.125%. It’s the same as yesterday.

You can explore your mortgage refinancing options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Prices updated on August 11, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

How Mortgage Refinance Rates Have Changed

Today, mortgage refinance rates have increased compared to the same period last week.

  • Fixed refinancing rates over 30 years: 2.875%, compared to 2.625% last week, +0.250
  • Fixed refinancing rates over 20 years: 2.750%, compared to 2.500% last week, +0.250
  • Fixed refinancing rates over 15 years: 2.125%, compared to 2.000% last week, +0.125
  • Fixed refinancing rates over 10 years: 2.125%, compared to 2.000% last week, +0.125

Think it might be a good time to refinance? You can explore your mortgage refinancing options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Prices updated on August 11, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

What are the reasons for refinancing?

Every borrower’s situation is different, but here are some great reasons to refinance.

  • To get a lower interest rate. A lower interest rate could mean that you will pay less interest over the life of your mortgage, provided that you are refinancing for a shorter term as well.
  • To shorten the repayment period. If your ultimate goal is to someday get rid of your mortgage, shortening the repayment period might help you get there sooner.
  • To reduce interest charges over the life of the loan. Interest can be a significant portion of the total cost of your mortgage. For example, if you borrow $ 250,000 at 3.5% for 30 years, your total interest expense would be $ 154,140. Refinancing at 2.75% for the same repayment period could save you $ 36,723 in interest charges.
  • To withdraw equity in cash. Known as “cash-out refinancing,” this type of refinance allows you to take out a new mortgage for more than you owe on your old one and take the difference in cash. The equity in your home guarantees the extra money you can use for improvements, repairs, or other needs.
  • To get a fixed mortgage rate. If you have purchased an adjustable rate mortgage, the very low initial interest rate may revert to a much higher rate at the end of the initial period. And after that, your rate may change with market conditions. Many homeowners with ARMs are looking to refinance themselves into fixed rate mortgages that can provide reliable payment at a predictable rate.

Conversely, some reasons for refinancing are less than excellent.

  • Use equity to pay off unsecured debt like a car loan or credit cards. If your interest rate on these types of credit is high and you can get a really low mortgage refinance rate, you might be thinking, “Why not? But unsecured debt like personal loans or credit cards, and even a secured car loan, doesn’t put your home at risk. Paying off those debts by refinancing your home mortgage turns those unsecured debts into debt secured by your home.
  • Use equity to invest. Using equity to invest puts your home at risk for something that’s already a risky proposition. The investment does not involve any guarantee of return. Meanwhile, paying off your mortgage and preserving your equity has a dependably positive impact on your credit and finances.
  • Use equity for a big purchase. If you’ve built up some equity in your home, it can be tempting to tap it to get cash for luxuries like a big trip, a motorhome, or even cosmetic surgery. But think carefully before you refinance with withdrawal for these reasons. A refinanced mortgage is long term debt.

How To Get Your Lowest Mortgage Refinance Rate

If you want to refinance your mortgage, improve your credit rating, and pay off any other debt could guarantee you a lower rate. It’s also a good idea to compare the rates of different lenders if you are hoping to refinance to find the best rate for your situation.

Borrowers can save $ 1,500 on average over the life of their loan by purchasing a single additional rate quote, and on average $ 3,000 by comparing five rate quotes, according to research by Freddie Mac. Credible can help you compare multiple lenders at once in just a few minutes.

If you do decide to refinance your mortgage, be sure to shop around and compare the rates of several mortgage lenders. You can do this easily with Credible’s free online tool and see your prequalified rates in just three minutes.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible’s partner here. It’s quick, easy and the whole process can be done entirely online.

APR vs. interest rate: what’s the difference?

When shopping for a mortgage or loan refinance, you will often see the terms APR and interest rate. They are similar but not interchangeable.

The interest rate is the cost that the lender will charge each year to lend you money. The Annual Percentage Rate (APR) includes the interest rate and other fees and charges associated with your loan.

Usually, the APR gives you a better idea of ​​the true cost of a loan since it takes into account all the costs associated with borrowing money. For a mortgage or refinance, these costs can include discount points, fees, and other charges.

When you apply for a loan, you will usually be able to find the interest rate on the first page of your loan estimate, and the APR later in the document listed under “Comparisons”.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgages, mortgage refinancing, and more. He was an editor and editorial assistant in the online personal finance field for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.


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