Mortgage Rates

At this time’s mortgage refinance charges fall – July 5, 2021

Several closely watched refinancing rates are down today compared to a week ago.

  • 30 year fixed refinancing rate: 3.14%, -0.07 vs. a week ago
  • 15 year fixed refinancing rate: 2.45%, -0.05 vs. a week ago
  • 10 year fixed refinancing rate: 2.47%, -0.04 vs. a week ago

30-year fixed refinancing

The average 30-year refinancing rate is 3.14 percent, 7 basis points less than last week. A month ago, the average interest rate on a 30-year fixed refinancing was 3.16 percent higher.

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At the current average rate, you’ll pay $ 428.10 per month in principal and interest for every $ 100,000 you borrow.

You can use Bankrate’s mortgage calculator to estimate your monthly payments and see the effects of additional payments. It also helps you calculate how much interest you will pay over the life of the loan.

15-year fixed refinancing

The average for a 15-year-old refi is currently 2.45 percent, down 5 basis points from last week.

The monthly payments for a 15-year fixed refinance at this interest rate cost approximately $ 384 per $ 100,000 borrowed. Yes, this payment is much higher than a 30 year mortgage, but it comes with some great benefits: you will earn thousands of dollars in total upfront interest over the life of the loan and build equity much faster.

10-year fixed refinancing

The average interest rate on a 10-year fixed-income loan is 2.47 percent, 4 basis points less than the same point in time the previous week.

Monthly payments for a 10 year fixed rate refi at 2.47 percent would cost $ 389.94 per month for every $ 100,000 you borrow. If you can handle this sizeable monthly payment, you will save even more interest costs than with a 15-year term.

Where are the prices going

To see where Bankrate’s expert panel is looking to from here, check out our Rate Trend Index, a weekly survey of mortgage professionals.

Would you like to compare today’s prices? Lenders across the country respond to Bankrate’s weekday mortgage rate survey to bring you the most up-to-date rates available. Here are the current average market rates for a variety of mortgage refinancing loans:

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Prices from July 5, 2021.

Would you like to see where the prices are right now? Here you can find the refinancing rates for a variety of loan options.

Is now a good time to refinance?

Generally yes. Interest rates have been at or near historic lows in the past few months. Mortgage rates can go up and down from week to week, but they fluctuate around 3 percent, with some surveys showing that they are in the high two-fold range. If you are a homeowner with good or excellent credit, you should consider refinancing. Remember that starting December 1, the Federal Housing Finance Agency will be introducing a new 0.5 percent refinancing fee on all loans over $ 125,000. Many mortgage lenders are already pricing the fee in their loan offers.

Current refinancing interest rate landscape

Thanks to low interest rates, the last few months have been very busy refinancing. Refinance can still be a smart move for many borrowers, but be prepared to wait longer than normal to complete the loan. Some lenders may have tightened their lending standards. It can be more difficult to get a refinancing offer if your credit is not in good shape or your employment relationship has recently changed.

When to refinance

There are many reasons to refinance, but two main reasons are to change the interest rate or the term of your mortgage to save money, or to pay out a refinance to fund other projects.

Changing the interest rate / term usually means getting yourself a lower interest rate than what you are paying on your existing mortgage, or changing the time to repay the loan – or both. If you secure a lower interest rate, you will have lower monthly payments and pay less interest over the remaining life of your loan. There are several ways you can save money by changing the time it takes to repay your mortgage: Extending the term means lower monthly payments. If you shorten the term, your monthly payments may go up, but you will pay less interest over the life of the loan. With mortgage rates at historic lows, you can potentially shorten the life of your loan and still keep your monthly payments the same – or even lower.

With a cash out refinance, you borrow against the equity that you have built up in your home. It will add to your mortgage, but it can be an inexpensive way to fund large projects (think home renovations or repairs) as mortgage rates are much lower than personal loan and credit card rates.

How to refinance

Shopping is the most important thing you can do. Just like with securing a purchase mortgage, you want to make sure that you are getting the best deal. That means you can go to your current lender to see what they are ready to do for you, but you should also be open to finding a new institution. Compare all the terms different lenders offer you and see what makes the most sense in your own situation. Sometimes, for example, you can trade a slightly higher interest rate for other convenience that a particular lender can offer you.

What you need for refinancing

Refinancing can be a big undertaking. Your lender does a credit check and usually requires a lot of documents from pay slips and tax returns to bank and other annual financial statements.

It’s best to get all of your possible supporting documents in order in advance so that you can ship things out when the bank requests them.

And start doing your calisthenics. As with a purchase, you will need to sign a lot of documents to secure your new loan.

Methodology: The prices shown above are the averages from the Bankrate.com site. These calculations are carried out after the end of the previous business day and include the interest rates and / or returns that we have earned on that day for a specific banking product. Bankrate.com website averages tend to be volatile – they help consumers see how rates are moving on a day-to-day basis. The institutions included in the “Bankrate.com Site Average” tables differ from day to day, depending on which institutions record the rates on a particular day for presentation on the site.

To learn more about the various interest averages that Bankrate publishes, see Understanding Bankrate’s Interest Averages.

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