Current refinancing rates, December 8, 2021 | Lower rates

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Today, many closely watched refinancing rates have declined.

The 15-year and 30-year fixed rates have seen their average rates fall. The average rate for 10-year fixed-rate refinance mortgages has also declined.

Refinancing rates are constantly changing. However, rates have hovered near their historic lows for some time. For those looking to refinance their existing mortgage, this can be a great opportunity to lower your interest rate.

The average mortgage refinancing rates are as follows:

Compare the refinancing rates for a wide variety of different loans here.

What these refinancing rate changes mean for homeowners

With refinancing rates continuing to hover around 3%, it is still possible to get a low rate for homeowners who haven’t refinanced in the past few years. But the decision to refinance isn’t just about the rate, there are also closing costs to consider. So make sure that whatever you save in interest payments outweighs the fees you pay. And don’t forget that even a “no closing cost” refinance still comes with costs, which are usually built into your loan balance instead of being paid out of pocket.

30-year average refinancing rates

Currently, the 30-year average fixed refinance has an interest rate of 3.16%, down 4 basis points from the previous week.

You can use our mortgage calculator to get an idea of ​​what your monthly payments will be and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.

Fixed refinancing rates over 15 years

Currently, the average rate on a 15-year fixed refinance loan is 2.49%, down 2 basis points from a week ago.

The monthly payments for a 15-year refinance loan will be larger than for a 30-year refinance at the same rate. However, a shorter loan term can help you increase your home equity much faster.

Average refinancing rates over 10 years

The 10-year average fixed refinancing rate is 2.45%, a decrease of 3 basis points from the rate observed the previous week.

Monthly payments with a 10-year refinance term would cost even more than what you would pay with a 15-year loan. The advantage is that you will end up paying even less interest over the life of the loan.

Mortgage refinancing rate trends

Mortgage and refinance interest rates are extraordinarily low compared to any other time in the history of mortgage rates. However, rates have risen from their historic lows and that should be the long term trend. The Federal Reserve is expected to begin the process of unwinding its economic supports during the time of the pandemic, including policies that have kept rates low.

Even though rising rates are likely to be the long term trend, that doesn’t mean they will rise overnight. If you haven’t refinanced in a while, that’s good news for you. As the rates fluctuate from day to day and from week to week, an increase in rates should therefore be more gradual.

How we determine refi rates

Our refinancing rate trends are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These daily refi interest rate averages are based on a consumer profile that meets the following criteria:

  • Redemption of value (LTV) or 80% or less
  • Principal residence
  • 740+ credit score
  • Detached single family home

Information provided to Bankrate by lenders across the country is displayed in the table below:

Prices as of December 8, 2021.

Take a look at the mortgage refinance rates for a number of different loans.

Is it still a good time to refinance?

Refinancing is not just about numbers, like the refinancing rate, your situation is also an important factor. Evaluating if refinancing fits into your financial and life plans is always a good idea

Refinancing can be a good idea if you can lower your interest rate enough to offset the initial closing costs. But sometimes the point of refinancing isn’t to lower your mortgage rate. With the rise in home values, many homeowners are choosing to turn their new equity into cash with a cash refinance. The money you receive from a refinance with withdrawal can be used for anything, but loans with withdrawal generally have higher interest rates than other refinance loans. It is therefore important to have a plan before deciding to take out a larger mortgage.

Overall, it’s always a great time to refinance as long as it makes sense for your situation.

How to ensure you get the lowest refinance rate

Your finances have a big impact on the refinancing rate you can qualify for. Having more equity in your home and a better credit rating will usually get you a lower refinance rate.

Your personal finances are not the only thing that will affect your refinancing interest rate. A lower loan-to-value ratio (LTV) will help you get a lower refinance rate. So it is better to have more equity. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself has an effect on what your refinancing rate will be. A shorter term refinance loan generally has better rates than loans with longer repayment terms, all other things being equal. Also, if you want to take money out of your home with withdrawal refinance, you should expect to pay a higher mortgage rate for this lien.

What is the average cost of refinancing?

If you refinance your mortgage, the closing costs typically range between 3% and 6% of the loan amount. For a loan of $ 300,000, this represents $ 9,000 to $ 18,000 in fees.

But, each lender will assess your personal situation differently. It is therefore important to shop around and compare offers. Everything from the location of the property to the type of loan you refinance with can change what you pay to refinance.

Current mortgage rates by type of loan

Mortgage refinancing rate

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