Current refinance rates on July 21, 2021: Rates decline – CNET

006-cnet-finance-mortgage-home-exterior-features
Jim Lane/Getty Image

A few closely followed refinance rates declined today. Both 15-year fixed and 30-year fixed refinances saw their mean rates slump. At the same time, average rates for 10-year fixed refinances also trailed off. Although refinance rates are dynamic, recently they have been lower than they have been in years. Because of this, right now is an ideal time for homeowners to get a good refinance rate. Before getting a refinance, remember to take into account your personal needs and financial situation, and shop around for different lenders to find the best one for you.

Read moreConsidering a mortgage refinance? Rates may be going even lower

30-year fixed refinance rates

The current average interest rate for a 30-year refinance is 2.96%, a decrease of 14 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. If you’re having difficulties making your monthly payments, a 30-year refinance could be a good option for you. However, interest rates for a 30-year refinance will typically be higher than rates for a 15- or 10-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

The average 15-year fixed refinance rate right now is 2.32%, a decrease of 11 basis points from what we saw the previous week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. However, you’ll also be able to pay off your loan quicker, saving you money over the life of the loan. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.

10-year fixed-rate refinance

For 10-year fixed refinances, the average rate is currently at 2.32%, a decrease of 13 basis points compared to one week ago. A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a higher monthly payment.

Where rates are headed

We track refinance rate trends using information collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates provided by lenders across the US:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 2.96% 3.10% -0.14
15-year fixed refi 2.32% 2.43% -0.11
10-year fixed refi 2.32% 2.45% -0.13

Rates as of July 21, 2021.

How to find personalized refinance rates

When looking for refinance rates, know that your specific rate may differ from those advertised online. Your interest rate will be influenced by market conditions as well as your credit history and application.

Having a high credit score, low credit utilization ratio and a history of consistent and on-time payments will generally help you get the best interest rates. Researching interest rates online is always a good idea, but you’ll need to connect with a mortgage professional to get your exact refinance rate. And don’t forget about fees and closing costs, which may cost a hefty amount upfront.

Since the beginning of the pandemic, many lenders have been stricter about who they approve for a loan. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.

To get the best refinance rates, you’ll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Don’t forget to speak with multiple lenders and shop around to find the best rate.

When should I refinance?

Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. Interest rates in the past few months have been at historic lows, but that’s not the only thing you should be looking at when deciding whether to refinance.

Make sure to consider your goals and financial situation, including how long you plan to stay in your current home. It’s helpful to have a specific goal for a refinance — such as decreasing your monthly payment or adjusting the term of your loan. And don’t forget about fees and closing costs, which can add up.

Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates — or even a refinance at all — if you don’t meet their standards. Refinancing can be a great move if you get a good rate or can pay off your loan sooner — but consider carefully whether it’s the right choice for you.

Leave a Comment