Refi rates on Oct. 6, 2021: Rates ease


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Numerous benchmark refinance rates receded today. Both 15-year fixed and 30-year fixed refinances saw their average rates slump. In addition, the average rate on a 10-year fixed refinance trailed off. Although refinance rates are dynamic, they have been at historic lows. Because of this, right now is an ideal time for homeowners to get a good refinance rate. But as always, make sure to first think about your personal goals and circumstances before getting a refinance, and shop around for a lender who can best meet your needs.

30-year fixed-rate refinance

The current average interest rate for a 30-year refinance is 3.08%, a decrease of 4 basis points from what we saw 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 currently, 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-year or 10-year refinance. It’ll also take you longer to pay it off.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 2.36%, a decrease of 1 basis point from what we saw the previous week. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. But you’ll save more money over time, because you’re paying off your loan quicker. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year, so you’ll save more in the long run.

10-year fixed-rate refinance

For 10-year fixed refinances, the average rate is currently at 2.30%, a decrease of 2 basis points compared to one week ago. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much quicker and save on interest. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the 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 nationwide:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 3.08% 3.12% -0.04
15-year fixed refi 2.36% 2.37% -0.01
10-year fixed refi 2.30% 2.32% -0.02

Rates as of Oct. 6, 2021.

How to find personalized refinance rates

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

Generally, you’ll want a high credit score, low credit utilization ratio and a history of making consistent and on-time payments in order to get the best 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. You should also take any fees and closing costs into account, which might offset the potential savings of a refinance.

Since the beginning of the pandemic, many lenders have been stricter with 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. Also be sure to compare offer from multiple lenders in order to get the best rate.

Is now a good time to refinance?

Generally, it’s a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term. It’s true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.

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. Also keep in mind that closing costs and other fees may require an upfront investment.

Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don’t have a solid credit score, you may not qualify for the best rate. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But carefully weigh the pros and cons first to make sure it’s a good fit for your situation.



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