Refinance rates on Oct. 20, 2021: Rate eases


004-cnet-finance-mortgage-home-purchase

Getty

In general, refinance rates for mortgages were varied with one notable rate tapering off. The average rate nationwide for a 15-year fixed-rate refinance moved higher, while 30-year fixed refinance rates slumped. In addition, the average rate on 10-year fixed refinance saw growth. Refinance interest rates are never set in stone — but rates have been at historic lows. If you plan to refinance your house, now might be a good time to get a good rate. Before getting a refinance, remember to think about your personal needs and financial situation, and shop around for different lenders to find the best one for you.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 3.16%, a decrease of 1 basis point from what we saw one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. 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 off your loan.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 2.44%, an increase of 3 basis points from what we saw the previous week. With a 15-year fixed refinance, you’ll have a larger monthly payment than a 30-year loan. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. 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

The current average interest rate for a 10-year refinance is 2.43%, an increase of 6 basis points over last week. You’ll pay more every month with a ten-year fixed refinance compared to a 30-year or 15-year refinance — but you’ll also have a lower interest rate. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. 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 data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates supplied by lenders across the country:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 3.16% 3.17% -0.01
15-year fixed refi 2.44% 2.41% +0.03
10-year fixed refi 2.43% 2.37% +0.06

Rates as of Oct. 20, 2021.

How to shop for refinance rates

It’s important to understand that the rates advertised online may not apply to you. Your interest rate will be influenced by market conditions as well as your credit history and application.

To get the best interest rates, you’ll typically need a high credit score, low credit utilization ratio, and a history of making consistent and on-time payments. 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 into account any fees and closing costs that might offset the potential savings of a refinance.

You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months. This means that if you don’t have great credit ratings, you might not be able to take advantage of lowered interest rates — or qualify for a refinance in the first place.

Before applying for a refinance, you should make your application as strong as possible in order to get the best rates available. You can do that by monitoring your credit, taking on debt responsibly, and getting your finances in order before applying for a refinance. 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.

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. 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.



Click here for More Tech News

2 thoughts on “Refinance rates on Oct. 20, 2021: Rate eases

  • October 26, 2021 at 5:29 am
    Permalink

    Hello, i think that i saw you visited my weblog so i came to 搑eturn the favor?I’m attempting to find things to enhance my site!I suppose its ok to use a few of your ideas!!

    Reply
  • October 27, 2021 at 6:22 pm
    Permalink

    Oh my goodness! an amazing article dude. Thanks Nonetheless I’m experiencing concern with ur rss . Don抰 know why Unable to subscribe to it. Is there anyone getting equivalent rss drawback? Anybody who knows kindly respond. Thnkx

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest