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Several rates for refinancing mortgage rates dropped today.
The national average for 30-year fixed and 15-year fixed refinances are both slipping down. Meanwhile, the average rate on 10-year fixed reimbursement also dropped lower.
Rates for refinancing are constantly changing, but overall they are very low by historical standards. If you are in the market to refinance, it may make sense to go ahead and lock in when you see a rate that you like.
Compare refinancing rates for a variety of loan types here.
30-year fixed refinancing
The average repayment rate of 30 years is 3.22 percent, down 19 basis points compared to a week ago. One month ago, the average rate on a fixed refinancing of 30 years was lower, at 3.16 percent.
At the current average rate, you pay $ 433.56 per month in principal and interest for every $ 100,000 you borrow. That represents a drop of $ 10.48 over what it would have been last week.
You can use Bankrate’s Mortgage Calculator to estimate your monthly payments and see what the effects are of making additional payments. It will also help you to calculate how much interest you will pay over the life of the loan.
15-year fixed refinancing
The average rate for a 15-year fixed ref is 2.75 percent, down 6 basis points since the same time last week.
Monthly payments on a 15-year fixed refinance at that rate cost about $ 673 per loan $ 100,000. The larger payment may be a little harder to find space in your monthly budget than a 30-year mortgage payment would be, but it comes with some great benefits: You will advance thousands of dollars over the life of the loan in total interest paid and build equity much faster.
10-year fixed refinancing
The average rate for a 10-year fixed-rate loan is 2.80 percent, down 8 basis points in the last week.
Monthly payments on a 10-year fixed-rate repayment rate of 2.80 percent would cost $ 960.08 per month for every $ 100,000 you borrow. If you can manage that hefty monthly payment, you will enjoy even more savings in interest costs than you would with a term of 15 years.
Where rates are targeted
To see where Bankrate’s panel of experts expects rates to go from here, check out our Rate Trend Index.
Want to see where rates are at the moment? Creditors nationwide are responding to Bankrate’s mortgage week survey of the week to bring you the most current rates. Here you can see the latest average rates on the market for a wide variety of purchase loans:
Rates with effect from 20 August 2020.
Want to see where rates are at the moment? See refinance rates here for a variety of loan options.
Lock your refit rate? How decisions
When you lock in a refinance rate, you freeze the rate that your lender offers you for a certain period of time. A rate lock will secure that rate between the time you apply for refinancing and when you close it.
What causes mortgage rates
Mortgage rates are affected by a range of economic factors, from inflation to unemployment rates. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives investors to mortgage-backed mortgages, causing prices to fall and yields to climb. As yields climb, rates become more expensive for lenders.
People typically buy more homes when the economy is strong, which drives the demand for mortgages. Increased demand may cause an increase in rates. Less demand can lead to lower rates.
What are the current mortgage refinancing rates?
Refinance rates have been volatile since the COVID-19 pandemic boosted the U.S. economy, but overall they have been very low. Mortgage rates can rise and fall from week to week, but rates are consistently below 4 percent and dive even in the middle to low 3s. This is a particularly good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for lenders and demanding higher down payments as they try to mitigate their risks.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are performed after the close of the previous business day and include rates and / or returns we have collected that day for a specific banking product. Bankrate.com’s banking resources are volatile – they help consumers see the movement of rates day by day. The settings listed in the “Bankrate.com Site Average” tables will vary from one day to the next, depending on what rates of settings we collect on a particular day for presentation on the site.
To learn more about the different rate averages that Bankrate publishes, see “Understanding the Rate Averages of Bankrate.”
