EPSTOCK / Shutterstock.com
On closer inspection, mortgage refinancing rates have dropped today.
National averages for 30-year fixed and 15-year fixed refinances both slide down. The average rate on 10-year fixed refs, in the meantime, is trending as well.
Rates for refinancing are constantly changing, but they remain low by historical standards. If you are in the market to refinance, it may make sense to take a break when you see a rate that you like.
See refinancing rates for a variety of loan options here.
30-year fixed refinancing
The average repayment rate of 30 years is 3.13 percent, down to 6 basis points in the last week. One month ago, the average rate on a fixed refinancing of 30 years was higher, at 3.19 percent.
At the current average rate, you pay $ 428.65 per month in principal and interest for every $ 100,000 you borrow. That’s $ 3.27 lower, compared to last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and find out how much you will save by adding 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 2.66 percent, down 11 basis points in the last week.
Monthly payments on a 15-year fixed refinance at that rate cost about $ 673 per loan $ 100,000. Yes, that payment is much larger than it would be on a 30 year mortgage, but it comes with some great benefits: You will save thousands of dollars over the life of the loan in total paid interest and build equity much faster.
10-year fixed refinancing
The average rate for a 10-year fixed-rate loan is 2.67 percent, 11 basis points down from a week ago.
Monthly payments on a 10-year fixed-rate repayment rate at 2.67 percent would cost $ 955.49 per month for every $ 100,000 you borrow. As you can see, the huge savings in interest costs you incur with that short 10-year period may come with the disadvantage of a much larger monthly payment.
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-to-mortgage survey of the week to bring you the most up-to-date rates. Here you can see the latest average rates on the market for a wide variety of purchase loans:
Rates with effect from 7 August 2020.
Want to see where rates are at the moment? See refinancing rates for a variety of loan options here.
Do you need to repay a rate?
If you lock in refinancing figures, you are freezing the rate that your lender is offering 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.
Which affects rates for mortgage refinancing
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 securities, 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 are rising and falling from week to week as lenders are overwhelmed with defaults and refinancing requests. In general, however, rates are consistently below 4 percent and drop even in the mid 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 lending 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.”
