30 and 10-year mortgage refinancing rates drop to favorable levels | October 1, 2021

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Check out mortgage refinance rates for October 1, 2021, which are a mix from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinancing rates have fallen for two key rates and held steady for two more since yesterday.

  • Refinancing at a fixed rate over 30 years: 2.990%, against 3.000%, -0.010
  • Refinancing at a fixed rate over 20 years: 2.750%, unchanged
  • Refinancing at a fixed rate over 15 years: 2.250%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.125%, vs. 2.250%, -0.125

Prices last updated on October 1, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

Mortgage refinancing rates continue to save homeowners money, with 30-year rates again below 3%, 10-year rates at near record highs, and 15-year rates holding steady throughout. week long. But homeowners looking for interest savings should act now, as experts predict a rate hike on the horizon.

“The days of mortgage rates below 3% could be in the mirror by the end of 2021,” George Ratiu, director of economic research at Realtor.com, recently told Fox Business.

If you are thinking about refinancing your mortgage, consider using Credible. Whether you want to save money on your monthly mortgage payments or consider refinancing with cash, Credible’s free online tool will allow you to compare rates from multiple mortgage lenders. You can see prequalified fares in as little as three minutes.

Current fixed refinancing rates over 30 years

The current rate for a 30 year fixed rate refinance is 2.990%. This is down from yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage might lower your interest rate, but might not have much of an effect on your total interest charges or monthly payments. Refinancing a short-term mortgage to a 30-year refinance could result in a lower monthly payment, but higher total interest charges.

Current 20-year fixed refinancing rates

The current rate for a 20 year fixed rate refinance is 2.750%. It’s the same as yesterday. By refinancing a 30-year loan to a 20-year refinance, you could earn a lower interest rate and lower total interest charges over the life of your mortgage. But you can get a higher monthly payment.

Current fixed refinancing rates over 15 years

The current rate for a 15 year fixed rate refinance is 2.250%. It’s the same as yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest charges and maintaining a reasonable monthly payment.

Current fixed refinancing rates over 10 years

The current rate for a 10 year fixed rate refinance is 2.125%. This is down from yesterday. Refinancing over 10 years will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a larger monthly mortgage payment.

You can explore your mortgage refinancing options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Prices last updated on October 1, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

These rates are based on the assumptions presented here. Actual rates may vary.

Think it might be a good time to refinance? To understand how much you could save on monthly mortgage payments by refinancing now, calculate the numbers and compare rates using Credible’s free online tool. In a matter of minutes, you can see what many mortgage lenders are offering.

Prices last updated on October 1, 2021. These prices are based on the assumptions presented here. Actual rates may vary.

Are refinance rates higher than purchase rates?

Refinance rates are generally higher than the rates for new mortgages to buy a home. Here are some factors that influence the higher rates:

  • Risk – A borrower who refinances for a shorter term to get a lower interest rate and pay off their loan sooner may end up with a higher monthly payment. This higher payment could translate into a higher risk of default. Likewise, in cash-out refinances, the borrower’s debt-to-income ratio increases – and perhaps their risk of default.
  • Returned – A lender may be able to make more money with a purchase loan than a refinance. Many buyers opt for longer-term mortgages with higher interest rates. Refinancing at a shorter term and / or at a lower interest rate reduces the amount of interest the lender pays over the life of a loan.
  • Costs – There are many closing costs associated with refinancing a mortgage that you will face when taking out a new mortgage, such as an appraisal, attorney fees and more. Closing a refinance also has costs for the lender. But while the lower interest rate and shorter term you get with refinancing pay off financially, the lender will make less interest over the term of the refinanced loan.
  • Your credit – I hope your credit will continue to improve once you become a homeowner. But this is not always the case for everyone. A homeowner whose credit rating has actually gone down since he originally bought the home may seem like a greater risk to lenders, who may charge a higher interest rate to offset the perceived risk.

How to get your lowest mortgage refinance rate

If you want to refinance your mortgage, improve your credit rating, and pay off any other debt could guarantee you a lower rate. It’s also a good idea to compare the rates of different lenders if you are hoping to refinance to find the best rate for your situation.

Borrowers can save $ 1,500 on average over the life of their loan by purchasing a single additional rate quote, and on average $ 3,000 by comparing five rate quotes, according to research by Freddie Mac.

Be sure to shop around and compare the rates of several mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in just three minutes.

How does Credible calculate the refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the evolution of mortgage refinancing rates. Credible’s average mortgage refinance rates are calculated based on information provided by partner lenders who compensate Credible.

The rates assume that a borrower has a credit score of 740 and borrows a conventional loan for a single family home that will be their primary residence. Rates also assume zero (or very low) discount points and a 20% deposit.

Credible mortgage refinancing rates will only give you an idea of ​​current average rates. The rate you receive may vary depending on a number of factors.

What is the average cost of refinancing?

Refinancing a mortgage can generate significant interest savings over the life of a loan. But not all of these savings are free. Typically, you’ll encounter costs – $ 5,000 on average, according to Freddie Mac – when refinancing your mortgage.

Your exact refinancing costs will depend on several factors, including your loan amount and where you live. Typical refinancing costs include:

  • The cost of registering your new mortgage
  • Assessment fees
  • Lawyer fees
  • Lender fees, such as origination or underwriting
  • Title service fee
  • Credit file fees
  • Mortgage points
  • Prepaid interest charges

Keep in mind that no-cost refinancing does not exist. Lenders who market “no-fee loans” typically charge a higher interest rate and build the costs into the loan, which means you’ll pay more interest over the life of the loan.

Credible is also a partner of a home insurance broker. If you are looking for a better home insurance rate and are considering switching providers, consider using an online broker. You can compare quotes from top rated insurance companies in your area – it’s quick, easy, and the whole process can be done entirely online.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgages, mortgage refinancing, and more. He was an editor and editorial assistant in the online personal finance field for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.


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