Several benchmark mortgage refinance rates trended upward today.
Nationwide averages on 30-year fixed and 15-year fixed refinances both floated higher. The average rate on 10-year fixed refis, meanwhile, also trended upward.
Refinancing rates change daily, but they remain much lower overall than they were before the Great Recession. If you’re in the market to refinance, it may make sense to lock if you see a rate you like.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.41 percent, up 24 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.22 percent.
At the current average rate, you’ll pay $444.04 per month in principal and interest for every $100,000 you borrow. That’s up $13.21 from what it would have been last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and find out how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed refinance
The average for a 15-year refi is currently running at 2.81 percent, up 15 basis points from a week ago.
Monthly payments on a 15-year fixed refinance at that rate will cost around $675 per $100,000 borrowed. That’s obviously much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll come out thousands of dollars ahead over the life of the loan in total interest paid and build equity much faster.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 2.88 percent, up 21 basis points since the same time last week.
Monthly payments on a 10-year fixed-rate refi at 2.88 percent would cost $950.45 per month for every $100,000 you borrow. That’s a lot more than the monthly payment on even a 15-year refinance, but in return you’ll pay even less in interest than you would with a 15-year term.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? Lenders nationwide respond to Bankrateâ€™s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
|30-year fixed refi||3.41%||3.17%||+0.24|
|15-year fixed refi||2.81%||2.66%||+0.15|
|10-year fixed refi||2.88%||2.67%||+0.21|
Rates as of August 13, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
Lock your refi rate? How to decide
When you lock in a refinance rate, you freeze the rate your lender offers you for a specific period of time. A rate lock will secure that rate between the time you apply for the refinance and when you close on it.
Why do refinance rates rise and fall?
Mortgage rates are influenced by a range of economic factors, from inflation to unemployment numbers. Typically, higher inflation means higher interest rates and vice versa. As inflation rises, the dollar loses value, which in turn drives off investors for mortgage-backed securities, causing the prices to fall and yields to climb. When yields climb, rates get more expensive for borrowers.
People typically buy more homes when the economy is strong, driving demand for mortgages. Increased demand can cause an increase in rates. Less demand can lead to lower rates.
What are current mortgage refinance rates?
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. Mortgage rates are rising and falling from week to week, as lenders are inundated with forbearance and refinance requests. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially 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 borrowers and demanding higher down payments as they try to dampen their risks.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”
|Loan term||Purchase Rates||Refinance Rates|
|The chart above links out to loan-specific pagesto help our readers learn more about rates by mortgage type.|
|30-Year Loan||30-Year Mortgage Rates||30-Year Mortgage Refinance Rates|
|20-Year Loan||20-Year Mortgage Interest Rates||20-Year Refinance Interest Rates|
|15-Year Loan||Current 15 Year Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||Current 10 Year Mortgage Rates||10-Year Refinance Rates|
|FHA Loan||FHA Mortgage Interest Rates||FHA Mortgage Refi Rates|
|VA Loan||VA Mortgage Rates||VA Refinance Loan Rates|
|ARM Loan||ARM Loan Rates||ARM Refi Mortage Rates|
|Jumbo Loan||Current Jumbo Mortgage Rates||Jumbo Mortgage Refinance Rates|