Multiple benchmark mortgage refinance rates were unchanged today.
The nationwide average for a 30-year fixed-rate refinance held firm, but the national average on a 15-year fixed refinance ticked up. The average rate on 10-year fixed refis, meanwhile, remained steady.
Refinancing rates are constantly changing, but they remain low by historical standards. If you’re in the market to refinance, it could make sense to lock if you see a rate you like.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.21 percent, unchanged since the same time last week. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.36 percent.
At the current average rate, you’ll pay $433.01 per month in principal and interest for every $100,000 you borrow.
You can use Bankrate’s mortgage calculator to figure out 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 2.78 percent, up 4 basis points over the last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $679 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, 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 2.78 percent, unchanged since the same time last week.
Monthly payments on a 10-year fixed-rate refi at 2.78 percent would cost $955.49 per month for every $100,000 you borrow. As you can see, the hefty savings in interest costs you’ll reap with that short 10-year term comes with the downside of a much larger monthly payment.
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||3.21%||3.21%||N/C|
|15-year fixed refi||2.78%||2.74%||+0.04|
|10-year fixed refi||2.78%||2.78%||N/C|
Rates as of July 27, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
When to lock a mortgage refinance rate
A rate lock allows you to freeze the interest rate your lender extends to you for a specified period of time. Between the time you apply for a mortgage refinance and close on it, the rate lock will protect you from rising rates.
What influences mortgage refinance rates
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.
Current refinance rate landscape
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. Mortgage rates can rise and fall from week to week, but 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 you learn more about rates by product type.|
|30-Year Loan||Current 30 Year Mortgage Rates||Current 30 Year Refinance Rates|
|20-Year Loan||20-Year Mortgage Interest Rates||20-Year Refi Rates|
|15-Year Loan||15-Year Mortgage Rates||Current 15-Year Refinance Rates|
|10-Year Loan||10-Year Mortgage Interest Rates||10-Year Mortgage Refinance Rates|
|FHA Loan||FHA Loan Interest Rates||FHA Mortgage Refi Rates|
|VA Loan||VA Mortgage Interest Rates||Current VA Refinance Rates|
|ARM Loan||ARM Mortgage Rates||ARM Refinance Rates|
|Jumbo Loan||Jumbo Mortgage Rates||Jumbo Refinance Rates|