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Compare Today’s Refinance Rates
How to use our refinance rate table
This table will show you estimated mortgage refinance rates from different lenders, tailored to you. Fill out the fields above as accurately as possible so we can get a sense of where you live, what you’re looking to do and your financial situation. You will get quotes based on that information, and you’ll be on your way to getting a new mortgage. This is an estimate; your actual rate will depend on a number of factors.
How mortgage refinance rates work
Mortgage interest is simply how much you pay the bank to borrow its money. If you’re taking out a $100,000 mortgage, you’ll pay back more than $100,000 over time for the privilege. Shorter-term loans have lower interest rates than longer-term ones. With that lower interest rate and more-rapid payback, a 15-year mortgage, for example, will be a lot less expensive overall than a 30-year one. The flip side is, shorter-term loans mean higher monthly payments, so even though they save you money overall, they can squeeze your monthly budget. Thanks to the ongoing trend of low interest rates, shorter-term loans have become more affordable for many borrowers, and have become especially popular with homeowners looking to refinance.
Why refinance my mortgage?
Many people refinance to take advantage of lower rates. Mortgage interest went down significantly in 2020, so if you’re holding onto an old loan, you could realize substantial savings both in your monthly payments and overall interest outlay by refinancing to a new mortgage with a lower rate.
You can also tap into the equity you’ve built up by taking advantage of a cash-out refi. Doing that will expand the principal balance of your loan (using that equity as collateral) and could give you some extra cash for a big project like home improvement. Do be sure to look at how long it will take you to break even on the closing costs of the refi. A year or two or less to break even is ideal and then you can start saving.
Why get multiple quotes?
Shopping around for quotes from multiple lenders is key for every mortgage applicant. When you shop, consider not just the interest rate you’re being quoted, but also all the other terms of the loan. Be sure to compare APRs, which include many additional costs of the mortgage not shown in the interest rate. Some institutions may have lower closing costs and fees than others, or your current bank or credit union may extend you a special offer. Don’t be afraid to walk away from your current lender when you refinance. If you can find a better deal elsewhere, go for it. Look at quotes from online and traditional banks. Consider using a mortgage broker, who will be able to provide rates from wholesale lenders.
Current mortgage rate trends
On Thursday, January 21, 2021, the average 30-year fixed mortgage rate lowered to 2.930% and APR lowered to 3.150%. The average 15-year fixed mortgage rate lowered to 2.410% and APR lowered to 2.650%. The 5/1 adjustable-rate mortgage (ARM) rate increased to 3.040% and APR increased to 4.050%, according to Bankrate’s latest survey of the nation’s largest mortgage lenders.
What are today's refinance rates?
On Thursday, January 21, 2021, according to Bankrate’s latest survey of the nation’s largest refinance lenders, the benchmark 30-year fixed refinance rate is 2.930% with an APR of 3.150%. The average 15-year fixed refinance rate is 2.410% with an APR of 2.650%. The 5/1 adjustable-rate refinance (ARM) rate is 3.040% with an APR of 4.050%.
Current mortgage refinance rates
Mortgage rates change all the time, driven by factors like the economy, Treasury bond rates and demand. Lenders nationwide provide weekday mortgage rates to our comprehensive national survey of the most current rates available. The interest rate table below is updated daily. Use these as a guide to what’s available, but keep in mind your rate may vary depending on your qualifications and the lender you choose.
|30-Year Fixed Rate||2.930%||3.150%|
|20-Year Fixed Rate||2.830%||3.100%|
|15-Year Fixed Rate||2.410%||2.650%|
|10/1 ARM Rate||3.210%||4.010%|
|7/1 ARM Rate||2.980%||3.970%|
|5/1 ARM Rate||3.040%||4.050%|
|30-Year VA Rate||3.020%||3.280%|
|30-Year FHA Rate||2.540%||3.410%|
|30-Year Fixed Jumbo Rate||2.960%||3.030%|
|15-Year Fixed Jumbo Rate||2.420%||2.480%|
|7/1 ARM Jumbo Rate||3.070%||3.960%|
|5/1 ARM Jumbo Rate||3.040%||4.010%|
Rates as of January 21st, 2021 at 6:30 AM
Why trust Bankrate?
Bankrate has been the authority in personal finance since it was founded in 1976 as the “Bank Rate Monitor,” a print publication for the banking industry. Bankrate has been surveying and collecting information on mortgage and refinance rates from the nation’s largest lenders for more than 30 years. Top publications such as The New York Times, Wall Street Journal, CNBC and others depend on Bankrate as a trusted source of financial information, so you know you’re getting information you can trust.
How Bankrate's mortgage and refinance rates are calculated
Here you can see the latest marketplace average rates for a wide variety of refinance loans. The interest rate table above is updated daily to give you the most current refinance rates when choosing a home loan. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate rate averages.
Is now a good time to refinance?
The short answer is yes, there’s never been a better time to refinance your mortgage.
Mortgage rates are at or near to record lows as 2021, begins. It’s anybody’s guess whether rates will stay this low, but the Federal Reserve has pledged to keep its federal funds rate near zero for the next year or two as the economy recovers from the pandemic.
The math for refinancers is pretty simple: If you can break even on the closing costs in a year or at most two years, and you plan to stay in the home longer than that (preferably much longer), refinancing is beneficial. You’ll cut your monthly interest outlay and pay down your loan principal faster. It’s one of the few sure-thing financial moves in a world of uncertainty.
Why haven't homeowners refinanced?
Months of record-low mortgage interest rates have led to a refinancing boom, but many homeowners have still not taken advantage of the potential savings. By some estimates, as many as 20 million current mortgage holders have interest rates of 4 percent or more, and have not considered getting a new loan with a rate that can be a full percentage point lower.
In a Bankrate nationwide poll, the reasons for not refinancing varied, but a little more than half of the respondents said they hadn’t even considered a refi and 27% admitted they don’t know what their current mortgage rate is.
Many homeowners we polled said refinancing wouldn’t save them enough money to make it worthwhile, which is often true for borrowers who are near the end of their mortgage term. To that end, millennials were more likely to refinance in 2020 than baby boomers, the poll found.
Here are some tips if you’re hoping to refinance while rates are still low:
- Developing good saving habits and sticking to them will help you be able to afford your closing costs when you’re ready to refinance. With enough cash in the bank, you may even be able to afford the higher monthly payments of a shorter-term loan, which will save you lots of money in interest in the long run.
- Look for no-cost closing options. Many respondents to the survey said the upfront costs of a refinance were a deterrent, but lots of lenders offer no-cost closings. Keep in mind, these options usually work out to be more expensive over time, because the fees you’d pay in a lump sum when you close get rolled into your loan balance or a higher rate instead, which means you wind up paying interest on those costs, too.
- Get your paperwork organized in advance. Your lender will ask for a lot of documents when you apply for a new mortgage, and it can be stressful getting everything in order. Compile things like tax returns, pay stubs, W-2s, current mortgage statements and bank statements in advance to reduce the stress.
- If you have poor credit, look into government programs or try to give your score a boost. There are many options available to low-credit borrowers such as FHA loans. And while you can expect to pay higher interest rates than people with stellar credit, you may still be able to reduce the rate on your current loan.
Finding the best refinance rate
The best way to get the lowest rate is to shop around. Start by checking out our rate table above to see what lenders are offering. Make sure to find out what offers you can get from the banks or credit unions you already work with, because some lenders will waive certain fees or give better terms to existing customers.
Mortgage interest rates vs. APR?
Be sure to compare APRs, not just interest rates. The APR (annual percentage rate) is the total cost of the loan, including everything from interest rate to administrative fees. This is how much you’ll actually pay; the interest rate is just one portion of your total cost. So while some lenders might have higher interest rates, their fees could be lower, making the APR lower than someone with a lower interest rate, or vice versa.
What to you need to know about refinancing your mortgage
Is it worth it to refinance?
Whether it’s worth it to refinance depends totally on the numbers, no guesswork involved. It’s all a matter of when the savings outweigh the costs.
Bankrate’s mortgage refinance calculator will run the numbers for your specific mortgage rate and term and give you the exact number of months it will take to break even and start saving.
If you’d rather not run the numbers just yet, you can be pretty sure you’ll save money with a mortgage refinance if you shave 1 percentage point or more off your current mortgage rate. Also figure that to get the best rate, you’ll need to have a credit score of 740 or higher and have enough equity in your home (at least 20 percent) to avoid the cost of private mortgage insurance.
Here’s a quick look at why people refinance their mortgage:
- Saving money on interest costs by lowering your monthly payment and or the term (number of years) you pay the loan.
- Getting rid of an adjustable-rate loan. These loans with annual interest-rate resets have fallen out of favor and with good reason. Why take a chance on rates fluctuating when you can lock in a sure and low rate for the life of the loan?
- Raising cash. If you need money to pay for home improvements or fund college for your kids, home equity can be tapped with a cash-out refi where you receive some of your equity as a check at closing. The lower interest rate may mean you’ll have the cash and your payments won’t rise either.
- Take advantage of your improved credit. If your credit was tarnished when you first took out your mortgage and has improved since, you may be able to save even more. Your new rate will reflect your improved credit and the prevailing rock-bottom interest rates.