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Many benchmark refinancing rates, including fixed 10-year, 15-year and 30-year refinances, have seen their average rates decline slightly since last week. While refinance rates are constantly changing, they have been quite low recently, so it may be time for homeowners to lock in an optimal refinance rate. As always, be sure to think about your personal goals and circumstances first before you get refinancing, and shop around to find a lender who can best meet your needs.

30-year fixed rate refinancing

The 30-year average fixed refinance rate is currently 3.13%, down 3 basis points from what we saw a week ago. (One basis point equals 0.01%.) One of the reasons to refinance into a 30-year fixed loan from a shorter loan term is to lower your monthly payment. If you are currently having difficulty making your monthly payments, a 30-year refinance might be a good option for you. In return for the lower monthly payments, the 30-year refinance rates will generally be higher than the 15- and 10-year refinance rates. You will also pay off your loan more slowly.

Refinancing at a fixed rate over 15 years

The 15-year average fixed refinance rate is currently 2.44%, down 1 basis point from a week ago. With a 15-year fixed refinance, you will have a higher monthly payment than a 30-year loan. On the other hand, you will save money on interest, since you will be paying off the loan sooner. You’ll also usually get lower interest rates than a 30-year loan. It can help you save even more in the long run.

10-year fixed rate refinancing

For fixed 10-year refinances, the average rate is currently 2.42%, down 1 basis point from last week. You’ll pay more each month with a 10-year fixed refinance versus a 30 or 15-year refinance, but you’ll also have a lower interest rate. 10-year refinancing can be a good deal, because paying off your home sooner will help you save on interest in the long run. But you need to confirm that you can afford a higher monthly payment by assessing your budget and overall financial situation.

Where are the rates going

We track refinancing rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinance rates provided by lenders nationwide:

Average refinancing interest rates

Product Rate A week ago Switch
30-year fixed refi 3.13% 3.16% -0.03
15-year fixed refi 2.44% 2.45% -0.01
Refi fixed 10 years 2.42% 2.43% -0.01

Prices as of November 5, 2021.

How to find the best refinance rate

When looking for refinancing rates, be aware that your specific rate may differ from those advertised online. While current market conditions are a factor, your particular interest rate will largely depend on your demand and your credit history.

Typically, you’ll need a high credit score, low credit usage rate, and a consistent, on-time payment history in order to get the best interest rates. You can usually get a good idea of ​​average interest rates online, but be sure to speak to a mortgage advisor so you know the specific rates you qualify for. Also, don’t forget to factor in potential fees and closing costs.

Since the start of the pandemic, many lenders have been more stringent with whom they approve a loan. If you have a low credit score or a bad credit history, you might have a hard time refinancing at the lowest interest rates.

Before you apply for refinancing, you need to make your application as strong as possible in order to get the best rates available. You can do this by monitoring your credit, taking on responsible debt, and getting your finances in order before you apply for a refinance. You should also shop around several lenders and compare offers to make sure you get the best rate.

When to consider mortgage refinancing

For refinancing to make sense, you will generally want to get an interest rate lower than your current rate. Besides interest rates, changing the term of your loan is another reason to refinance. Interest rates over the past few months have hit all-time lows, but that’s not the only thing you should consider when deciding to refinance.

Be sure to consider your goals and financial situation, including how long you plan to stay in your current home. It helps to have a specific goal for refinancing, such as lowering your monthly payment or adjusting the length of your loan. Also keep in mind that closing costs and other costs may require an initial investment.

Some lenders have tightened their requirements in recent months, so you may not be able to refinance at the posted interest rates, or even refinance at all, if you don’t meet their standards. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great initiative. But weigh the pros and cons first to make sure it’s right for your situation.

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