10-year mortgage refinance rates remain a steal — but for how much longer? | Sept. 13, 2021
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Check out the mortgage refinancing rates for Sept. 13, 2021, which are mostly up from last Friday. (iStock)
Based on data compiled by Credible, current mortgage refinance rates rose since last Friday, with the exception of 10-year rates, which held steady.
- 30-year fixed-rate refinance: 2.875%, up from 2.750%, +0.125
- 20-year fixed-rate refinance: 2.500%, up from 2.375%, +0.125
- 15-year fixed-rate refinance: 2.125%, up from 2.000%, +0.125
- 10-year fixed-rate refinance: 2.000%, unchanged
Rates last updated on Sept. 13, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
Despite day-to-day fluctuations, mortgage refinance rates remain at historic lows. Homeowners looking to reap the greatest possible interest savings and pay off their mortgages sooner may find 10-year rates particularly appealing. Since July 19, 2021, 10-year rates have sat at 2.125% or lower. However, Fannie Mae and Freddie Mac both forecast rates are likely to rise by the end of the year.
If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you're interested in saving money on your monthly mortgage payments, or considering a cash-out refinance, Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.
Current 30-year fixed refinance rates
The current rate for a 30-year fixed-rate refinance is 2.875%. This is up from last Friday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.
Current 20-year fixed refinance rates
The current rate for a 20-year fixed-rate refinance is 2.500%. This is up from last Friday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduced total interest costs over the life of your mortgage. But you may get a higher monthly payment.
Current 15-year fixed refinance rates
The current rate for a 15-year fixed-rate refinance is 2.125%. This is up from last Friday. A 15-year refinance could be a good choice for homeowners looking to strike a balance between lowering interest costs and retaining a manageable monthly payment.
Current 10-year fixed refinance rates
The current rate for a 10-year fixed-rate refinance is 2.000%. This is the same as last Friday. A 10-year refinance will help you may off your mortgage sooner and maximize your interest savings. But you could also end up with a bigger monthly mortgage payment.
You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.
Rates last updated on Sept. 13, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
These rates are based on the assumptions shown here. Actual rates may vary.
If you think refinancing is the right move, consider using Credible. You can use Credible's free online tool to easily compare multiple mortgage refinance lenders and see prequalified rates in as little as three minutes.
Rates last updated on Sept. 13, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
When is it worth it to refinance?
Refinancing a mortgage can be a great way to save money. But it’s not always the best move for every homeowner.
People refinance for a number of reasons, including to get a lower interest rate, change their monthly payment amount, and lower their interest costs. Generally, if you can lower your interest rate by at least 0.75%, refinancing might be a good move.
Here’s an example of how refinancing can save you money: If you refinance your 30-year, $300,000 loan at 4% into a new 30-year loan with a 3.25% interest rate, you’ll lower your monthly payment from $1,432 to $1,306. That’s a monthly savings of $126, which adds up to $45,360 over the life of the mortgage.
But before you refinance, be sure to weigh closing costs, and calculate how long it will take before your savings from the refinance cover the expenses of refinancing.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance, so you can find the best rate for your situation.
Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.
Be sure to shop around and compare rates from multiple 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 only three minutes.
How does Credible calculate refinance rates?
Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
Credible mortgage refinance rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
What are the different types of refinancing?
Refinancing your mortgage basically means you take out a new mortgage to pay off your current home loan. But your reasons for wanting to refinance can affect the type of mortgage refinance you choose.
Here are four types of refinancing to consider.
Rate and term refinance
This type of refinance is probably what many people think of when they consider refinancing their mortgages. As the name implies, a rate and term refinance changes the rate, repayment period — or both — of your current mortgage by paying it off and replacing it with a new mortgage. With a rate and term refinance, you would borrow exactly the amount you need to pay off your current mortgage.
Cash-out refinance
Like a rate and term refinance, a cash-out refinance may change the rate, term, or both. But with this type of refinance, you borrow more than you need to pay off your current loan and take that balance as cash. This is only possible if you have sufficient equity built up in your home.
Cash-in refinance
As with other types of refinancing, a cash-in refinance replaces your current mortgage with one that has a different interest rate and/or term. But for your new loan, you’ll also make a lump sum payment to reduce the principal balance on your new mortgage. Of course, if you have the money to make a lump sum payment, you could just pay extra toward the principal on your current loan. But making this payment in connection with a refinance allows you to reap the interest savings that can come with refinancing.
FHA streamline refinance
This type of refinancing is only available for people who have FHA mortgages. It offers the same basic benefits of other types of refinancing, but requires less paperwork. Some limitations apply. For example, you can’t be behind on your current mortgage, and you can’t cash out more than $500.
Credible is also partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy, and the whole process can be completed entirely online.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.