Multiple benchmark mortgage refinance rates were higher today.
Average rates nationwide on 30-year fixed and 15-year fixed refinances both increased. The average rate on 10-year fixed refis, meanwhile, also notched higher.
Refinancing rates are in a constant state of flux, but they continue to represent a bargain compared to rates 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.
Compare refinancing rates in your area now.
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.08 percent, up 16 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was higher, at 3.12 percent.
At the current average rate, you’ll pay $425.93 per month in principal and interest for every $100,000 you borrow. That’s an increase of $8.63 over what you would have paid last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see 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 rate for a 15-year fixed refi is 2.61 percent, up 10 basis points since the same time last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $671 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 save thousands of dollars 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 2.61 percent, up 17 basis points since the same time last week.
Monthly payments on a 10-year fixed-rate refi at 2.61 percent would cost $939.97 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€TMs 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:
Average refinance interest rates
Product Rate Last week Change
30-year fixed refi 3.08% 2.92% +0.16
15-year fixed refi 2.61% 2.51% +0.10
10-year fixed refi 2.61% 2.44% +0.17
Rates as of October 1, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
How to decide whether to lock in your 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.
A strong economy usually means more people buying homes, which drives demand for mortgages. This increased demand can push rates higher. The opposite is also true; less demand can trigger a drop in 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 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.”
News articles about other loan terms:
Current mortgage rates
Today’s 30-year mortgage rates
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LOAN TERM PURCHASE RATES REFINANCE RATES
The chart above links out to loan-specific content to help you learn more about rates by product type.
30-Year Loan 30 Year Fixed Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan 20-Year Mortgage Rates 20-Year Refi Rates
15-Year Loan 15-Year Mortgage Interest Rates 15-Year Refi Interest Rates
10-Year Loan 10-Year Mortgage Interest Rates 10-Year Mortgage Refinance Rates
FHA Loan FHA Mortgage Loan Rates Current FHA Loan Refinance Rates
VA Loan VA Mortgage Rates VA Refinance Loan Rates
ARM Loan ARM Mortgage Rates ARM Refinance Interest Rates
Jumbo Loan Jumbo Loan Rates Current Jumbo Refinance Rates