Several closely watched mortgage refinance rates fell today.
The average rate for a 30-year fixed-rate refinance dropped, but the average rate on a 15-year fixed ticked up. Meanwhile, the average rate on 10-year fixed refi trended down.
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 could be a great time to lock in a rate.
Find the right refinance rate for you now .
30-year fixed refinance
The average 30-year fixed-refinance rate is 3.12 percent, down 11 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.04 percent.
At the current average rate, you’ll pay $428.10 per month in principal and interest for every $100,000 you borrow. That represents a decline of $6.01 over what it would have been last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see the effect of 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 2.73 percent, up 8 basis points from a week ago.
Monthly payments on a 15-year fixed refinance at that rate will cost around $673 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30-year mortgage, 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 more rapidly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 2.58 percent, down 2 basis points since the same time last week.
Monthly payments on a 10-year fixed-rate refi at 2.58 percent would cost $947.25 per month for every $100,000 you borrow. If you can manage that substantial monthly payment, you’ll enjoy even more interest cost savings 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, a weekly poll of mortgage experts.
Want to compare today’s rates? Lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most up-to-date rates available. Here you can see the latest national average rates for a wide variety of mortgage loans for refinancing:
Average refinance interest rates
Product Rate Last week Change
30-year fixed refi 3.12% 3.23% -0.11
15-year fixed refi 2.73% 2.65% +0.08
10-year fixed refi 2.58% 2.60% -0.02
Rates as of October 30, 2020.
Want to see where rates are right now? See refinance rates for a variety of loan options here.
Is now a good time to refinance?
Generally speaking, yes, now is a good time to refinance. Mortgage rates have regularly hit record lows over the past few months. Though rates can rise and fall from one week to the next, they have been around 3 percent over time, with some surveys showing them in the 2s. If you’re a homeowner and have good or excellent credit, you should consider refinancing. Remember: The Federal Housing Finance Agency will institute a new refinancing fee of 0.5 percent on all loans worth $125,000 or more. That fee goes into effect Dec. 1, but many mortgage lenders are already pricing the fee into their loan offers.
Current refinance rate landscape
Because of the low interest rates, the past few months have been extremely busy for refinancing. It can still be a smart move for many borrowers to refinance, but be ready to wait longer than normal to close on the loan. Some lenders may have tightened their lending standards. It may be more difficult to land a refinancing offer if your credit isn’t in good condition, or if you’ve had a recent change in your employment.
When you should refinance
There are many reasons to refinance, but two main ones are changing the rate or term of your mortgage to save money, or getting a cash-out refinance to fund other projects.
A rate change typically means you’re securing a lower interest rate than what you’re paying on your existing mortgage. A term change means you’re changing the period of time it takes to pay off the loan. Sometimes you can change both the rate and term when you refinance. Securing a lower interest rate means you’ll have lower monthly payments and pay less interest over the remaining life of your loan. Changing the length of time you’ll take to pay off your mortgage can save you money in a few ways: if you lengthen the term, you’ll have lower monthly payments. If you shorten the term, your monthly payments may go up, but you’ll pay less interest over the life of the loan. With mortgage rates at historic lows, you may be able to shorten the length of your loan and still keep your monthly payments the same — or even make them lower.
A cash-out refinance is a way to borrow against the equity you’ve built up in your home. It will make your mortgage bigger, but it can be a cost-effective way to finance big projects like home renovations, because mortgage interest rates are still much lower than those on personal loans or credit cards.
How to refinance
The most important step to find a competitive refinance offer is to shop around. Just like with securing a purchase mortgage, you want to make sure you’re getting the best offer. That means you can go to your current lender to see what they’re willing to do for you, but you should also be open to finding a new institution. Compare all the terms that various lenders are offering you, and see what makes the most sense in your own situation. Sometimes, for example, you may trade a slightly higher interest rate for other conveniences a particular lender may be able to offer you.
What you’ll need to refinance
Refinancing can be a big undertaking. Your lender will do a credit check, and usually requires a lot of documents from pay stubs and tax returns to bank and other financial statements.
Get your supporting documents in order ahead of time so you’re ready to send things off when the bank asks for them.
And, start doing your calisthenics. Just like with a purchase closing, you’ll have to sign a lot of documents to secure your new loan.
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.”
Keep reading about other loan terms:
Mortgage rates today
30-Year interest rates
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Learn more about specific loan type rates
LOAN TERM PURCHASE RATES REFINANCE RATES
The chart above links out to loan-specific pagesto help our readers learn more about rates by mortgage type.
30-Year Loan 30-Year Mortgage Rates 30-Year Refinance Interest Rates
20-Year Loan Current 20 Year Mortgage Rates Current 20-Year Refinance Rates
15-Year Loan Current 15 Year Mortgage Rates 15-Year Mortgage Refinance Rates
10-Year Loan 10-Year Mortgage Rates Current 10-Year Refinance Rates
FHA Loan FHA Mortgage Rates Current FHA Loan Refinance Rates
VA Loan VA Mortgage Rates Current VA Refinance Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refinance Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Refi Interest Rates