Refinancing rate as of September 30, 2021: Rates go up



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A number of major mortgage refinancing rates have grown today. Fixed 15-year and 30-year refinances have seen their average rates rise. At the same time, the average 10-year fixed refinancing rates have also increased. Refinancing interest rates are never set in stone, but rates have been historically low. For those looking to get a good rate, now is the perfect time to refinance a home. But as always, be sure to consider your personal goals and circumstances first before refinancing, and compare offers to find a lender who can best meet your needs.

Read more: 7 things to do before moving into your new home

30-year fixed rate refinancing

The 30-year average fixed refinance rate is currently 3.16%, an increase of 16 basis points from what we saw a week ago. (One basis point equals 0.01%.) Refinancing a 30-year fixed loan from a shorter loan term can lower your monthly payments. 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

For fixed 15-year refinances, the average rate is currently 2.43%, an increase of 15 basis points from a week ago. Refinancing a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. On the other hand, you will save money on interest, since you will be paying off the loan sooner. 15-year refinance rates are generally lower than 30-year refinance rates, which will help you save even more in the long run.

10-year fixed rate refinancing

The average rate for a 10-year fixed refinance loan is currently 2.37%, an increase of 12 basis points from what we saw the week before. 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. Just be sure to take a close look at your budget and current financial situation to make sure you can afford a higher monthly payment.

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 refinancing rates reported by lenders across the country:

Average refinancing interest rates

Product Rate Last week Switch
30-year fixed refi 3.16% 3.00% +0.16
15-year fixed refi 2.43% 2.28% +0.15
Refi fixed 10 years 2.37% 2.25% +0.12

Prices as of September 30, 2021.

How to find the best refinance rate

It is important to understand that the rates advertised online may not apply to you. Market conditions are not the only factor in interest rates; your particular request and your credit history will also play an important role.

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. You should also consider the fees and closing costs that could offset the potential savings of a refinance.

Since the start of the pandemic, many lenders have been more stringent with whom they approve a loan. As such, you might not be eligible for refinancing – or a low rate – if you don’t have a strong credit rating.

One way to get the best refinance rates is to strengthen your borrower demand. If you haven’t already, try improving your credit by monitoring your credit reports, using credit responsibly, and managing your finances carefully. Also, be sure to compare offers from multiple lenders to get the best rate.

Is Now the Right Time to Refinance?

In general, it’s a good idea to refinance if you can get an interest rate lower than your current interest rate, or if you need to change the term of your loan. It is true that over the past year interest rates have been at an all time low. But when deciding to refinance, be sure to factor in factors other than market interest rates.

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. And don’t forget the fees and closing costs, which can add up.

Note that some lenders have tightened their requirements since the start of the pandemic. If you don’t have a strong credit score, you might not qualify for the best rate. Refinancing can be a good decision if you get a good rate or can pay off your loan sooner, but think carefully about whether it’s the right choice for you.



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