Refinance rates on Oct. 13, 2021: Climbing but still low

DMCA / Correction Notice
- Advertisement -

Yes, mortgage rates continue to rise — but it’s still a great time to refinance your home. Although the 15-year fixed and 30-year fixed rates are up a few basis points from last week, they are still significantly lower. And the overall economic situation that has caused historically low rates over the past two years has largely remained the same: rising home prices, COVID-19 migration and lower interest rates. As such, the market is quite favorable for homeowners looking to refinance, even if Mortgage rates aren’t as low as they were earlier this year.

- Advertisement -

If You’re Considering Refinancing, Now Is the Time to Take Action

30 year fixed rate refinance

The average 30-year fixed refinance rate now stands at 3.17%, an increase of 9 basis points from what we saw a week ago. (One basis point equals 0.01%.) One reason to refinance a 30-year fixed loan with a shorter loan term is to lower your monthly payments. Because of this, if you’re having trouble making your monthly payments, a 30-year refinance may be a good idea. Be aware, however, that interest rates will typically be higher than with a 15-year or 10-year refinance, and you’ll pay off your loan at a slower rate.

15 year fixed rate refinance


The average 15-year fixed refinance rate currently stands at 2.41%, an increase of 5 basis points over the previous week. With a 15-year fixed refinance, you’ll have a higher monthly payment than with a 30-year loan. On the other hand, you will save money on interest, as you will pay off the loan sooner. Interest rates for a 15-year refinance are also lower than for a 30-year refinance, so you’ll save even more in the long run.

10 year fixed rate refinance

The current average interest rate for a 10-year refinance is 2.37%, an increase of 7 basis points over the previous week. You’ll pay more each month with a ten-year fixed refinance than with a 30-year or 15-year refinance — but your interest rate will also be lower. A 10-year refinance can be a good deal, as paying off your home early will help you save on interest in the long run. But you should confirm that you can make a higher monthly payment by evaluating your budget and overall financial situation.

where rates are headed

- Advertisement -

We track refinance rate trends using information collected by Bankrate, which is owned by Nerdshala’s parent company. Here is a table with average refinance rates offered by lenders across the country:

Average Refinance Interest Rates

the product Emotion A week ago Change
30 years fixed referee 3.17% 3.08% +0.09
15 year fixed referee 2.41% 2.36% +0.05
10 year fixed referee 2.37% 2.30% +0.07

Rates as of October 13, 2021.

How to get the best refinance rate

When looking for refinancing rates, know that your specific rate may be different from the rates advertised online. Your interest rate will be affected by market conditions as well as your credit history and application.

In general, you want a high credit score, low credit utilization ratio, and a history of making frequent and timely payments to get the best interest rate. It’s always a good idea to research interest rates online, but you’ll need to connect with a mortgage professional to get your exact refinance rate. And don’t forget about fees and closing costs, which can already cost a hefty amount.

It is also worth noting that in recent months, lenders have been strict about their requirements. As such, if you don’t have a solid credit rating, you may not qualify for a refinance — or a lower rate –.

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

When should I refinance?

Most people refinance because market interest rates are lower than their current rates or because they want to change their loan term. While interest rates have been low over the past few months, you should look at higher than market interest rates when deciding whether a refinance is right for you.

A refinance doesn’t always make financial sense. Consider your personal goals and financial circumstances. How long do you plan to stay in your house? Are you refinancing to lower your monthly payment, pay off your house sooner — or for a variety of reasons? Also note that closing costs and other fees may require an upfront investment.

Note that some lenders have tightened their requirements since the start of the pandemic. If you don’t have a solid credit score, you may not be eligible for the best rate. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a good move. But look carefully at the pros and cons first to make sure it’s a good fit for your situation.

- Advertisement -

Stay on top - Get the daily news in your inbox

Recent Articles

Related Stories