Mortgage Refinance Rates Hold: Refinancing Now Ahead of Expected Increases | October 21, 2021

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View mortgage refinance rates for October 21, 2021, which are unchanged from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates remained unchanged from yesterday.

  • Refinancing at a fixed rate over 30 years: 3.125%, unchanged
  • Refinancing at a fixed rate over 20 years: 2.750%, unchanged
  • Refinancing at a fixed rate over 15 years: 2.375%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.375%, unchanged

Rates were last updated on October 21, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

Mortgage refinance rates for all terms have not changed since yesterday, although mortgage experts have predicted that rates could rise further by the end of the year. Rates for a 20-year term continue to stand out as a boon for homeowners looking to refinance and save on interest while keeping their monthly payments manageable. This term has held firmly at 2.750% for 12 straight days. Overall, refinance rates are higher today than they were last week at this time and last month at this time.

If you think of refinance your home loan, consider using Credible. Whether you want to save money on your monthly mortgage payments or are considering a cash-out refinance, Credible’s free online tool will allow you to compare the rates of several mortgage lenders. You can see pre-qualified rates in as little as three minutes.

Current 30-year fixed refinance rates

The current rate for a 30-year fixed rate refinance is 3.125%. It’s the same as yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage might lower your interest rate, but may not have much of an effect on your total interest costs or your monthly payment . Refinancing from a shorter-term mortgage to a 30-year refinance could result in a lower monthly payment but higher total interest charges.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed rate refinance is 2.750%. It’s the same as yesterday. By refinancing a 30-year loan to a 20-year refinance, you could get a lower interest rate and lower total interest costs over the life of your mortgage. But you can get a higher monthly payment.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed rate refinance is 2.375%. It’s the same as yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest costs and maintaining a manageable monthly payment.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed rate refinance is 2.375%. It’s the same as yesterday. A 10-year refinance will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a higher monthly mortgage payment.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Rates were last updated on October 21, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

These rates are based on the assumptions indicated here. Actual rates may vary.

If you think refinancing is the right decision, consider using Credible. You can use Credible’s free online tool to easily compare multiple mortgage refinance lenders and see pre-qualified rates in as little as three minutes.

Rates were last updated on October 21, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

What are the different types of refinancing?

Refinancing your mortgage essentially means taking 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 refinancing

This type of refinancing is probably what many people think of when considering refinancing their mortgages. As the name suggests, 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’ll borrow exactly the amount you need to pay off your current mortgage.

Refinancing by collection

Like a rate and term refinance, a cash refinance can 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 in cash. This is only possible if you have enough equity in your home.

Cash refinancing

As with other types of refinance, a cash refinance replaces your current mortgage with one with a different interest rate and/or term. But for your new loan, you will also make a lump sum payment to reduce the principal balance of your new mortgage. Of course, if you have the money to make a lump sum payment, you can simply pay extra for your current loan principal. But making that payment as part of a refinance allows you to reap the interest savings that can come with refinancing.

FHA streamlines refinancing

This type of refinance is only available to people who have FHA mortgages. It offers the same basic benefits as other types of refinancing, but requires less paperwork. Some restrictions apply. For example, you can’t be behind on your current mortgage, and you can’t cash out more than $500.

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score, and paying off any other debt, you could guarantee 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.

According to a study by Freddie Mac.

Be sure to shop around and compare rates from several mortgage lenders if you decide to refinance your mortgage. You can do it easily with Credible’s free online tool and view your pre-qualified rates in just three minutes.

How does Credible calculate refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence how mortgage refinance rates move. Credible’s 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 credit score of 740 and is borrowing a conventional loan for a single-family home that will be their primary residence. Rates also assume no (or very low) discount points and a 20% deposit.

Credible mortgage refinance rates will only give you an idea of ​​today’s average rates. The rate you receive may vary depending on a number of factors.

How to find the best refinance rate

Some factors that affect the refinance rate you will get are beyond your control. But there are several steps you can take to ensure you get the best refinance rate available to you. Here are a few to consider.

Save for closing costs

You may know that it’s a good idea to save for a down payment when buying a home for the first time. Although you can get a loan with little or no down payment, having at least 20% down payment offers many advantages, including the ability to avoid PMI.

But it’s also a good idea to save for closing costs which, according to Freddie Mac – can average $5,000.

Refine your credit

Just like when you bought your home, your credit score and history affect your refinance rate, so it’s a good idea to make sure your credit is in the best shape possible.

Check your credit report for any errors, such as incorrect information on duplicate accounts. Pay off as many other debts as possible to improve your debt ratio. And pay down your credit card balances to reduce your credit usage.

Comparison store

Just as you would compare quotes from multiple vendors for an expensive repair to your home, you should review loans and mortgage interest rates from multiple lenders. Each lender has their own methods for setting interest rates, so shopping around could help you find the lowest rate available to you.

In fact, getting five quotes could save you $3,000 over the life of your mortgage, according to a Freddie Mac Poll.

Credible is also a partner of a home insurance broker. If you are looking for a better rate on Home Insurance and considering switching providers, consider using an online broker. You can compare quotes from top rated insurance companies in your area – it’s quick, easy and the whole process can be done entirely online.

You have a financial question, but you don’t know who to contact? Email The Credible Money Expert at [email protected] and your question may be answered by Credible in our Money Expert section.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics like mortgages, mortgage refinance, and more. He was a publisher and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, etc.

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