Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as "Credible" below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders, all opinions are our own.
Check out the mortgage refinancing rates for August 27, 2021, which are mostly unchanged from yesterday. (iStock)
Based on data compiled by Credible, current mortgage refinance rates are largely unchanged compared to yesterday’s, with the exception of 30-year rates, which rose.
- 30-year fixed-rate refinance: 2.875%, up from 2.750%, +0.125
- 20-year fixed-rate refinance: 2.625%, unchanged
- 15-year fixed-rate refinance: 2.125%, unchanged
- 10-year fixed-rate refinance: 2.125%, unchanged
Rates last updated on August 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
Today’s 30-year mortgage refinance rates bounced back up to 2.875% after dropping to 2.750% yesterday. Homeowners who want to refinance while keeping their monthly payments manageable and saving on interest could find this term to be a bargain despite the slight increase. For homeowners who can swing a higher payment and want to reap even more interest savings, refinancing into a 15-year or 10-year term could be ideal. Rates for these shorter terms have held well below 2.250% for 29 straight days.
If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you're interested in saving money on your monthly mortgage payments, or considering a cash-out refinance, Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.
Current 30-year fixed refinance rates
The current rate for a 30-year fixed-rate refinance is 2.875%. This is up from yesterday.
Current 20-year fixed refinance rates
The current rate for a 20-year fixed-rate refinance is 2.625%. This is the same as yesterday.
Current 15-year fixed refinance rates
The current rate for a 15-year fixed-rate refinance is 2.125%. This is the same as yesterday.
Current 10-year fixed refinance rates
The current rate for a 10-year fixed-rate refinance is 2.125%. This is the same as yesterday.
You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.
Rates last updated on August 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
How mortgage refinance rates have changed
Today, mortgage refinance rates are a mixed bag compared to this time last week.
- 30-year fixed refinance rates: 2.875%, up from 2.750% last week, +0.125
- 20-year fixed refinance rates: 2.625%, up from 2.500% last week, +0.125
- 15-year fixed refinance rates: 2.125%, the same as last week
- 10-year fixed refinance rates: 2.125%, the same as last week
Think it might be the right time to refinance? To understand just how much you could save on monthly mortgage payments by refinancing now, crunch the numbers and compare rates using Credible's free online tool. Within minutes, you can see what multiple mortgage lenders are offering.
Rates last updated on August 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.
What are some reasons to refinance?
Each borrower’s situation is different, but here are some good reasons to refinance.
- To get a lower interest rate. A lower interest rate could mean you pay less in interest over the life of your mortgage — provided you also refinance into a shorter term.
- To shorten the repayment period. If your ultimate goal is to be mortgage-free one day, shortening the repayment period could help that happen sooner.
- To reduce interest costs over the life of the loan. Interest can be a significant chunk of the total cost of your mortgage. For example, if you borrow $250,000 at 3.5% for 30 years, your total interest costs would be $154,140. Refinancing at 2.75% for the same repayment period could save you $36,723 in interest costs.
- To withdraw equity in cash. Known as a "cash-out refinance," this type of refinance allows you to take out a new mortgage for more than you owe on your old one and take the difference in cash. Your home’s equity secures the extra cash which you can use for home improvements, repairs, or other needs.
- To get a fixed mortgage rate. If you took out an adjustable rate mortgage, the very low initial interest rate can reset to a much higher one at the end of the initial period. And after that, your rate can change with market conditions. Many homeowners with ARMs look to refinance into fixed-rate mortgages that can ensure a reliable payment at a predictable rate.
Conversely, some reasons for refinancing are less than great.
- To use equity to pay off unsecured debts like a car loan or credit cards. If your interest rate on those types of credit is high, and you can get a really low mortgage refinance rate, you may think "Why not?" But unsecured debts like personal loans or credit cards, and even a secured auto loan, don’t put your home at risk. Paying off those debts by refinancing your home mortgage turns those unsecured debts into one that’s secured by your home.
- To use equity for investing. Using equity to invest puts your home at risk for something that’s already a risky proposition. Investing comes with no guarantee of returns. Meanwhile, paying off your mortgage and preserving your equity has a reliably positive impact on your credit and finances.
- To use equity for a big purchase. If you have equity built up in your home, it may be tempting to tap it to get cash for luxuries like a big trip, an RV, or even cosmetic surgery. But think carefully before you do a cash-out refinance for these reasons. A refinanced mortgage is a long-term debt.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure 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.
Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac. Credible can help you compare multiple lenders at once in just a few minutes.
If you decide to refinance your mortgage, be sure to shop around and compare rates from multiple mortgage lenders. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.
Credible is also partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy, and the whole process can be completed entirely online.
Is now a good time to refinance?
Mortgage refinance rates have been at historic lows all year. It’s unlikely they’ll go much lower and extremely possible they’ll begin to rise in coming months. But low rates aren’t the only factors that determine whether now is a good time for you to refinance your home loan.
Everyone’s situation is different, but generally it may be a good time to refinance if …
- You’ll be able to get a lower interest rate than you currently have
- Refinancing will save you money over the life of your home loan
- Your savings from refinancing will ultimately exceed closing costs
- You know you’ll be staying in your home long enough to recoup the costs of refinancing
- You have sufficient equity in your home to avoid private mortgage insurance (PMI)
If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.