Want to save money on a refinance today? Look to mid-length rates | Nov. 17, 2021

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

• 30-year fixed-rate refinance: 3.125%, unchanged
• 20-year fixed-rate refinance: 2.875%, unchanged
• 15-year fixed-rate refinance: 2.375%, unchanged
• 10-year fixed-rate refinance: 2.375%, unchanged

Rates last updated on Nov. 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Mortgage refinance rates are at a standstill this week, meaning homeowners still have time to lock in a money-saving rate on a refinance ahead of anticipated increases. While refinance rates across all terms are lower than pre-pandemic rates, 20-year and 15-year rates are a particular deal this week. These rates have held at 2.875% and 2.375%, respectively, for the past five days. With these terms, homeowners can save significantly on interest by refinancing while keeping their monthly payment manageable.

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

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 3.125%. This is the same as yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 2.875%. This is the same as yesterday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduced total interest costs over the life of your mortgage. But you may get a higher monthly payment.

Current 15-year fixed refinance rates

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

Current 10-year fixed refinance rates

The current rate for a 10-year fixed-rate refinance is 2.375%. This is 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 bigger monthly mortgage payment.

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 Nov. 17, 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.

Be sure to shop around and compare rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.

How does Credible calculate refinance rates?

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

Credible mortgage refinance rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

Are there any cons to refinancing?

Refinancing a mortgage can be a good way to lower interest costs over the life of a loan, shorten your repayment term or secure a lower interest rate. But refinancing has some potential pitfalls, too.

It’s possible for refinancing to actually cost you more money than you’ll save if:

• You refinance into a repayment term that’s longer than your original mortgage. Longer repayment terms usually mean lower monthly payments — but higher interest rates and greater interest costs over the life of a loan. To reap the most savings from a refinance, try refinancing into a shorter term than you have for your current mortgage.
• You sell your home before you reach the break-even point on your new loan. Like your original mortgage, your refinance will come with closing costs. And it will take some time before your savings add up to as much as your closing costs.

That said, the con you need to consider first is closing costs. You’ll need to fund these from your own pocket or roll them into the loan (which raises its lifetime costs). Closing costs typically run 3% to 5% — or more — of the amount you’re borrowing. So if you want to refinance your $200,000 loan to get a lower interest rate, you’ll pay an estimated $6,000 to $10,000 in closing costs.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy and the whole process can be completed entirely online.

Think it might be the right time to refinance? 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 Nov. 17, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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