Still time to grab a deal: Refinance rates hold at bargain lows | Sept. 27, 2021

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Based on data compiled by Credible, current mortgage refinance rates continue to hold at bargain lows, with only 15-year rates edging up slightly from last Friday.

• 30-year fixed-rate refinance: 2.990%, unchanged
• 20-year fixed-rate refinance: 2.750%, unchanged
• 15-year fixed-rate refinance: 2.250%, up from 2.125%, +0.125
• 10-year fixed-rate refinance: 2.125%, unchanged

Rates last updated on Sept. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Despite upward fluctuations, mortgage refinance rates remain at historic lows across all repayment terms. The average mortgage refinance rate has held well below 3% since Feb. 26 — 147 days. Homeowners looking to pay off their homes faster while maintaining a lower monthly payment may find 20-year fixed rates particularly appealing. Those rates have held at 2.750% or lower since July 15.

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 2.990%. This is the same as last Friday. 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 2.750%. This is the same as last Friday. 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 2.250%. This is up from last Friday. 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 2.125%. This is the same as last Friday. A 10-year refinance will help you may 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 Sept. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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

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 Sept. 27, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

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. 

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.

How much equity do I need to refinance my home?

When you apply for a refinance mortgage, lenders will consider how much equity you currently have in your home. If you don’t meet the lender’s equity requirements, you may not qualify for a refinance with that lender.

Requirements can vary from lender to lender, and depend on the type of refinance you’re doing — rate-and-term vs. cash-out refinance. 

For a rate-and-term refinance, you may be able to qualify with as little as 5% home equity. But your lender will likely require you to purchase private mortgage insurance. Most lenders will prefer a loan-to-value ratio of at least 20% — meaning the amount you owe on your mortgage is no more than 80% of your home’s total value.

Generally, for a cash-out refinance, most lenders will want to see that you have a loan-to-value ratio, or LTV, of at least 20%. But some lenders may be flexible if you have good credit, a history of on-time bill payments, and are willing to accept a higher interest rate.

To calculate your loan-to-value ratio, simply divide your loan balance by the current value of your home. For example, if your home’s value is $350,000 and you owe $325,000, your LTV is just under 93% — and you may have difficulty qualifying for a refinance.

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.

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.