Today's 30-year mortgage refinance rates slip back to near-record lows | Sept. 7, 2021

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Based on data compiled by Credible, current mortgage refinance rates remained largely unchanged compared to last Friday’s, with the exception of 30-year rates, which fell.

• 30-year fixed-rate refinance: 2.750%, down from 2.875%, -0.125
• 20-year fixed-rate refinance: 2.500%, unchanged
• 15-year fixed-rate refinance: 2.125%, unchanged
• 10-year fixed-rate refinance: 2.000%, unchanged

Rates last updated on Sept. 7, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Rates for a 30-year mortgage refinance returned to near-record lows at the beginning of this week after climbing to 2.875% at the end of last week. With a rate of just 2.750%, homeowners who want to refinance their mortgage with a 30-year term can maintain a manageable monthly payment while realizing significant interest savings. Meanwhile, rates for a 20-year, 15-year and 10-year refinance have been holding firmly in low territory for six consecutive business 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 2.750%. This is down from last Friday.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 2.500%. This is the same as last Friday.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed-rate refinance is 2.125%. This is the same as last Friday.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed-rate refinance is 2.000%. This is the same as last Friday.

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. 7, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How mortgage refinance rates have changed

Today, mortgage refinance rates have remained unchanged compared to this time last week.

• 30-year fixed refinance rates: 2.750%, the same as last week
• 20-year fixed refinance rates: 2.500%, the same as last week
• 15-year fixed refinance rates: 2.125%, the same as last week
• 10-year fixed refinance rates: 2.000%, the same as last week

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

Rates last updated on Sept. 7, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What are the different types of refinancing?

Refinancing your mortgage basically means you take 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 refinance

This type of refinance is probably what many people think of when they consider refinancing their mortgages. As the name implies, 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 would borrow exactly the amount you need to pay off your current mortgage.

Cash-out refinance

Like a rate and term refinance, a cash-out refinance may 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 as cash. This is only possible if you have sufficient equity built up in your home.

Cash-in refinance

As with other types of refinancing, a cash-in refinance replaces your current mortgage with one that has a different interest rate and/or term. But for your new loan, you’ll also make a lump sum payment to reduce the principal balance on your new mortgage. Of course, if you have the money to make a lump sum payment, you could just pay extra toward the principal on your current loan. But making this payment in connection with a refinance allows you to reap the interest savings that can come with refinancing.

FHA streamline refinance

This type of refinancing is only available for people who have FHA mortgages. It offers the same basic benefits as other types of refinancing but requires less paperwork. Some limitations 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 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.

Are refinance rates higher than purchase rates?

Refinance rates are generally higher than rates for new mortgages to buy a house. Here are some factors that influence the higher rates. 

• Risk — A borrower who refinances into a shorter term to get a lower interest rate and pay off their loan sooner may end up with a higher monthly payment. That higher payment could translate into an elevated risk of default. Likewise, in cash-out refinances the borrower’s debt-to-income ratio rises — and possibly their risk of defaulting.
• Revenue — A lender may be able to make more money off a purchase loan than a refinance. Many homebuyers choose longer terms for purchase mortgages, which come with higher interest rates. Refinancing into a shorter term and/or lower interest rate reduces the amount of interest the lender makes over the life of a loan.
• Costs — Refinancing a mortgage comes with many of the same closing costs you’ll face when you take out a new mortgage, such as an appraisal, attorney fees and more. Closing on a refinance also has costs for the lender. But whereas the lower interest rate and shorter term you get with a refinance benefits you financially, the lender will make less in interest over the life of the refinanced loan.
• Your credit — Hopefully, your credit continues to improve once you become a homeowner. But that’s not always the case for everyone. A homeowner whose credit score has actually fallen since they initially bought the house may look like a bigger risk to lenders — who may charge a higher interest rate to offset the perceived risk.

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.