Mortgage refinance rates for July 26, 2021: Rates fall – CNET

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Multiple important refinance rates decreased today. Both 15-year fixed and 30-year fixed refinances saw their average rates sink. At the same time, average rates for 10-year fixed refinances also declined. Although refinance rates are always changing, they have been quite low recently. If you plan to refinance your home, now might be an ideal time to lock in a good rate. Before refinancing, remember to take into account your personal needs and financial situation, and compare offers from multiple lenders to find the right one for you.

Read moreConsidering a mortgage refinance? Rates may be going even lower

30-year fixed refinance rates

The average 30-year fixed refinance rate right now is 2.99%, a decrease of 11 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15- or 10-year refinance. If you’re having difficulties making your monthly payments, a 30-year refinance could be a good option for you. Be aware, though, that interest rates will typically be higher compared to a 15- or 10-year refinance, and you’ll pay off your loan at a slower rate.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 2.30%, a decrease of 12 basis point over last week. With a 15-year fixed refinance, you’ll have a larger monthly payment than a 30-year loan. But you’ll save more money over time, because you’re paying off your loan quicker. You’ll also typically get lower interest rates compared to a 30-year loan. This can help you save even more in the long run.

10-year fixed-rate refinance

The average 10-year fixed refinance rate right now is 2.31%, a decrease of 13 basis points compared to one week ago. You’ll pay more every month with a 10-year fixed refinance compared to a 30- or 15-year refinance — but you’ll also have a lower interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will save you a significant amount of interest over time. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.

Where rates are headed

We track refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates provided by lenders across the country:

Average refinance interest rates

Product Rate Last week Change
30-year fixed refi 2.99% 3.10% -0.11
15-year fixed refi 2.30% 2.42% -0.12
10-year fixed refi 2.31% 2.44% -0.13

Rates as of July 26, 2021.

How to find the best refinance rate

When looking for refinance rates, know that your specific rate may differ from those advertised online. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.

Generally, you’ll want a high credit score, low credit utilization ratio and a history of making consistent and on-time payments in order to get the best interest rates. Researching interest rates online is always a good idea, but you’ll need to connect with a mortgage professional to get your exact refinance rate. Also remember to account for potential fees and closing costs.

It’s also worth noting that in recent months, lenders have been stricter with their requirements. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.

One way to get the best refinance rates is to strengthen your borrower application. You can do that by monitoring your credit, taking on debt responsibly and getting your finances in order before applying for a refinance. You should also shop around with multiple lenders and compare offers to make sure you’re getting the best rate.

Is now a good time to refinance?

In order for a refinance to make sense, you’ll generally want to get a lower interest rate than your current rate. Aside from interest rates, changing your loan term is another reason to refinance. It’s true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.

Make sure to consider your goals and financial situation, including how long you plan to stay in your current home. It’s helpful to have a specific goal for a refinance — such as decreasing your monthly payment or adjusting the term of your loan. Also keep in mind that closing costs and other fees may require an upfront investment.

Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates — or even refinance at all — if you don’t meet their standards. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that doing so makes sense.

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Mortgage refinance rates for July 26, 2021: Rates fall – CNET

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