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Current refinance rates on Sept. 2, 2021: Rates increase

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Multiple benchmark mortgage refinance rates moved up today. Both 15-year fixed and 30-year fixed refinances saw their average rates rise. The average rate on 10-year fixed refinance remained unaltered, however. Refinance interest rates are never set in stone — but rates have been the lowest they’ve been in years. If you plan to refinance your house, now might be a good time to get a great rate. But as always, make sure to first consider your personal goals and circumstances before getting a refinance, and shop around to find a lender who can best meet your needs.

30-year fixed-rate refinance

The average 30-year fixed refinance rate right now is 3.07%, an increase of 8 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 10- or 15-year refinance. If you’re having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. However, interest rates for a 30-year refinance will typically be higher than rates for a 10- or 15-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

The average rate for a 15-year fixed refinance loan is currently 2.37%, an increase of 7 basis points 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. Fifteen-year refinance rates are typically lower than 30-year refinance rates, which will help you save even more in the long run.

10-year fixed-rate refinance

The average 10-year fixed refinance rate right now is 2.33%, unmoved from what we saw the previous week. Compared to a 15- or 30-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. Just be sure to carefully consider your budget and current financial situation to make sure that you can afford a 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 supplied by lenders across the US:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 3.07% 2.99% +0.08
15-year fixed refi 2.37% 2.30% +0.07
10-year fixed refi 2.33% 2.33% N/C

Rates as of Sept. 2, 2021.

How to shop for refinance rates

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.

To get the best interest rates, you’ll typically need a high credit score, a low credit utilization ratio and a history of making consistent and on-time payments. 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. And don’t forget about fees and closing costs, which may add a hefty amount upfront.

You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months. If you have a low credit score or a poor credit history, you might have trouble getting a refinance at the lowest interest rates.

To get the best refinance rates, you’ll first want to make your application as strong as possible. The best way to improve your credit ratings is to get your finances in order, use credit responsibly and monitor your credit regularly. Also be sure to compare offers from multiple lenders in order to get the best rate.

Is now a good time to refinance?

Generally, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate, or if you need to change your loan term. 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. And don’t forget about fees and closing costs, which can add up.

Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don’t have a solid credit score, you may not qualify for the best rate. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great move. But carefully weigh the pros and cons first to make sure it’s a good fit for your situation.

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