Current refinance rates on May 3, 2021: Rates tick higher

Current refinance rates on May 3, 2021: Rates tick higher

Jim lane / getty

The number of mortgage refinance rates increased more closely today. Both 15-year fixed and 30-year fixed refinances saw their average rates climb. In addition, the average rate on a 10-year fixed refinance was stable. Although refinancing rates are always changing, until recently they have been quite low. For those wanting to get a good rate, now is a good time to refinance a house. Before getting a refinance, remember to think about your personal needs and financial situation, and shop for many lenders to find the right one for you.

30-Year Fixed Refinance Rate

The average 30-year fixed refinance rate is currently 3.17%, a 4 basis point increase from what we saw a week ago. (One basis point is equal to 0.01%.) Refinancing for a 30-year fixed loan from a shorter loan term can reduce your monthly payment. If you are currently having difficulty making your monthly payments, a 30-year refinance may be a good option for you. However, the interest rates for a 30-year refinance will typically be higher than the rates for a 15-year or 10-year refinance. It will take you longer to repay your loan.

15-year fixed-rate refinance

The average 15-year fixed refinance rate is currently 2.46%, an increase of 3 basis points from what we saw last week. A 15-year fixed refinance will increase your monthly payment compared to a 30-year loan. On the other hand, you will save a penny on interest, as you will repay the loan soon. 15-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 current average interest rate for a 10-year refinance is 2.41%, lower than it was a week ago. A 10-year refinance will typically feature the highest monthly payment of all refinancing terms, but the lowest interest rate. A 10-year refinance can be a good deal, as paying your house early will help you save on interest for a longer period of time. Just pay attention to your budget and current financial situation to ensure that you can make high monthly payments.

Where rates are headed

We track refinancing rate trends using data collected by Bankrate, which is owned by the parent company of CNET. Here is a table, which has the average refinance rate reported by lenders in the US:

Average refinance interest rates
ProductrateA week agochange
30 year fixed refi3.17%3.13%+0.04
15 year fixed refi2.46%2.43%+0.03
10 year fixed refi2.41%2.41%N / C

Rates as of May 3, 2021.

How to shop for refinance rate

It is important to understand that the rates advertised online may not apply to you. Market conditions are not the only factor in interest rates; Your special application and credit history will also play a big role.

To get the best interest rates, you usually need a high credit score, low credit utilization ratio, and a history of frequent and timely payments. To get your personal refinance rates, you will need to speak with a mortgage professional, as the rates you qualify for may differ from online advertising rates. You should also take into account any fees and closing costs that may offset the potential savings of a refinance.

It is also worth noting that in recent months, lenders have become strict with their requirements. If you have a low credit score or poor credit history, you may have trouble getting a refinance at the lowest interest rates.

One way to get the best refinance rates is to consolidate your borrower application. The best way to improve your credit rating is to get your finances in order, use credit responsibly and monitor your credit regularly as well as compare the offers of many lenders to get the best rate. Be sure to do.

When should I refinance?

Generally, it is a good idea to refinance if you can get an interest rate lower than your current interest rate, or if you need to change your loan term. While interest rates have come down in the last few months, you should look higher than the market interest rates when deciding if a refinance is right for you.

A refinance may not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan to stay in your home? Are you refinancing to reduce your monthly payment, pay your house sooner – or for a combination of reasons? And don’t forget about fees and closing costs, which can add up.

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 a refinance at all – if you don’t meet their standards. Do not meet You pay in the long run and help you repay your loan sooner. But careful cost-benefit analysis is necessary to confirm that doing so makes sense.

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