Refinance rates for June 7, 2021: Rate moves up – CNET

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In general, refinance rates for mortgages were varied with one notable rate rising. The average rate for a 15-year fixed refinance did not change, while 30-year fixed-rate refinances moved up. At the same time, average rates for 10-year fixed refinances were stable. Refinance interest rates are never set in stone — but rates have been at historic lows. For those looking to lock in a good rate, now is an optimal time to refinance a house. Before you refinance, remember to think about your personal needs and financial situation, and compare offers from multiple lenders to find the best one for you.

30-year fixed refinance rates

The current average interest rate for a 30-year refinance is 3.16%, an increase of 3 basis points over this time last week. (A basis point is equivalent to 0.01%.) One reason to refinance to a 30-year fixed loan from a shorter loan term is to lower your monthly payment. Because of this, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. However, interest rates for a 30-year refinance will typically be higher than rates for a 15-year or 10-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 2.42%, unmoved from what we saw the previous week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. Interest rates for a 15-year refinance also tend to be lower than that of a 30-year refinance, so you’ll save even more in the long run.

10-year fixed-rate refinance

The current average interest rate for a 10-year refinance is 2.43%, unmoved from what we saw the previous week. A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.

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 reported by lenders across the US:

Average refinance interest rates

Product Rate Last week Change
30-year fixed refi 3.16% 3.13% +0.03
15-year fixed refi 2.42% 2.42% N/C
10-year fixed refi 2.43% 2.43% N/C

Rates as of June 7, 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.

To get the best interest rates, you’ll typically need a high credit score, 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. Also remember to account for potential fees and closing costs.

Since the beginning of the pandemic, a lot of lenders have been stricter with who they approve for a loan. As such, you may not qualify for a refinance — or a low rate — if you don’t have a solid credit rating.

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. Don’t forget to speak with multiple lenders and shop around to find the best rate.

When to consider a mortgage 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. Interest rates in the past few months have been at historic lows, but that’s not the only thing you should be looking at when deciding whether to refinance.

To decide whether a refinance is right for you, consider all of the factors including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. Also keep in mind that closing costs and other fees may require an upfront investment.

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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