Saving window still open: Today’s mortgage refinancing rates are close to record lows | September 22, 2021

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Our goal here at Credible Operations, Inc., NMLS Number 1681276, hereinafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders who reward us for our services, all opinions are our own.

See the mortgage refinancing rates for September 22, 2021, which are unchanged from yesterday. (iStock)

Based on data compiled by Credible, the current mortgage refinancing rates are unchanged from yesterday.

  • 30-year fixed rate refinancing: 2.875%, unchanged
  • 20-year fixed rate refinancing: 2,500%, unchanged
  • 15-year fixed rate refinancing: 2.125%, unchanged
  • 10-year fixed rate refinancing: 2,000%, unchanged

Prices last updated on September 22, 2021. These prices are based on the assumptions shown here. Actual prices may vary.

With mortgage refinancing rates remaining at or near record lows, homeowners who refinance now can secure interest savings ahead of projected interest rate hikes. The prices for all terms have remained unchanged over the past three days. Fifteen-year refinance rates can be especially attractive to people who want to maximize their interest savings while maintaining a manageable monthly payment – they have been at near record lows for 46 consecutive days. And the average refinance rate for mortgages hasn’t risen above 2.4% in 16 days.

If you are thinking of refinancing your mortgage then you should use Credible. Whether you want to save money on your monthly mortgage payments or consider refinancing through a payout, Credible’s free online tool allows you to compare the interest rates of multiple mortgage lenders. You can see prequalified tariffs in just three minutes.

Current 30-year fixed refinancing rates

The current interest rate for a 30-year fixed rate refinancing is 2.875%. This is the same as yesterday. Refinancing a 30 year mortgage into a new 30 year mortgage could lower your interest rate, but it may not have a huge impact on your total interest cost or monthly payment. Refinancing a shorter term mortgage into a 30 year refinance could result in a lower monthly payment but a higher total interest cost.

Current 20-year fixed refinancing rates

The current interest rate for a 20-year fixed-rate refinancing is 2,500%. This is the same as yesterday. By refinancing a 30-year loan into a 20-year refinancing, you can secure a lower interest rate and reduce the total cost of interest over the life of your mortgage. However, you can get a higher monthly payment.

Current 15-year fixed refinancing rates

The current interest rate for a 15-year fixed rate refinancing is 2.125%. This is the same as yesterday. A 15 year refinance could be a good choice for homeowners looking for a balance between cutting interest costs and keeping a manageable monthly payment.

Current 10-year fixed refinancing rates

The current interest rate for a 10-year fixed rate refinancing is 2,000%. This is the same as yesterday. A 10 year refinance will help you pay off your mortgage faster and maximize your interest savings. But you could end up with a higher monthly mortgage payment.

You can explore your mortgage refinancing options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Prices last updated on September 22, 2021. These prices are based on the assumptions shown here. Actual prices may vary.

These prices are based on the assumptions shown here. Actual prices may vary.

Do you think it might be the right time to refinance? You can explore your mortgage refinancing options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Prices last updated on September 22, 2021. These prices are based on the assumptions shown here. Actual prices may vary.

What are the reasons for refinancing?

Every borrower’s situation is different, but here are some good reasons to refinance:

  • To get a lower interest rate – A lower interest rate could mean that you will pay less interest over the life of your mortgage – assuming you refinance in a shorter term.
  • To shorten the repayment period – If your ultimate goal is to be mortgage-free one day, shortening the repayment period could help make it happen sooner.
  • To reduce interest costs over the life of the loan – Interest can be a significant part of the total cost of your mortgage. For example, if you borrow $ 250,000 at 3.5% for 30 years, your total interest cost would be $ 154,140. By refinancing at 2.75% for the same term, you can save USD 36,723 in interest costs.
  • To withdraw equity in cash – This type of refinancing, known as “cash-out refinancing”, allows you to take out a new mortgage for more than you owe on your old one and pay the difference in cash. Your home equity secures the extra cash that you can use for home improvement, repairs, or other needs.
  • To get a fixed mortgage rate – If you have taken out a variable rate mortgage, the very low initial interest rate can be set back to a much higher one at the end of the initial phase. After that, your rate may change with market conditions. Many homeowners with ARMs want to refinance themselves into fixed-rate mortgages, which can ensure reliable payment at a predictable interest rate.

Conversely, some reasons for refinancing are less than good:

  • To settle unsecured debts like a car loan or credit cards with equity – If your interest rate on these types of loans is high and you are getting a really low mortgage refinance rate, you might be thinking, “Why not?” But unsecured debts like personal loans or credit cards and even a secured car loan don’t put your home at risk. When you settle this debt by refinancing your home mortgage, this unsecured debt becomes one that is backed by your home.
  • Use equity to invest – When you use equity to invest, you are risking your home on something that is already a risky endeavor. There is no guarantee of return when investing. The repayment of your mortgage and the preservation of your equity, on the other hand, have a reliably positive effect on your credit and financial situation.
  • To use equity on a large purchase – Once you’ve built up equity in your home, it can be tempting to tap into it to raise cash for luxuries like a big trip, an RV, or even plastic surgery. But for these reasons, think carefully before doing any cash out refinancing. A refinanced mortgage is a long term debt.

How to get your lowest mortgage refinancing rate

If you are interested in refinancing your mortgage, you can get a lower interest rate by improving your credit score and paying off other debts. It is also a good idea to compare the interest rates of different lenders when looking for a refinance so that you can find the best rate for your situation.

Borrowers can save an average of $ 1,500 over the life of their loan by buying just one additional rate quote and an average of $ 3,000 by comparing five rate quotes, according to a study by Freddie Mac.

When you decide to refinance your mortgage, look around and compare prices from multiple mortgage lenders. It’s easy to do with Credible’s free online tool and you’ll see your pre-qualified plans in just three minutes.

How does Credible calculate the refinancing rates?

Changing economic conditions, central bank policy decisions, investor sentiment and other factors all affect mortgage refinancing rate developments. Credible average mortgage refinancing rates are calculated based on information provided by partner lenders who pay Credible compensation.

The interest rates assume that a borrower has a credit score of 740 and is taking out a traditional loan on a single family home that will be their primary residence. The tariffs also require no (or very low) discount points and a deposit of 20%.

Credible mortgage refinancing rates only give you an idea of ​​the current average interest rate. The price you get can vary based on a number of factors.

Are there any disadvantages to refinancing?

Refinancing a mortgage can be a great way to cut interest costs over the life of a loan, shorten the repayment period, or get yourself a lower interest rate. But refinancing also harbors potential pitfalls.

It is possible that refinancing will actually cost you more money than you will save if:

  • You are refinancing with a term that is longer than your original mortgage. Longer repayment periods usually mean lower monthly payments – but higher interest rates and higher interest costs over the life of a loan. For the most savings on a refinance, try a shorter term than your current mortgage.
  • You are selling your home before you break even on your new loan. Like your original mortgage, your refinance will come with closing costs. And it will take time for your savings to add up to your closing costs.

That said, the downside to consider first is the closing cost. You will have to fund this out of your own pocket or add it to the loan (which increases the lifetime cost). The closing cost is typically 3 to 5% – or more – of the amount you borrow. So if you want to refinance your $ 200,000 loan to get a lower interest rate, pay an estimated $ 6,000 to $ 10,000 in closing costs.

Credible also has a partnership with a home insurance broker. You can compare free home contents insurance offers from Credible’s partner here. It’s quick, easy, and the whole process can be completed entirely online.

Do you have a finance-related question but don’t know who to contact? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

A credible mortgage and personal finance authority, Chris Jennings has covered topics such as mortgage loans, mortgage refinancing, and more. He has been an online editor and assistant editor for personal finance for four years. His work has been featured by MSN, AOL, Yahoo Finance, and others.


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