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Mortgage refinance rates for June 22, 2021: Rates rise

CNET logo CNET 6/22/2021 CNET staff
a close up of a sign: Joe Raedle/Getty © Provided by CNET Joe Raedle/Getty

A number of closely followed mortgage refinance rates increased today. Both 15-year fixed and 30-year fixed refinances saw their average rates trend upward. At the same time, average rates for 10-year fixed refinances also made gains. Refinance interest rates are never set in stone -- but rates have been at historic lows. If you plan to refinance your home, now might be a good time to lock in a good rate. Before refinancing, remember to consider your personal needs and financial situation, and shop around for various lenders to find the best one for you.

a close up of a sign © Joe Raedle/Getty

30-year fixed refinance rates

For 30-year fixed refinances, the average rate is currently at 3.25%, an increase of 13 basis points from what we saw one week ago. (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. This makes 30-year refinances good for people who are having difficulties making their monthly payments or simply want a bit more breathing room. Be aware, though, that interest rates will typically be higher compared to a 15-year 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 2.54%, an increase of 16 basis points compared to one week ago. Refinancing to a 15-year fixed loan from a 30-year fixed loan will likely raise your monthly payment. 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 average 10-year fixed refinance rate right now is 2.58%, an increase of 20 basis points over last week. Compared to a 30-year and 15-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. 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 information 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:


Video: Is refinancing your mortgage right for you? (CBS News)

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Average refinance interest rates
ProductRateLast weekChange
30-year fixed refi3.25%3.12%+0.13
15-year fixed refi2.54%2.38%+0.16
10-year fixed refi2.58%2.38%+0.20

Rates as of June 22, 2021.

How to find the best refinance rate

When searching for refinance rates online, it's important to remember that your specific financial situation will influence the rate you're offered. Your interest rate will be influenced by market conditions as well as your credit history and application.

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. You can generally get a good feel for average interest rates online, but make sure to speak with a mortgage professional in order to see the specific rates you qualify for. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.

It's also worth noting that in recent months, lenders have been stricter with their requirements. As such, you may not qualify for a refinance -- or a low rate -- if you don't have a solid credit rating.

One way to get the best refinance rates is to strengthen your borrower application. The best way to improve your credit ratings is to get your finances in order, use credit responsibly, and monitor your credit regularly. You should also shop around with multiple lenders and compare offers to make sure you're getting the best rate.

When to consider a mortgage refinance

Most people refinance because the market interest rates are lower than their current rates or because they want to change their loan term. While interest rates have been low in the past few months, you should look at more than just the market interest rates when deciding if a refinance is right for you.

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.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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