Today’s 10-Year Mortgage Refinance Rates Mark 5th Day Near Lows | October 7, 2021


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

View mortgage refinancing rates for October 7, 2021, which are largely unchanged from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates are virtually unchanged from yesterday, with the exception of the 30-year rates, which declined slightly.

  • Refinancing at a fixed rate over 30 years: 2.990%, against 3.000%, -0.010
  • Refinancing at a fixed rate over 20 years: 2.750%, unchanged
  • Refinancing at a fixed rate over 15 years: 2.250%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.125%, unchanged

Rates last updated on October 7, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

Rates for a 10-year mortgage refinance continue to be a bargain this week, holding 2.125% for five consecutive days. Homeowners who want to refinance for a shorter term and can manage a higher monthly payment could save a lot of money on interest over the life of their mortgage. Meanwhile, rates for a 30-year term have fallen slightly to just under 3%. Homeowners who want to refinance for the longer term may want to act now, as mortgage experts have predicted rates may not stay below 3% any longer.

If you are thinking about refinancing your mortgage, consider using Credible. Whether you want to save money on your monthly mortgage payments or consider refinancing with cash, Credible’s free online tool will allow you to compare rates from multiple mortgage lenders. You can see prequalified fares in as little as three minutes.

Current fixed refinancing rates over 30 years

The current rate for a 30 year fixed rate refinance is 2.990%. This is down from yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage might lower your interest rate, but might not have much of an effect on your total interest charges or your monthly payment. Refinancing a short-term mortgage to a 30-year refinance could result in a lower monthly payment, but higher total interest charges.

Current 20-year fixed refinancing rates

The current rate for a 20 year fixed rate refinance is 2.750%. It’s the same as yesterday. By refinancing a 30-year loan to a 20-year refinance, you could earn a lower interest rate and lower total interest charges over the life of your mortgage. But you can get a higher monthly payment.

Current fixed refinancing rates over 15 years

The current rate for a 15-year fixed rate refinance is 2.250%. It’s the same as yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest charges and maintaining a reasonable monthly payment.

Current fixed refinancing rates over 10 years

The current rate for a 10 year fixed rate refinance is 2.125%. It’s the same as yesterday. Refinancing over 10 years will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a larger monthly mortgage payment.

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

Rates last updated on October 7, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

These rates are based on the assumptions presented here. Actual rates may vary.

Think it might be a good time to refinance? To understand how much you could save on monthly mortgage payments by refinancing now, calculate the numbers and compare rates using Credible’s free online tool. In a matter of minutes, you can see what many mortgage lenders are offering.

Rates last updated on October 7, 2021. These rates are based on the assumptions presented here. Actual rates may vary.

How Much Do I Need to Refinance My Home?

When you apply for mortgage refinancing, lenders will take into consideration the amount of equity in your home. If you do not meet the lender’s capital requirements, you may not be eligible for refinancing with that lender.

Requirements may vary from lender to lender and depend on the type of refinancing you are doing – rate and term refinance vs. withdrawal refinance.

For rate and term refinancing, you may qualify with as little as 5% of your home equity. But your lender will likely ask you to purchase private mortgage insurance. Most lenders will prefer a loan-to-value ratio of at least 20%, which means that the amount you owe on your mortgage is no more than 80% of the total value of your home.

Typically, for a cash refinance, most lenders will want to see that you have a loan-to-value ratio, or LTV, of at least 20%. But some lenders can be flexible if you have good credit, a history of paying bills on time, and are willing to accept a higher interest rate.

To calculate your loan-to-value ratio, simply divide your loan balance by the current value of your home. For example, if your home is worth $ 350,000 and you owe $ 325,000, your LTV is just under 93% – and you might have difficulty qualifying for refinancing.

How to get your lowest mortgage refinance rate

If you want to refinance your mortgage, improve your credit rating, and pay off any other debt could guarantee you a lower rate. It’s also a good idea to compare the rates of different lenders if you are hoping to refinance to find the best rate for your situation.

Borrowers can save $ 1,500 on average over the life of their loan by purchasing a single additional rate quote, and on average $ 3,000 by comparing five rate quotes, according to research by Freddie Mac.

Be sure to shop around and compare the rates of several mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in just three minutes.

How does Credible calculate the refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the evolution of mortgage refinancing rates. Credible’s average mortgage refinance rates are calculated based on information provided by partner lenders who compensate Credible.

The rates assume that a borrower has a credit score of 740 and borrows a conventional loan for a single family home that will be their primary residence. Rates also assume zero (or very low) discount points and a 20% deposit.

Credible mortgage refinancing rates will only give you an idea of ​​current average rates. The rate you receive may vary depending on a number of factors.

Are there any downsides to refinancing?

Refinancing a mortgage can be a good way to reduce interest charges over the life of a loan, shorten your repayment term, or get a lower interest rate. But refinancing also presents potential pitfalls.

Refinancing may actually cost you more money than you save if:

  • You are refinancing for a longer repayment term than your original mortgage. Longer repayment terms usually mean lower monthly payments, but higher interest rates and higher interest charges over the life of a loan. To get the most out of refinancing, try refinancing for a shorter term than what you have on your current mortgage.
  • You sell your home before you reach the breakeven point on your new loan. Like your original mortgage, your refinancing will come with closing costs. And it will take some time before your savings amount to as much as your closing costs.

Having said that, the downside that you need to consider first is the closing costs. You will have to finance them out of pocket or integrate them into the loan (which increases its lifetime costs). Closing costs are 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, you will have to pay around $ 6,000 to $ 10,000 in closing costs.

Credible is also a partner of a home insurance broker. If you are looking for a better home insurance rate and are considering switching providers, consider using an online broker. You can compare quotes from the top rated insurance companies in your area – it’s quick, easy, and the whole process can be done entirely online.

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgages, mortgage refinancing, and more. He was an editor and editorial assistant in the online personal finance field for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.

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