Today's mortgage refinance rates hold at historic lows for 3 out of 4 terms | August 23, 2021

Check out the mortgage refinancing rates for August 23, 2021, which are largely unchanged from last Friday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates saw little change compared to last Friday’s, with only 20-year rates rising.

  • 30-year fixed-rate refinance: 2.750%, unchanged
  • 20-year fixed-rate refinance: 2.625%, up from 2.500%, +0.125
  • 15-year fixed-rate refinance: 2.125%, unchanged
  • 10-year fixed-rate refinance: 2.125%, unchanged

Rates last updated on August 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Rates for a 20-year mortgage refinance crept up to 2.625% today after falling to 2.500% last Friday. Still, this term represents a good bargain for homeowners who want to refinance into a shorter term while saving on interest and keeping their monthly payment manageable. Rates for 15-year and 10-year terms might be appealing as well — rates for both terms have stuck at 2.125% for 11 days in a row.

If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you're interested in saving money on your monthly mortgage payments, or considering a cash-out refinance, Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.

Current 30-year fixed refinance rates

The current rate for a 30-year fixed-rate refinance is 2.750%. This is the same as last Friday.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 2.625%. This is up from last Friday.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed-rate refinance is 2.125%. This is the same as last Friday.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed-rate refinance is 2.125%. This is the same as last Friday.

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

Rates last updated on August 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How mortgage refinance rates have changed

Today, mortgage refinance rates have remained unchanged compared to this time last week.

  • 30-year fixed refinance rates: 2.750%, the same as last week
  • 20-year fixed refinance rates: 2.625%, the same as last week
  • 15-year fixed refinance rates: 2.125%, the same as last week
  • 10-year fixed refinance rates: 2.125%, the same as last week

Think it might be the right time to refinance? To understand just how much you could save on monthly mortgage payments by refinancing now, crunch the numbers and compare rates using Credible's free online tool. Within minutes, you can see what multiple mortgage lenders are offering.

Rates last updated on August 23, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Is now a good time to refinance?

Mortgage refinance rates have been at historic lows all year. It’s unlikely they’ll go much lower and extremely possible they’ll begin to rise in the coming months. But low rates aren’t the only factors that determine whether now is a good time for you to refinance your home loan.

Everyone’s situation is different, but generally, it may be a good time to refinance if:

  • You’ll be able to get a lower interest rate than you currently have
  • Refinancing will save you money over the life of your home loan
  • Your savings from refinancing will ultimately exceed closing costs
  • You know you’ll be staying in your home long enough to recoup the costs of refinancing
  • You have sufficient equity in your home to avoid private mortgage insurance (PMI)

If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance. 

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance so you can find the best rate for your situation. 

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac. Credible can help you compare multiple lenders at once in just a few minutes. 

If you decide to refinance your mortgage, be sure to shop around and compare rates from multiple mortgage lenders. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.

Credible is also partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy and the whole process can be completed entirely online.

Are there any cons to refinance?

Refinancing a mortgage can be a good way to lower interest costs over the life of a loan, shorten your repayment term or secure a lower interest rate. But refinancing has some potential pitfalls, too.

It’s possible for refinancing to actually cost you more money than you’ll save if:

  • You refinance into a repayment term that’s longer than your original mortgage. Longer repayment terms usually mean lower monthly payments — but higher interest rates and greater interest costs over the life of a loan. To reap the most savings from a refinance, try refinancing into a shorter term than you have for your current mortgage.
  • You sell your home before you reach the break-even point on your new loan. Like your original mortgage, your refinance will come with closing costs. And it will take some time before your savings add up to as much as your closing costs.

That said, the con you need to consider first is closing costs. You’ll need to fund these from your own pocket or roll them into the loan (which raises its lifetime costs). Closing costs typically run 3% to 5% — or more — of the amount you’re borrowing. So if you want to refinance your $200,000 loan to get a lower interest rate, you’ll pay an estimated $6,000 to $10,000 in closing costs.

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

As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.

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