Current Refinance Rates, November 12, 2020 | Rate ticks higher

Several benchmark mortgage refinance rates climbed today.

The average rate nationwide for a 30-year fixed-rate refinance saw an increase, but the average rate on a 15-year fixed slid down. The average rate on 10-year fixed refi, meanwhile, inched up.

Rates for refinancing are constantly changing, but they have remained in a historically low range for quite some time. If you’re in the market to refinance, it may make sense to go ahead and lock if you see a rate you like.

See refinance rates for a variety of loan options here.

30-year fixed refinance

The average 30-year fixed-refinance rate is 3.16 percent, up 10 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 3.13 percent.

At the current average rate, you’ll pay $430.28 per month in principal and interest for every $100,000 you borrow. That’s up $5.43 from what it would have been last week.

You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and find out how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.

15-year fixed refinance

The 15-year fixed refi average rate is now 2.58 percent, down 14 basis points from a week ago.

Monthly payments on a 15-year fixed refinance at that rate will cost around $667 per $100,000 borrowed. That’s clearly much higher than the monthly payment would be on a 30-year mortgage at that rate, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

10-year fixed refinance

The average rate for a 10-year fixed-refinance loan is 2.59 percent, up 1 basis point over the last week.

Monthly payments on a 10-year fixed-rate refi at 2.59 percent would cost $946.34 per month for every $100,000 you borrow. If you can manage that substantial monthly payment, you’ll enjoy even more interest cost savings than you would with a 15-year term.

Where rates are headed

To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.

Want to compare today’s rates? Lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most up-to-date rates available. Here you can see the latest national average rates for a wide variety of mortgage refinance loans:

Average refinance interest rates
Product Rate Last week Change
30-year fixed refi 3.16% 3.06% +0.10
15-year fixed refi 2.58% 2.72% -0.14
10-year fixed refi 2.59% 2.58% +0.01

Rates as of November 11, 2020.

Want to see where rates are right now? See refinance rates for a variety of loan options here.

Is now a good time to refinance?

Generally speaking, yes, now is a good time to refinance. Mortgage rates have regularly hit record lows over the past few months. Though rates can rise and fall from one week to the next, they have been around 3 percent over time, with some surveys showing them in the 2s. If you’re a homeowner with good or excellent credit, it’s a good time to think about refinancing. Remember: The Federal Housing Finance Agency will institute a new refinancing fee of 0.5 percent on all loans worth $125,000 or more. That fee goes into effect Dec. 1, but many mortgage lenders are already pricing the fee into their loan offers.

Current refinance rate landscape

The past few months have been extremely busy for refinancing because of low interest rates. Although it can still be a good option for many borrowers to refinance, be prepared to wait longer than normal to close on the loan. Some lenders may have tightened their lending standards. It may be more difficult to land a refinancing offer if your credit isn’t in good condition, or if you’ve had a recent change in your employment.

When you should refinance

There are lots of reasons to refinance, but two major drivers are changing the rate or term of your mortgage to save money, or a cash-out refinance to fund other projects.

A rate/term change usually means you’re securing a lower interest rate than what you’re paying on your existing mortgage, or that you’re changing the period of time to pay off the loan — or both. Securing a lower interest rate means you’ll have lower monthly payments and pay less interest over the remaining life of your loan. Changing the length of time you’ll take to pay off your mortgage can save you money in a few ways: if you lengthen the term, you’ll have lower monthly payments. If you shorten the term, your monthly payments may go up, but you’ll pay less interest over the life of the loan. Because interest rates are so low right now, you may be able to shorten your loan term and keep your monthly payments the same, or even make them lower.

A cash-out refinance is a way to borrow against the equity you’ve built up in your home. It will make your mortgage bigger, but it can be a cost-effective way to finance big projects like home renovations, because mortgage interest rates are still much lower than those on personal loans or credit cards.

How to refinance

Shopping around is the most important thing you can do. Just like with securing a purchase mortgage, you want to make sure you’re getting the best offer. That means you can go to your current lender to see what they’re willing to do for you, but you should also be open to finding a new institution. Compare all the terms that various lenders are offering you, and see what makes the most sense in your own situation. Sometimes, for example, you may trade a slightly higher interest rate for other conveniences a particular lender may be able to offer you.

What you’ll need to refinance

Refinancing can be a big undertaking. Your lender will do a credit check, and usually requires a lot of documents from pay stubs and tax returns to bank and other financial statements.

Get your supporting documents in order ahead of time so you’re ready to send things off when the bank asks for them.

And, start doing your calisthenics. Just like with a purchase closing, you’ll have to sign a lot of documents to secure your new loan.

Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.

To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”

Other daily news articles:
Mortgage interest rates today
Today’s 30-year mortgage rates
Shopping for the right mortgage lender?
Wells Fargo Home Mortgage Review
Bank of America Mortgage Review
American Federal Mortgage Corporation Mortgage Review
See all reviews of lenders nationwide
Learn more about specific loan type rates
PRODUCT PURCHASE RATES REFINANCE RATES
The index above links out to loan-specific pagesto help you learn more about rates by product type.
30-Year Loan 30-Year Interest Rates Current 30 Year Refinance Rates
20-Year Loan Current 20 Year Mortgage Rates Current 20-Year Refinance Rates
15-Year Loan Current 15 Year Mortgage Rates 15-Year Refi Interest Rates
10-Year Loan 10-Year Fixed Mortgage Rates 10-Year Refinance Rates
FHA Loan FHA Mortgage Rates FHA Refinance Interest Rates
VA Loan VA Mortgage Interest Rates Current VA Refinance Rates
ARM Loan Adjustable Rate Mortgage Rates ARM Refi Mortage Rates
Jumbo Loan Jumbo Mortgage Rates Jumbo Loan Refinance Rates

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