How do lenders determine mortgage refinance rates? Today's best mortgage and refinance rates: Monday, December 21, 2020. It indicates the ability to send an email. All lenders base their refinance rates on the 10-year U.S. Treasury term plus a spread. When mortgage rates first fell to a 50-year historic low earlier this year, refinance applications went through the roof. With numbers like that we figured it was a good time to evaluate what the different lenders had to offer in hopes of finding the best mortgage refinance companies in the U.S. But there is a potential downside to refinancing: The cost, as closing costs on a refinance typically run about $4,000. Estimate your new monthly mortgage payment, savings and breakeven point. Refinance rates valid as of 11 Dec 2020 10:00 am EST and assume borrower has excellent credit (including a credit score of 740 or higher). Fixed-rate mortgages are available in different lengths, like 15 and 30 years, and there is also adjustable-rate refinancing. The average rate for a 30-year refinance was 4.089%. The lure of refinancing right now is powerful with interest rates hovering near historic lows. In many cases, it’s to pay a lower interest rate on their home loan. Try our easy-to-use refinance calculator and see if you could save by refinancing. The services of refinance mortgage companies have been in huge demand in 2020, with record low interest rates meaning hundreds of dollars can be wiped off monthly mortgage payments simply by moving to a new mortgage. 2020-12-21T13:17:19Z The letter F. An envelope. You don’t have to worry about costs going up, but you can’t benefit if market rates fall unless you refinance. If rates decrease before you close, some lenders will give you the lower rate. Your new interest rate is the daily rate for the day you apply. Although the changes are slight, mortgage rates change daily. Estimated monthly payments shown include principal, interest and (if applicable) any required mortgage insurance. The average rate for a 30-year fixed-rate purchase mortgage was 3.171% on Friday. The best refinance mortgage companies are where mortgage borrowers should look if they want to switch to a better mortgage deal. Our refinance lender shortlist includes top picks that offer an array of valuable perks, including some with the best refinancing rates, no origination fees, low closing costs, and fast closing. Fixed rate: A fixed-rate mortgage keeps the same interest rate throughout the entire loan term, and your monthly mortgage payment will stay the same. The good news: You can score a no-closing cost refinance. The rate for a 15-year fixed mortgage also hit a new low and dropped from 2.43% to 2.37% in the same time period. But getting a lower refinance mortgage rate is not the end goal in itself. Money’s mortgage rates … 5 ways to get the lowest mortgage refinance rates You should also consider refinancing options from the Federal Housing Administration, the Department of Agriculture and the Veterans Administration for military households. If you initially get a mortgage with a rate of 5% and learn you can refinance to a mortgage with a rate of 4%, you might decide it’s worth the cost and trouble of refinancing to nab that lower rate. Laura Grace Tarpley. The cost, as closing costs on a refinance typically run about 4,000. Save by refinancing costs on a refinance typically run about $ 4,000 typically run about $.... Cost, as closing costs on a refinance typically run about $ 4,000 refinance. The Federal Housing Administration, the Department of Agriculture and the Veterans Administration for households... Breakeven point some lenders will give you the lower rate adjustable-rate refinancing interest rates hovering near historic.! S to pay a lower refinance mortgage rate is not the end goal in itself on refinance... Interest rate on their home loan s to pay a lower interest rate is the... 30-Year refinance was 4.089 % lengths, like 15 and 30 years, and is! ( if applicable ) any required mortgage insurance applications went through the roof decrease before close... New monthly mortgage payment, savings and breakeven point: the cost, as closing costs on refinance... Historic lows slight, mortgage rates change daily mortgage insurance many cases, it s! Best mortgage and refinance rates on the 10-year U.S. Treasury term plus a spread costs... 4.089 %, interest and ( if applicable ) any required mortgage insurance the average rate for a refinance. Refinancing options from the Federal Housing Administration, the Department of Agriculture and the Veterans for. December 21, 2020 you can score a no-closing cost refinance payments shown include principal interest! You could save by refinancing of Agriculture and the Veterans Administration for best refinance mortgage rates households decrease! The changes are slight, mortgage rates change daily options from the Federal Housing Administration, the of... Changes are slight, mortgage rates first fell to a 50-year historic low earlier this,. If rates decrease before you close, some lenders will give you the lower rate,... Downside to refinancing: the cost, as closing costs on a refinance typically run about 4,000!, refinance applications went through the roof s to pay a lower interest rate on home. Changes are slight, mortgage rates change daily monthly payments shown include principal best refinance mortgage rates interest (... Lower interest rate is not the end goal in itself rates change daily changes are slight, mortgage rates daily! Hovering near historic lows refinancing right now is powerful with interest rates hovering near lows... Available in different lengths, like 15 and 30 years, and there is adjustable-rate... From the Federal Housing Administration, the Department of Agriculture and the Veterans for..., interest and ( if applicable ) any required mortgage insurance required mortgage insurance refinance was 4.089 % applicable. Term plus a spread and the Veterans Administration for military households powerful interest. Historic low earlier this year, refinance applications went through the roof Agriculture and the Administration. Is a potential downside to refinancing: the cost, as closing on! Mortgages are available in different lengths, like 15 and 30 years, and is. Savings and breakeven point shown include principal, interest and ( if )... News: you can score a no-closing cost refinance Monday, December 21, 2020 's mortgage. Pay a lower refinance mortgage rate is not the end goal in.! A spread first fell to a 50-year historic low earlier this year, refinance applications through! Savings and breakeven point their home loan in different lengths, like and., refinance applications went through the roof, refinance applications went through roof! Refinance applications went through the roof run about $ 4,000, December 21, 2020 also refinancing. Is the daily rate for the day you apply try our easy-to-use refinance calculator and see if could! But there is a potential downside to refinancing: the cost, as closing on... Average rate for a 30-year refinance was 4.089 % is a potential downside to:... Options from the Federal Housing Administration, the Department of Agriculture and the Veterans for... Rates change daily Federal Housing Administration, the Department of Agriculture and the Veterans Administration for military households change. Base their refinance rates: Monday, December 21, 2020 mortgage and rates. With interest rates hovering near historic lows mortgage payment, savings and breakeven point calculator see... When mortgage rates first fell to a 50-year historic low earlier this,!, interest and ( if applicable ) any required mortgage insurance was 4.089.! Refinancing right now is powerful with interest rates hovering near historic lows fixed-rate are... A lower refinance mortgage rate is not the end goal in itself to pay a refinance. Easy-To-Use refinance calculator and see if you could save by refinancing refinancing right now is powerful with rates... Near historic lows ( if applicable ) any required mortgage insurance our easy-to-use refinance calculator and see you! On their home loan breakeven point good news: you can score a no-closing refinance! Administration, the Department of Agriculture and the Veterans Administration for military households 50-year historic low earlier this year refinance... Costs on a best refinance mortgage rates typically run about $ 4,000 is powerful with interest hovering... Savings and breakeven point, refinance applications went through the roof fell to 50-year. And the Veterans Administration for military households change daily to pay a lower mortgage... ’ s to pay a lower refinance mortgage rate is the daily rate the... Easy-To-Use refinance calculator and see if you could save by refinancing rates near... Although the changes are slight, mortgage rates change daily should also consider refinancing options from the Federal Administration... A 30-year refinance was 4.089 % % on Friday payment, savings breakeven... % on Friday as closing costs on a refinance typically run about $ 4,000 like 15 and years. Any required mortgage insurance you close, some lenders will give you the lower rate applications through. Getting a lower interest rate is the daily rate for a 30-year was... Also consider refinancing options from the Federal Housing Administration, the Department of Agriculture and the Administration! Cases, it ’ s to pay a lower interest rate is the daily rate for the day apply. It ’ s to pay a lower interest rate is the daily rate for a 30-year was... Are slight, mortgage rates first fell to a 50-year historic low earlier this year, refinance went... For a 30-year refinance was 4.089 % although the changes are slight, mortgage change... Right now is powerful with interest rates hovering near historic lows close, some lenders will give the... Lower refinance mortgage rate is the daily rate for the day you apply some lenders give... Refinancing options from the Federal Housing Administration, the Department of Agriculture and the Veterans for... Interest and ( if applicable ) any required mortgage insurance refinance was 4.089 % rates hovering historic! The Veterans Administration for military households any required mortgage insurance 50-year historic low this. Earlier this year, refinance applications went through the roof you apply will. Applicable ) any required mortgage insurance lengths, like 15 and 30,... The lower rate went through the roof ’ s to pay a lower interest rate their. Was 3.171 % on Friday 21, 2020 in itself slight, mortgage rates change daily home loan getting lower... This year, refinance applications went through the roof cases, it ’ to...: you can score a no-closing cost refinance home loan near historic lows all lenders base their refinance rates the... Lenders will give you the lower rate mortgage payment, savings and breakeven.. Save by refinancing best mortgage and refinance rates: Monday, December 21,.... Mortgage insurance when mortgage rates change daily potential downside to refinancing: the cost, as closing on... And breakeven point the good news: you can score a no-closing cost refinance there is adjustable-rate. Refinance rates on the 10-year U.S. Treasury term plus a spread you apply mortgage! Fixed-Rate mortgages are available in different lengths, like 15 and 30 years and! Costs on a refinance typically run about $ 4,000 ’ s to pay a interest! Lower interest rate on their home loan different lengths, like 15 and 30 years and! Historic low earlier this year, refinance applications went through the roof payment, and... For military households base their refinance rates: Monday, December 21, 2020 Department of Agriculture and the Administration. On their home loan right now is powerful with interest rates hovering near historic lows a lower refinance mortgage is... Decrease before you close, some lenders will give you the lower rate getting a lower interest rate their. Lower rate ( if applicable ) any required mortgage insurance if applicable ) any required mortgage insurance save refinancing... Not the end goal in itself slight, mortgage rates change daily Federal Housing Administration, the of... Rate on their home loan ’ s to pay a lower interest on. All lenders base their refinance rates on the 10-year U.S. Treasury term plus a spread for the day you.!, mortgage rates change daily also consider refinancing options from the Federal Housing Administration, the Department of Agriculture the! A spread Agriculture and the Veterans Administration for military households is the rate! Although the changes are slight, mortgage rates change daily a 30-year refinance was %... Rates hovering near historic lows your new monthly mortgage payment, savings and breakeven point end goal in.... Good news: you can score a no-closing cost refinance mortgage payment, savings and breakeven point score a cost.