10-year, 15-year mortgage refinance rates mark 22nd straight day at near-record lows | August 18, 2021

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Check out the mortgage refinancing rates for August 18, 2021, which are a mixed bag from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates rose slightly for longer repayment terms and held at near-record lows for shorter terms.

30-year fixed refinance rates: 2.875%, up from 2.750%, +0.125
20-year fixed refinance rates: 2.625%, up from 2.500%, +0.125
15-year fixed refinance rates: 2.125%, unchanged
10-year fixed refinance rates: 2.125%, unchanged

Rates last updated on August 18, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Average rates for 10-year and 15-year refinances have held below 2.250% since July 19. The record low for the year is 2.000%. Refinancing into one of these shorter term mortgages could save homeowners thousands of dollars in interest costs over the life of their new mortgages — and allow them to become mortgage-free faster.

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 2.875%. This is up from yesterday.

Current 20-year fixed refinance rates

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

Current 15-year fixed refinance rates

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

Current 10-year fixed refinance rates

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

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 18, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

How mortgage refinance rates have changed

Today, mortgage refinance rates are largely the same as this time last week.

30-year fixed refinance rates: 2.875%, the same as last week
20-year fixed refinance rates: 2.625%, down from 2.750% last week, -0.125
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? 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 18, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

What is the average cost of a refinance?

Refinancing a mortgage can yield significant interest savings over the life of a loan. But all those savings don’t come for free. Generally, you’ll encounter costs — on average $5,000, according to Freddie Mac — when refinancing your mortgage.

Your exact refinancing costs will depend on multiple factors, including the size of your loan and where you live. Typical refinancing costs include:

The cost of recording your new mortgage
Appraisal fees
Attorney fees
Lender fees such as origination or underwriting
Title service fees
Credit report fees
Mortgage points
Prepaid interest charges

Keep in mind there’s no such thing as a truly no-cost refinance. Lenders who market "no-cost loans" typically charge a higher interest rate and roll the costs into the loan — which means you’ll pay more interest over the life of the loan.

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 also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy and the whole process can be completed entirely online.

What are some reasons to refinance?

Each borrower’s situation is different, but here are some good reasons to refinance.

To get a lower interest rate. A lower interest rate could mean you pay less in interest over the life of your mortgage — provided you also refinance into a shorter term.
To shorten the repayment period. If your ultimate goal is to be mortgage-free one day, shortening the repayment period could help that happen sooner.
To reduce interest costs over the life of the loan. Interest can be a significant chunk of the total cost of your mortgage. For example, if you borrow $250,000 at 3.5% for 30 years, your total interest costs would be $154,140. Refinancing at 2.75% for the same repayment period could save you $36,723 in interest costs.
To withdraw equity in cash. Known as a "cash-out refinance," this type of refinance allows you to take out a new mortgage for more than you owe on your old one and take the difference in cash. Your home’s equity secures the extra cash which you can use for home improvements, repairs or other needs.
To get a fixed mortgage rate. If you took out an adjustable-rate mortgage, the very low initial interest rate can reset to a much higher one at the end of the initial period. And after that, your rate can change with market conditions. Many homeowners with ARMs look to refinance into fixed-rate mortgages that can ensure a reliable payment at a predictable rate.

Conversely, some reasons for refinancing are less than great.

To use equity to pay off unsecured debts like a car loan or credit cards. If your interest rate on those types of credit is high, and you can get a really low mortgage refinance rate, you may think "Why not?" But unsecured debts like personal loans or credit cards, and even a secured auto loan, don’t put your home at risk. Paying off those debts by refinancing your home mortgage turns those unsecured debts into one that’s secured by your home.
To use equity for investing. Using equity to invest puts your home at risk for something that’s already a risky proposition. Investing comes with no guarantee of returns. Meanwhile, paying off your mortgage and preserving your equity has a reliably positive impact on your credit and finances.
To use equity for a big purchase. If you have equity built up in your home, it may be tempting to tap it to get cash for luxuries like a big trip, an RV or even cosmetic surgery. But think carefully before you do a cash-out refinance for these reasons. A refinanced mortgage is a long-term debt.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com 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.