Today's mortgage refinance rates: 20-year rates return to record low | August 25, 2021

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Check out the mortgage refinancing rates for August 25, 2021, which are mostly unchanged from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates remained largely unchanged compared to yesterday’s, except for 20-year rates, which dropped.

30-year fixed-rate refinance: 2.875%, unchanged
20-year fixed-rate refinance: 2.500%, down from 2.625%, -0.125
15-year fixed-rate refinance: 2.125%, unchanged
10-year fixed-rate refinance: 2.125%, unchanged

Rates last updated on August 25, 2021. These rates are based on the assumptions shown here. Actual rates may vary.

Today’s 20-year mortgage refinance rates dropped to 2.500%, representing an exceptional bargain for homeowners looking to refinance and reap interest savings while keeping their monthly payment manageable. Though 20-year rates have been this low numerous times throughout 2021, they fluctuate so much from day to day that it’s very likely they could go up again before the end of the week. Homeowners who refinance now can lock in this lower rate and save even more on interest. Meanwhile, rates for 15-year and 10-year terms have held at 2.125% for 27 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 2.875%. This is the same as yesterday.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 2.500%. This is down 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 25, 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 largely unchanged compared to this time last week.

30-year fixed refinance rates: 2.875%, the same as last week
20-year fixed refinance rates: 2.500%, down from 2.625% 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

If you think refinancing is the right move, consider using Credible. You can use Credible's free online tool to easily compare multiple mortgage refinance lenders and see prequalified rates in as little as three minutes.

Rates last updated on August 25, 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 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.

APR vs. interest rate: What’s the difference?

When you’re shopping for a mortgage or refinance loan, you’ll see the terms APR and interest rate arise often. They’re similar but not interchangeable.

The interest rate is the cost the lender will charge annually to loan you money. Annual percentage rate (APR) encompasses the interest rate and other fees and charges attached to your loan.

Generally, APR gives you a better picture of the true cost of a loan since it takes into account all the costs associated with borrowing money. For a mortgage or refinance, those costs can include discount points, fees, and other charges.

When you apply for a loan, you’ll usually be able to find the interest rate on the first page of your loan estimate, and the APR later in the document listed under "Comparisons."

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.