Current Refinance Rates, August 3, 2022 | Rates Slide

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Today, numerous notable refinance rates shrank.

Both the 15-year fixed and 30-year fixed saw their average rates decrease. The average rate on 10-year fixed refinance mortgages also went down.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. Short-term interest rates have already increased multiple times, and the Fed plans to do so again in the coming months.

In the current financial climate, homeowners should carefully consider whether it’s the right time to refinance. Simply put, the cost of refinancing is increasing because rates are higher. Keep in mind, when deciding to refinance there are other factors outside of just the rate to consider. Closing costs on a refinance loan can add up to thousands of dollars, greatly increasing your upfront costs.

Here’s where refinance rates are today .

Here are the average rates for 30-year, 15-year, and 10-year refinance loans are:

Take a look at local refinance rates.

Refinance Rate Forecast: What Is Driving Mortgage Rate Change?

June’s Consumer Price Index (CPI) reported annual inflation increased again in July to 9.1%. . It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s not good for refinance rates.

As inflation lingers longer than anticipated, the Federal Reserve has begun raising interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. In the months to come is when we could really start to see these events impact us. “The pain of the April and March lockdown is not yet fully being felt in the manufacturing sector outside of China,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

Because of all of this, we could be stuck with high inflation for much longer than we want, which makes it more likely that the Fed will have to raise interest rates aggressively.

Is It a Good Time to Refinance Right Now?

As a rule of thumb, refinancing can save you money if you can secure an interest rate that’s around 1% lower than your existing rate. And the number of homeowners with rates well above the current market rates has dwindled dramatically as rates have risen.

There are alternatives to refinancing. With values rising in today’s housing market, homeowners may want to turn that value into cash. With rates where they are, a home equity line of credit (HELOC) may make sense for you because you won’t have to take out a new mortgage. A HELOC can be a reasonable option for financing home repairs or improvements, just be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Pro Tip: What to Know About Refinance Fees

As part of the refinancing process, you may have to pay upfront fees called closing costs. A loan’s closing costs can range from 3% to 6% of the loan amount, making them a costly expense. You may be lower your monthly payment, but pay attention to how long it will take your monthly savings to outweigh what you paid to refinance.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.45%, a decrease of 22 basis points over the previous week.

You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

Average 15-Year Refinance Rates

Right now, average 15-year fixed refinance rates are 4.70%, a decrease of 17 basis points over the previous week.

Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 4.67%, a decrease of 15 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost a significant amount more per month than you would with a 15-year term, but you’ll pay less interest in the long term.

How we calculate our refinance rates

Our daily refi rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refinance interest rate averages are based on a customer profile that meets these qualifications:

  • At least 20%+ equity
  • Primary residence
  • Credit score 740 or higher
  • Existing single-family detached home (not new construction)

The information supplied to Bankrate from lenders nationwide is provided in the table below:

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate5.45%5.67%-0.22
15-year fixed refinance rate4.70%4.87%-0.17
10-year fixed refinance rate4.67%4.82%-0.15

Rates as of August 3, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Pro Tip

Use NextAdvisor’s mortgage refinance calculator to get a closer look at what a refinance could look like for you.

Refinance Rate Frequently Asked Questions (FAQ):

Does Refinancing Still Make Sense?

Refinance rates are still quite low even though they are up from the recent record lows. The current time could still be the right time to refinance if you want to lower your mortgage payment by refinancing to a lower rate.

However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. In addition to the number of years left on your existing mortgage, the new repayment term will have an impact on your decision. Those who have been paying on their current mortgage for 10 years may want to refinance to a 20 year loan so that they aren’t adding more years to the loan’s back end. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

Make sure the overall deal makes sense before taking advantage of an today’s low refinance rates.

How to Qualify for the Lowest Refinance Rate

Mortgage refinance rates vary depending on your personal financial situation. Those with higher credit scores and better loan-to-value (LTV) ratios will typically be able to obtain better refinance mortgage rate.

But your personal financial situation isn’t the only factor that impacts your refinance rate. Your home’s equity also factors into the decision. Having at least 20% equity in your property is ideal.

Even the mortgage itself can determine what your refinance rate will be. A loan with a shorter repayment term typically has lower rates than loans with longer repayment terms, all else equal. Your refinance rate is also affected by the type of refinance you plan on taking out. Cash-out refinance loans typically have higher mortgage refinance rates than other loans.

Average Cost of Refinancing

The cost of refinancing can vary widely depending on these factors:

  • Where you live
  • Type of refinance loan
  • The lender
  • Loan amount
  • FICO score
  • The equity you have in the home

In general, refinance closing costs are 3% to 6% of the loan balance. The type of the loan you are refinancing into can impact its cost in a few different ways. Certain government-backed refinance loans, like the FHA Streamline or VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but could come with hefty upfront fees to cover the mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to possibly get rid of the mortgage insurance requirement.

Mortgage Rates by Loan Type

Mortgage Refi Rates

Home Loan Interest Rates