Refi Rates Today, January 13, 2022 | Rates Ratchet Higher

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Today, several notable mortgage refinance rates climbed.

Both the 15-year fixed and 30-year fixed saw their mean rates increase. At the same time, average rates for 10-year fixed refinances also saw an increase.

Refinancing interest rates are constantly shifting. However, they’re exceptionally low right now. For those looking to refinance their existing mortgage, this can be the perfect time to secure a record-low rate.

The average mortgage refinance rates are as follows:

Take a look at local refinance rates.

2021 Refinance Rate Forecast

There is a strong potential for significant volatility with refinance and mortgage rates. However, overall refinance rates are expected to steadily rise throughout 2022. Two factors are responsible for this predicted rate rise: a high inflation rate that has persisted longer than expected and a strong economy. The uncertainty surrounding the COVID-19 Omicron variant and the possibility of other Coronavirus variants affecting the economy could offset rising rates. Despite rising rates being predicted by most experts for the future, you won’t be able to expect consistent gains from week to week or from day to day.

What These Refinance Rate Changes Mean for Homeowners

As low refinance rates linger, it can make sense to take out a new home loan because today’s rates are still some of the lowest in mortgage rates history. However, your interest rate isn’t the only factor to consider. A refinance should work with your other financial goals. How soon you plan on moving or refinancing again, is an important consideration. Refinancing will only result in savings on your monthly payment if you keep it until the breakeven point, when you’ve saved as much as you spent to take out the loan.

What to Know About Refinance Fees

When you choose to refinance your existing home loan, you’ll typically pay upfront fees known as closing costs. Fees can average 3% to 6% of your loan balance so it’s important to pay attention to them. Your monthly payment may drop with a refinance, but make sure you keep the loan long enough for the ongoing savings to exceed the out-of-pocket costs.

30-Year Refi Rates

Right now, the average 30-year fixed refinance has an interest rate of 3.50%, an increase of 15 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 much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

Average 15-Year Fixed Refinance Rates

For 15-year fixed refinances we’re seeing an average rate of 2.80%, an increase of 22 basis points from what we saw last week.

Monthly payments on a 15-year refinance loan can be a considerable amount more than what you’d get with a 30-year mortgage. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

Average 10-Year Refinance Rates

The average 10-year, fixed refinance rate is 2.82%, an increase of 23 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How we determine refinance rates

The table below shows where refinance rates were headed in the last week.

These refi rates are collected by Bankrate. The information is based on customers that fit a certain profile, such as the home is an owner occupied single family residence. So you’ll be eligiblefor different rates if your financial situation don’t align with the survey criteria.

Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate3.50%3.35%+0.15
15-year fixed refinance rate2.80%2.58%+0.22
10-year fixed refinance rate2.82%2.59%+0.23

Rates as of January 13, 2022.

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

Pro Tip

Add your loan balance and other loan information into NextAdvisor’s mortgage refinance calculator to get a sneak peak at how refinancing could help you.

Refinance Rate Frequently Asked Questions (FAQ):

Should I Refinance Right Now?

The decision to refinance isn’t driven only by market factors such as interest rates or home values, your personal situation also matters. Consider whether or not refinancing fits into your life plans and financial desires

If you can reduce your interest rate enough to offset the upfront closing costs, refinancing may be a good idea. However, there are times when securing a lower interest rate isn’t the main driver behind the decision to refinance. As home values rise, many homeowners are choosing to turn their equity into cash via a cash-out refinance. Cash-out refinance loans typically have higher rates compare to other options, but it can be a good way to pay for home upgrades or to pay off other higher interest debt.

If it makes sense for your situation, now is still a good time to refinance your mortgage.

How to Get the Lowest Refinance Rate

Mortgage refinance rates are influenced by your personal finances. Having a healthier credit score and lower loan-to-value (LTV) ratios will usually be able to secure lower refinance mortgage rate.

Your situation isn’t the only factor that impacts the refinance rates you’re offered. The amount of equity you have in the home also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will impact what your interest rate will be. A shorter-term refinance loan generally has better rates than a loan with longer terms. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.

Average Cost of Refinancing

There are a handful of things to consider that influence the cost of refinancing, including:

  • Where you live
  • Type of mortgage
  • What lender you choose
  • Loan balance
  • Credit score
  • Home’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.

Current Mortgage Rates by Loan Type

Mortgage Refinance Rates

Home Purchase Interest Rates