Today, a number of notable mortgage refinance rates moved higher.
Both the 15-year fixed and 30-year fixed saw their mean rates trend upward. The average rate on 10-year fixed refinance mortgages also saw growth.
Mortgage refinance rates are constantly changing. However, they’re currently very low. For those looking to refinance their existing mortgage, this may be the right move to lock in a great deal on an interest rate.
Refinance rates currently are:
- The average 30-year fixed-rate refinance is 3.51%
- 15-year mortgage refinance rate: 2.81%
- Currently, the average 10-year fixed-rate refinance is 2.83%
Where Are Refinance Rates Headed in 2021?
Refinance and mortgage rates could in be for some ups and downs in the coming months. However, overall refinance rates are expected to steadily rise throughout 2022. Several factors contributed to this anticipated rise in interest rates, including higher inflation and a strong economy. However, there is uncertainty surrounding the COVID-19 Omicron strain and the potential impact of other Coronavirus variants on the economy. 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.
How the Refinance Rate Forecast Impacts You
With interest rates hovering around 3% for a while now, refinancing can be a compelling option thanks to these historically low rates. But, you need to consider other factors besides your interest rate. A refinance should work with your other financial goals. Refinancing may not make sense if you plan to move and sell the home with the next five years. If you’re not keeping the new refinance loan long enough, the ongoing savings may not offset the upfront fees you’ll pay.
What to Know About Refinance Fees
Closing costs are the fees you pay when you refinance a mortgage. A loan’s closing costs can range from 3% to 6% of the loan amount, making them a costly expense. 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 Fixed Refi Rates
Right now, the average 30-year fixed refinance has an interest rate of 3.51%, an increase of 7 basis points from a week ago.
You can use our mortgage calculator to get an idea of what your monthly payments will be and find out how much less interest you’ll pay by making additional payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.
15-Year Refi Rates
Right now, average 15-year fixed refinance rates are 2.81%, an increase of 15 basis points over the previous week.
Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.
10-Year Fixed Refinance Rates
The average 10-year, fixed refinance rate is 2.83%, an increase of 14 basis points from the rate observed over the previous week.
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 our refinance rates are calculated
Our daily refi rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refinance rate averages are based on a consumer profile of the following:
- Loan to value (LTV) or 80% or less
- Owner occupied home
- FICO score of 740 or higher
- Single-family detached home
The information provided to Bankrate from lenders nationwide is displayed in the table below:
|30-year mortgage refinance rate||3.51%||3.44%||+0.07|
|15-year fixed refinance rate||2.81%||2.66%||+0.15|
|10-year fixed refinance rate||2.83%||2.69%||+0.14|
Rates as of January 14, 2022.
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. Assessing whether refinancing fits into your financial and life plans, is always a good idea
Generally speaking, refinancing makes sense if you can lower your interest rate by 1% or more. 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.
At the end of the day, it’s a good time to refinance if refinancing aligns with your financial goals and helps you achieve them.
How to Get the Lowest Refinance Rate
Your finances have a big impact on the refinance rate you get. Having a lower loan-to-value ratio for your home and a healthier credit score ordinarily translates into a better interest rate.
Your personal finances aren’t the only consideration that affects your mortgage refinance rate. A better loan-to-value ratio (LTV) may help you get a better refinance rate. So it’s better to have more equity. Having at least 20% equity in your property is ideal.
Even the mortgage itself can determine your refinance rate. A shorter-term refinance loan usually has better rates than refinance loans with longer repayment terms, all else equal. Also, if you want to pull cash out of your home with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.
How Much Does Refinancing Cost?
There are a number of factors that influence the cost of refinancing, including:
- Where the property is located
- Type of mortgage
- The lender
- Size of loan
- Your credit score
- The equity you have in the home
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.