Current Mortgage Refinance Rates, May 12, 2022 | Inflation Keeps Rates Elevated

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Today, multiple benchmark mortgage refinance rates grew.

Both the 15-year fixed and 30-year fixed saw their mean rates climb. And average rates for 10-year fixed refinances slumped.

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 been raised twice by the Federal Reserve this year, and more are to come.

In the current financial climate, homeowners should carefully consider whether it’s the right time to refinance. Due to higher interest rates, refinancing costs are increasing. That said, interest rates aren’t the only thing to concentrate on. The fees you pay to close a home loan matter, and can add up to thousands of dollars.

Let’s take a look at where refi rates are and what it means for you.

Take a look at today’s refinance rates:

Check out mortgage refinancing rates for your area here.

Refinance Rate Forecast: What Drives Changes in Mortgage Rates?

In April, annual inflation was 8.3% based on the Consumer Price Index (CPI). The price still stands on par with the 40-year inflation highs of recent months. And that means refi rates are likely to see more increases as long as inflation remains high.

As inflation lingers longer than anticipated, the Federal Reserve has begun raising interest rates. On top of that, there is more trouble brewing for the global supply chain. Russia’s invasion of Ukraine and China’s latest round of COVID lockdowns threaten to add to the rising inflation we are currently experiencing. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” 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 Refinancing Now a Good Idea?

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. However, as rates have risen, the number of homeowners with rates well above current market rates has diminished dramatically.

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..

History of the 30-Year Fixed Mortgage Rate




Although today’s refinance rates are near or above 5%, that is a typical interest rate historically. If your current rate is higher than today’s rates, then a refinance could be a good option.

This chart, which uses data from a survey by Freddie Mac that differs slightly but generally tracks with the Bankrate survey used by NextAdvisor. This graph offers a glimpse at how today’s rates compare with the past two decades. They’re up from the historically low years of 2020 and 2021, but they still aren’t absurdly high if you zoom out further.

Pro Tip: What to Know About Refinance Fees

For a new mortgage, you will have to pay upfront fees totaling 3% to 6% of the loan amount. When refinancing, you need to consider this expense. If you refinance too frequently or sell your home shortly after refinancing, your monthly savings may not have exceeded the upfront fees.

30-Year Fixed Refi Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.53%, an increase of 8 basis points from a week ago.

You can use our mortgage calculator to determine how much your mortgage will cost you every month 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.

Average 15-Year Refinance Rates

Right now, average 15-year fixed refinance rates are 4.83%, an increase of 8 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.

10-Year Refinance Rates

The average 10-year, fixed refinance rate is 4.79%, a decrease of 2 basis points from what we saw last week.

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

How our refi rates are calculated

Our refinance rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These daily refi interest rate averages are based on a borrower profile of the following:

  • At least 20%+ equity
  • Principal residence
  • Credit score of 740+
  • Single-family home

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

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate5.53%5.45%+0.08
15-year fixed refinance rate4.83%4.75%+0.08
10-year fixed refinance rate4.79%4.81%-0.02

Rates as of May 12, 2022.

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

Pro Tip

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

Refinance Rate Frequently Asked Questions (FAQ):

Is It Still a Good Time to Refinance?

The decision to refinance isn’t driven only by market factors such as interest rates or home values, your personal situation also matters. The simple question to ask yourself is: “Will refinancing help me achieve my financial goals?”

Refinancing can be a good idea if you can cut your interest rate enough to offset the upfront closing costs. 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 HELOC. A HELOC may not always get you the best rate, but it can be a smart way to consolidate debt or to affordably finance a home renovation.

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

How to Get the Lowest Refinance Rate

Refinance rates vary depending on your personal financial situation. If you have a higher credit score and better loan-to-value (LTV) ratios will generally get a larger discount on the mortgage refinance rates they are offered.

Your situation isn’t the only factor that impacts the interest rate you qualify for. Your home’s equity also factors into the decision. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself has an affect on your mortgage refinance rate. A loan with a shorter repayment term typically has lower refinance rates than a loan with longer terms. The type of refinance loan you need makes a difference in the refinance rate. A cash-out refinance loan usually comes with a higher mortgage refinance rate than other types of refinance loans.

How Much Does It Cost to Refinance?

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 property’s equity

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 Interest Rates by Loan Type

Mortgage Refi Rates

Home Loan Rates

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