Current Mortgage Refinance Rates, November 21, 2022 | Rates Retreat

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In general, refinance rates for mortgages were varied with one notable rate sliding lower.

The average rate nationwide for a 15-year fixed-rate refinance climbed, while 30-year fixed refinance rates declined. The average rate on 10-year fixed refinance mortgages made gains.

Refinance rates have skyrocketed through the first months of 2022. Short-term interest rates have already increased multiple times, and the Fed plans to do so again in the coming months.

A borrower should carefully review the numbers before taking out a new mortgage in the current interest rate environment. Due to higher interest rates, refinancing costs are increasing. However, the interest rate you are eligible for shouldn’t be the only factor behind your decision. The interest you’re paying over time is one thing, but the upfront closing costs can be 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Here’s where refinance rates are today .

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

Compare refinance rates for a wide range of different loans here.

Refinance Rate Forecast: What Drives Changes in Mortgage Rates?

September’s Consumer Price Index (CPI) reported annual inflation was lower than August, but still inflated, at 8.2%. And that’s bad news for refinance rates.

In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has increased interest rates in May, June, and July. 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.

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

In this hot housing market, the ability to turn the equity in your home into cash with a home equity line of credit (HELOC) has become increasingly popular. For those wanting to consolidate high-interest debt or make much needed home repairs or upgrades, a HELOC could make sense. If you go that route, you’ll want to understand the repayment schedule, interest rate and fees because they could differ from a traditional mortgage.

Pro Tip: Pay Attention to Refinance Fees

Closing costs are the fees you pay when you refinance a mortgage. Closing costs range from 3% to 6% of your loan amount, so they can add up quickly. 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 Fixed Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.85%, a decrease of 2 basis points from a week ago.

You can use our mortgage calculator to price out your monthly mortgage payments 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 Fixed Refinance Rates

Currently, the average rate for a 15-year fixed refinance loan is 6.18%, an increase of 1 basis point 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 save you thousands of dollars interest over the life of the loan.

10-Year Refi Rates

The average 10-year, fixed refinance rate is 6.27%, an increase of 7 basis points from the rate observed over the previous 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 we calculate our refi rates

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

  • 80% LTV or lower
  • Primary residence
  • Credit score of 740+
  • Single-family home

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

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate6.85%6.87%-0.02
15-year fixed refinance rate6.18%6.17%+0.01
10-year fixed refinance rate6.27%6.20%+0.07

Rates as of November 21, 2022.

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

Pro Tip

Use NextAdvisor’s mortgage refinance calculator to run the numbers on what a refi could do for your financial situation.

Refinance Rate Frequently Asked Questions (FAQ):

Is It Still a Good Time to Refinance?

While refinance rates are higher than recent record lows, they are still exceptionally low. If you want to reduce your mortgage payment by refinancing to a lower rate, and you haven’t refinanced in the past few years, then now is still a good time to look into refinancing.

You should also consider other factors when deciding whether it is the right time for you to refinance. Refinancing into a new home loan can add years onto your mortgage. If you’re close to paying off your existing mortgage, then you’ll want to factor in the trade offs. A 30-year refinance loan may not make sense for you depending on how long you’ve had your current mortgage. If you opt for a shorter-term refinance, the trade off is that your monthly payment will be higher than with a longer loan.

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

How to Ensure You Get the Best Refinance Rate

Your financial situation has a big impact on the refinance rate you can qualify for. Having more equity in your home and a higher credit score typically translates into a lower refinance rate.

Your personal finances aren’t the only consideration that affects the refinance interest rate you qualify for. Your home’s value compared to your loan balance also factors into the decision. Having at least 20% equity in your property is ideal.

The type of mortgage loan will impact what your refinance interest rate will be. A shorter-term refinance loan generally has lower interest rates than a loan with longer terms. Your mortgage refinance rate is also affected by the type of refinance you plan on taking out. A cash-out refinance loan typically has an interest rate than other types of mortgage refinancing.

How Much Does Refinancing Cost?

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

  • Location
  • Type of mortgage
  • The lender
  • Loan balance
  • Your credit 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.

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