Today’s Mortgage Refinance Rates, November 24, 2022 | Rates Ease

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Today, a few notable refinance rates dropped off.

The national rate average for a 15-year fixed-rate refinance advanced, while 30-year fixed refinance rates saw a downtick. The average rate on 10-year fixed refinance mortgages decreased.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

In the current financial climate, homeowners should carefully consider whether it’s the right time to refinance. Right now, homeowners may struggle to find an interest rate low enough for refinancing to make sense. With that in mind, your refinance rate isn’t the only thing that matters. 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:

Take a look at local refinance rates.

Refi Rate Forecast: What Determines Changes in Mortgage Rates?

The Consumer Price Index (CPI) for September shows inflation is still high at 8.2%And that means refi rates are likely to see more increases as long as inflation remains high.

In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has increased interest rates in May, June, and July. A prolonged period of high inflation would make the Federal Reserve more likely to increase rates even more dramatically.

Does Refinancing Still Make Sense?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current 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. In some situations, a HELOC can make sense, especially when consolidating debt or remodeling your home.

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. If you refinance, this is a significant expense you should take into account. Refinancing often or selling a house soon after refinancing can result in your monthly savings not exceeding the fees you paid.

Average 30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.80%, a decrease of 3 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 Fixed Refi Rates

Right now, average 15-year fixed refinance rates are 6.19%, an increase of 3 basis points from a week ago.

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 help you build up equity in your home much more quickly.

Average 10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 6.25%, a decrease of 2 basis points from the rate observed over the previous week.

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

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 borrower profile that meets these qualifications:

  • Loan to value (LTV) or 80% or less
  • Principal residence
  • Credit score 740 or higher
  • Single-family home

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

Average refinance interest rates
ProductRateLast weekChange
30-year mortgage refinance rate6.80%6.83%-0.03
15-year fixed refinance rate6.19%6.16%+0.03
10-year fixed refinance rate6.25%6.27%-0.02

Rates as of November 24, 2022.

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

Pro Tip

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

Refinance Rate Frequently Asked Questions (FAQ):

Should I Refinance Right Now?

It’s not just about interest rates or home values when it comes to refinancing, your personal circumstances also play a significant role. Consider whether or not refinancing fits into your life plans and financial desires

One rule of thumb is that refinancing makes sense if you can reduce your interest rate by 1% or more. There are times, however, when the main reason for refinancing isn’t to secure a lower interest rate. 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 Refi Rate

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

But your personal financial situation isn’t the only consideration that affects your refinance rate. A better loan-to-value ratio (LTV) may help you qualify for a better refinance rate. So the more equity you’ve built up, the better. Having at least 20% equity in your property is ideal.

The type of mortgage loan has an affect on your refinance interest rate. A shorter-term refinance loan typically has better interest rates than mortgage refinance loans with longer repayment terms, all else equal. Also, if you want to turn your equity into cash with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.

How Much Does It Cost to Refinance?

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

  • Where the property is located
  • Type of mortgage
  • The lender
  • Loan balance
  • FICO score
  • Home’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 Rates by Loan Type

Mortgage Refi Rates

Home Loan Purchase Rates

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