15-Year Mortgage Refinance Rates for January 2022

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If you’re on a mission to pay off your mortgage as quickly as possible, a 15-year refinance could be a perfect fit.

Mortgage rates are rising, but are still low compared to historical standards. Refinancing into the shorter-term 15-year mortgage could be an ideal fit. Taking out a 15-year loan could allow you to gain the benefits of refinancing without adding years back onto your repayment term.

But there are upfront closing costs to pay if you refinance, and 15-year loans have much larger monthly payments than a 30-year refinance. There are a lot of factors that go into deciding if refinancing, and a 15-year refinance specifically, is right for you.

What the Experts Are Saying About 15-Year Mortgage Refinance Rates In 2022

There are a wide range of factors that influence where mortgage rates are headed. Growing concerns over rising inflation and the Omicron variant of COVID-19 have been pushing and pulling rates up and down. Rising inflation has been cited by experts and the Fed as a major factor behind rising rates. The December 2021 consumer price index recently released by the Bureau of Labor and Statistics (BLS) shows 7% inflation in the last 12 months, which is the largest inflation surge in 40 years. The overall economic outlook and especially Federal Reserve Chairman Jerome Powell’s recent policy announcement that will raise rates next year also impact future rate trends. 

Throughout the rest of this year, many experts are forecasting rising rates. “I think in general, [rates are] going up,” says Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company based in Stamford, Connecticut. “But it might be [a] slower increase than you think.”

Even though the economy is well on the road to recovery and the job market is strong, there is some uncertainty in those areas. So although refinance rates are most likely going to increase, they aren’t expected to skyrocket overnight.

What the 15-Year Mortgage Refinance Rate Forecast Means For You In 2022

Although rates will continue to bounce around from week to week, if you’ve been considering a 15-year refinance loan the longer you wait, the more expensive it’s likely to become. 

Yes, rates are coming back up, but you could still get an advantageous rate, Olsen says. Rates have risen and are expected to continue rising, so you may not be able to secure a record low refinance rate. However, Olsen says if you took out a home loan just two or three years ago, you could still potentially shave 1% to 2% off your interest rate.

But just because refinance rates are near historic lows, that doesn’t necessarily mean a refinance is a good move for you. There are other factors to consider, such as your future plans, when you last refinanced, and your current interest rate

What Are Today’s 15-Year Refinance Rates?

On Tuesday, January 25, 2022 according to Bankrate’s latest survey of the nation’s largest mortgage lenders, the average 15-year refinance rate is 3.000% with an APR of 3.090%.

Current 15-Year Refinance Rates

ProductInterest RateAPR
30-Year Fixed Rate3.670%3.710%
30-Year FHA Rate3.160%4.020%
30-Year VA Rate3.250%3.430%
30-Year Fixed Jumbo Rate3.660%3.720%
20-Year Fixed Rate3.580%3.620%
15-Year Fixed Rate3.000%3.090%
15-Year Fixed Jumbo Rate3.030%3.070%
10-Year Fixed Rate2.980%3.080%
5/1 ARM Rate2.740%3.990%
5/1 ARM Jumbo Rate2.630%3.670%
7/1 ARM Rate2.960%4.000%
7/1 ARM Jumbo Rate2.800%3.900%
10/1 ARM Rate3.230%4.080%
ProductInterest RateAPR
30-Year Fixed Rate3.680%3.730%
30-Year FHA Rate3.160%4.000%
30-Year VA Rate3.180%3.310%
30-Year Fixed Jumbo Rate3.670%3.740%
20-Year Fixed Rate3.540%3.590%
15-Year Fixed Rate3.020%3.140%
15-Year Fixed Jumbo Rate3.060%3.110%
10-Year Fixed Rate2.910%3.020%
5/1 ARM Rate2.790%4.070%
5/1 ARM Jumbo Rate2.740%4.040%
7/1 ARM Rate2.950%3.980%
7/1 ARM Jumbo Rate2.960%3.990%
10/1 ARM Rate3.180%4.040%

Rates as of Tuesday, January 25, 2022

ABOUT THESE RATES

These rate averages are based on weekday mortgage rate information provided by national lenders to Bankrate.com, which like NextAdvisor is owned by Red Ventures.

These averages provide borrowers a broad view of average rates that can inform borrowers when comparing lender offers. We feature both the interest rate and the annual percentage rate (APR), which includes additional lender fees, so you can get a better idea of the overall cost of the loan. The actual interest rate you can qualify for may be different from the average rates quoted in our rate table. But these rates are useful for giving you a benchmark to use when comparing loan offers by giving you a sense of how the type of mortgage and the length of the repayment term impacts your interest rate and APR.

Pros and Cons of a 15-Year Mortgage Refinance

Pros

  • Lower interest rates

  • Shorter repayment term

  • Build equity more quickly

  • Pay much less interest in the long term

Cons

  • Higher monthly payments

  • Less money to invest each month

  • Less money available to save each month

When Is the Best Time to Refinance Into a 15-Year Mortgage?

The right time to refinance with a 15-year loan is when you can afford the larger monthly payments, and it fits into your financial strategy. It’s a significant commitment to go with a 15-year mortgage over a 30-year mortgage, but you will pay off your mortgage sooner and potentially save tens of thousands of dollars in interest.

If you currently have a $250,000 mortgage balance, here is what you would pay for a 15- and 30-year refinance loan at today’s rates, according to the NextAdvisor mortgage calculator.

Loan TermLoan BalanceInterest RateMonthly PaymentTotal Interest
30 Years$250,0003.13%$1,071$135,929
15 Years$250,0002.44%$1,659$48,820

Even with the lower interest rate you could qualify for with a 15-year loan, the monthly payment is an additional $588+ more a month. But, over the life of the loan, you’d paid nearly $90,000 less in interest. That’s a big monthly commitment with the potential for significant savings. So before you go all-in on a 15-year loan, be sure you can afford it and that it won’t take away from other priorities, such as saving for retirement or building an emergency fund.

Alternatives to a 15-Year Refinance

A 15-year refinance is just one financial tool that can help you achieve your goals, but it may not be the only answer for what you’re trying to do. 

This type of refinancing can lock you into a hefty monthly payment. If you’re not sure if you’ll be able to afford a 15-year loan’s payment for the long haul, you could simply pay on a 30-year loan as if it was a 15-year loan. Just make sure that your lender knows you’re making extra payments. 

In this scenario, you won’t be able to secure the lower interest rate 15-year loans often have, but you will save on interest by paying off your loan earlier. This is less risky because if you experience a loss or reduction in your income, you have the flexibility to make smaller payments without going into default.

You could also look at a loan between 15 and 30 years. Some lenders offer 20-year mortgage refinance loans, which could allow you to shave years off your existing loan term while committing to a somewhat smaller monthly payment.  

Here is how a $250,000 loan’s monthly payment and overall cost could change with the different loan terms and rates.

Loan TermInterest RateMonthly PaymentTotal Interest
30 Years3.13%$1,071$135,929
30 Years*3.13%$1,659$68,002
20 Years3.01%$1,387$83,125
15 Years2.44%$1,659$48,820
*Paid as if it’s a 15-year loan

Once you run the numbers for all of your options, you’ll have a better idea of what loan term best fits your goals. There is no one loan option that is the best deal, but there is one that can help you reach your financial goals.

15-Year Refinance Rate: Frequently Asked Questions (FAQ)

What is a 15-year fixed refinance rate?

A 15-year fixed refinance rate is a type of home loan designed to replace your existing mortgage. It has a fixed mortgage interest rate, so the amount of interest you’ll pay won’t change over the life of the loan. And with a 15-year payment term, you’ll pay off your mortgage in half the time you would with a 30-year mortgage refinance.

A 15-year refinance typically has a lower interest rate than longer-term loans — but it comes with a higher monthly payment. At today’s rates, a 15-year $250,000 loan’s monthly payment is nearly $600 more than a 30-year loan even though it would have a lower interest rate.

When should I consider a 15-year refinance?

15-year refinance loans typically have a lower rate than a 30-year loan. A 15-year mortgage refinance can be a good way to pay off your mortgage sooner and save on interest. So the best time to consider refinancing is when rates are low enough that your interest savings will outweigh the upfront closing costs associated with a refinance loan.

For homeowners with more than 15 years left on their mortgage, a 15-year loan is a great way to potentially secure a lower rate without adding years to your repayment schedule.

Because the monthly payments on a 15-year mortgage are higher, refinancing to a shorter-term loan makes the most sense if your income has increased since purchasing your home. 

So before you commit to bigger monthly payments make sure your current financial situation can support them.

What is a good 15-year refinance rate?

In 2020, the 15-year refinance rate average fell below 2.25% for the first time ever and is currently hovering around 2.5%. However, that doesn’t necessarily mean it’s the best refinance rate you’ll be able to qualify for. And it doesn’t mean it’s a good deal for you. 

Sometimes an advertised low rate can have built-in discount points. These points are extra fees you can pay in exchange for a lower rate. So you need to pay attention to not only your interest rate, but also the upfront fees you’re paying for the loan.

At the end of the day, a good 15-year refinance rate is one that is considerably less than the current rate you’re paying, allowing you to save money on interest over time with a new loan.

How do I choose between a 30-year fixed refinance or a 15-year?

Some experts, like NextAdvisor contributor Suze Orman, caution against extending your loan term because it could cost you more in the long run. Orman believes you should never refinance into a mortgage that will extend the amount of time you have until your loan is paid off. 

But when rates are low enough you may be able to reduce your monthly payment and the amount of interest you owe without extending your mortgage’s repayment term with a 15-year mortgage. 

Another option is to refinance into a new 30-year loan, but make payments as if it was a 15 -year mortgage. That way you can still pay off the loan in the same amount of time, but you’ll have the flexibility to make smaller payments if you fall on hard times.

How do I find the next 15-year refinance rate?

Your mortgage refinance rate will depend on your financial situation (e.g., credit score and income etc.), how much equity you have in your home, and even the type of refinance you’re applying for. So to get the best 15-year refinance rates, you’ll need to shop around and compare mortgage lenders

To qualify for the lower rates, you’ll need a high credit score (700+), and at least 20% equity in your home. You can also expect to pay a higher rate with a cash-out refinance compared to other types of refinancing because lenders view this as a riskier type of refinance loan.