Today, several notable mortgage refinancing rates have climbed.
The 15-year and 30-year fixed rates have seen their average rates increase. The average rate for 10-year fixed-rate refinance mortgages has also increased.
Refinancing interest rates are constantly changing. However, they’re still close to troughs we’ve never seen before. For those looking to refinance their existing mortgage, this might be the right decision to lock in a lot on an interest rate.
Take a look at today’s refinance rates:
You can find the refinance rate that’s right for you here.
2021 refinancing rate trends
There is a strong potential for significant volatility with refinancing rates and mortgage rates. Nonetheless, interest rates are expected to continue to rise steadily through 2022. Higher inflation, which persists longer than expected, and a strong economy are two factors behind this expected rate hike. Additionally, the COVID-19 Omicron strain and other variants of the coronavirus could affect the economy due to the economic uncertainty they could cause. So while most experts predict that rising rates will be the trend going forward, we likely won’t see consistent gains from day to day or week to week.
What the refinancing rate trends mean to you
Refinance rates may increase slightly, but overall borrowers may be excited about these low rates, which are some of the lowest in the market.
With home values ââincreasing rapidly, withdrawal refinances have become increasingly popular this year. In many situations, refinancing with cash can make sense, especially when consolidating debt or renovating your home.
Whether or not refinancing makes financial sense, depending on your personal financial situation. Over the long term, rates will likely continue to rise, so it’s worth comparing rates now with a few lenders to see if you can save.
What to know about refinancing fees
When you take out a new home loan, you pay an upfront fee of 3% to 6% of the loan amount. This is a significant expense that must be taken into account when refinancing. When you refinance frequently or sell your home soon after refinancing, you may not be saving enough to justify the upfront costs.
30-year average refinancing rates
Right now, the 30-year average fixed refinance has an interest rate of 3.35%, an increase of 13 basis points from a week ago.
You can use our mortgage calculator to calculate the price of your monthly mortgage payments and to understand what the effects of making additional payments would be. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.
Fixed refinancing rates over 15 years
Currently, the average rate for a 15-year fixed refinance loan is 2.58%, an increase of 13 basis points from what we saw last week.
The monthly payments on a 15-year refinance loan can be a considerable amount more than what you would get on a 30-year mortgage. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.
Fixed refinancing rates over 10 years
The 10-year average fixed refinance rate is 2.59%, an increase of 14 basis points from a week ago.
Monthly payments with a 10-year refinance term would cost even more than what you would pay with a 15-year loan. The advantage is that you will end up paying even less interest over the life of the loan.
How are our refinancing rates calculated
Our refi rate trends are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These overnight refi interest rate averages are based on the following borrower profile:
- 80% LTV or less
- Principal residence
- FICO score of 740 or more
- Single family Home
The information provided to Bankrate by lenders across the country is specified in the table below:
Prices as of January 5, 2022.
Take a look at the mortgage refinance rates for a number of different loans.
Frequently asked questions about the refinancing rate (FAQ):
Does refinancing still make sense?
While refinancing rates are higher than recent record lows, they are still exceptionally low. Now might still be a good time to refinance if you want to lower your mortgage payment by refinancing at a lower rate.
When deciding whether to refinance, interest rates aren’t the only factor to consider. The number of years you have left on your current mortgage and your new repayment term will also influence your decision. Depending on the length of your current mortgage, you may not want a 30 year refinance loan. If you go for a shorter-term refinance, the trade-off is that your monthly payment will be higher than with a longer loan.
Make sure you take all of the factors into consideration before you refinance, not just the interest rate.
How to ensure you get the lowest refi rate
Your financial situation has a big effect on the refinancing rate you can get. A lower loan-to-value ratio for your home and a higher credit rating usually translates into a better interest rate.
But your personal financial situation isn’t the only thing that will affect the mortgage refinance rate you qualify for. The equity in your property is also factored into the decision. Having at least 20% equity in your property is ideal.
Even the mortgage itself can determine your refinancing interest rate. A loan with a shorter repayment term generally has lower rates than mortgage refinancing loans with longer repayment terms, all other things being equal. Additionally, if you want to turn your equity into cash with cash out refinancing, you should expect to pay a higher mortgage rate for this lien.
How much does refinancing cost?
If you refinance your mortgage, the closing costs typically range between 3% and 6% of the loan amount. For a loan of $ 300,000, this represents $ 9,000 to $ 18,000 in fees.
But, each lender will assess your personal situation differently. It is therefore important to shop around and compare offers. Everything from the location of the property to the type of loan you refinance with can change what you pay to refinance.