Today, a number of notable mortgage refinance rates have advanced.
The 15-year and 30-year fixed rates have seen their average rates increase. And the average 10-year fixed refinancing rates have also increased.
Mortgage refinancing rates are constantly changing. However, they are currently very low. For those looking to refinance their existing mortgage, this can be a great opportunity to lower your interest rate.
The refinancing rates are currently:
Check out mortgage refinance rates for your area here.
Mortgage rate forecast: where are refinancing rates heading in 2021?
Refinancing rates and mortgage rates could be subject to significant volatility this year. Nonetheless, interest rates are expected to continue to rise steadily through 2022. Several factors have contributed to this anticipated rise in interest rates, including higher inflation and a strong economy. This offsets the uncertainty surrounding the COVID-19 Omicron variant and the potential for other COVID-19 variants to impact the economy. Despite the rate hike most experts predict for the future, you cannot expect consistent gains from week to week or day to day.
What these refinancing rate changes mean for homeowners
Even with gradual increases, refinance rates are expected to remain incredibly favorable for borrowers, as they are among the lowest in the world.
Withdrawal refinances have become more common recently due to the rapid rise in home values. Refinancing with cash can be an affordable option for paying off high interest debt or making home improvements.
When considering refinancing, homeowners may want to consider whether this makes sense for their particular 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.
Watch out for refinancing fees
With a new home loan, you have to pay an upfront fee of 3% to 6% of the loan amount. When refinancing, you need to take this expense into account. Your monthly savings may not have exceeded the initial charge if you refinance too often or sell your home soon after refinancing.
30-year average refinancing rates
Right now, the 30-year average fixed refinance has an interest rate of 3.44%, an increase of 19 basis points from what we saw last week.
You can use our mortgage calculator to calculate the price of your monthly mortgage payments and to understand how much you could save if you made additional payments. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.
15-year refinancing rate
Currently, the 15-year average fixed refinance rates are 2.66%, an increase of 15 basis points from the previous week.
The monthly payments for a 15-year refinance loan will be larger than for a 30-year refinance at the same rate. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.
Average refinancing rates over 10 years
The 10-year average fixed refinancing rate is 2.69%, an increase of 17 basis points from the rate observed the previous week.
Monthly payments with a 10-year refinance term would cost a lot more per month than with a 15-year term, but you’ll pay less interest in the long run.
How are our refinancing rates calculated
The table below shows where refinancing rates were heading over the past week.
These refinancing interest rates are provided by Bankrate. The information is based on owners who match a certain profile, such as the house is an owner-occupied single-family residence. If your personal situation does not meet or exceed the standards in this survey, you will likely be eligible for higher refinancing rates than those listed.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Prices as of January 7, 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?
It’s not just about interest rates or home values when it comes to refinancing, your personal circumstances also play an important role. The simple question to ask yourself is, “Will refinancing help me meet my financial goals?” “
A rule of thumb is that refinancing makes sense if you can lower your interest rate by 1% or more. However, refinancing isn’t always about lowering your mortgage rate. Recently, more and more homeowners have taken advantage of the increase in the value of their home through a cash refinance loan. Cash-out refinance loans usually have higher rates than other options, but it can be a good way to pay for home improvements or pay off other higher-interest debt.
Overall, it’s always a great time to refinance as long as it makes sense for your situation.
How To Make Sure You Get The Best Refinance Rate
Refinancing rates are influenced by your personal finances. Having a healthier credit rating and lower loan-to-value (LTV) ratios will generally lead to lower refinance rates.
Your situation is not the only thing that will impact your interest rate. Equity in the home is also a factor. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.
The type of mortgage loan will affect your refinance interest rate. A shorter term refinance loan generally has better refinance rates than refinancing loans with longer repayment terms, all other things being equal. Your mortgage refinance rate is also affected by the type of refinance you plan to take out. A cash refinance loan generally has a higher mortgage refinance rate than other types of home loan refinance.
What is the average cost of refinancing?
There are a handful of things to consider that influence the cost of refinancing, including:
- Where you live
- Type of refinancing loan
- Which lender you choose
- Amount of the loan
- Credit score
- The equity in the property
Typically, the refinancing closing costs are 3% to 6% of the loan balance. Your state and local regulations may influence the fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, get a lower rate, and compete with lenders for your business.