Today, several notable refinance rates have fallen.
Both the 15-year fixed and the 30-year fixed saw their average rates fall. At the same time, average 10-year fixed refinancing rates also fell.
Here are the average rates for 30-year, 15-year and 10-year refinance loans:
You can find the right refinance rate for you here.
Trends in refinancing rates 2022
For 2022, many experts believe we will see refinance and mortgage rates
increase by the end of the year. Following the rollback of pandemic-era bond market support from the Fed, interest rates could rise. Last year, inflation hit 7%, a rate we haven’t seen since 1982, according to the US Bureau of Labor Statistics. It is possible that the Omicron variant, or other variants, will slow the rise in mortgage rates. That said, the threat of new strains of coronavirus should not cause long-term rates to drop.
What refinance rate trends mean for you
Even with recent increases, low refinance rates persist. It may be a good idea to take out a new home loan, as current rates are still among the lowest in mortgage rate history. However, your interest rate is not the only factor to consider. It is also important to consider your financial and personal goals. Refinancing may not make sense if you plan to move and sell the house within the next five years. For the potential savings on your monthly payment to offset the fees you pay to refinance, you will need to hold the loan until you break even.
You may also want to turn the value of your home into cash with a home equity line of credit (HELOC). Increasing what you owe on your home may make sense for your situation if the extra money can help you achieve other financial goals.
Refinance closing costs
As part of the refinancing process, you may have to pay upfront fees called closing costs. It’s important to pay attention to these fees, as they can average 3-6% of your loan balance. A refinance can lower your monthly payment, just make sure you plan to hold onto the loan long enough for the ongoing savings to outweigh the out-of-pocket costs.
30-year refi rate
Right now, the average 30-year fixed refinance has an interest rate of 4.17%, down 5 basis points from what we saw last week.
You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand the impact of paying more each month on your mortgage. Our Mortgage Calculator will also tell you how much interest you will be charged over the life of the loan.
15-year fixed refi rates
Currently, the average rate on a 15-year fixed refinance loan is 3.39%, down 15 basis points from what we saw last week.
The monthly payments on a 15-year refinance loan are harder to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build equity in your home much faster.
10-year refinancing rate
The average 10-year fixed refinance rate is 3.39%, down 6 basis points from what we saw last 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 run.
How we calculate our refi rates
Our daily refinance rates are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These average overnight refi rates are based on a borrower profile that meets the following criteria:
- 80% LTV or less
- Principal residence
- Credit score 740 or higher
- Single-family detached house
The information provided to Bankrate by lenders across the country is displayed in the table below:
Rates as of February 22, 2022.
Take a look at mortgage refinance rates for a number of different loans.
Frequently asked questions (FAQ) about the refinance rate:
Is it still a good time to refinance?
Refinancing rates, although higher than historically low levels, still remain at exceptionally low levels. If you want to lower your mortgage payment by refinancing at a lower rate and you haven’t refinanced in the past few years, now is still the time to consider refinancing.
However, you shouldn’t rely on the interest rate alone to determine if it’s time to refinance. 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. Keep in mind that your monthly payment will be higher with a short-term refinance than with a longer-term loan.
Be sure to consider all factors before refinancing, not just the interest rate.
How to get the lowest refi rate
Your financial situation has a significant impact on the refinancing rate you can claim. A lower loan-to-value ratio for your home and a healthier credit score will usually get you a better interest rate.
Your situation is not the only thing that will impact the interest rates offered to you. The equity in your home is also factored into the decision. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.
The type of mortgage can determine what your interest rate will be. A shorter term refinance loan usually has lower refinance rates than a longer term loan. The type of refinance you need makes a difference in the refinance interest rate. A cash-out refinance loan usually comes with a higher refinance interest rate than other types of home loan refinance.
How much does refinancing cost?
The cost of refinancing can vary significantly depending on these factors:
- Where you live
- Type of refinance loan
- Your lender
- Amount of the loan
- Your credit score
- The equity you have in the home
Typically, refinance closing costs are 3% to 6% of the loan balance. The type of loan you refinance can impact its cost in different ways. Some government-backed refinance loans, like the FHA Streamline or the VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but may come with high upfront fees to cover mortgage insurance. On the other hand, if you have sufficient equity, you can refinance into a conventional loan to eventually get rid of the mortgage insurance requirement.