Mortgage Refinance Rates Today, January 26, 2022 | Rates are rising
Today, a number of closely watched mortgage refinance rates have gone up.
Both the 15-year fixed and the 30-year fixed saw their average rates increase. The average 10-year fixed rate refinance mortgage rate also increased.
Refinancing rates are constantly changing. However, they are currently very low. For those looking to refinance their existing mortgage, it may be the right decision to lock in a good deal on an interest rate.
The average mortgage refinance rates are as follows:
You can find the right refinance rate for you here.
Trends in refinancing rates 2022
Refinance and mortgage rates could be subject to significant volatility this year. Nonetheless, interest rates are expected to continue to rise steadily throughout 2022. Several factors have contributed to this expected rise in interest rates, including higher inflation and a strong economy. This is offset by the uncertainty surrounding the COVID-19 Omicron variant and the possibility of other COVID-19 variants impacting the economy. Despite the rate hikes predicted by most experts for the future, you cannot expect consistent gains from week to week or day to day.
What these refinance rate changes mean for homeowners
There has been a significant increase in refinance rates, but overall borrowers can still access rates close to
In this hot housing market, the ability to turn your home equity into cash with a home equity line of credit (HELOC) has become increasingly popular. Getting a HELOC can be a cost-effective way to pay off high-interest debt or make home improvements.
Depending on your personal financial situation, refinancing may or may not make financial sense. As rates continue to climb, finding the best deal for your refinance becomes even more important.
Refinance closing costs
When you choose to refinance your existing home loan, you will typically pay an upfront fee called closing costs. Fees can average 3% to 6% of your loan balance, so it’s important to pay attention. A refinance can lower your monthly payment, just make sure you plan to keep the loan long enough for the ongoing savings to outweigh the out-of-pocket costs.
30-year fixed refinancing rates
Currently, the average 30-year fixed refinance has an interest rate of 3.68%, an increase of 11 basis points from what we saw last week.
You can use our mortgage calculator to determine how much your mortgage will cost you each month and to understand what the effects of additional payments would be. Our mortgage calculator will also tell you how much interest you will be charged over the life of the loan.
15-year refi rate
Currently, the average rate on a 15-year fixed refinance loan is 3.01%, an increase of 11 basis points from a week ago.
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 save you thousands of dollars in interest over the life of the loan.
10-year refi rate
The average 10-year fixed refinancing rate is 2.98%, an increase of 6 basis points compared to the rate observed the previous week.
Monthly payments with a 10-year refinance term would cost even more than what you would pay on a 15-year loan. The upside is that you’ll end up paying even less interest over the life of the loan.
How we calculate our refi rates
The chart below shows how refinance rates have changed over the past week.
These daily refi rates are collected by Bankrate. The information is based on homeowners who meet specific criteria, such as the loan is for a primary residence and their FICO score is 740 or higher. If your personal circumstances do not meet or exceed the guidelines of this survey, you will likely qualify for higher refinance rates than those listed.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Rates as of January 26, 2022.
Take a look at mortgage refinance rates for a number of different loans.
Add your monthly payment and other home loan details to our mortgage refinance calculator to get an overview of how refinancing could help you.
Frequently asked questions (FAQ) about the refinance rate:
Is it still a good time to refinance?
Whether or not you refinance doesn’t just depend on the numbers, such as the refinance rate. Your personal situation is also an important consideration. You’ll want to ask yourself if refinancing will help you achieve your goals
Refinancing can be a good idea if you can lower your interest rate enough to offset the initial closing costs. There are times, however, when the primary reason for refinancing isn’t to get a lower interest rate. As home values rise, many homeowners choose to turn their equity into cash through a HELOC. Home equity lines of credit usually have higher rates than other options, but they can be a good way to pay for home renovations or pay off other higher-interest debt.
Ultimately, now is a good time to refinance if refinancing fits your financial goals and helps you achieve them.
How to qualify for the best refi rate
Mortgage refinance rates are influenced by your personal finances. Having a healthier credit score and better loan-to-value (LTV) ratios will generally qualify for a bigger discount on their interest rate.
But your personal financial situation isn’t the only consideration that affects the mortgage refinance rates available to you. The equity in your home is also factored into the decision. Having at least 20% equity in your property is ideal.
Even the mortgage itself has an effect on what your refinance interest rate will be. A loan with a shorter repayment term generally has better interest rates than loans with longer repayment terms, all other things being equal. Also, if you want to get money out of your home with a cash refinance, you will be charged a higher interest rate, compared to other types of refinance.
How much does it cost to refinance?
The cost of refinancing can vary significantly depending on these factors:
- Where you live
- Type of mortgage
- The lender
- Amount of the loan
- FICO score
- The equity you have in the home
Typically, refinance closing costs are 3% to 6% of the loan balance. State and local regulations may influence the fees and taxes you pay. Having more equity in the home and a higher credit rating will make it easier to qualify for the refinance loan, get a lower rate, and compete with lenders for your business.