Refi rates today, May 18, 2022 | Lower interest rates

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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.

Throughout the first few months of 2022, refinance rates fell, rising dramatically. Short-term interest rates have already risen several times, and the Fed expects to do so again in the coming months.

In today’s financial climate, homeowners need to carefully consider whether it’s the right time to refinance. Right now, homeowners can struggle to find an interest rate low enough that refinancing makes sense. That said, interest rates aren’t the only thing to focus on. Closing costs for a refinance loan can run into the thousands of dollars, significantly increasing your upfront costs.

Here is where the refinance rates are today.

Refinance rates are currently:

Compare refinance rates for a wide range of different loans here.

Refinance Rate Forecast: What’s Driving the Mortgage Rate Change?

In April, annual inflation was 8.3% according to the consumer price index (CPI). That still puts it on par with the 40-year highs we’ve seen in recent months. And that’s not good for refinance rates.

In response to high inflation that lasted longer than originally expected, the Federal Reserve began raising interest rates. There are also geopolitical events that are about to add to our inflation problems. COVID lockdowns in China and war in Ukraine could both exacerbate existing supply shortages. And we haven’t even started to feel these supply shocks, “it’s going to take months for these disruptions to fully seep into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told Reuters. NextAdvisor.

Because of all of this, we could be stuck with high inflation for much longer than we want, making it more likely that the Fed will have to raise interest rates aggressively.

Is it the right time to refinance?

Generally, refinancing can save you money if you can get an interest rate about 1% lower than your current rate. That said, the recent spike in refinance rates has dramatically reduced the number of homeowners with interest rates well above today’s average rates.

There are alternatives to refinancing. With values ​​rising in today’s housing market, homeowners may want to turn that value into cash. With the rates where they are, a home equity line of credit (HELOC) may be right for you because you won’t have to take out a new mortgage. A HELOC can be a reasonable option for financing home repairs or improvements, just make sure you understand all the fine print, regardless of the fees, interest rate, and repayment schedule.

Why is it important to look at the 30-year fixed mortgage rate history?

Current mortgage interest rates are still within a normal historical range, even though they are breaking through the psychological barrier of 5%. It might be a good idea to refinance if your current interest rate is higher than today’s rates.

The chart above refers to data from Freddie Mac, which differs slightly but follows similar trends to the Bankrate survey used by NextAdvisor.

Pro tip: What you need to know about refinancing fees

When you take out a new home loan, you pay an upfront fee totaling 3-6% of the loan amount. This is a significant expense that must be factored into the refinancing process. When you refinance frequently or sell your home soon after refinancing, you may not realize enough savings to justify the upfront cost.

Average refinancing rate over 30 years

Right now, the average 30-year fixed refinance has an interest rate of 5.34%, down 19 basis points from what we saw last week.

You can use our mortgage calculator to work out how much your mortgage will cost each month and find out how much less interest you’ll pay by making additional payments. 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 15-year fixed refinance rate is 4.73%, down 10 basis points from the previous 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 fixed refinancing rates

The average 10-year fixed refinancing rate is 4.69%, down 12 basis points from the rate seen the previous 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

The chart below shows where refinance rates have headed over the past week.

These daily refi rates are provided by Bankrate. The information is based on consumers who fit a certain profile, such as the loan is for a primary residence and their FICO score is 740 or higher. If your personal situation does not meet or exceed the standards 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 May 18, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Frequently asked questions (FAQ) about the refinance rate:

Does refinancing still make sense?

Refinancing rates, although higher than historic lows, still remain at exceptionally low levels. A lower rate can lower your mortgage payment, so if you haven’t refinanced in the past few years, today’s low interest rates may be a good time to do so.

When deciding to refinance, interest rates are not the only factor to consider. You’ll also need to weigh how much time you have left to pay off your current mortgage and consider how long a new mortgage will take to pay off. Depending on the length of your current mortgage, you may not want a 30-year refinance loan. But shorter-term loans have higher monthly payments, so in this scenario your monthly payment would be higher than if you took out a new 30-year loan.

Make sure the overall deal makes sense before you take advantage of today’s low refinance rates.

How to get the lowest refi rate

Your finances have a big effect on the refinance rate you get. Having a lower loan-to-value ratio for your home and a better credit rating usually translates to a lower interest rate.

Your situation is not the only thing that will impact the interest rates offered to you. The equity you have in the property also comes into play. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.

Even the mortgage itself has an effect on your refinance interest rate. A loan with a shorter repayment term generally has lower refinance rates than a loan with longer terms. The type of refinance loan you need makes a difference in the interest rate. Cash refinance loans generally have higher interest rates than other loans.

Average cost of refinancing

The cost of refinancing can vary significantly depending on these factors:

  • Where is the property located
  • Type of refinance loan
  • The lender
  • Amount of the loan
  • FICO score
  • home equity

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.

Mortgage interest rate by type of loan

Mortgage refinance rate

Mortgage rate


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