Good News: 3 Major Mortgage Refinance Rates Are Falling
Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders, all opinions are our own.
Based on data compiled by Credible, mortgage refinance rate have mostly fallen since yesterday, with the exception of 30-year rates, which remained frozen.
Rates last updated on June 24, 2022. These rates are based on the assumptions presented here. Actual rates may vary.
If you’re considering doing a cash refinance or refinancing your home loan to lower your interest rate, consider using Credible. Credible’s free online tool will allow you to compare the rates of several mortgage lenders. You can see pre-qualified rates in as little as three minutes.
What does that mean: Mortgage refinance rates closed the week of June 24, mostly down from the previous Friday. Rates fell for 20-, 15- and 10-year fixed-rate refinances, with 10-year rates showing the biggest drop. Although 30-year rates have held steady at 5.750% since yesterday, homeowners looking for a combination of lower interest rates and lower monthly mortgage payments would do well to consider 20-year rates. They are more than a quarter of a point lower than the 30-year rates.
How mortgage rates have changed over time
Current mortgage interest rates are well below the highest average annual rate recorded by Freddie Mac – 16.63% in 1981. A year before the COVID-19 pandemic upended economies around the world, the mortgage rate he average interest on a 30-year fixed rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average for 30 years.
The historic decline in interest rates means that homeowners with mortgages from 2019 could potentially realize significant interest savings by refinancing with one of today’s lowest interest rates.
If you’re ready to take advantage of today’s mortgage refinance rates that are below average for other types of credit like credit cards, you can use Credible to check rates from multiple lenders.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score, and paying off any other debt, you could guarantee you a lower rate. It’s also a good idea to compare rates from different lenders if you’re hoping to refinance so you can find the best rate for your situation.
According to a study by Freddie Mac.
Be sure to shop around and compare current mortgage rates from several mortgage lenders if you decide to refinance your mortgage. You can do it easily with Credible’s free online tool and view your pre-qualified rates in just three minutes.
How does Credible calculate refinance rates?
Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence how mortgage refinance rates move. Credible’s average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. Rates also assume no (or very low) discount points and a 20% deposit.
The credible mortgage refinance rates listed here will only give you an idea of today’s average rates. The rate you receive may vary depending on a number of factors.
Think now might be a good time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do it easily with Credible and view your pre-qualified rates in just three minutes.
Is it the right time to refinance?
Everyone’s situation is different, but generally, it may be time to refinance if:
- You will be able to get a lower interest rate than you currently have.
- Refinancing will save you money over the life of your home loan.
- Your refinance savings will ultimately outweigh the closing costs.
- You know you’ll stay in your home long enough to recoup the refinance costs.
- You have enough equity in your home to avoid private mortgage insurance (PMI).
If your home needs major and expensive repairs, now may be the time to refinance to take out some of the equity to pay for those repairs. Just be aware that lenders generally limit the amount you can get out of your home in a cash refinance.
Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
As a credible authority on mortgages and personal finance, Chris Jennings has covered topics like mortgages, mortgage refinance, and more. He was a publisher and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, etc.