Refi Rates Today, January 21, 2022 | Rates go up

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Today, several benchmark mortgage refinance rates climbed.

Both the 15-year fixed and the 30-year fixed saw their average rates climb. The average 10-year fixed rate refinance mortgage rate also increased slightly.

Refinance rates are constantly changing. However, they are exceptionally low right now. For those looking to refinance their existing mortgage, this can be a great opportunity to lower your interest rate.

The average mortgage refinance rates are as follows:

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

Where are refinance rates going in 2021?

Experts predict that refinance and mortgage interest rates are expected to rise in 2022. The start of the Fed’s tapering of mortgage-backed securities purchases is one of the reasons for this expected rate hike. Higher rates are also expected due to high inflation and a strong economy. It is possible that the Omicron variant, or other variants, will slow the rise in mortgage rates. However, the threat of new strains of coronavirus should not cause long-term rates to fall.

What these refinance rate changes mean for homeowners

With low refinance rates still in place, it can make sense to refinance, especially when you compare today’s rate to any other time in mortgage rate history. However, your interest rate is not the only factor to consider. You’ll want a mortgage refinance to match your goals for your finances and your life in general. 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.

What you need to know about refinancing fees

For a new mortgage, you will have to pay an initial fee totaling 3% to 6% of the loan amount. This is a significant expense that must be considered when refinancing. 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

Currently, the average 30-year fixed refinance has an interest rate of 3.65%, an increase of 14 basis points from a week ago.

You can use our mortgage calculator to get an idea of ​​what your monthly payments will be 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

For 15-year fixed refinances, we see an average rate of 2.98%, an increase of 17 basis points from a week ago.

Monthly payments on a 15-year refinance loan can be significantly higher than what you would get on a 30-year mortgage. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.

10-year refinancing rate

The average 10-year fixed refinance rate is 2.99%, up 16 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 determine refinance rates

The chart below shows how refinance rates have changed over the past week.

These refinancing interest rates are collected by Bankrate. The information is based on clients 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 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 21, 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?

It’s not just about interest rates or home values ​​when it comes to refinancing, your personal circumstances also play an important role. 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. Recently, more and more homeowners have taken advantage of their home’s increased value through a cash refinance loan. If you are going to do a cash refinance, you will want to have a plan for the cash up front. Withdrawal loans have higher interest rates than other types of refinance and you will increase your loan balance at the same time.

As long as refinancing matches your financial goals and brings you closer to achieving them, now is the time to refinance.

How to make sure you get the lowest refinance rate

Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit rating and lower loan-to-value (LTV) ratios, you will generally qualify for a greater discount on the mortgage refinance rates available to you.

Your situation isn’t the only thing that will impact your refinance interest rate. A lower loan-to-value (LTV) ratio can help you get a lower refinance rate. So the more equity you have accumulated, the better. Having at least 20% equity in your property is ideal.

The type of mortgage can determine your refinance rate. A shorter-term refinance loan generally has lower refinance rates than refinance 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 refinancing cost?

Several factors affect the cost of refinancing, including:

  • Site
  • Type of mortgage
  • The lender
  • Amount of the loan
  • FICO score
  • home equity

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.

Mortgage rates by type of loan

Mortgage refinance rate

Mortgage rate

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