Current mortgage refinancing rates, 15 April 2022 | Prices are higher

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Today, some closely followed mortgage refinancing rates have risen.

Both the fixed 15-year and the fixed 30-year saw average interest rates rise. Average interest rates on 10-year fixed refinancing also increased.

In 2022, mortgage-backed interest rates rose almost to levels not seen before the pandemic, after almost two years of record low interest rates.

Refinancing your home does not have to be a chore. Although interest rates are higher than they were in 2021, the 30-year fixed interest rates are still much lower than they were a few years ago.

The number of homeowners eligible to save on refinancing has decreased since the rates increased. However, experts say that refinancing to make sense depends solely on your personal financial situation. A good rule of thumb to follow is: if you can refinance at an interest rate at least 0.75% lower than the current interest rate, it makes sense. “If you can lower the interest rate, no matter what happens in the market, you will save money,” says Jennifer Beeston, senior vice president of mortgage lending at the Guaranteed Interest Rate.

Let’s take a look at where the refi rates are today, the historical rates and analyze what all this means.

The current refinancing rates are:

Take a look at local refinancing rates.

Refinancing rate forecast: What leads to a change in mortgage rates?

Mortgage rates have risen sharply since early 2022. Two factors driving up interest rates are the post-pandemic recovery and record-breaking inflation. In response to high inflation, the Federal Reserve is likely to raise short-term interest rates.

The financial markets are feeling the effects of the Russian war in Ukraine. Stock prices have fallen and gas prices have risen. As a result, the market has become more uncertain and volatile. The resurgence of COVID-19 variants is another concern. Overall, Omicron cases have dropped in the United States, but its future cannot be predicted with certainty.

Inflation was also one of the reasons for the increase in refi rates in January and February, exceeding 7% in both months. High inflation will drive the Fed to act year-round and may act more aggressively if inflation remains high. These moves can raise interest rates by increasing the cost of borrowing for lenders.

Throughout 2022, mortgage rates are expected to rise, according to most experts. However, there will be great instability in the short term.

Is this the right time to refinance?

There has been a significant increase in refinancing rates, but overall borrowers still have access to interest rates close to historically low. Now is a good time to refinance if you have not done so in the last few years. In general, homeowners could save thousands on interest rates and time refinancing if their new interest rate is 0.75% to 1% lower than the current interest rate.

In this hot housing market, the ability to convert equity in your home to cash with a equity line of credit (HELOC) has become increasingly popular. In some cases, a HELOC may make sense, especially when consolidating debt or remodeling your home.

In addition, there is much more to a refinancing decision than a simple interest rate. The decision to refinance a home should be strategic to what you intend to get out of it. An interest rate and term refinancing could help reduce your monthly mortgage payment. But a redemption refinance could help stabilize debt or finance a home improvement project.

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

The percentages were well above 4% only in 2018 and 2019. Before the crash of 2008, the “good” percentage was still over 5%. Current mortgage rates are still very good in the long run, even if they exceed the psychological barrier of 4%. If the current interest rate is higher than current interest rates, then a refinancing option might be a good choice.

This graph, which uses data from a slightly different Freddie Mac survey but generally follows the Bankrate survey used by NextAdvisor. This chart provides an overview of how current rates compare to the last two decades. They are going up from the historically low years of 2020 and 2021, but they are still not high if you shrink for more than a few years.

Professional advice: What you need to know about refinancing charges

Closing costs are the fees you pay when refinancing a mortgage. The cost of closing a loan can range from 3% to 6% of the loan amount, making it an expensive expense. Your monthly payment can be reduced by refinancing, but make sure you keep the loan long enough for ongoing savings to exceed the cost of your pocket.

Average refinancing rates for 30 years

Currently, the average 30-year fixed refinancing rate is 5.07%, up 1 basis point from what we saw last week.

You can use our mortgage calculator to get an idea of ​​what your monthly payments will be and figure out how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you will be charged for the entire duration of the loan.

Fixed 15-year Refi rates

Currently, the average interest rate on a 15-year fixed refinancing loan is 4.35%, an increase of 12 basis points over the previous week.

The monthly payments for a 15 year refinancing loan can be much more than what you would get with a 30 year mortgage. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.

Average refinancing rates for 10 years

The average 10-year, fixed refinancing rate is 4.45%, an increase of 20 basis points from what we saw last week.

Monthly payments with a 10-year refinancing period will cost even more than you would pay on a 15-year loan. The good news is that you will end up paying even less interest during the life of the loan.

How refinancing rates are calculated

The table below shows how refinancing rates changed last week.

These refi interest rates are provided by Bankrate. The information is based on customers who fit a particular profile, such as a credit score of 740+ with a loan ratio of 80% or better. If your personal situation does not meet or exceed the guidelines of this survey, then you are likely to end up with a repair rate higher than stated.

Bankrate is owned by Red Ventures, the parent company of Nextadvisor.

Prices from April 15, 2022.

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

Frequently Asked Questions about Refinancing Rate (FAQ):

Do I have to refinance right now?

It’s not just about refinancing rates or housing values, but your personal circumstances also play a role. The simple question to ask yourself is, “Will refinancing help me achieve my financial goals?”

Refinancing can be a good idea if you can lower the interest rate enough to offset the upfront closing costs. But sometimes the purpose of refinancing is not to lower your mortgage rate. Opening a home equity line of credit has grown in popularity recently as homeowners have decided to take advantage of the rising value of their home. If you are going to open a home equity line of credit, you will want to have a cash plan in advance. HELOCs have higher interest rates than mortgages and at the same time you will increase the arrears.

All in all, now is a great time to refinance, as long as it makes sense for you.

How to ensure that you receive the lowest refinancing rate

Mortgage refinancing rates are affected by your personal finances. If you have a higher credit score and better loan-to-value (LTV) ratios you will usually be able to get lower refinancing rates.

Your situation is not the only factor influencing the refinancing rates offered to you. A better value for money (LTV) ratio can help you qualify for a reduced refinancing rate. So the more equality you create, the better. Having at least 20% equity in your property is ideal.

Even the mortgage itself will affect your interest rate. A short-term refinancing loan generally has better refinancing rates than loans with higher repayment terms, all other things being equal. The type of refinancing you need makes the difference in the mortgage refinancing rate. Redemption mortgages usually have higher interest rates than other loans.

Average refinancing cost

Refinancing a mortgage usually involves paying off 3% to 6% of the loan amount. For example, if you have a $ 300,000 mortgage, you can expect to pay between $ 9,000 and $ 18,000 in closing costs.

However, each lender will assess your personal situation differently. Therefore, it is important to shop and compare offers. Everything from where the property is located to the type of loan you are refinancing can change the amount you pay for refinancing.

Mortgage rates by type of loan

Mortgage refinancing rates

Housing purchase interest rates

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