Mortgage Refinance Rates Today, February 18, 2022 | Rates tick higher
Today, several benchmark mortgage refinance rates went up.
Both the 15-year fixed and the 30-year fixed saw their average rates tend to rise. The average 10-year fixed-rate refinance mortgage rate also rose.
The average mortgage refinance rates are as follows:
Compare refinance rates for a wide range of different loans here.
2022 refinancing rate forecast
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. So even though most experts predict that higher rates will be the trend going forward, we probably won’t see consistent day-to-day or week-to-week gains.
How the Refinance Rate Forecast Affects You
There has been a significant increase in refinance rates, but overall borrowers can still access rates close to
As home prices have skyrocketed, the ability to turn your home’s equity into cash with a home equity line of credit (HELOC) has grown in popularity. In some situations, a HELOC can make sense, especially when consolidating debt or renovating your home.
Homeowners who are hesitant to refinance will want to consider whether or not it’s right for them. Finding the best refinance deal becomes increasingly important as rates rise.
What you need to know about refinancing fees
As part of the refinancing process, you may have to pay upfront fees called closing costs. Closing costs range from 3% to 6% of your loan amount, so they can add up quickly. Your monthly payment may drop with a refinance, but be sure to keep the loan long enough for the ongoing savings to outweigh the out-of-pocket costs.
30-year refi rate
Currently, the average 30-year fixed refinance has an interest rate of 4.20%, an increase of 18 basis points from the previous week.
You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how much you could save if you made additional payments. Our Mortgage Calculator will also tell you how much interest you will be charged over the life of the loan.
Fixed refinancing rates over 15 years
Currently, the average rate on a 15-year fixed refinance loan is 3.45%, an increase of 11 basis points from the previous week.
The monthly payments on a 15-year refinance loan will be larger than those on a 30-year refinance at the same rate. 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 3.42%, an increase of 17 basis points compared to the rate observed 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 determine refinance rates
Our rollover rate trends are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These average daily refi rates are based on a consumer profile meeting these criteria:
- At least 20% equity
- Principal residence
- Credit score 740 or higher
- Single family Home
The information provided to Bankrate by lenders across the country is displayed in the table below:
Rates as of February 18, 2022.
Take a look at mortgage refinance rates for a number of different loans.
Enter your mortgage payment and other loan information into our mortgage refinance calculator to better understand if refinancing is right for you.
Frequently asked questions (FAQ) about the refinance rate:
Does refinancing still make sense?
While refinance rates are higher than recent record lows, they are still exceptionally low. 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.
However, your interest rate isn’t the only factor to consider when determining if the time is right for you to refinance. In addition to the number of years remaining on your existing mortgage, the new repayment term will impact your decision. Those who have paid off their current mortgage for 10 years may want to refinance a 20-year loan so as not to add more years to the end of the loan. Keep in mind that your monthly payment will be higher with a short-term refinance than with a longer-term loan.
Before jumping on an exceptionally low refinance rate, make sure the overall deal makes sense to you.
How to qualify for the lowest refi rate
Your financial situation has a significant effect on the rate of refinancing that you will be able to obtain. Having more equity in your home and a higher credit score usually translates to a lower interest rate.
But your personal financial situation isn’t the only consideration that affects your refinance interest rate. The equity you have in the home also comes into play. Having at least 20% equity in your property is ideal.
Even the mortgage itself has an effect on what your refinance rate will be. A short-term refinance loan usually has lower rates than a longer-term loan. Also, if you want to turn your equity into cash with a cash refinance, you will have to pay a higher interest rate than other types of refinance.
How much does refinancing cost?
When you refinance a mortgage, closing costs typically range from 3% to 6% of the loan amount. So, for a loan of $300,000, you can expect to pay $9,000 to $18,000 in closing costs.
There are a number of factors different lenders take into account when assessing your situation. Compare your options and shop around. Everything from the location of the home to the type of loan you’re refinancing can affect your upfront costs.