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Mortgage Refinance Rates Today, June 14, 2022 | Rates Approach 6%

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Mortgage Refinance Rates Today, June 14, 2022 | Rates Approach 6%

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a journalist based in Chicago covering personal finance for NextAdvisor. His previous work includes…

June 14, 2022 | 7 Min Read

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Today, a few benchmark mortgage refinance rates advanced.

The remarkable increase in interest rates for 30-year fixed-rate refinances made headlines today, while at the same time rates for 15-year fixed refinances shrank. And average rates for 10-year fixed refinances also inched up.

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Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. Short-term interest rates have already been raised twice by the Federal Reserve this year, and more are to come.

Given the current rate environment, it is prudent for borrowers to look hard at the numbers before taking out a new home loan. Due to higher interest rates, refinancing costs are increasing. That said, interest rates aren’t the only thing to concentrate on. The interest you’re paying over time is one thing, but the upfront closing costs can be 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Let’s take a look at the current refi rate trends.

Take a look at today’s refinance rates:

  • The average 30-year fixed-rate refinance is 5.89%
  • Currently, the average 15-year fixed-rate refinance is 5.05%
  • 10-year mortgage refinance rate: 5.05%

You can discover the right refinance rate for you here.

Refinance Rate Trends

Per the latest Consumer Price Index (CPI), annual inflation dipping slightly in April to 8.3%. It still puts it at the level of the 40-year highs we’ve experienced the past few months. And that’s bad news for refinance rates.

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In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has begun increasing interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

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

Is Now a Good Time to Refinance?

Generally speaking, homeowners could save thousands with a rate and term refinance if their new rate is 0.75% to 1% below their current rate. That said, the recent spike in refinance rates has drastically reduced the number of homeowners with interest rates that are 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 rates where they are, a home equity line of credit (HELOC) may make sense 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 be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Why Is It Important to Look at the History of the 30-Year Fixed Mortgage Rate?

Although today’s refinance rates are near or above 5%, that is a typical interest rate historically. If your current rate is higher than today’s rates, then a refinance could be a good option.

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This chart, which uses data from a survey by Freddie Mac that differs slightly but generally tracks with the Bankrate survey used by NextAdvisor. This graph offers a glimpse at how today’s rates compare with the past two decades. They’re up from the historically low years of 2020 and 2021, but they still aren’t absurdly high if you zoom out further.

Pro Tip: Refinance Closing Costs

For a new mortgage, you will have to pay upfront fees totaling 3% to 6% of the loan amount. This is a significant expense that needs to be considered when refinancing. When you refinance frequently or sell your home soon after refinancing, you may not experience enough savings to justify the upfront fees.

30-Year Fixed Refi Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.89%, an increase of 38 basis points from a week ago.

You can use our mortgage calculator to price out your monthly mortgage payments and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed Refinance Rates

Right now, average 15-year fixed refinance rates are 5.05%, an increase of 34 basis points from what we saw last week.

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Monthly payments on a 15-year refinance loan will be bigger compared to a 30-year refinance at the same rate. However, a shorter loan term can help you build up equity in your home much more quickly.

10-Year Refinance Rates

The average 10-year, fixed refinance rate is 5.05%, an increase of 39 basis points from the rate observed over 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 term.

How we calculate our refinance rates

The table below shows refinance rates trends from the past week.

These daily refinance rates are provided by Bankrate. The information is based on customers that fit a certain profile, such as the home is an owner occupied single family residence. So you may qualify for different rates if your personal circumstances don’t align with the survey criteria.

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Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Rates as of June 14, 2022.

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

Refinance Rate Frequently Asked Questions (FAQ):

Is It Still a Good Time to Refinance?

Refinance rates, though higher than the all-time record lows, are still lingering at uncommonly low levels. A lower rate can reduce your mortgage payment, so if you haven’t refinanced in the past few years, today’s low interest rates can make now a good time to do so.

When deciding whether to refinance, interest rates are not the only factor to consider. You’ll also need to weigh how long you have left to pay off your current mortgage and to consider the repayment term of a new home loan. If you’ve been paying on your current mortgage for 10 years, then you may want to refinance with a 20 years loan so that you aren’t adding years to the backend of your loan. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

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

How to Qualify for the Best Refinance Rate

Mortgage refinance rates are influenced by your personal finances. If you have a higher credit score and better loan-to-value (LTV) ratios will usually get a greater discount on the mortgage refinance rates they are offered.

Your personal finances aren’t the only thing that will impact your mortgage refinance rate. The amount of equity you have in the property also comes into play. Having at least 20% equity in your property is ideal.

Even the mortgage itself can determine what your mortgage refinance rate will be. A loan with a shorter repayment term usually has better interest rates than a longer-term loan. Also, if you want to turn your equity into cash with a cash-out refinance, you’ll be charged a higher interest rate, compared to other types of refinancing.

Average Cost of Refinancing

Refinancing a mortgage typically involves paying closing costs of 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.

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But, each lender will assess your personal situation differently. So it’s important to shop around and compare offers. Everything from where the property is located to the type of loan you’re refinancing into can change what you’ll pay to refinance.

Mortgage Rates by Loan Type

Mortgage Refinance Rates

  • 30 Year Fixed Refinance Rates
  • 15 Year Fixed Refinance Rates
  • VA Refinance Rates
  • Jumbo Refinance Rates

Home Purchase Rates

  • 30 Year Fixed Mortgage Rates
  • 20 Year Fixed Mortgage Rates
  • 15 Year Fixed Mortgage Rates
  • 10 Year Fixed Mortgage Rates

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Current Refinance Rates, June 24, 2022 | Rates Remain Well Below 6%

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Current Refinance Rates, June 24, 2022 | Rates Remain Well Below 6%

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a journalist based in Chicago covering personal finance for NextAdvisor. His previous work includes…

June 24, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Today, numerous closely followed refinance rates declined.

Both the 15-year fixed and 30-year fixed saw their average rates recede. At the same time, average rates for 10-year fixed refinances also decreased.

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Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. The Federal Reserve has already increased short-term rates twice this year, with more raises to come.

Given the current rate environment, it is prudent for borrowers to look hard at the numbers before taking out a new home loan. With refi rates on the rise, the cost of borrowing is higher than it was a year ago. With that in mind, your refinance rate isn’t the only thing that matters. Refinance closing costs can average 3% to 6% of the loan balance and in the short run, could be more expensive than the interest you pay.

Here’s where refinance rates are today .

The average mortgage refinance rates are as follows:

Check out mortgage refinancing rates for your area here.

Where Are Refinance Trending?

Per the latest Consumer Price Index (CPI), annual inflation dipping slightly in April to 8.3%. This still puts it on par with the 40-year highs we’ve seen in the past few months. And that means refi rates are likely to see more increases as long as inflation remains high.

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In response to high inflation that has lasted longer than initially anticipated, the Federal Reserve has begun increasing interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

If we end up with high inflation for an extended period of time, then the chances that the Federal Reserve dramatically increases rates goes up.

Is It a Good Time to Refinance Right Now?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. However, as rates have risen, the number of homeowners with rates well above current market rates has diminished dramatically.

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

Why Is It Important to Look at the History of the 30-Year Fixed Mortgage Rate?

Although today’s refinance rates are near or above 5%, that is a typical interest rate historically. However, refinancing is still a viable option when your existing rate is significantly higher than the prevailing rates.

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The historical rate trends shown in this chart reference data complied by Freddie Mac. NextAdvisor typically uses rate information collected by Bankrate. Although these mortgage rate surveys differ, they tend to show the same trends.

Pro Tip: Pay Attention to Refinance Fees

When you choose to refinance your existing home loan, you’ll typically pay upfront fees known as closing costs. Fees can average 3% to 6% of your loan balance so it’s important to pay attention to them. You may be lower your monthly payment, but pay attention to how long it will take your monthly savings to outweigh what you paid to refinance.

30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.80%, a decrease of 14 basis points from a week ago.

You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand how much you could save if you made extra payments. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Refi Rates

Currently, the average rate for a 15-year fixed refinance loan is 5.05%, a decrease of 12 basis points from a week ago.

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Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build up equity in your home much more quickly.

Average 10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 5.05%, a decrease of 20 basis points from the rate observed over the previous week.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How we calculate our refi rates

The table below shows where refinance rates were headed in the last week.

These daily refinance rates are provided by Bankrate. The information is based on homeowners that fit a certain profile, such as the loan is for a primary residence and their FICO score is 740 or higher. So you’ll be eligiblefor different rates if your financial situation don’t align with the survey criteria.

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Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Rates as of June 24, 2022.

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

Refinance Rate Frequently Asked Questions (FAQ):

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 a significant role. Consider whether or not refinancing fits into your life plans and financial desires

Generally speaking, refinancing makes sense if you can lower your interest rate by 1% or more. However, refinancing isn’t always about reducing your mortgage rate. Recently, more homeowners have taken advantage of increasing home values with a HELOC. A HELOC may not always get you the best rate, but it can be a smart way to consolidate debt or to affordably finance a home renovation.

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As long as refinancing aligns with your financial goals and gets you closer to achieving them, then now is a good time to refinance.

How to Ensure You Get the Best Refi Rate

Your finances have a big impact on the refinance rate you’ll be able to secure. Having a lower loan-to-value ratio for your home and a healthier credit score generally will get you a better refinance rate.

Your situation isn’t the only thing that will impact the interest rates you’re offered. 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 affect on your refinance interest rate. A shorter-term refinance loan usually has better interest rates than mortgage refinance loans with longer repayment terms, all else equal. The type of refinance you need makes a difference in the interest rate. Cash-out refinance loans typically have higher refinance rates than other loans.

Average Cost of Refinancing

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

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  • Location
  • Type of the mortgage
  • The lender
  • Loan balance
  • Your credit score
  • Home’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.

Mortgage Interest Rates by Loan Type

Mortgage Refi Rates

Home Purchase Rates

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Current Mortgage Interest Rates, June 24, 2022 | Rates Stay Under 6% After Dip

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Current Mortgage Interest Rates, June 24, 2022 | Rates Stay Under 6% After Dip

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a journalist based in Chicago covering personal finance for NextAdvisor. His previous work includes…

June 24, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

After nearly two years of record-low mortgage rates, 2022 started off with rates nearly rising to levels we haven’t seen since before the pandemic.

That doesn’t mean you need to cancel your home purchase plans. Yes, rates are higher than they were in 2021, but it’s important to keep in mind 30-year fixed rates are still close to where they were a few short years ago.

Besides, there’s a lot more that goes into a homebuying decision than just an interest rate. Buying a home is about making a lifestyle choice. While the interest rate market for mortgages can shape a decision, it’s wise to not base it solely on a few basis points on a mortgage rate. What’s most important to consider is to set a realistic homebuying budget and stick to it.

Let’s take a look at current mortgage rates, where rates have been in the past, and what it all means for the borrower.

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A variety of key mortgage rates slumped today. The averages for both 30-year fixed and 15-year fixed mortgages diminished. For variable rates, the 5/1 adjustable-rate mortgage (ARM) trended upward.

The averages for 30-year fixed, 15-year fixed, and 5/1 ARMs are:

Mortgage Rate Forecast: What Drives Changes in Mortgage Rates?

Mortgage rates have increased because of a variety of economic factors so far this year. Persistently high inflation is a big one, Jacob Channel, senior economic analyst at LendingTree told us. May’s inflation report shows 8.6% inflation, the highest level in 40 years. To combat this inflation, the Federal Reserve increased its benchmark short-term interest rate. Since inflation remained higher than expected, the Fed raised rates by 50 basis points in May and by 75 basis points in June.

Following the inflation report, mortgage rates spiked ahead of the Fed’s announcement. “I think what we’re seeing is that lenders had already anticipated that the Fed was going to raise the Fed funds rate by 75 basis points and they began to preemptively push mortgage rates up,” Jacob Channel, senior economist at LendingTree, told us.

In addition to the COVID lockdown in China and Russia’s invasion of Ukrainian territory, financial markets are still reacting to other global factors. “​​We have a lot of factors like that that are putting upward pressure on mortgage rates,” Channel says. “The volatility has been through the roof,” Shashank Shekhar, founder and CEO of InstaMortgage, told us. “The market has been adjusting to a new news cycle practically every single day.”

What do Today’s Mortgage Rates Mean for Your Home Buying Plans?

Even with the recent dramatic increases, mortgage rates remain at normal levels and are still considered historically favorable.

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But the overall cost of homeownership is now rising with rising rates. With a combination of limited supply of homes, prices are up significantly from before the pandemic. The massive demand from buyers and higher costs to build homes is also contributing to the surge.

The difference of a point or so can mean a lot of money over a 30-year mortgage. But experts advise against trying to time the market to get the best mortgage rate. It’s more important to focus on finding the right house, and do it when your personal lifestyle and financial situation indicate it’s the right time.

Mortgage lenders rates can vary significantly. In order to get the best deal, shop around between a few different mortgage lenders. Be sure to get quotes from different lenders to ensure you’re getting the best deal, experts say. “The rate highly impacts your monthly affordability for as long as you will hold this home,” Skylar Olsen, principal economist at Tomo, a digital real estate and mortgage company, told us. “It is actually a critical piece of this decision, and that takes shopping around.”

Closing Costs & Loan Fees

Anytime you take out a home loan, be sure to pay close attention to the closing costs. These fees include loan origination fees, prepaid interest, and property taxes, and can range from 3 to 6% of the loan amount.. Accepting a higher interest rate, in exchange for lender credits can assist you in reducing your out-of-pocket costs. This strategy can save you money in the short-term, so it’s worth looking into if there is a chance you’ll be selling the home or refinancing in five to eight years.

Today’s Mortgage Refinance Rates

There’s good news if you’ve been considering a refinance because the mean rates for 15-year fixed and 30-year fixed refinance loans shrank. Shorter term, 10-year fixed-rate refinance mortgages also saw a decrease.

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The average refinance rates are as follows:

Check out mortgage rates that meet your distinct needs.

30-Year Fixed-Rate Mortgage Rates

The 30-year fixed-mortgage rate average is 5.81%, which is a decrease of 13 basis points from last week.

15-Year Fixed Mortgage Rates

The median rate for a 15-year fixed mortgage is 5.05%, which is a decrease of 14 basis points compared to a week ago.

A 15-year, fixed-rate mortgage’s monthly payment is, without a doubt, a much bigger monthly payment than what you’d get with a 30-year mortgage offering the same interest rate. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much faster.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 4.29%, which is a climb of 20 basis points from the same time last week.

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An adjustable-rate mortgage is ideal for individuals who will sell or refinance before the rate changes. If that’s not the case, their interest rates could end up being significantly higher after a rate adjusts.

For the first five years, a 5/1 ARM will typically have a lower interest rate compared to a 30-year fixed mortgage. Keep in mind that your rate could climb higher and your payment might grow by hundreds of dollars a month.

How We Determine Mortgage Rates

To get an idea of where mortgage rate may move, we rely on information collected by Bankrate, which is owned by the same parent company as NextAdvisor. The daily rates survey focuses on mortgages where the borrower has a 740+ credit score, a loan-to-value ratio (LTV) of 80% or better, and lives in the home.

The current average rates listed below and based on the Bankrate mortgage rate survey:

Updated on June 24, 2022.

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Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Best Mortgage Rate?

Comparing mortgage offers is a great way to get the lowest interest rate.

The mortgage rate you’ll qualify for depends on a variety of factors lenders consider when assessing how the likelihood that you’ll be able to afford your monthly payments for the long term. Your credit score is a big part of this decision. And even the value of the property compared to the size of your mortgage is important. So putting more money into your down payment can reduce your interest rate.

But lenders will look at your situation differently. So you can provide the same documentation to three different mortgage providers, and get offers with three different mortgage rates and fees that vary just as much.

Is Now a Good Time to Lock in My Mortgage Rate?

Mortgage rates move up and down on a daily basis, and it’s impossible to time the market. So locking in your interest rate right now is a good idea because overall, rates are historically favorable.

When you lock in your rate, ask your lender how long the lock will last. A rate lock can be good for anywhere from 30 to 60 days, which typically will give you enough time to close before the lock expires. If something happens where you need to extend your rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

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Current Mortgage Refinance Rates, June 23, 2022 | Rates Fall Below 6%

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Current Mortgage Refinance Rates, June 23, 2022 | Rates Fall Below 6%

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a journalist based in Chicago covering personal finance for NextAdvisor. His previous work includes…

June 23, 2022 | 7 Min Read

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We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

In general, refinance rates for mortgages were varied with one notable rate decreasing.

The average rate nationwide for a 15-year fixed-rate refinance increased, while 30-year fixed refinance rates trailed off. The average rate on 10-year fixed refinance mortgages moved up.

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Refinance rates have skyrocketed through the first months of 2022. Short-term interest rates have already increased multiple times, and the Fed plans to do so again in the coming months.

Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. Simply put, the cost of refinancing is increasing because rates are higher. That said, interest rates aren’t the only thing to concentrate on. Closing costs on a refinance loan can add up to thousands of dollars, greatly increasing your upfront costs.

Let’s take a look at the current refi rate trends.

Refinance rates currently are:

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

Refinance Rate Forecast: What Drives Changes in Mortgage Rates?

The Consumer Price Index (CPI) for April shows a slight drop in annual inflation to 8.3%. The price still stands on par with the 40-year inflation highs of recent months. And that’s bad news for refinance rates.

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With high inflation lingering longer than initially expected the Federal Reserve has begun raising interest rates. Adding to the issue is Russia’s invasion of Ukraine and China’s COVID-19 lockdowns. Both of these geopolitical events threaten to compound existing supply chain issues and add to inflation. These issues haven’t even hit the U.S. yet, “it’s going to take months for those disruptions to seep fully into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor.

All of this means that we could be stuck with high inflation for longer than we’d like, which increases the likelihood that the Fed will need to be aggressive in raising rates.

Is Refinancing Now a Good Idea?

A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. And the number of homeowners with rates well above the current market rates has dwindled dramatically as rates have risen.

There are alternatives to refinancing. With values rising in today’s housing market, homeowners may want to turn that value into cash. With rates where they are, a home equity line of credit (HELOC) may make sense 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 be sure to understand all of the fine print regardless fees, the interest rate and the repayment schedule..

Why Is It Important to Look at the History of the 30-Year Fixed Mortgage Rate?

Even with refi rates climbing higher than they have been in recent history, they still fall within normal historical trends. If your current rate is higher than today’s rates, then a refinance could be a good option.

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

Pro Tip: Pay Attention to Refinance Fees

You will pay upfront fees of 3% to 6% of your loan amount when you take out a new home loan. When refinancing, you need to consider this expense. Refinancing often or selling a house soon after refinancing can result in your monthly savings not exceeding the fees you paid.

30-Year Refi Rates

Right now, the average 30-year fixed refinance has an interest rate of 5.88%, a decrease of 1 basis point over the previous week.

You can use our mortgage calculator to get an idea of what your monthly payments will be and to understand how paying more each month will impact your mortgage. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

15-Year Fixed Refinance Rates

For 15-year fixed refinances we’re seeing an average rate of 5.14%, an increase of 4 basis points from what we saw last week.

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Monthly payments on a 15-year refinance loan are tougher to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can save you thousands of dollars interest over the life of the loan.

Average 10-Year Fixed Refinance Rates

The average 10-year, fixed refinance rate is 5.20%, an increase of 4 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost even more than what you’d pay on a 15-year loan. The upside is you’d end up paying even less interest over the life of the loan.

How our refi rates are calculated

The table below shows refinance rates trends from the past week.

These refi rates are supplied by Bankrate. The information is based on borrowers that fit a certain profile, such as the loan is for a primary residence and their FICO score is 740 or higher. So you’ll be eligiblefor different rates if your personal circumstances don’t align with the survey criteria.

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Bankrate is owned by Red Ventures, Nextadvisor’s parent company.

Rates as of June 23, 2022.

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

Refinance Rate Frequently Asked Questions (FAQ):

Should I Refinance Right Now?

While refinance rates are higher than recent record lows, they are still exceptionally low. The current time could still be the right time to refinance if you want to lower your mortgage payment by refinancing to a lower rate.

You should also consider other factors when deciding whether it is the right time for you to refinance. In addition to the number of years left on your existing mortgage, the new repayment term will have an impact on your decision. A 30-year refinance loan may not make sense for you depending on how long you’ve had your current mortgage. However, you will pay more each month if you choose a shorter-term refinance, although depending on how much you can reduce your interest rate it may balance out.

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Before you jump on an exceptionally low refinance rate, be sure that the overall deal makes sense for you.

How to Get the Lowest Refi Rate

Mortgage refinance rates vary depending on your personal financial situation. If you have a higher credit score and lower loan-to-value (LTV) ratios will usually be able to get better refinance mortgage rate.

Your situation isn’t the only factor that impacts your refinance rate. Your house’s equity also factors into the decision. Having at least 20% equity in your property is ideal.

The type of mortgage loan can determine your refinance interest rate. A shorter-term refinance loan usually has better refinance rates than loans with longer repayment terms, all else equal. Also, if you want to pull cash out of your home with a cash-out refinance, you should expect to pay a higher mortgage rate for that privilege.

Average Cost of Refinancing

There are a handful of things to consider that influence the cost of refinancing, including:

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  • Location
  • Type of refinance loan
  • Your lender
  • Loan amount
  • FICO score
  • Home’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. Your state and local regulations can influence what fees and taxes you pay. Having more equity in the home and a higher credit score will make it easier to qualify for the refinance loan, secure a lower rate, and to get lenders to compete for your business.

Mortgage Rates by Loan Type

Mortgage Refi Rates

Home Loan Interest Rates

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