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Refi Rates Today, September 23, 2022 | Rates Top 6.5% After Federal Reserve Hike

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Refi Rates Today, September 23, 2022 | Rates Top 6.5% After Federal Reserve Hike

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

September 23, 2022 | 6 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, several closely followed mortgage refinance rates moved up.

Both the 15-year fixed and 30-year fixed saw their mean rates trend upward. At the same time, average rates for 10-year fixed refinances also moved up.

Refinance rates have skyrocketed through the first months of 2022. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

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Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. Right now, homeowners may struggle to find an interest rate low enough for refinancing to make sense. 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.

Take a look at today’s refinance rates:

  • The average 30-year fixed-rate refinance is 6.55%
  • Currently, the average 15-year fixed-rate refinance is 5.75%
  • 10-year mortgage refinance rate: 5.92%

Check out mortgage refinancing rates for your area here.

Refinance Rate Forecast: What Drives Changes in Mortgage Rates?

The annual inflation rate came in it at 8.5% in July, according to the latest data from the Bureau of Labor StatisticsAnd that’s not good for refinance rates.

With high inflation lingering longer than initially expected the Federal Reserve has raised interest rates three times. 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.

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Is It a Good Time to Refinance Right Now?

As a rule of thumb, refinancing can save you money if you can secure an interest rate that’s around 1% lower than your existing 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. For those wanting to consolidate high-interest debt or make much needed home repairs or upgrades, a HELOC could make sense. If you go that route, you’ll want to understand the repayment schedule, interest rate and fees because they could differ from a traditional mortgage.

Pro Tip: What to Know About Refinance Fees

When you take out a new home loan, you’ll pay upfront fees totaling 3% to 6% of the loan amount. If you refinance, this is a significant expense you should take into account. Your monthly savings may not have exceeded the upfront fees if you refinance too often or sell your home soon after refinancing.

Average 30-Year Fixed Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.55%, an increase of 27 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 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.

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15-Year Refi Rates

For 15-year fixed refinances we’re seeing an average rate of 5.75%, an increase of 16 basis points from what we saw last week.

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 save you thousands of dollars interest over the life of the loan.

10-Year Refi Rates

The average 10-year, fixed refinance rate is 5.92%, an increase of 18 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 refinance rates are calculated

Our daily refinance rates are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refinance interest rate averages are based on a consumer profile that meets these qualifications:

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  • At least 20%+ equity
  • Owner occupied home
  • FICO score of 740 or higher
  • Existing single-family detached home (not new construction)

The information provided to Bankrate from lenders across the country is provided in the table below:

Rates as of September 23, 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?

Even though refinance rates are higher than the recent record lows, they are still historically favorable. 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.

You should also consider other factors when deciding whether it is the right time for you to refinance. Refinancing into a new home loan can add years onto your mortgage. If you’re close to paying off your existing mortgage, then you’ll want to factor in the trade offs. Depending on how long you’ve had your current mortgage, you may not want a 30-year refinance 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.

Be sure you take all factors into consideration before refinancing, not just the interest rate.

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How to Qualify for the Best Refinance Rate

Your finances have a big effect on the refinance rate you get. Having a lower loan-to-value ratio for your home and a higher credit score generally translates into a lower mortgage refinance rate.

But your personal financial situation isn’t the only consideration that affects the refinance rate you qualify for. The equity you have in the property 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 loan with a shorter repayment term usually has lower interest rates than mortgage refinance loans with longer repayment terms, all else equal. Your refinance interest rate is also affected by the type of mortgage refinance you plan on taking out. Cash-out mortgage refinance loans typically have higher refinance interest rates than other loans.

How Much Does Refinancing Cost?

There are a number of factors that influence the cost of refinancing, including:

  • Where you live
  • Type of refinance loan
  • What lender you choose
  • Loan balance
  • Credit score
  • Home’s equity

In general, refinance closing costs are 3% to 6% of the loan balance. The type of the loan you are refinancing into can impact its cost in a few different ways. Certain government-backed refinance loans, like the FHA Streamline or VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but could come with hefty upfront fees to cover the mortgage insurance. On the other hand, if you have enough equity, you could refinance into a conventional loan to possibly get rid of the mortgage insurance requirement.

Mortgage Interest 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 Interest 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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Mortgage Interest Rates Today, October 7, 2022 | Rates Go Up

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Mortgage Interest Rates Today, October 7, 2022 | Rates Go Up

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

October 7, 2022 | 6 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.

If you haven’t thought about mortgage rates in a while, you’re in for a surprise.

After a few years of rates near record lows – around 3% or lower for a 30-year fixed rate – averages have roughly doubled since January. Inflation is a big reason why, and rates have continued to climb as the Federal Reserve has ratcheted up its interest rate to tame those high prices.

The good news for homebuyers is that higher mortgage rates have cooled down a piping hot housing market. Home prices have started to dip since the start of summer, and are falling faster in some communities. Unfortunately those higher rates also mean monthly payments are likely to be significantly higher. Be sure to run today’s mortgage rates through a calculator and give yourself plenty of breathing room, as rates are changing quickly.

Let’s look at today’s rates and what they mean for borrowers.

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Looking at today’s mortgage rates a number of notable rates saw growth. The averages for both 30-year fixed and 15-year fixed mortgages both climbed higher. For variable rates, the 5/1 adjustable-rate mortgage (ARM) also trended upward.

Mortgage rates currently are:

  • 30-year fixed mortgage rates are averaging 6.97%
  • 20-year fixed mortgage rates are averaging 6.97%
  • The average 15-year fixed-rate mortgage currently sits at 6.12%
  • 10-year mortgage rate: 6.18%
  • Today’s average 5/1 adjustable-mortgage rate is 5.33%

Mortgage Rate Forecast: What Drives Changes in Mortgage Rates?

Mortgage rates have been pushed up primarily by the highest inflation in four decades. The consumer price index showed prices up 8.3% year-over-year in August, compared to 8.5% in July. Inflation has remained higher than expected.

In response to that high inflation, the Federal Reserve has increased its benchmark short-term interest rate, known as the federal funds rate. In September it raised the federal funds rate by 75 basis points for the third time in a row. While the Fed’s changes don’t directly drive increases in mortgage rates, they have some correlation because they both respond to inflation.

“Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates. Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

Current Mortgage Rates: Are They Good For Buying a Home Right Now?

The big increase in mortgage rates this year has taken a lot of potential homebuyers out of the market. That could present opportunities for you – if you can afford the higher cost of borrowing money.

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Homebuyers are facing less competition and prices are down compared to their all-time highs earlier this year, but they’re still high. If you can find a deal you can afford, it can still be a good opportunity. After all, nobody knows what mortgage rates and prices will be like next year, and buying a home is a lifestyle decision, not just a financial one.

“It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” says Eileen Derks, head of mortgage at Laurel Road, an online lender owned by KeyBank that specializes in serving health care professionals.

What to Know About Loans Fees

The catchall term for the fees you pay to get a mortgage is closing costs. Everything from the prepaid property taxes to your appraisal fees fall into this category. In general, closing costs are 3% to 6% of your loan amount, so the larger your mortgage the more you’ll pay as a total dollar amount. Paying attention to the closing costs you pay is important because the higher your closing costs, the higher your annual percentage rate (APR) will be.

Looking at Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates increase. If you’ve been considering a 10-year refinance loan, just know average rates shrank.

The refinance averages for 30-year, 15-year, and 10-year loans are:

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  • Today’s average 30-year fixed refinance rate is: 6.95%
  • 20-year refinance rate: 6.95%
  • 15-year refinance rate: 6.12%
  • 10-year fixed refinance rates are averaging 6.14%

Current Mortgage Rates.

30-Year Fixed-Rate Mortgage Rates

The 30-year fixed-mortgage rate average is 6.97%, which is a growth of 14 basis points from last week.

15-Year Fixed-Rate Mortgage Rates

The median rate for a 15-year fixed mortgage is 6.12%, which is an increase of 12 basis points from seven days ago.

A 15-year, fixed-rate mortgage’s monthly payment will be much bigger. So finding room in your budget for a 30-year loan’s monthly payment would be easier. However, 15-year loans have some considerable benefits: You’ll save thousands of dollars in interest and pay off your loan much sooner.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 5.33%, which is an uptick of 11 basis points compared to last week.

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

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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 payment could end up being hundreds of dollars higher after a rate adjustment, depending on the terms of your loan.

How We Calculate Our Mortgage Rates

NextAdvisor’s mortgage interest rate averages are pulled from Bankrate’s daily rate data.. These overnight rates are based on a specific borrower profile, which only includes loans for primary residences where the borrower has a FICO score of 740+. Bankrate is part of the same parent company as NextAdvisor.

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

Updated on October 7, 2022.

Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Qualify for the Lowest Mortgage Rate?

Shopping around for a mortgage is a great way to secure the lowest mortgage interest rate.

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The mortgage rate you get depends on a number of factors lenders consider when assessing how likely you are to repay your home loan. Your credit score impacts your mortgage rate. And even the property’s value compared to your loan balance is important. So putting more money into your down payment can reduce your mortgage rate.

But banks will evaluate your situation differently. So you can give the same documentation to three different banks, and get offers with three different mortgage rates and fees that vary just as much.

When Should I Lock in My Mortgage Rate?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

A rate lock will only last for a set amount of time, typically 30-60 days. If you hit a snag during closing and it looks like your rate lock will expire you should contact your lender. It may be able to extend the rate lock, however, you might have to pay a fee for that privilege.

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Today’s Mortgage And Refinance Rates, October 6, 2022 | Rates Back Up To Almost 6.9%

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Today’s Mortgage And Refinance Rates, October 6, 2022 | Rates Back Up To Almost 6.9%

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Jason Stauffer

Jason Stauffer

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Staff Writer

Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

October 6, 2022 | 6 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.

This isn’t the same mortgage rate environment as last year.

The average interest rate for a 30-year fixed rate mortgage has doubled in the last year, with high inflation largely to blame. Rates have risen significantly as the Federal Reserve has hiked its key interest rate to fight that high inflation.

For homebuyers, those big changes in mortgage rates mean higher monthly payments, even as the prices of homes have started to come down a bit. The most important thing for consumers is to ensure that the house you’re thinking of buying is one you can afford. Factor changes to prices and to mortgage rates into your calculations when determining if the monthly payment is something you can manage.

Let’s look at today’s rates and what they mean for buyers and homeowners.

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A number of closely followed mortgage rates all moved up today. Both 30-year fixed and 15-year fixed mortgage rates were higher. At the same time, average rates for 5/1 adjustable-rate mortgages (ARM) also were raised.

Take a look at today’s rates:

  • The average 30-year fixed-rate mortgage currently sits at 6.89%
  • 20-year fixed mortgage rates are averaging 6.91%
  • 15-year mortgage rate: 6.07%
  • 10-year fixed mortgage rates are averaging 6.12%
  • 5/1 ARM rate: 5.34%

Mortgage Rate Forecast: What Is Driving Mortgage Rate Change?

Inflation has been high this year, with the consumer price index at 8.3% year-over-year in August. That was down from July’s 8.5%, but still higher than expected, and it prompted the Federal Reserve to raise its key interest rate by 0.75 percentage points for the third time in a row this year.

Those factors have both pushed mortgage rates higher this year, from around 3.3% in January to more than 6% at the end of September.

“Inflation is absolutely in the driver’s seat, particularly as it pertains to mortgage rates. Until we get some sustained evidence that inflation is beginning to recede, the upward pressure on mortgage rates will remain,” says Odeta Kushi, deputy chief economist at First American Financial Corporation.

Current Mortgage Rates: Are They Good For Buying a Home Right Now?

This year’s dramatic surge in mortgage rates has complicated the math for homebuyers. Mortgage costs are significantly higher than they were just a few months ago, oftentimes wiping out any savings that would be seen from lower home prices.

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Home prices remain near their all-time highs and are still higher than they were at the same point last year, despite some drops from their peaks earlier in the summer.

The most important thing is to do the math and calculate your expected monthly payment, and see if that fits your budget. The softening demand for homes could also mean you’re more likely to be able to find a deal or get a seller to agree to concessions, such as paying mortgage points to get you a lower interest rate.

“It’s always a good time to buy a home, if that’s what is important to you. It’s just about doing your research and making good informed decisions,” says Eileen Derks, head of mortgage at Laurel Road, an online lender owned by KeyBank that specializes in serving health care professionals.

Pay Attention to Loan Fees

The industry term for the upfront fees you pay when you get a home loan is closing costs. The fees for your appraisal, title insurance, and any lender origination charges are all part of your closing costs. Certain closing costs vary by loan size, but overall you can expert to pay 3% to 6% of the total loan balance.. Keeping track of your closing costs is crucial because a higher closing cost will result in a higher APR.

Looking at Today’s Mortgage Refinance Rates

Refinancing became a bit more expensive today as 30-year fixed and 15-year fixed refinance mortgages saw their mean rates rise. If you’ve been considering a 10-year refinance loan, just know average rates also moved up.

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The average refinance rates are as follows:

  • 30-year fixed refinance rates are averaging: 6.89%
  • 20-year fixed-rate refinance: 6.91%
  • 15-year fixed-rate refinance: 6.09%
  • 10-year refinance rate: 6.12%

Take a look at mortgage rates for different types of loans.

30-Year Fixed-Rate Mortgage Rates

The 30-year fixed-mortgage rate average is 6.89%, which is an increase of 7 basis points from the previous week.

15-Year Mortgage Rates

The median rate for a 15-year fixed mortgage is 6.07%, which is an increase of 10 basis points from the same time last week.

A 15-year, fixed-rate mortgage’s monthly payment is, undeniably, 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 pay thousands less in interest and pay off your loan much sooner.

5/1 ARM Interest Rates

A 5/1 ARM has an average rate of 5.34%, which is an increase of 14 basis points compared to last week.

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An adjustable-rate mortgage is ideal for households 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

We use Bankrate’s daily rate data for our mortgage rate trends. These overnight rates are based on a specific personal financial profile, which only includes loans for owner occupied homes with 20% equity or more. Bankrate is part of the same parent company as NextAdvisor.

This table has current average rates based on information provided to Bankrate by lenders from across the nation:

Updated on October 6, 2022.

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Pro Tip

Use our mortgage calculator to see how your monthly payment changes based on causes like your mortgage rate, homeowners insurance, and property taxes.

Mortgage Rate Frequently Asked Questions (FAQ):

How Do I Get the Lowest Mortgage Rate?

Comparing mortgage offers is one of the best ways to get the lowest mortgage rate.

Your mortgage rate depends on a variety of factors lenders consider when assessing how likely you are to repay your mortgage. Your credit score factors into the decision. And even the value of the property compared to your mortgage balance is important. So increasing your down payment can reduce your interest rate.

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

When Should I Lock in My Mortgage Rate?

It’s impossible to know what direction mortgage rates will go from day to day. That’s why a mortgage rate lock is such a useful tool because it protects you if rates go up. And with interest rates being relatively low right now, you should lock in your rate as soon as you can.

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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 you want to extend the rate lock, ask about fees as many lenders charge a fee for extending a rate lock.

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Mortgage Refinance Rates Today, October 4, 2022 | Rates Return Below 7%

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Mortgage Refinance Rates Today, October 4, 2022 | Rates Return Below 7%

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Jason Stauffer

Jason Stauffer

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Jason Stauffer is a personal finance reporter who previously covered the housing and mortgage market for NextAdvisor.…

October 4, 2022 | 6 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, several benchmark mortgage refinance rates made gains.

Both the 15-year fixed and 30-year fixed saw their average rates drop compared to yesterday.

Refinance rates have spiked in the early part of this year and seem poised to continue their upward march. We’ve already seen multiple increases in short-term interest rates and the Fed has plans for more to come.

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Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. Due to higher interest rates, refinancing costs are increasing. Keep in mind, when deciding to refinance there are other factors outside of just the rate to consider. 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.

Refinance rates currently are:

  • 30-year mortgage refinance rate: 6.83%
  • Currently, the average 15-year fixed-rate refinance is 6.11%
  • The average 10-year fixed refinance rate is 6.14%

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

Where Are Refinance Trending?

July’s Consumer Price Index (CPI) reported annual inflation is lower than June, but still inflated, at 8.5%. And that means refi rates are likely to see more increases as long as inflation remains high.

To fight high inflation the Federal Reserve has been raising short-term interest ratesAll 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 more aggressive in raising rates.

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Does Refinancing Still Make Sense?

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..

Pro Tip: Refinance Closing Costs

For a new mortgage, you will have to pay upfront fees totaling 3% to 6% of the loan amount. It is a significant expense that needs to be taken into account in the refinancing process. Refinancing often or selling a house soon after refinancing can result in your monthly savings not exceeding the fees you paid.

Average 30-Year Refinance Rates

Right now, the average 30-year fixed refinance has an interest rate of 6.83%, an increase of 8 basis points from what we saw last week.

You can use our mortgage calculator to determine how much your mortgage will cost you every month and to understand what the effects of making extra payments would be. Our mortgage calculator will also show you how much interest you’ll be charged over the entire loan term.

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Average 15-Year Refinance Rates

Currently, the average rate for a 15-year fixed refinance loan is 6.11%, an increase of 16 basis points from what we saw last week.

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 Fixed Refi Rates

The average 10-year, fixed refinance rate is 6.14%, an increase of 8 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 we calculate our refi rates

Our refi rate trends are based Bankrate’s daily rate data, which is owned by the same parent company as NextAdvisor. These overnight refi interest rate averages are based on a customer profile of the following:

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  • At least 20%+ equity
  • Primary residence
  • FICO score 740+
  • Existing single-family detached home (not new construction)

The information provided to Bankrate from lenders nationwide is displayed in the table below:

Rates as of October 4, 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?

Even though refinance rates are higher than the recent record lows, they are still historically favorable. If you want to reduce your mortgage payment by refinancing to a lower rate, and you haven’t refinanced in the past few years, then now is still a good time to look into refinancing.

However, your interest rate isn’t the only factor to consider when determining if now is the right time for you to refinance. Refinancing into a new home loan can add years onto your mortgage. If you’re close to paying off your existing mortgage, then you’ll want to factor in the trade offs. Those who have been paying on their current mortgage for 10 years may want to refinance to a 20 year loan so that they aren’t adding more years to the loan’s back end. 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.

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

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How to Ensure You Get the Best Refi Rate

Refinance rates are influenced by your personal finances. If you have a higher credit score and lower loan-to-value (LTV) ratios will generally be able to get lower refinance mortgage rate.

But your personal financial situation isn’t the only consideration that affects your mortgage refinance rate. The amount of equity you have in the home also comes into play. You want to have at least 20% equity, or a loan-to-value ratio of 80% or less.

Even the mortgage itself will impact your mortgage refinance rate. A loan with a shorter repayment term generally has lower interest rates than loans with longer repayment terms, all else equal. The type of refinance you need makes a difference in the interest rate. A cash-out refinance loan typically has an interest rate than other types of refinance loans.

Average Cost of Refinancing

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

  • Where the property is located
  • Type of refinance loan
  • What lender you choose
  • Loan amount
  • 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 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 Interest 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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rates12 hours ago

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