Current Mortgage Refinance Rates, July 15, 2022 | Rates stable at 5.75%

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Today, several closely watched mortgage refinance rates have gone up.

Both the 15-year fixed and the 30-year fixed saw their average rates increase. At the same time, average 10-year fixed refinancing rates also increased.

Refinance rates have skyrocketed in the first few months of 2022. The Federal Reserve has already raised short-term rates twice this year, with more hikes to come.

Given the current interest rate environment, it is prudent for borrowers to take a good look 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. That said, interest rates aren’t the only thing to focus on. The interest you pay over time is one thing, but the initial closing costs can be anywhere from 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Let’s take a look at current trends in refinance rates.

Here are the average rates for 30-year, 15-year and 10-year refinance loans:

You can find the right refinance rate for you here.

Trends in refinancing rates

The annual inflation rate there was 8.3% in April, according to data from the Bureau of Labor Statistics. That still puts it at the 40-year highs we’ve seen in recent months. And that means refinance rates are likely to see more increases as long as inflation remains high.

To combat high inflation, the Federal Reserve raised short-term interest rates. Russia’s invasion of Ukraine and China’s COVID-19 lockdowns add to the problem. Both of these geopolitical events threaten to aggravate existing supply chain issues and increase inflation. And we haven’t even started to feel these supply shocks, “it will take months for these disruptions to fully seep into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told NextAdvisor .

If we end up with high inflation for an extended period, then the odds of the Federal Reserve raising rates significantly increase.

Should you consider refinancing now?

A rate and term refinance can save you money in the long run, but you generally want the new rate to be at least 0.75% to 1% lower than your current rate. And the number of homeowners with rates well above current market rates has dropped dramatically as rates have gone up.

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

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

Current mortgage interest rates are still within a normal historical range, even though they are breaking through the psychological barrier of 5%. If your current rate is higher than current rates, a refinance might be a good option.

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

Pro tip: Refinance closing costs

The costs associated with refinancing a mortgage loan are called closing costs. Closing costs range from 3% to 6% of your loan amount, so they can add up quickly. Even though your monthly payment may be lower, keep an eye on how long it will take for your monthly savings to exceed what you paid to refinance.

30-year fixed refinancing rates

Currently, the average 30-year fixed refinance has an interest rate of 5.75%, an increase of 5 basis points from a week ago.

You can use our mortgage calculator to determine how much your mortgage will cost you each month and to understand the impact of paying more each month on your mortgage. Our Mortgage Calculator will also tell you how much interest you will be charged over the life of the loan.

Average fixed refinancing rates over 15 years

Currently, the average rate on a 15-year fixed refinance loan is 4.99%, an increase of 11 basis points from what we saw last 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 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 4.94%, an increase of 8 basis points from a week ago.

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 refi rates

The chart below shows where refinance rates have headed over the past week.

These daily refi rates are provided by Bankrate. The information is based on customers who fit a certain profile, such as the home being an owner-occupied single-family residence. You will therefore be entitled to different rates if your personal situation does not correspond to the criteria of the survey.

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

Rates as of July 15, 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?

Whether or not you refinance doesn’t just depend on the numbers, such as the refinance rate. Your personal situation is also an important consideration. Assessing whether refinancing fits into your financial and life plans is always a good idea

Refinancing can be a good idea if you can lower your interest rate enough to offset the initial closing costs. But sometimes the purpose of a refinance isn’t to lower your mortgage rate. With rising home values, many homeowners are choosing to turn their new equity into cash with a HELOC. The money you get from a HELOC can be used for anything, but HELOCs generally have higher interest rates than other mortgages. It is therefore important to have a plan before deciding to take on more debt.

Ultimately, now is a good time to refinance if refinancing fits your financial goals and helps you achieve them.

How to make sure you get the best refinance rate

Mortgage refinance rates are influenced by your personal finances. Having a healthier credit rating and lower loan-to-value (LTV) ratios will usually result in a bigger reduction in their interest rate.

But your personal financial situation isn’t the only factor that affects the mortgage refinance rates available to you. A better loan-to-value (LTV) ratio will help you qualify for a lower refinance rate. So it is better to have more equity. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.

Even the mortgage itself has an effect on what your mortgage refinance rate will be. A short-term refinance loan usually has better rates than a longer-term loan. Additionally, if you want to turn your principal into cash with a cash refinance, you should expect to pay a higher mortgage rate for this privilege.

Average cost of refinancing

Refinancing a mortgage usually 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.

There are a number of factors that different lenders consider 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.

Mortgage interest rate by type of loan

Mortgage refinance rate

Mortgage redemption rate


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