Refi rate today, February 15, 2022 | Advance on tariffs
Today, several closely watched mortgage refinance rates have gone up.
Both the 15-year fixed and the 30-year fixed saw their average rate increase. At the same time, average 10-year fixed refinancing rates also increased slightly.
Take a look at today’s refinance rates:
Compare refinance rates for a wide range of different loans here.
Mortgage Rate Forecast: Where Will Refinance Rates Go in 2022?
There is a high potential for significant volatility with refinance and mortgage rates. However, overall refinancing rates are expected to rise in 2022. Strong economic conditions and higher inflation contributed to this expected rate hike. However, there is uncertainty regarding the COVID-19 Omicron strain and the potential impact of other coronavirus variants on 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.
What refinance rate trends mean for you
Refinancing rates have climbed to over 3.5%, which remains historically low rates. However, the decision to refinance involves more than just comparing interest rates. It is also important to consider your financial and personal goals. When you plan to move or refinance again is an important factor to consider. For the potential savings on your monthly payment to offset the fees you pay to refinance, you will need to hold the loan until you break even.
Another option is to convert the equity in your home into hard cash with a home equity line of credit (HELOC). When you take equity out of your home, the considerations are different. The use you want to make of the money may be more important than your interest rate savings.
Refinance closing costs
Closing costs are the fees you pay when you refinance a mortgage. Fees can average 3% to 6% of your loan balance, so it’s important to pay attention. 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 4.22%, an increase of 23 basis points from a week ago.
You can use our mortgage calculator to work out how much your mortgage will cost each month and find out how much less interest you’ll pay by making 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
For 15-year fixed refinances, we are seeing an average rate of 3.54%, an increase of 24 basis points from what we saw last week.
The monthly payments on a 15-year refinance loan are harder to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build equity in your home much faster.
10-year refinancing rate
The average 10-year fixed refinance rate is 3.45%, an increase of 20 basis points from what we saw last week.
Monthly payments with a 10-year refinance term would cost even more than what you would pay on a 15-year loan. The upside is that you’ll end up paying even less interest over the life of the loan.
How our refinance rates are calculated
The chart below shows refinance rate trends over the past week.
These daily refinance rates are collected by Bankrate. The information is based on clients who fit a certain profile, such as the loan is for a primary residence and their FICO score is 740 or higher. If your financial profile does not meet or exceed Bankrate’s survey standards, you will likely qualify for higher refinance rates than listed.
Bankrate is owned by Red Ventures, the parent company of Nextadvisor.
Rates as of February 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?
Refinancing is not only about numbers, like the refinance rate, your situation is also an important factor. Assessing whether refinancing fits into your financial and life plans is always a good idea
A rule of thumb is that refinancing makes sense if you can lower your interest rate by 1% or more. There are times, however, when the primary reason for refinancing isn’t to get a lower interest rate. Opening a home equity line of credit has recently grown in popularity as homeowners decide to capitalize on rising home values. Home equity lines of credit usually have higher rates than other options, but they can be a good way to pay for home renovations or pay off other higher-interest debt.
If this suits your situation, it’s still a good time to refinance your mortgage.
How to make sure you get the lowest refi rate
Refinance rates vary depending on your personal financial situation. Having a healthier credit rating and better loan-to-value (LTV) ratios will generally be able to secure lower interest rates.
But your personal financial situation isn’t the only thing that will affect the mortgage refinance rates offered to you. The equity in your property is also factored into the decision. 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 your refinance rate. A loan with a shorter repayment term usually has lower interest rates than a loan with a longer term. Additionally, if you want to get cash out of your home with a cash refinance, you should expect to pay a higher mortgage rate for the privilege.
What is the average cost of refinancing?
The cost of refinancing can vary significantly depending on these factors:
- Type of mortgage
- Your lender
- Loan Balance
- FICO score
- The net value of the property
Typically, refinance closing costs are 3% to 6% of the loan balance. The type of loan you refinance can impact its cost in different ways. Some government-backed refinance loans, like the FHA Streamline or the VA Interest Rate Reduction Refinance Loan (IRRRL) may not require an appraisal, but may come with high upfront fees to cover mortgage insurance. On the other hand, if you have sufficient equity, you can refinance into a conventional loan to eventually get rid of the mortgage insurance requirement.