Time to refinance? Mortgage refinance rates are lower than last Tuesday | Jan. 18, 2022
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Check out the mortgage refinancing rates for Jan. 18, 2022, which are mixed from last Friday. (iStock)
Based on data compiled by Credible, current mortgage refinance rates edged up for 30- and 20-year fixed-rate refinances since last Friday, while 15- and 10-year rates held well below 3%. Overall, rates across all repayment terms are lower today than last week at this time.
- 30-year fixed-rate refinance: 3.625%, up from 3.375%, +0.250
- 20-year fixed-rate refinance: 3.250%, up from 3.125%, +0.125
- 15-year fixed-rate refinance: 2.750%, unchanged
- 10-year fixed-rate refinance: 2.750%, unchanged
Rates last updated on Jan. 18, 2022. These rates are based on the assumptions shown here. Actual rates may vary.
With mortgage refinance rates trending up, homeowners need to be strategic when picking the day they lock in their refinance rate. Today, 15- and 10-year refinance rates may be particularly attractive since they’ve held steady since last Friday. And although 30- and 20-year rates rose since the end of last week, they’re still significantly lower than last Tuesday. Homeowners may want to consider refinancing now, ahead of further increases.
These rates are based on the assumptions shown here. Actual rates may vary.
If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you're interested in saving money on your monthly mortgage payments or considering a cash-out refinance, Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.
Current 30-year fixed refinance rates
The current rate for a 30-year fixed-rate refinance is 3.625%. This is up from last Friday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.
Current 20-year fixed refinance rates
The current rate for a 20-year fixed-rate refinance is 3.250%. This is up from last Friday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduce total interest costs over the life of your mortgage. But you may get a higher monthly payment.
Current 15-year fixed refinance rates
The current rate for a 15-year fixed-rate refinance is 2.750%. This is the same as last Friday. A 15-year refinance could be a good choice for homeowners looking to strike a balance between lowering interest costs and retaining a manageable monthly payment.
Current 10-year fixed refinance rates
The current rate for a 10-year fixed-rate refinance is 2.750%. This is the same as last Friday. A 10-year refinance will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a bigger monthly mortgage payment.
You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.
Rates last updated on Jan. 18, 2022. These rates are based on the assumptions shown here. Actual rates may vary.
When is it worth it to refinance?
Refinancing a mortgage can be a great way to save money. But it’s not always the best move for every homeowner.
People refinance for a number of reasons, including to get a lower interest rate, change their monthly payment amount and lower their interest costs. Generally, if you can lower your interest rate by at least 0.75%, refinancing might be a good move.
Here’s an example of how refinancing can save you money: If you refinance your 30-year, $300,000 loan at 4% into a new 30-year loan with a 3.25% interest rate, you’ll lower your monthly payment from $1,432 to $1,306. That’s a monthly savings of $126, which adds up to $45,360 over the life of the mortgage.
But before you refinance, be sure to weigh closing costs, and calculate how long it will take before your savings from the refinance cover the expenses of refinancing.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance so you can find the best rate for your situation.
Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.
Be sure to shop around and compare rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.
How does Credible calculate refinance rates?
Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
Credible mortgage refinance rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
What is the average cost of a refinance?
Refinancing a mortgage can yield significant interest savings over the life of a loan. But all those savings don’t come for free. Generally, you’ll encounter costs — $5,000 on average, according to Freddie Mac — when refinancing your mortgage.
Your exact refinancing costs will depend on multiple factors, including the size of your loan and where you live. Typical refinancing costs include:
- The cost of recording your new mortgage
- Appraisal fees
- Attorney fees
- Lender fees, such as origination or underwriting
- Title service fees
- Credit report fees
- Mortgage points
- Prepaid interest charges
Keep in mind there’s no such thing as a truly no-cost refinance. Lenders who market "no-cost loans" typically charge a higher interest rate and roll the costs into the loan — which means you’ll pay more interest over the life of the loan.
Credible is also partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy and the whole process can be completed entirely online.
Think it might be the right time to refinance? To understand just how much you could save on monthly mortgage payments by refinancing now, crunch the numbers and compare rates using Credible's free online tool. Within minutes, you can see what multiple mortgage lenders are offering.
Rates last updated on Jan. 18, 2022. These rates are based on the assumptions shown here. Actual rates may vary.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.
As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.