Today's mortgage refinance rates rise again, but still a good deal | Jan. 19, 2022

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Based on data compiled by Credible, current mortgage refinance rates rose across all repayment terms today. Despite increases, mortgage refinance rates are still well below purchase rates from 2019 and earlier.

• 30-year fixed-rate refinance: 3.750%, up from 3.625%, +0.125
• 20-year fixed-rate refinance: 3.500%, up from 3.250%, +0.250
• 15-year fixed-rate refinance: 2.875%, up from 2.750%, +0.125
• 10-year fixed-rate refinance: 2.875%, up from 2.750%, +0.125

Rates last updated on Jan. 19, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

If you took out your mortgage before the COVID-19 pandemic pushed rates to historic lows, refinancing into one of today’s mortgage rates could deliver significant savings. In January 2019, the average rate for a 30-year fixed-rate mortgage was 4.46%, according to Freddie Mac data. Refinancing into a 15-year mortgage at today’s rates could reduce your interest rate by more than 1.5%.

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 3.750%. This is up from yesterday. 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 3.500%. This is up from yesterday. 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 2.875%. This is up from yesterday. 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 2.875%. This is up from yesterday. A 10-year refinance will help you may 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. 19, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

Is now a good time to refinance?

Mortgage refinance rates have been at historic lows throughout 2020 and 2021. It’s unlikely they’ll go much lower and extremely possible they’ll continue to rise in coming months. But low rates aren’t the only factors that determine whether now is a good time for you to refinance your home loan.

Everyone’s situation is different, but generally it may be a good time to refinance if …

• You’ll be able to get a lower interest rate than you currently have.
• Refinancing will save you money over the life of your home loan.
• Your savings from refinancing will ultimately exceed closing costs.
• You know you’ll be staying in your home long enough to recoup the costs of refinancing.
• You have sufficient equity in your home to avoid private mortgage insurance (PMI).

If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance. 

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 are some reasons to refinance?

Each borrower’s situation is different, but here are some good reasons to refinance: 

• To get a lower interest rate — A lower interest rate could mean you pay less in interest over the life of your mortgage — provided you also refinance into a shorter term.
• To shorten the repayment period — If your ultimate goal is to be mortgage-free one day, shortening the repayment period could help that happen sooner.
• To reduce interest costs over the life of the loan — Interest can be a significant chunk of the total cost of your mortgage. For example, if you borrow $250,000 at 3.5% for 30 years, your total interest costs would be $154,140. Refinancing at 2.75% for the same repayment period could save you $36,723 in interest costs.
• To withdraw equity in cash — Known as a "cash-out refinance," this type of refinance allows you to take out a new mortgage for more than you owe on your old one and take the difference in cash. Your home’s equity secures the extra cash, which you can use for home improvements, repairs, or other needs.
• To get a fixed mortgage rate — If you took out an adjustable-rate mortgage, the very low initial interest rate can reset to a much higher one at the end of the initial period. And after that, your rate can change with market conditions. Many homeowners with ARMs look to refinance into fixed-rate mortgages that can ensure a reliable payment at a predictable rate.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy, and the whole process can be completed entirely online. 

Think it might be the right time to refinance? 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. 19, 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.