Today’s Mortgage Refinance Rates Rise Slightly, But Still To Money-Saving Levels

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View mortgage refinance rates for January 27, 2022, which are up from yesterday. (Stock)

Based on data compiled by Credible, current mortgage refinance rates are up slightly across all tenors compared to yesterday.

  • Refinancing at a fixed rate over 30 years: 3.690%, vs 3.625%, +0.065
  • Refinancing at a fixed rate over 20 years: 3.375%, vs 3.250%, +0.125
  • Refinancing at a fixed rate over 15 years: 2.875%, vs. 2.750%, +0.125
  • Refinancing at a fixed rate over 10 years: 2.875%, vs. 2.750%, +0.125

Rates were last updated on January 27, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

After holding steady for the past few days, mortgage refinance rates rose across all durations today, in line with mortgage experts’ forecasts that rates will continue to rise in 2022. But there is good news for homeowners who took out their mortgage before the pandemic. Mortgage rates in 2019 and before were much higher, so homeowners with older mortgages can still realize significant interest savings by refinancing at one of today’s mortgage rates.

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These rates are based on the assumptions indicated here. Actual rates may vary.

If you think of refinance your home loan, consider using Credible. Whether you want to save money on your monthly mortgage payments or are considering a cash-out refinance, Credible’s free online tool will allow you to compare the rates of several mortgage lenders. You can see pre-qualified rates in as little as three minutes.

Current 30-year fixed refinance rates

The current rate for a 30-year fixed rate refinance is 3.690%. It’s been since yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage might lower your interest rate, but may not have much of an effect on your total interest costs or your monthly payment . Refinancing from a shorter-term mortgage to a 30-year refinance could result in a lower monthly payment but higher total interest charges.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed rate refinance is 3.375%. It’s been since yesterday. By refinancing a 30-year loan to a 20-year refinance, you could get a lower interest rate and lower total interest costs over the life of your mortgage. But you can get a higher monthly payment.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed rate refinance is 2.875%. It’s been since yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest costs and maintaining a manageable monthly payment.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed rate refinance is 2.875%. It’s been since yesterday. 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 larger monthly mortgage payment.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Rates were last updated on January 27, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

How much capital do I need to refinance my home?

When you apply for a mortgage refinance, lenders consider the equity you currently have in your home. If you do not meet the equity requirements of the lender, you may not qualify for refinancing with that lender.

Requirements can vary from lender to lender and depend on the type of refinance you are doing – rate and term refinance or cash refinance.

For rate and term refinance, you may be able to qualify with as little as 5% of your home equity. But your lender will likely require you to purchase private mortgage insurance. Most lenders will prefer a loan-to-value ratio of at least 20%, which means that the amount you owe on your mortgage does not exceed 80% of the total value of your home.

Generally, for a cash-out refinance, most lenders will want to see that you have a loan-to-value ratio, or LTV, of at least 20%. But some lenders can be flexible if you have good credit, a history of paying bills on time, and are willing to accept a higher interest rate.

To calculate your loan-to-value ratio, simply divide your loan balance by the current value of your home. For example, if your home is worth $350,000 and you owe $325,000, your LTV is just under 93% – and you may have trouble qualifying for a refinance.

How to get your lowest mortgage refinance rate

If you’re interested in refinancing your mortgage, improving your credit score, and paying off any other debt, you could guarantee 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.

According to a study by Freddie Mac.

Be sure to shop around and compare rates from several mortgage lenders if you decide to refinance your mortgage. You can do it easily with Credible’s free online tool and view your pre-qualified rates in just three minutes.

How does Credible calculate refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence how mortgage refinance rates move. Credible’s 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 credit score of 740 and is borrowing a conventional loan for a single-family home that will be their primary residence. Rates also assume no (or very low) discount points and a 20% deposit.

Credible mortgage refinance rates will only give you an idea of ​​today’s average rates. The rate you receive may vary depending on a number of factors.

When is it worth refinancing?

Refinancing a mortgage can be a great way to save money. But it’s not always the best decision for every homeowner.

People refinance for a number of reasons, including getting a lower interest rate, changing their monthly payment amount, and lowering their interest charges. Generally, if you can lower your interest rate by at least 0.75%, refinancing may be a good decision.

Here’s an example of how refinancing can save you money: If you refinance your $300,000 30-year loan at 4% to a new 30-year loan with an interest rate of 3.25 %, you reduce your monthly payment from $1,432 to $1,306. This is a monthly savings of $126, which amounts to $45,360 over the term of the mortgage.

But before you refinance, be sure to weigh closing costs and calculate how long it will take for your savings from refinancing to cover refinancing expenses.

Credible also has a partnership with a home insurance broker. You can compare for free home insurance quote via Credible’s partner here. It’s quick, easy, and the whole process can be done entirely online.

Think now might be a good time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do it easily with Credible and view your pre-qualified rates in just three minutes.

Rates were last updated on January 27, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] 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 like mortgages, mortgage refinance, and more. He was a publisher and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, etc.

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