We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.
Today, a few benchmark mortgage refinance rates increased.
Both the 15-year fixed and 30-year fixed saw their average rates trend upward. The average rate on 10-year fixed refinance mortgages also moved up.
Refinancing interest rates are constantly shifting. However, they’re still near lows that we’ve never seen before. For those looking to refinance their existing mortgage, this can be the right move to lock in a great deal on an interest rate.
Take a look at today’s refinance rates:
Compare refinance rates for a wide range of different loans here.
2022 Refinance Rate Forecast
Refinance and mortgage rates could be prone to significant volatility this year. Nevertheless, interest rates are projected to continue to rise steadily throughout 2022. Higher inflation, that has hung around longer than expected, and a strong economy are two factors behind this predicted rise in rates. Additionally, the COVID-19 Omicron strain and other Coronavirus variants could affect the economy because of the economic uncertainty they could cause. The trend of rising rates is probably going to continue going forward, but weekly or daily rate movement is not likely to be consistent.
What the Refinance Rate Trends Mean for You
With interest rates remaining below 4%, refinancing can be a compelling option as these are stillhistorically low rates. However, the decision refinance involves more than just comparing interest rates. Your financial goals and life plans should also come into play. Refinancing may not make sense if you plan to move and sell the home with the next five years. If you’re not keeping the new refinance loan long enough, the ongoing savings may not offset the upfront fees you’ll pay.
A home equity line of credit (HELOC) is a useful alternative to refinancing if you want to turn your properties equity into cash. When you are pulling equity out of your home, the considerations are different. What you want to use the money for may be more important than your interest rate savings.
Pay Attention to Refinance Fees
You will pay upfront fees of 3% to 6% of your loan amount when you take out a new home loan. When refinancing, you need to consider this expense. Refinancing often or selling a house soon after refinancing can result in your monthly savings not exceeding the fees you paid.