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Today, a few closely followed mortgage refinance rates advanced.
Both the 15-year fixed and 30-year fixed saw their mean rates go up. The average rate on 10-year fixed refinance mortgages also moved up.
Mortgage refinance rates are constantly shifting. However, they’re currently very low. For those looking to refinance their existing mortgage, this may be the right move to lock in a great deal on an interest rate.
Refinance rates currently are:
Compare refinance rates for a wide range of different loans here.
Mortgage Rate Forecast: Where Are Refinance Rates Headed in 2022?
Refinance and mortgage interest rates are expected to rise in 2022, according to experts. The Federal Reserve has begun unwinding its pandemic-era support of the bond market, and is widely expected to begin raising short-term interest rates in March of 2022. According to the U.S. Bureau of Labor Statistics, inflation came in at 7% last year, a number we haven’t seen since 1982. It is possible that the Omicron variant, or other variants, could slow down mortgage rate increases. The threat of new Coronavirus strains, however, isn’t expected to result in a drop in rates in the long run.
What the Refinance Rate Trends Mean for You
Refinance rates have climbed to over 3.5%, which are still historically low rates. However, your interest rate isn’t the only factor to consider. Your financial goals and life plans should also come into play. If you plan on moving within the next five years, a refinance may not make sense. For the potential savings on your monthly payment to outweigh the fees you pay to refinance, you’ll need to keep the loan until the breakeven point.
Another option is converting your homes equity into hard cash with a home equity line of credit (HELOC). Borrowing additional money against your home can make sense, if you know what you want to use that money for..
Refinance Closing Costs
For a new mortgage, you will have to pay upfront fees totaling 3% to 6% of the loan amount. It is a significant expense that needs to be taken into account in the refinancing process. Your monthly savings may not have exceeded the upfront fees if you refinance too often or sell your home soon after refinancing.
30-Year Fixed Refi Rates
Right now, the average 30-year fixed refinance …….