2 of 3 key refinance interest rates were down today vs. this time last week, according to data compiled by Bankrate.
- 30-year fixed refinance rate: 5.35%, –0.16 vs. a week ago
- 15-year fixed refinance rate: 4.75%, –0.01 vs. a week ago
- 10-year fixed refinance rate: 4.62%, -0.13 vs. a week ago
Here’s a pro tip: Getting multiple offers can save you thousands of dollars over the life of your mortgage. “The extra effort of comparison shopping among lenders and putting in an extra application or two can pay dividends for years with a lower rate and savings on fees,” says Greg McBride, CFA, Bankrate chief financial analyst.
30-year fixed refinance
The average 30-year fixed-refinance rate is 5.35 percent, down 16 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.24 percent.
At the current average rate, you’ll pay $554.06 per month in principal and interest for every $100,000 you borrow. That’s $7.47 lower, compared with last week.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed refinance
The average rate for a 15-year fixed refi is 4.75 percent, down 1 basis points over the last seven days.
Monthly payments on a 15-year fixed refinance at that rate will cost around $517 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 4.62 percent, down 13 basis points over the last seven days.
Monthly payments on a 10-year fixed-rate refi at 4.62 percent would cost $510.26 per month for every $100,000 you borrow. That’s a lot more than the monthly payment on even a 15-year refinance, but in return you’ll pay even less in interest than you would with a 15-year term.
Where are refinance rates headed?
Since the beginning of the coronavirus pandemic in 2020, rates have been hovering around historic lows. But now rates are increasing as the Federal Reserve moves to contain inflation. Most experts expect rates to rise through 2022.
“Mortgage rates continue to surge, as they have since the beginning of the year, as the outlook takes shape for Fed rate hikes that are sooner and faster than previously expected,” McBride says. “Mortgage …….