Several closely watched mortgage refi rates tapered off today compared to a week ago, according to data compiled by Bankrate.
- 30-year fixed refinance rate: 5.33%, –0.20 vs. a week ago
- 15-year fixed refinance rate: 4.68%, –0.15 vs. a week ago
- 10-year fixed refinance rate: 4.65%, -0.14 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 5.33 percent, down 20 basis points compared with a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.26 percent.
At the current average rate, you’ll pay $554.06 per month in principal and interest for every $100,000 you borrow. That represents a decline of $14.98 over what it would have been last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments 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 4.68 percent, down 15 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 come out thousands of dollars ahead over the life of the loan in total interest paid and build equity much faster.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 4.65 percent, down 14 basis points over the last week.
Monthly payments on a 10-year fixed-rate refi at 4.65 percent would cost $510.26 per month for every $100,000 you borrow. If you can manage that substantial monthly payment, you’ll enjoy even more interest cost savings than you would with a 15-year term.
Where are mortgage refinance rates headed?
Since the start 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 predict rates will jump 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 rates are still well below 4 …….