Several closely watched mortgage refinance rates trended upward today vs. this time last week, according to data compiled by Bankrate.
- 30-year fixed refinance rate: 5.75%, +0.33 vs. a week ago
- 15-year fixed refinance rate: 4.92%, +0.28 vs. a week ago
- 10-year fixed refinance rate: 4.83%, +0.30 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 5.75 percent, up 33 basis points from a week ago. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.35 percent.
At the current average rate, you’ll pay $576.60 per month in principal and interest for every $100,000 you borrow. That’s $15.07 higher compared with last week.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see how much you’ll save by 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 15-year fixed refi average rate is now 4.92 percent, up 28 basis points over the last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $525 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment 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 quickly.
10-year fixed refinance
The average rate for a 10-year fixed-refinance loan is 4.83 percent, up 30 basis points over the last seven days.
Monthly payments on a 10-year fixed-rate refi at 4.83 percent would cost $524.67 per month for every $100,000 you borrow. That substantial monthly payment comes with the benefit of paying even less interest over the life of the loan than you would with a 15-year term.
Where are mortgage refi rates headed?
Since the start of the coronavirus pandemic in 2020, rates have been hovering around historic lows. But now rates are on the rise as the Federal Reserve acts to contain inflation. Most experts expect rates to increase 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. “…….