Here are today’s refinancing rates, May 24, 2022: Rates are mixed

In general, mortgage refinancing rates have been varied with a significant increase. The average interest rate on a 15-year fixed refinance and a 10-year fixed refinance fell, while 30-year fixed refinances rose.

Although refinancing rates fluctuate slightly every day, homeowners can expect interest rates to rise later this year. In recent months, interest rates have moved up from historic lows seen during the pandemic and are now closer to 2018 levels. That means if you’re looking to save dollars and interest on your current monthly mortgage payments, these could be the lowest interest rates of 2022 be. Think about your goals and circumstances, and compare offers to find a lender that fits your needs.

30 year fixed rate refinancing

The current average interest rate on a 30-year refinance is 5.37%, up 2 basis points from this time last week. (One basis point equals 0.01%.) A 30-year fixed refinance typically has lower monthly payments than a 15- or 10-year refinance. If you’re currently struggling to make your monthly payments, a 30-year refinance could be a good option for you. However, keep in mind that compared to a 15- or 10-year refinance, interest rates are usually higher and you pay off your loan more slowly.

15 year fixed rate refinancing

For 15-year fixed refinance, the average rate is currently 4.65%, down 8 basis points from what we saw last week. With a 15-year fixed refinance, you have a higher monthly payment than with a 30-year loan. But you save more money over time because you pay off your loan faster. 15-year refinance rates are typically lower than 30-year refinance rates, helping you save even more over the long term.

10 year fixed rate refinancing

The current average interest rate on a 10-year refinance is 4.60%, down 9 basis points from a week ago. With a 10-year fixed refinance, you’ll pay more every month than you would with a 30-year or 15-year refinance — but you’ll also have a lower interest rate. A 10-year refinance can be a good deal because paying off your home earlier will help you save on interest in the long run. However, you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.

Where does the interest go

At the start of the pandemic, refinancing rates fell to historic lows, but now interest rates are hovering around pre-pandemic levels. The Federal Reserve recently hiked interest rates for the second time in 2022 and plans to raise them several more times throughout the year. With these policies, coupled with strong economic growth and inflation hitting its highest level in four decades, interest rates are expected to rise further this year. While there have been some temporary falls in interest rates, it is impossible to predict when another fall might occur. That means it’s a good idea to try to take advantage of refinancing now and lock in a decent interest rate.

We track refinance rate trends using data collected by Bankrate, owned by CNET’s parent company. Here is a table of the average refinancing rates provided by lenders across the country:

Average refinancing rates

product rate Last week To change
30 years of fixed ref 5.37% 5.35% +0.02
15 year fixed ref 4.65% 4.73% -0.08
10 year fixed ref 4.60% 4.69% -0.09

Prices from May 24, 2022.

How to shop refinance rates

When looking for refinance rates online, it’s important to remember that your specific financial situation will affect the interest rate offered. Although current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.

A strong credit score, low credit utilization, and a history of consistent and timely payments will generally help you get the best interest rates. In general, you can get a good feel for average interest rates online, but be sure to speak to a mortgage professional to see the specific rates you qualify for. And don’t forget about fees and closing costs, which can cost a hefty amount upfront.

It’s also worth noting that lenders have been stricter about their requirements in recent months. As a result, you may not qualify for a refinance — or a low interest rate — if you don’t have a solid credit history.

One way to get the best refinance rates is to strengthen your borrower application. If you haven’t already, try improving your credit score by monitoring your credit reports, using credit responsibly, and carefully managing your finances. Also, compare quotes from multiple lenders to get the best price.

When should I refinance?

Most people refinance because market interest rates are lower than their current rates or because they want to change their loan term. It is true that interest rates were at historic lows last year. But when deciding whether to refinance, you should consider other factors besides market interest rates.

Debt restructuring does not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan to stay in your home? Are you refinancing your monthly payment, paying off your house sooner—or for a combination of reasons? And don’t forget fees and closing costs, which can add up.

Some lenders have tightened their requirements in recent months, meaning you may not be able to get refinance at the advertised rates –– or even refinance at all — if you don’t meet their standards. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is needed to confirm that this makes sense.

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