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Current Mortgage Refinance Rates, May 19, 2022 | Lower prices

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Today, several benchmark refinance rates have fallen.

Both the 15-year fixed and the 30-year fixed saw their average rates plummet. And average 10-year fixed refinance rates have also fallen.

Refinance rates have skyrocketed in the first few months of 2022. The Federal Reserve has already raised short-term rates twice this year, with more hikes to come.

Right now, it’s more important than ever for homeowners to carefully consider whether or not the time is right to refinance. Due to higher interest rates, refinancing costs increase. However, the interest rate you qualify for shouldn’t be the only factor in your decision. The interest you pay over time is one thing, but the initial closing costs can be anywhere from 3% to 6% of the loan amount. That’s potentially thousands of dollars in fees.

Let’s take a look at current trends in refinance rates.

Take a look at today’s refinance rates:

Compare refinance rates for a wide range of different loans here.

Refinance Rate Forecast: What’s Driving Changes in Mortgage Rates?

According to the latest consumer price index (CPI), annual inflation fell slightly in April to 8.3%. That still puts it at the 40-year highs we’ve seen in recent months. And that means refinance rates are likely to see more increases as long as inflation remains high.

As inflation persists longer than expected, the Federal Reserve has started raising interest rates. On top of that, there are more issues for the global supply chain. Russia’s invasion of Ukraine and China’s latest round of COVID lockdowns threaten to worsen the rise in inflation we are currently experiencing. And we haven’t even started to feel these supply shocks, “it’s going to take months for these disruptions to fully seep into the supply chain,” Lindsey Piegza, chief economist at Stifel Financial told Reuters. NextAdvisor.

If we end up with high inflation for an extended period, then the odds of the Federal Reserve raising rates significantly increase.

Is it a good time to refinance now?

Generally, refinancing can save you money if you can get an interest rate about 1% lower than your current rate. That said, the recent spike in refinance rates has dramatically reduced the number of homeowners with interest rates well above today’s average rates.

In this hot housing market, the ability to turn your home equity into cash with a home equity line of credit (HELOC) has become increasingly popular. A HELOC can be a reasonable option for financing home repairs or improvements, just make sure you understand all the fine print, regardless of the fees, interest rate, and repayment schedule.

30 Year Fixed Mortgage Rate History

Although today’s refinance rates are near or above 5%, this has historically been a typical interest rate. If your current rate is higher than current rates, a refinance might be a good option.

Historical rate trends shown in this chart refer to data compiled by Freddie Mac. NextAdvisor generally uses rate information collected by Bankrate. Although these mortgage rate surveys differ, they tend to show the same trends.

Pro Tip: Pay Attention to Refinance Fees

As part of the refinancing process, you may have to pay upfront fees called closing costs. Fees can average 3% to 6% of your loan balance, so it’s important to pay attention. Your monthly payment may drop with a refinance, but be sure to keep the loan long enough for the ongoing savings to outweigh the out-of-pocket costs.

30-year refinancing rate

Currently, the average 30-year fixed refinance has an interest rate of 5.46%, down 7 basis points from a week ago.

You can use our mortgage calculator to determine how much your mortgage will cost you each month and to understand the impact of paying more each month on your mortgage. Our Mortgage Calculator will also tell you how much interest you will be charged over the life of the loan.

Fixed refinancing rates over 15 years

Currently, the average rate on a 15-year fixed refinance loan is 4.76%, down 7 basis points from the previous week.

The monthly payments on a 15-year refinance loan are harder to fit into a monthly budget than a 30-year mortgage payment would be. However, a shorter loan term can help you build equity in your home much faster.

10-year refi rate

The average 10-year fixed refinancing rate is 4.73%, down 6 basis points from a week ago.

Monthly payments with a 10-year refinance term would cost even more than what you would pay on a 15-year loan. The upside is that you’ll end up paying even less interest over the life of the loan.

How we determine refi rates

The chart below shows where refinance rates have headed over the past week.

These daily refinance rates are provided by Bankrate. The information is based on consumers who meet specific criteria, such as the home is an owner-occupied single-family residence. You may therefore be eligible for different rates if your financial situation does not meet the survey criteria.

Bankrate is owned by Red Ventures, the parent company of Nextadvisor.

Rates as of May 19, 2022.

Take a look at mortgage refinance rates for a number of different loans.

Frequently asked questions (FAQ) about the refinance rate:

Is it still a good time to refinance?

While refinance rates are higher than recent record lows, they are still exceptionally low. If you haven’t refinanced in the past few years and want to lower your mortgage payment, now is the time to do so.

However, your interest rate isn’t the only factor to consider when determining if the time is right for you to refinance. In addition to the number of years remaining on your existing mortgage, the new repayment term will impact your decision. A 30-year refinance loan may not be right for you, depending on the length of your current mortgage. Keep in mind that your monthly payment will be higher with a short-term refinance than with a longer-term loan.

It’s not just the interest rate that goes into the decision to refinance, so be sure to consider everything.

How to get the lowest refinance rate

Refinance rates vary depending on your personal financial situation. If you have a higher credit score and better loan-to-value (LTV) ratios, you’ll usually get a bigger discount on the mortgage refinance rates you’re offered.

Your personal finances aren’t the only factor that affects your mortgage refinance rate. A better loan-to-value (LTV) ratio can help you qualify for a lower refinance rate. So the more equity you have accumulated, the better. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.

The type of mortgage can determine your refinance interest rate. A loan with a shorter repayment term generally has better refinance rates than loans with longer repayment terms, all other things being equal. The type of mortgage refinance you need makes a difference in the refinance interest rate. Withdrawal mortgage refinance loans generally have higher refinance rates than other loans.

How much does it cost to refinance?

If you’re refinancing your mortgage, closing costs typically range from 3% to 6% of the loan amount. For a loan of $300,000, this represents between $9,000 and $18,000 in fees.

But, each lender will assess your personal situation differently. It is therefore important to shop around and compare offers. Everything from the location of the property to the type of loan you are refinancing can change what you will pay to refinance.

Mortgage interest rate by type of loan

Mortgage refinance rate

Mortgage rate