The 30-year refinance rate drops slightly – is it the day to refinance? | January 5, 2022


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View mortgage refinancing rates for January 5, 2022, which are largely unchanged from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinancing rates have remained stable for three key rates since yesterday, while declining slightly for 30-year rates.

  • Refinancing at a fixed rate over 30 years: 3.375%, vs. 3.440%, -0.065
  • Refinancing at a fixed rate over 20 years: 3.000%, unchanged
  • Refinancing at a fixed rate over 15 years: 2.500%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.500%, unchanged

Prices last updated on January 5, 2022. These prices are based on the assumptions indicated here. Actual rates may vary.

Mortgage refinancing rates continue to sit at money-saving lows, despite daily fluctuations. With experts predicting mortgage rate increases in 2022, homeowners with matured mortgages could realize significant interest savings by refinancing themselves into one of today’s lowest mortgage refinance rates. Homeowners may find 20- and 15-year refinances particularly attractive today, as both terms offer relatively low rates and the ability to pay off a mortgage faster.

These rates are based on the assumptions presented here. Actual rates may vary.

If you are thinking about refinancing your mortgage, consider using Credible. Whether you want to save money on your monthly mortgage payments or consider withdrawal refinancing, Credible’s free online tool will allow you to compare rates from multiple mortgage lenders. You can see prequalified fares in as little as three minutes.

Current fixed refinancing rates over 30 years

The current rate for a 30 year fixed rate refinance is 3.375%. This is down from yesterday. Refinancing a 30-year mortgage to a new 30-year mortgage might lower your interest rate, but might not have much of an effect on your total interest charges or your monthly payment. Refinancing a short-term mortgage to a 30-year refinance could result in a lower monthly payment, but higher total interest charges.

Current fixed refinancing rates over 20 years

The current rate for a 20 year fixed rate refinance is 3000%. It’s the same as yesterday. By refinancing a 30-year loan to a 20-year refinance, you could earn a lower interest rate and lower your total interest charges over the life of your mortgage. But you can get a higher monthly payment.

Current fixed refinancing rates over 15 years

The current rate for a 15-year fixed rate refinance is 2,500%. It’s the same as yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest charges and maintaining a reasonable monthly payment.

Current fixed refinancing rates over 10 years

The current rate for a 10 year fixed rate refinance is 2,500%. It’s the same as yesterday. Refinancing over 10 years will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a larger monthly mortgage payment.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Discover Credible and get prequalified today.

Prices last updated on January 5, 2022. These prices are based on the assumptions indicated here. Actual rates may vary.

Can you negotiate the refinancing rates?

Negotiation is often possible in real estate transactions, and you may be able to work with your lender to negotiate a lower refinance rate.

Having a good to excellent credit score, a low debt-to-income ratio, and a good income can help in negotiations. Being open to compromise can also help. For example, your lender may accept a lower interest rate if you are willing to pay mortgage discount points up front.

The best way to make sure you’re getting the lowest interest rate possible is to compare the rates and loans of multiple mortgage lenders.

How To Get Your Lowest Mortgage Refinance Rate

If you want to refinance your mortgage, improve your credit rating, and pay off any other debt, you could get a lower rate. It’s also a good idea to compare the rates of different lenders if you are hoping to refinance to find the best rate for your situation.

Borrowers can save an average of $ 1,500 over the life of their loan by purchasing one additional quote, and an average of $ 3,000 by comparing five quotes, according to a study by Freddie Mac.

Be sure to shop around and compare the rates of several mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in just three minutes.

How does Credible calculate the refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the development of mortgage refinancing rates. Credible’s average mortgage refinance rates are calculated based on information provided by partner lenders who compensate Credible.

The rates assume that a borrower has a credit score of 740 and borrows a conventional loan for a single family home that will be their primary residence. Rates also assume zero (or very low) discount points and a 20% deposit.

Credible mortgage refinance rates will only give you an idea of ​​current average rates. The rate you receive may vary depending on a number of factors.

How Much Equity Do I Need to Refinance My Home?

When you apply for mortgage refinancing, lenders consider the equity in your home. If you do not meet the lender’s capital requirements, you may not be eligible for refinancing with that lender.

Requirements may vary from lender to lender and depend on the type of refinancing you are doing – rate and term refinance vs. withdrawal refinance.

For rate and term refinancing, you may qualify with as little as 5% of your home equity. But your lender will likely ask you to purchase private mortgage insurance. Most lenders will prefer a loan-to-value ratio of at least 20%, which means that the amount you owe on your mortgage is no more than 80% of the total value of your home.

Typically, for a cash refinance, most lenders will want to see that you have a loan-to-value ratio, or LTV, of at least 20%. But some lenders can be flexible if you have good credit, a history of paying bills on time, and are willing to accept a higher interest rate.

To calculate your loan-to-value ratio, simply divide your loan balance by the current value of your home. For example, if your home is worth $ 350,000 and you owe $ 325,000, your LTV is just under 93% – and you might have trouble qualifying for refinancing.

Credible is also a partner of a home insurance broker. If you are looking for a better home insurance rate and are considering switching providers, consider hiring an online broker. You can compare quotes from the top rated insurance companies in your area – it’s quick, easy, and the whole process can be done entirely online.

Do you think this might be a good time to refinance? To understand how much you could save on monthly mortgage payments by refinancing now, calculate the numbers and compare rates using Credible’s free online tool. In a matter of minutes, you can see what many mortgage lenders are offering.

Prices last updated on January 5, 2022. These prices are based on the assumptions indicated here. Actual rates may vary.

Have a finance-related question, but you don’t know who to ask? Email The Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics such as mortgages, mortgage refinancing, and more. He was an editor and editorial assistant in the online personal finance field for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.


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