Refinancing Rates Rise: 20- and 15-Year Terms Appear as Best Deals | January 4, 2022

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View mortgage refinancing rates for January 4, 2022, which are up from yesterday. (iStock)

Based on data compiled by Credible, current mortgage refinance rates have increased for all repayment terms since yesterday. With rates expected to continue to rise through 2022, homeowners considering refinancing may want to act sooner rather than later.

  • Refinancing at a fixed rate over 30 years: 3.440%, against 3.190%, +0.250
  • Refinancing at a fixed rate over 20 years: 3.000%, compared to 2.875%, + 0.125
  • Refinancing at a fixed rate over 15 years: 2.500%, compared to 2.375%, + 0.125
  • Refinancing at a fixed rate over 10 years: 2.500%, compared to 2.250%, +0.250

Prices last updated on January 4, 2022. These prices are based on the assumptions indicated here. Actual rates may vary.

While refinancing rates have increased for all repayment terms today, 20- and 15-year fixed rate refinancings have registered the smallest increases – a gradual increase of just 0.125%. At just 3%, 20-year refinancing could allow homeowners who took out a mortgage before the pandemic to reduce their interest rates by 1%. And by refinancing into a 15-year mortgage, homeowners could get one of the lowest refinance rates available while paying off their mortgage faster.

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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 3.440%. It’s since yesterday. Refinancing a 30-year mortgage into 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 since 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 since 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 since 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 4, 2022. These prices are based on the assumptions indicated here. Actual rates may vary.

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.

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 could guarantee you 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.

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.

What is the average cost of refinancing?

Refinancing a mortgage can generate significant interest savings over the life of a loan. But not all of these savings are free. In general, you will encounter costs – $ 5,000 on average, depending on Freddie mac – when refinancing your mortgage.

Your exact refinancing costs will depend on several factors, including your loan amount and where you live. Typical refinancing costs include:

  • The cost of registering your new mortgage
  • Expertise fees
  • Lawyer fees
  • Lender fees, such as origination or underwriting
  • Title Service Fee
  • Credit file fees
  • Mortgage points
  • Prepaid interest charges

Keep in mind that no-cost refinancing does not exist. Lenders who market “no-fee loans” typically charge a higher interest rate and build the costs into the loan, which means you’ll pay more interest over the life of the loan.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible’s partner here. It’s quick, easy, and the whole process can be done entirely online.

Do you think this might be a good time to refinance? Be sure to shop around and compare rates with multiple mortgage lenders. You can do this easily with Credible and see your prequalified rates in just three minutes.

Prices last updated on January 4, 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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