Mortgage refinance rates for Jan. 12, 2022 keep rising. Here’s what that means for you

Mortgage refinance rates for Jan. 12, 2022 keep rising. Here's what that means for you
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Today’s major multi-prime mortgage refinancing rates are up. Both 15-year and 30-year fixed refinancings saw their average rates rise. At the same time, the average 10-year fixed refinancing rates also rose. Although refinancing rates are dynamic, they have been very low lately. If you are planning to refinance your home, now might be a great time to secure a good price. But as always, first make sure you consider your personal goals and circumstances before you take out a refinance, and shop around to find a lender that can best meet your needs.

Refinance at a fixed rate for 30 years

For 30-year fixed refinancing operations, the average rate is currently 3.54%, up 19 basis points from what we saw a week ago. (Base point equals 0.01%). One reason to refinance a 30-year fixed loan for a shorter one is to lower the monthly payment. For this reason, a 30-year refinancing can be a good idea if you are having trouble making your monthly payments. However, in exchange for lower monthly payments, the 30-year refinancing rates will be higher than the 15-year and 10-year refinancing rates. You will also pay off your loan more slowly.

Fixed rate refinancing for 15 years

The current average interest rate for 15-year refinancing is 2.82%, an increase of 24 basis points from last week. Refinancing into a 15-year fixed loan than a 30-year fixed loan is more likely to increase your monthly payment. But you’ll save more money over time, because you’re paying off your loan faster. Interest rates for 15-year refinancing also tend to be lower than 30-year refinancing rates, so you’ll save more in the long run.

Fixed rate refinance for 10 years

The average 10-year fixed refinancing rate is now 2.84%, an increase of 25 basis points from last week. A 10-year refinancing usually has the highest monthly payment of all refinancing terms, but the lowest interest rate. A 10-year refinancing can help you make your home payments faster and provide long-term interest. But you should confirm that you can afford higher monthly payments by evaluating your budget and general financial situation.

Where do rates go?

We track refinancing rate trends using data collected by Bankrate, which is owned by the parent company of CNET. Below is a table of average refinancing rates reported by lenders across the country:

Average interest rates on refinancing

a product an average last week change
Steady reference for 30 years 3.54% 3.35% +0.19
Fixed reference for 15 years 2.82% 2.58% +0.24
10 years fixed reference 2.84% 2.59% +0.25

Prices as of January 12, 2022.

How to find personal refinancing rates

When researching refinancing rates online, it is important to remember that your specific financial situation will affect the rate offered to you. Although current market conditions will be a factor, your interest rate will largely depend on your application and credit history.

In general, you will need a high credit score, a low credit utilization ratio, and a history of making consistent and on-time payments in order to get the best interest rates. To get your customized refinancing rates, you will need to speak with a mortgage professional, as the rates for which you qualify may differ from the rates advertised online. Also remember to account for potential fees and closing costs.

It’s also worth noting that in recent months, lenders have been much stricter with their requirements. If your credit score is low or your credit history is poor, you may have trouble getting a refinance with the lowest interest rates.

One way to get the best refinancing rates is to boost your borrower’s application. You can do this by monitoring your credit, taking on debt responsibly, and arranging your finances before applying for refinancing. Also, be sure to compare offers from several lenders in order to get the best rate.

When to consider refinancing a mortgage

For refinancing to make sense, you’ll generally need to get an interest rate lower than your current rate. Aside from the interest rates, changing the loan term is another reason to refinance. Interest rates in the past few months have been at historic lows, but that’s not the only thing you should look for when deciding on a refinance.

To decide if refinancing is right for you, consider all factors including how long you plan to stay in your current home, the length of the loan and the amount of your monthly payment. Also keep in mind that closing costs and other fees may require an up-front investment.

Some lenders have tightened their requirements in recent months, so you may not be able to get refinancing at the stated interest rates – or even refinance at all – if you don’t meet their criteria. Refinancing can be a great move if you get a good rate or can pay off your loan sooner – but think carefully about whether this is the right option for you.

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