Here are the refinance rates for today, May 11, 2022: rates are going up
A number of major mortgage refinance rates rose today. 15-year and 30-year fixed refinancing saw their average rates increase. In addition, the average 10-year fixed refinancing rate fell.
Although refinance rates fluctuate slightly on a daily basis, homeowners can expect to see rates increase over the course of this year. Over the past few months, rates have trended higher from historic lows seen during the pandemic and are now closer to 2018 rate levels. This means that if you are looking to cut dollars and interest from your current monthly mortgage payments, these could be the lowest rates of 2022. Be sure to think about your goals and situation, and compare offers to find a lender who can meet your needs. .
30-year fixed rate refinancing
The current average interest rate for a 30-year refinance is 5.53%, up 9 basis points from a week ago. (One basis point equals 0.01%.) One reason to refinance a 30-year fixed loan from a shorter loan term is to lower your monthly payment. For this reason, a 30-year refinance can be a good idea if you’re having trouble making your monthly payments. In exchange for the lower monthly payments, the rates on a 30-year refinance will generally be higher than the rates on a 15- and 10-year refinance. You will also repay your loan more slowly.
15-year fixed-rate refinancing
For 15-year fixed refinances, the average rate is currently 4.83%, an increase of 7 basis points compared to last week. Refinancing a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. But you’ll save more money over time because you pay off your loan faster. Interest rates for a 15-year refinance also tend to be lower than a 30-year refinance, so you’ll save even more in the long run.
10-year fixed rate refinancing
The average 10-year fixed refinancing rate is currently 4.81%, down 1 basis point from last week. A 10-year refinance will generally have the highest monthly payment of any refinance term, but the lowest interest rate. A 10-year refinance can be a great deal because paying off your home sooner will help you save on long-term interest. Just be sure to carefully review your budget and current financial situation to make sure you can afford a higher monthly payment.
Where are the rates going
At the start of the pandemic, refinance rates fell to historic lows, but now interest rates are hovering around pre-pandemic levels. The Federal Reserve recently hiked rates for the first time since 2018 and plans to raise them multiple times in 2022. Given this policy, along with strong economic growth and inflation, which is at an all-time high in four decades, rates are expected to continue to rise this year. year. Although there have been some temporary interest rate cuts, it is impossible to predict when another cut might occur. This means it’s a good idea to try to take advantage of the refinance now and lock in a decent rate.
We track refinance rate trends using information collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinance rates provided by lenders across the country:
Average refinancing interest rate
|30-year fixed refi||5.53%||5.44%||+0.09|
|15-year fixed refi||4.83%||4.76%||+0.07|
|10-year fixed refi||4.81%||4.82%||-0.01|
Rates as of May 11, 2022.
How to Shop for Refinance Rates
When researching refinance rates, be aware that your specific rate may differ from those advertised online. While current market conditions are a factor, your particular interest rate will largely depend on your application record and credit history.
Generally, you’ll want a high credit score, low credit utilization, and a history of regular, on-time payments in order to get the best interest rates. Researching interest rates online is always a good idea, but you’ll need to contact a mortgage professional to get your exact refinance rate. Also, don’t forget to factor in potential fees and closing costs.
It should also be noted that in recent months lenders have been stricter with their requirements. As such, you can’t qualify for a refinance – or a low rate – if you don’t have a strong credit rating.
Before applying for a refinance, you need to make your application as strong as possible in order to get the best rates available. If you haven’t already, try to improve your credit by monitoring your credit reports, using credit responsibly, and carefully managing your finances. You should also shop around with multiple lenders and compare offers to ensure you get the best rate.
When should I refinance?
Most people refinance because market interest rates are lower than their current rates or because they want to change the term of their loan. It is true that over the past year, interest rates have reached a historic low. But when deciding to refinance, be sure to consider factors other than market interest rates.
Be sure to consider your goals and financial situation, including how long you plan to stay in your current home. It helps to have a specific goal for a refinance, such as lowering your monthly payment or adjusting the term of your loan. And don’t forget fees and closing costs, which can add up.
Note that some lenders have tightened their requirements since the start of the pandemic. If you don’t have a good credit score, you may not qualify for the best rate. Refinancing can be a great decision if you get a good rate or can pay off your loan sooner, but think carefully if it’s the right choice for you.