Mortgage Refinance Rates Today, April 18, 2022 |  Rates continue to climb above 5%
Mortgage Refinance Rates Today, April 18, 2022 |  Rates continue to climb above 5%

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Today, several benchmark mortgage refinance rates went up.

Both the 15-year fixed and the 30-year fixed saw their average rates increase. The average 10-year fixed rate refinance mortgage rate also increased.

As refinance rates climb, homeowners will want to take a closer look at the numbers before embarking on a refinance.

For borrowers who have been able to refinance at near-record interest rates over the past two years, it probably doesn’t make sense to refinance now. However, the refi rate you qualify for is based on more than just market factors, your credit score and personal financial situation play an important role. This means that if you’ve recently been able to significantly improve your credit score, it may be worth getting at least one quote from a mortgage lender.

As always, remember that your interest rate isn’t the only thing that matters. Equally important to watch out for are the fees you pay for a refinance.

Here’s where rates are today and what that means for you.

Here are the average rates for 30-year, 15-year and 10-year refinance loans:

You can find the right refinance rate for you here.

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

Experts predict that refinance rates will continue to rise in 2022 after already increasing significantly since the start of the year. The Federal Reserve began to scale back its purchases of mortgage-backed securities and began raising short-term interest rates.

Inflation, which was the highest in 40 years and reached 8.5% in March, is also behind the increase in refinancing rates. Russia’s war in Ukraine has only added to the uncertainty and has the potential to keep inflation rates high. The effects of war on global markets remain unpredictable and could lead to greater volatility in equity prices and interest rates.

Another factor that could affect rates is COVID-19. While the Omicron variant has faded across much of the United States, a resurgence of the virus could affect markets. It’s almost impossible to predict, and experts say it looms as a possible source of more volatility.

Is it the right time to refinance?

Generally speaking, homeowners could save thousands of dollars with a rate and term refinance if their new rate is 0.75% to 1% lower than their current rate. And the number of homeowners with rates well above current market rates has dropped dramatically as rates have gone up.

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. In some situations, a HELOC can make sense, especially when consolidating debt or renovating your home. A HELOC lets you tap into the value of your home without taking out a mortgage.

Why is it important to look at the 30-year fixed mortgage rate history?

Current mortgage interest rates are still within a normal historical range, even though they are breaking through the psychological barrier of 5%. If your current rate is higher than current rates, a refinance might be a good option.

This chart, which uses data from a Freddie Mac survey that differs slightly but generally follows the Bankrate survey used by NextAdvisor. This graph provides an overview of how today’s rates compare to those of the past two decades. They’re up from the historic lows of 2020 and 2021, but they’re still not absurdly high if you zoom out further.

Pro tip: Refinance closing costs

When you take out a new home loan, you pay an upfront fee totaling 3-6% of the loan amount. This is a significant expense that must be considered when refinancing. Your monthly savings may not have exceeded the initial costs if you refinance too often or sell your home soon after refinancing.

30-year fixed refinancing rates

Currently, the average 30-year fixed refinance has an interest rate of 5.24%, an increase of 17 basis points from the previous week.

You can use our mortgage calculator to determine the price of your monthly mortgage payments and to understand what the effects of additional payments would be. Our Mortgage Calculator will also tell you how much interest you will be charged over the life of the loan.

15-year refi rate

Currently, average 15-year fixed refinance rates are 4.45%, up 21 basis points from a week ago.

The monthly payments on a 15-year refinance loan will be larger than those on a 30-year refinance at the same rate. However, a shorter loan term can save you thousands of dollars in interest over the life of the loan.

10-year refi rate

The average 10-year fixed refinancing rate is 4.51%, an increase of 25 basis points compared to the rate observed the previous week.

Monthly payments with a 10-year refinance term would cost a lot more per month than you would with a 15-year term, but you’ll pay less interest in the long run.

How we calculate our refinance rates

Our daily refinance rates are based on daily rate data from Bankrate, which is owned by the same parent company as NextAdvisor. These average overnight refi interest rates are based on a client profile of the following:

  • Loan to value (LTV) or 80% or less
  • Principal residence
  • FICO Score 740+
  • Single family Home

The information provided to Bankrate by lenders nationwide is displayed in the table below:

Rates as of April 18, 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?

Refinancing rates, although higher than historically low levels, still remain at exceptionally low levels. 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. Those who have paid off their current mortgage for 10 years may want to refinance a 20-year loan so as not to add more years to the end of the loan. However, you’ll pay more each month if you choose short-term refinancing, although this may balance out depending on how much you can lower your interest rate.

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

How to qualify for the best refi rate

Refinance rates are influenced by your personal finances. Having a healthier credit rating and lower loan-to-value (LTV) ratios will generally be able to secure a better mortgage refinance rate.

Your personal finances aren’t the only factor that affects your refinance interest rate. The equity in your property is also factored into the decision. You want to have at least 20% equity or a loan-to-value ratio of 80% or less.

The type of mortgage affects your mortgage refinance rate. A loan with a shorter repayment term usually has better rates than a loan with longer terms. Your mortgage refinance rate is also affected by the type of refinance you plan to take out. Withdrawal mortgage refinance loans generally have higher refinance rates than other loans.

Average cost of refinancing

Refinancing a mortgage usually involves paying closing costs of 3% to 6% of the loan amount. For example, if you have a $300,000 mortgage, you can expect to pay between $9,000 and $18,000 in closing costs.

There are a number of factors that different lenders consider when assessing your situation. Compare your options and shop around. Everything from the location of the home to the type of loan you’re refinancing can affect your upfront costs.

Mortgage rates by type of loan

Mortgage refinance rate

Mortgage redemption rate

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