Today’s best mortgage refinance deal? 15-year rates are the lowest available | August 3, 2022
As rates rise across all repayment terms, this shorter term emerges as the best bet for greater interest savings
Based on data compiled by Credible, mortgage refinance rates have risen across all terms since yesterday.
- 30-year fixed-rate refinance: 5.375%, up from 4.875%, +0.500%
- 20-year fixed-rate refinance: 5.000%, up from 4.875%, +0.125%
- 15-year fixed-rate refinance: 4.375%, up from 4.250%, +0.125%
- 10-year fixed-rate refinance: 4.500%, up from 4.125%, +0.375%
Rates last updated on August 3, 2022. These rates are based on the assumptions shown here.
If you’re thinking of doing a cash-out refinance or refinancing your home mortgage to lower your interest rate, consider using Credible. Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.
What this means: Mortgage refinance rates edged up across all repayment terms today, with 30-year rates rising half a percentage point. Rates for a 15-year refinance are currently lower than rates for all other repayment terms and are a full percentage point lower than 30-year rates. At 4.375%, homeowners looking to refinance may find that 15-year terms offer the best opportunity for a lower interest rate and manageable monthly payment.
WHAT IS CASH-OUT REFINANCING AND HOW DOES IT WORK?
How mortgage rates have changed over time
Today’s mortgage interest rates are well below the highest annual average rate recorded by Freddie Mac — 16.63% in 1981. A year before the COVID-19 pandemic upended economies across the world, the average interest rate for a 30-year fixed-rate mortgage for 2019 was 3.94%. The average rate for 2021 was 2.96%, the lowest annual average in 30 years.
The historic drop in interest rates means homeowners who have mortgages from 2019 and older could potentially realize significant interest savings by refinancing with one of today’s lower interest rates.
If you’re ready to take advantage of current mortgage refinance rates that are below average historical lows, you can use Credible to check rates from multiple lenders.
How to get your lowest mortgage refinance rate
If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance so you can find the best rate for your situation.
Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac.
Be sure to shop around and compare current mortgage rates from multiple 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 only three minutes.
How does Credible calculate refinance rates?
Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates reported in this article are calculated based on information provided by partner lenders who pay compensation to Credible.
The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.
Credible mortgage refinance rates reported here will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.
Think it might be the right 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 only three minutes.
What is the average cost of a refinance?
Generally, you’ll encounter costs — $5,000 on average, according to Freddie Mac — when refinancing your mortgage.
Your exact refinancing costs will depend on multiple factors, including the size of your loan and where you live. Typical refinancing costs include:
- The cost of recording your new mortgage
- Appraisal fees
- Attorney fees
- Lender fees, such as origination or underwriting
- Title service fees
- Credit report fees
- Mortgage points
- Prepaid interest charges
Keep in mind there’s no such thing as a truly no-cost refinance. Lenders who market "no-cost loans" typically charge a higher interest rate and roll the costs into the loan — which means you’ll pay more interest over the life of the loan.
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As a Credible authority on mortgages and personal finance, Chris Jennings has covered topics that include mortgage loans, mortgage refinancing, and more. He’s been an editor and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, and more.