Mortgage Refinance Rates on Mar. 3, 2022: Rates Advance – CNET [CNET]

Several closely followed mortgage refinance rates today. Both 15-year fixed and 30-year fixed refinances saw their mean rates climb. At the same time, average rates for 10-year fixed refinances also increased. With rates expected to rise throughout 2022, now might be a good time to act on a refinance. If you’re a homeowner in the market for a refi, make sure to first think about your personal goals and circumstances, and compare offers to find a lender who can best meet your needs.

30-year fixed-rate refinance

For 30-year fixed refinances, the average rate is currently at 4.21%, an increase of 1 basis point from what we saw one week ago. (A basis point is equivalent to 0.01%.) Refinancing to a 30-year fixed loan from a shorter loan term can lower your monthly payments. If you’re having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. However, interest rates for a 30-year refinance will typically be higher than rates for a 15-year or 10-year refinance. It’ll also take you longer to pay off your loan.

15-year fixed-rate refinance

The current average interest rate for 15-year refinances is 3.48%, an increase of 4 basis points compared to one week ago. With a 15-year fixed refinance, you’ll have a larger monthly payment than a 30-year loan. However, you’ll also be able to pay off your loan quicker, saving you money over the life of the loan. 15-year refinance rates are typically lower than 30-year refinance rates, which will help you save even more in the long run.

10-year fixed-rate refinance

The average rate for a 10-year fixed refinance loan is currently 3.40%, an increase of 2 basis points over last week. Compared to a 30-year and 15-year refinance, a 10-year refinance will usually have a lower interest rate but higher monthly payment. A 10-year refinance can help you pay off your house much faster and save on interest in the long run. However, you should analyze your budget and current financial situation to make sure you’ll be able to afford the higher monthly payment.

Where rates are headed

While throughout the pandemic we saw historically low refinance rates, there’s been an uptick recently due to two critical factors: inflation and economic growth. But rates are dynamic and can change for a number of reasons. The spread of omicron, for example, kept rates somewhat steady throughout December and the start of the new year. Overall, rates are expected to go up this year, particularly with the Federal Reserve’s decision to increase interest rates. We track refinance rate trends using data collected by Bankrate, which is owned by CNET’s parent company. Here’s a table with the average refinance rates supplied by lenders across the US:

Average refinance interest rates

Rates as of Mar. 3, 2022.

How to find personalized refinance rates

When looking for refinance rates, know that your specific rate may differ from those advertised online. Though current market conditions will be a factor, your particular interest rate will depend largely on your application and credit history.

Generally, you’ll want a high credit score, 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 personalized refinance rates, you’ll need to speak with a mortgage professional, as the rates you qualify for may differ from the rates advertised online. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.

You should also know that many lenders have had stricter requirements when it comes to approving loans in the past few months. This means that if you don’t have great credit ratings, you might not be able to take advantage of lowered interest rates — or qualify for a refinance in the first place.

To get the best refinance rates, you’ll first want to make your application as strong as possible. You can do that by monitoring your credit, taking on debt responsibly, and getting your finances in order before applying for a refinance. You should also shop around with multiple lenders and compare offers to make sure you’re getting the best rate.

Is now a good time to refinance?

Generally, it’s a good idea to refinance if you can get a lower interest rate than that your current interest rate, or if you need to change your loan term. It’s true that in the past year, interest rates have been at a historic low. But when deciding whether to refinance, be sure to take into account other factors besides market interest rates.

A refinance may not always make financial sense. Consider your personal goals and financial circumstances. How long do you plan on staying in your home? Are you refinancing to decrease your monthly payment, pay off your house sooner — or for a combination of reasons? Also keep in mind that closing costs and other fees may require an upfront investment.

Note that some lenders have tightened their requirements since the beginning of the pandemic. If you don’t have a solid credit score, you may not qualify for the best rate. Refinancing at a lower interest rate can save you money in the long run and help you pay off your loan sooner. But a careful cost-benefit analysis is necessary to confirm that doing so makes sense.