Today’s Mortgage Refinance Rates Still Remain Well Below Pre-Pandemic Levels | January 26, 2022

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View mortgage refinance rates for January 26, 2022, which are mostly unchanged from yesterday. (iStock)

According to data compiled by Credible, current mortgage refinance rates are largely unchanged from yesterday, with the exception of 10-year rates, which rose slightly.

  • 30-year fixed rate refinancing: 3.625%, unchanged
  • Refinancing at a fixed rate over 20 years: 3.250%, unchanged
  • Refinancing at a fixed rate over 15 years: 2.750%, unchanged
  • Refinancing at a fixed rate over 10 years: 2.750%, vs 2.625%, +0.125

Rates were last updated on January 26, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

After some volatile swings for most of January, mortgage refinance rates for all terms remained relatively stable for nearly a week. But overall, the rates continue to offer a savings opportunity, which buyers refinance in the more or less long term. Homeowners who took out their mortgage before the pandemic could save even more with a refinance – rates in 2019 and before were much higher.

These rates are based on the assumptions indicated here. Actual rates may vary.

If you are considering refinancing your home loan, consider using Credible. Whether you want to save money on your monthly mortgage payments or are considering a cash refinance, Credible’s free online tool will let you compare rates from multiple mortgage lenders. You can see pre-qualified rates in as little as three minutes.

Current 30-year fixed refinance rates

The current rate for a 30-year fixed rate refinance is 3.625%. It’s the same as yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage might lower your interest rate, but may not have much of an effect on your total interest costs or your monthly payment . Refinancing from a shorter-term mortgage to a 30-year refinance could result in a lower monthly payment but higher total interest charges.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed rate refinance is 3.250%. It’s the same as yesterday. By refinancing a 30-year loan to a 20-year refinance, you could get a lower interest rate and lower total interest costs over the life of your mortgage. But you can get a higher monthly payment.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed rate refinance is 2.750%. It’s the same as yesterday. A 15-year refinance might be a good choice for homeowners looking to strike a balance between lowering interest costs and maintaining a manageable monthly payment.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed rate refinance is 2.750%. It’s been since yesterday. A 10-year refinance will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a higher monthly mortgage payment.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Rates were last updated on January 26, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

What are the different types of refinancing?

Refinancing your mortgage essentially means taking out a new mortgage to pay off your current home loan. But your reasons for wanting to refinance can affect the type of mortgage refinance you choose.

Here are four types of refinancing to consider.

Rate and term refinancing

This type of refinancing is probably what many people think of when considering refinancing their mortgages. As the name suggests, a rate and term refinance changes the rate, repayment period – or both – of your current mortgage by paying it off and replacing it with a new mortgage. With a rate and term refinance, you’ll borrow exactly the amount you need to pay off your current mortgage.

Refinancing by collection

Like a rate and term refinance, a cash refinance can change the rate, term, or both. But with this type of refinance, you borrow more than you need to pay off your current loan and take that balance in cash. This is only possible if you have enough equity in your home.

Cash refinancing

As with other types of refinance, a cash refinance replaces your current mortgage with one with a different interest rate and/or term. But for your new loan, you will also make a lump sum payment to reduce the principal balance of your new mortgage. Of course, if you have the money to make a lump sum payment, you can simply pay extra for your current loan principal. But making that payment as part of a refinance allows you to reap the interest savings that can come with refinancing.

FHA streamlines refinancing

This type of refinance is only available to people who have FHA mortgages. It offers the same basic benefits as other types of refinancing, but requires less paperwork. Some restrictions apply. For example, you can’t be behind on your current mortgage, and you can’t cash out more than $500.

How to get your lowest mortgage refinance rate

If you want to refinance your mortgage, improve your credit score, and pay off any other debt, you could secure 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 an average of $1,500 over the term of their loan by purchasing just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research by Freddie Mac.

Be sure to shop around and compare rates from several 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 just three minutes.

How does Credible calculate refinance rates?

Changing economic conditions, central bank policy decisions, investor sentiment, and other factors influence how mortgage refinance rates move. Credible’s average mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a credit score of 740 and is borrowing a conventional loan for a single-family home that will be their primary residence. Rates also assume no (or very low) discount points and a 20% deposit.

Credible mortgage refinance rates will only give you an idea of ​​today’s average rates. The rate you receive may vary depending on a number of factors.

Can you refinance a jumbo loan?

A jumbo loan is also called a non-conforming loan because it does not comply with the loan limits established by Fannie Mae and Freddie Mac. For 2021, that’s $548,250 for a single-family home. Jumbo loan rates are generally higher than refinance rates for conforming loans.

It is possible to refinance a jumbo loan, but you will likely need to meet higher qualification standards than to refinance a conventional loan. Requirements may include:

  • A good to excellent credit rating and an impeccable credit history
  • A debt ratio well below those required for conventional loans
  • Six months to one year of cash reserves

You may need to provide additional documents to verify your income and overall financial situation. And, as with any refinance, you’ll have to pay closing costs, which can be significantly higher for a jumbo loan.

Credible is also a partner of a home insurance broker. If you’re looking for a better home insurance rate and are considering switching providers, consider using an online broker. You can compare quotes from top rated insurance companies in your area – it’s quick, easy and the whole process can be done entirely online.

If you think refinancing is the right decision, consider using Credible. You can use Credible’s free online tool to easily compare multiple mortgage refinance lenders and see pre-qualified rates in as little as three minutes.

Rates were last updated on January 26, 2022. These rates are based on the assumptions presented here. Actual rates may vary.

Do you have a financial question, but you don’t know who to contact? Email The Credible Money Expert at [email protected] and your question may be answered by Credible in our Money Expert section.

As a credible authority on mortgages and personal finance, Chris Jennings has covered topics like mortgages, mortgage refinance, and more. He was a publisher and editorial assistant in the online personal finance space for four years. His work has been featured by MSN, AOL, Yahoo Finance, etc.

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