Here are the refinance rates for today, May 30, 2022: lower rates
A few major refinance rates fell today. 15-year and 30-year fixed refinancing saw their average rates fall. In addition, the average 10-year fixed refinancing rate also 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 5.22%, down 9 basis points from what we saw a week ago. (One basis point equals 0.01%.) Refinancing a 30-year fixed loan from a shorter loan term can lower your monthly payment. This makes 30-year refinances good for people who have trouble making their monthly payments or just want a little more leeway. However, the interest rates for a 30 year refinance will generally be higher than the rates for a 15 or 10 year refinance. It will also take you longer to repay your loan.
15-year fixed-rate refinancing
For 15-year fixed refinances, the average rate is currently 4.52%, down 13 basis points from last week. Refinancing a 15-year fixed loan from a 30-year fixed loan will likely increase your monthly payment. However, you will also be able to pay off your loan faster, saving you money over the life of the loan. 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
For 10-year fixed refinances, the average rate is currently 4.45%, down 16 basis points from what we saw the previous week. Compared to a 30-year and 15-year refinance, a 10-year refinance will generally have a lower interest rate but a higher monthly payment. A 10-year refinance can help you pay off your home much faster and save on interest. But you need to confirm that you can afford a higher monthly payment by evaluating your budget and your overall financial situation.
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 raised rates for the second time in 2022 and plans to raise them several times over the course of the year. Given this policy, along with strong economic growth and inflation, which is at its highest level in four decades, rates should continue to rise this 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 data collected by Bankrate, which is owned by CNET’s parent company. Here is a table with the average refinance rates reported by lenders across the country:
Average refinancing interest rate
|Product||Assess||A week ago||To change|
|Fixed refinancing over 30 years||5.22%||5.31%||-0.09|
|Fixed refinancing over 15 years||4.52%||4.65%||-0.13|
|Fixed refinancing over 10 years||4.45%||4.61%||-0.16|
Rates as of May 30, 2022.
How to find personalized refinance rates
It is important to understand that prices advertised online may not apply to you. While current market conditions are a factor, your particular interest rate will largely depend on your application record and credit history.
Having a high credit score, a low rate of credit utilization, and a history of regular, on-time payments will generally help you 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. You also need to consider fees and closing costs that could outweigh the potential savings from a refinance.
You should also be aware that many lenders have had stricter loan approval requirements in recent months. As such, you can’t qualify for a refinance – or a low rate – if you don’t have a strong credit rating.
One way to get the best refinance rates is to strengthen your borrower application. If you haven’t already, try to improve your credit by monitoring your credit reports, using credit responsibly, and carefully managing your finances. Also, be sure to compare offers from multiple lenders to get the best rate.
When to Consider a Mortgage Refinance
Generally, it’s a good idea to refinance if you can get a lower interest rate than your current interest rate or if you need to change the term of your loan. Although interest rates have been low for the past few months, you should look at more than market interest rates to decide if a refinance is right for you.
To decide if a refinance is right for you, consider all factors, including how long you plan to stay in your current home, how long your loan is, and your monthly payment amount. 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. If you can get a lower interest rate or pay off your loan sooner, refinancing can be a great decision. But carefully weigh the pros and cons first to make sure it’s right for your situation.