Refinance Rates for Mar. 4, 2022: Rate Moves Lower – CNET

Refinance Rates for Mar. 4, 2022: Rate Moves Lower – CNET

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In general, refinance rates for mortgages were varied with one notable rate falling. The mean rate for a 15-year fixed-rate refinance increased, while 30-year fixed refinance rates saw a downtick. In addition, the average rate on 10-year fixed refinance saw growth. 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

The average rate for a 30-year fixed refinance loan is currently 4.18%, a decrease of 3 basis points from what we saw one week ago. (A basis point is equivalent to 0.01%.) A 30-year fixed refinance will typically have lower monthly payments than a 15-year or 10-year refinance. If you’re having difficulties making your monthly payments currently, a 30-year refinance could be a good option for you. Be aware, though, that interest rates will typically be higher compared to a 15-year or 10-year refinance, and you’ll pay off your loan at a slower rate.

15-year fixed-rate refinance

The average rate for a 15-year fixed refinance loan is currently 3.48%, an increase of 4 basis points from what we saw the previous week. A 15-year fixed refinance will most likely raise your monthly payment compared to a 30-year loan. On the other hand, you’ll save money on interest, since you’ll pay off the loan sooner. 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 current average interest rate for a 10-year refinance is 3.40%, an increase of 1 basis point compared to one week ago. A 10-year refinance will typically feature the highest monthly payment of all refinance terms, but the lowest interest rate. A 10-year refinance can be a good deal, since paying off your house sooner will help you save on interest in the long run. But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation.

Where rates are headed

While throughout the pandemic we saw historically low refinance rates, there’s been a rise lately due to two critical factors: inflation and economic growth. However, rates can always fluctuate due to a variety of factors. 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 nationwide:

Average refinance interest rates

Product Rate A week ago Change
30-year fixed refi 4.18% 4.21% -0.03
15-year fixed refi 3.48% 3.44% +0.04
10-year fixed refi 3.40% 3.39% +0.01

Rates as of Mar. 4, 2022.

How to find the best refinance rate

It’s important to understand that the rates advertised online may not apply to you. Market conditions aren’t the only factor in interest rates; your particular application and credit history will also play a large role.

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. Researching interest rates online is always a good idea, but you’ll need to connect with a mortgage professional to get your exact refinance rate. You should also take into account any fees and closing costs that might offset the potential savings of a refinance.

Since the beginning of the pandemic, a lot of lenders have been stricter with who they approve for a loan. As such, you may not qualify for a refinance — or a low rate — if you don’t have a solid credit rating.

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. Don’t forget to speak with multiple lenders and shop around to find the best rate.

Is now a good time to refinance?

Most people refinance because the market interest rates are lower than their current rates or because they want to change their 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.

To decide whether a refinance is right for you, consider all of the factors including how long you plan to stay in your current home, the length of your loan term and the amount of your monthly payment. And don’t forget about fees and closing costs, which can add up.

Some lenders have tightened their requirements in recent months, so you may not be able to get a refinance at the posted interest rates — or even a refinance at all — if you don’t meet their standards. Refinancing can be a great move if you get a good rate or can pay off your loan sooner — but consider carefully whether it’s the right choice for you.

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