Good news: 3 key mortgage refinance rates fall | June 24, 2022

• 30-year fixed-rate refinance: 5.750%, unchanged
• 20-year fixed-rate refinance: 5.375%, down from 5.490%, -0.115
• 15-year fixed-rate refinance: 5.125%, down from 5.375%, -0.250
• 10-year fixed-rate refinance: 5.125%, down from 5.500%, -0.375

Rates last updated on June 24, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: Mortgage refinance rates closed out the week of June 24, mostly down from the previous Friday. Rates fell for 20-, 15- and 10-year fixed-rate refinances, with 10-year rates marking the largest drop. Although 30-year rates held steady at 5.750% since yesterday, homeowners looking for a combination of a lower interest rate and smaller monthly mortgage payment may do well to consider 20-year rates. They’re more than a quarter point lower than 30-year rates.

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.

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?

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%.

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.

Is now a good time to refinance?

Everyone’s situation is different, but generally, it may be a good time to refinance if:

• You’ll be able to get a lower interest rate than you currently have.
• Refinancing will save you money over the life of your home loan.
• Your savings from refinancing will ultimately exceed closing costs.
• You know you’ll be staying in your home long enough to recoup the costs of refinancing.
• You have sufficient equity in your home to avoid private mortgage insurance (PMI).

If your home needs significant, costly repairs it might be a good time to refinance in order to withdraw some equity to pay for those repairs. Just be aware that lenders generally limit the amount you can take from your home in a cash-out refinance.

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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.