Today's mortgage refinance rates: Look to 15-, 10-year terms for savings | Jan. 10, 2022

• 30-year fixed-rate refinance: 3.625%, up from 3.375%, +0.250
• 20-year fixed-rate refinance: 3.625%, up from 3.125%, +0.500
• 15-year fixed-rate refinance: 2.625%, down from 2.750%, -0.125
• 10-year fixed-rate refinance: 2.625%, down from 2.750%, -0.125

Rates last updated on Jan. 10, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

With rates for 10- and 15-year terms falling since last Friday, homeowners who are considering a refinance may want to look to one of these shorter terms. Homeowners who are comfortable with a higher monthly payment still stand to realize significant interest savings by refinancing into a shorter term, especially if they took out their original mortgage prior to the pandemic when rates were higher. Shorter repayment terms can also help homeowners pay off their mortgages sooner.

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

Current 30-year fixed refinance rates

The current rate for a 30-year fixed-rate refinance is 3.625%. This is up from last Friday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.

Current 20-year fixed refinance rates

The current rate for a 20-year fixed-rate refinance is 3.625%. This is up from last Friday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduce total interest costs over the life of your mortgage. But you may get a higher monthly payment.

Current 15-year fixed refinance rates

The current rate for a 15-year fixed-rate refinance is 2.625%. This is down from last Friday. A 15-year refinance could be a good choice for homeowners looking to strike a balance between lowering interest costs and retaining a manageable monthly payment.

Current 10-year fixed refinance rates

The current rate for a 10-year fixed-rate refinance is 2.625%. This is down from last Friday. 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 bigger monthly mortgage payment.

Rates last updated on Jan. 10, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

The factors behind today’s refinance rates

Current refinance rates, like mortgage interest rates in general, are affected by many economic factors, like unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered when refinancing your mortgage.

Larger economic factors

• Strength of the economy
• Inflation rates
• Employment
• Consumer spending
• Housing construction and other market conditions
• Stock and bond markets
• 10-year Treasury yields
• Federal Reserve policies

Personal economic factors

• Credit score
• Credit history
• Home equity
• Loan amount, loan term and loan type
• Debt-to-income ratio
• Location of the property

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.

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%.

What is the average cost of a refinance?

Refinancing a mortgage can yield significant interest savings over the life of a loan. But all those savings don’t come for free. Generally, you’ll encounter costs — $5,000 on average, according to Freddie Mac — when refinancing your mortgage.

Your exact refinancing costs will depend on multiple factors, including the size of your loan and where you live. Typical refinancing costs include:

• The cost of recording your new mortgage
• Appraisal fees
• Attorney fees
• Lender fees, such as origination or underwriting
• Title service fees
• Credit report fees
• Mortgage points
• Prepaid interest charges

Keep in mind there’s no such thing as a truly no-cost refinance. Lenders who market "no-cost loans" typically charge a higher interest rate and roll the costs into the loan — which means you’ll pay more interest over the life of the loan.

Rates last updated on Jan. 10, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

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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.