Today’s 10-, 15-year mortgage refinance rates notch seventh day at 5.5% | Sept. 27, 2022

• 30-year fixed-rate refinance: 6.875%, up from 6.750%, +0.125
• 20-year fixed-rate refinance: 7.125%, up from 6.875%, +0.250
• 15-year fixed-rate refinance: 5.500%, unchanged
• 10-year fixed-rate refinance: 5.500%, unchanged

Rates last updated on Sept. 27, 2022. These rates are based on the assumptions shown here. Actual rates may vary.

What this means: With 20-year mortgage refinance rates topping 7% today and 30-year rates not far behind, homeowners who want to refinance stand to save the most on interest by opting for a shorter term. Rates for a 10- and 15-year refinance have held steady at 5.5% for seven straight days. A shorter term means higher mortgage payments, but homeowners will also become mortgage-free sooner.

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.

What is the average cost of a refinance?

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.

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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.