Mortgage Refinance Rates Today: January 20, 2022—Refinance Rates Won’t Budge
It’s a good time to lock in a low refinance rate. The average rate on a 30-year fixed mortgage refinance remained the same today, keeping rates at historical lows.
Today, the average rate on a 30-year fixed mortgage refinance is 3.56%, according to Bankrate.com, while the average rate on a 15-year mortgage refinance is 2.88%. On a 20-year mortgage refinance, the average rate is 3.45%, and the average rate on a 5/1 ARM is 2.80%.
Related: Compare Current Refinance Rates
30-Year Fixed-Rate Refinance Rates
The average rate for the 30-year fixed-rate mortgage refinance remained at 3.56%. This time last week, the 30-year fixed was 3.51%. The 52-week low is 3.06%.
On a 30-year fixed mortgage refi, the APR is 3.60%, higher than it was last week. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.
At today’s interest rate of 3.56%, homebuyers with a 30-year fixed-rate refinance mortgage of $100,000 will pay $452 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You’d pay around $62,864 in total interest over the life of the loan..
20-Year Refinance Rates
The average interest rate on the 20-year fixed refinance mortgage is 3.45%. This same time last week, the 20-year fixed-rate mortgage was at 3.36%.
The APR on a 20-year fixed is 3.51%. This time last week, it was 3.42%.
A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate of 3.45% will cost $577 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $38,574 in total interest.
15-Year Mortgage Refinance Rate
Today, the 15-year fixed mortgage rate sits at 2.88%, higher than it was one day ago. Last week, it was 2.76%.Today’s rate is higher than the 52-week low of 2.39%.
The APR on a 15-year fixed is 2.99%. This time last week, it was 2.89%.
With an interest rate of 2.88%, you would pay $685 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $23,268 in total interest.
30-Year Jumbo Refinance Rates
The average interest rate on the 30-year fixed-rate jumbo mortgage refinance is 3.57%. Last week, the average rate was 3.52%. The 30-year fixed rate on a jumbo mortgage is higher than the 52-week low of 3.05%.
Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate of 3.57% will pay $3,397 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $3,397, and you’d pay around $472,995 in total interest over the life of the loan.
15-Year Jumbo Refinance Rates
The average interest rate on the 15-year fixed-rate jumbo mortgage refinance remained unchanged at 2.91%. Last week, the average rate was 2.78%. The 15-year fixed rate on a jumbo mortgage is higher than to the 52-week low of 2.37%.
Borrowers with a 15-year fixed-rate jumbo mortgage refinance with today’s interest rate of 2.91% will pay $686 per month in principal and interest per $100,000. That means that on a $750,000 loan, the monthly principal and interest payment would be around $5,147, and you’d pay around $176,453 in total interest over the life of the loan.
5/1 Adjustable-Rate Mortgage Refinance Rates
On a 5/1 ARM, the average rate inched down to 2.80% from 2.81% yesterday. The average rate was 2.81% last week. Today’s rate is currently lower than the 52-week high of 2.86%%.
Borrowers with a 5/1 ARM of $100,000 with today’s interest rate of 2.80% will pay $411 per month in principal and interest.
When Refinancing Makes Sense
You may want to refinance your home mortgage, for a variety of reasons: to lower your interest rate, reduce monthly payments or pay off your loan sooner. You may also be able to use a refinance loan to get access to your home’s equity for other financial needs, like a remodeling project or to pay for your child’s college. If you’ve been paying private mortgage insurance (PMI), refinancing also may give you the opportunity to ditch that cost.
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You’ll need to know the loan’s closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator could help you determine if refinancing is right for you.
Much like when you shopped for a mortgage when purchasing your home, when you refinance here’s how you can find the lowest refinance rate:
- Maintain a good credit score
- Consider a shorter-term loan
- Lower your debt-to-income ratio
- Monitor mortgage rates
A solid credit score isn’t a guarantee that you’ll get your refinance approved or score the lowest rate, but it could make your path easier. Lenders are also more likely to approve you if you don’t have excessive monthly debt. You also should keep an eye on mortgage rates for various loan terms. They fluctuate frequently, and loans that need to be paid off sooner tend to charge lower interest rates.