Mortgage Refinance Rates on Dec 13, 2022: 30-Year Rate Eases

Table of Content

• High-Yield Savings Accounts Offering 4.00% or More Right Now
• How to Get Today’s Best Refinance Rates
• Annual percentage yield (APR)
• Bankrate
• Mortgage Refinance Rates on Dec. 13, 2022: 30-Year Rate Eases
• Can I save money with a refinance? Is now a good time to refi?
• How coronavirus and the economy affect refinance rates

Keep in mind, it could take a few years to recoup your refinance fees. If you expect to move in a few years, the trouble and expense of refinancing now might not make sense. Alix is a staff writer for CNET Money where she focuses on real estate, housing and the mortgage industry. She previously reported on retirement and investing for Money.com and was a staff writer at Time magazine. She has written for various publications, such as Fortune, InStyle and Travel + Leisure, and she also worked in social media and digital production at NBC Nightly News with Lester Holt and NY1. She graduated from the Craig Newmark Graduate School of Journalism at CUNY and Villanova University.

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. At the current interest rate of 5.93%, a borrower using a 15-year, fixed-rate mortgage refinance of $300,000 would pay $2,520 per month in principal and interest. That borrower would pay roughly $153,643 in total interest over the 15-year life of the loan.

High-Yield Savings Accounts Offering 4.00% or More Right Now

A 10-year refinance can help you pay off your house much quicker and save on interest. But you should confirm that you can afford a higher monthly payment by evaluating your budget and overall financial situation. You should consider refinancing your mortgage if refinancing can lower your monthly mortgage payment by reducing your interest rate or increasing your loan term. Refinancing also can lower your long-run interest costs through a lower mortgage rate, shorter loan term or both.

We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It’s always a good idea to ask the lender what kind of closing costs they’ll charge before you decide to borrow from them.

How to Get Today’s Best Refinance Rates

Refinancing requires homeowners to complete a new loan application and may involve an appraisal and inspection of the home. Lenders also rely heavily on an applicant’s credit score and debt-to-income ratio when deciding whether to extend a new loan. If you plan to stay in the home for an extended period, getting the lowest mortgage rate can be more important than paying the lowest closing costs. You can bump up your credit score by paying off credit card debt and reducing how much you use your cards. If you do use credit cards for rewards and points, try to pay them off immediately—don’t wait for your monthly statement to come in because your score can change daily.

You may also be able to take cash out of your equity when you refinance to use for a variety of purposes including home improvement, debt consolidation, or paying for major expenses or purchases. Many conventional refinance lenders charge closing costs when you refinance; however, Discover offers loans with zero application fees and zero cash due at closing. Once the COVID-19 pandemic began to affect global markets in early 2020, mortgage rates began to steadily decline, and they have continued that pattern, taking refinance rates down with them. In July 2020, 30-year fixed-rate mortgages dropped below 3% for the first time since 1971.

Annual percentage yield (APR)

However, submitting multiple mortgage applications in an effort to get the lowest rate possible won’t hurt your score. The main goal of most mortgage refinances is to lower your interest rate and maximize your savings. If your credit score is less than 500, work on improving it before applying for a mortgage, because most lenders won’t issue a loan to someone with a score of 499 or lower. On the other hand, if your credit score is higher than these minimums, you may be able to secure a better interest rate. The majority of closely watched refinance interest rates tapered off today versus this time last week, according to data compiled by Bankrate. Your personal finances aren’t the only thing that will impact the refinance interest rate you qualify for.

Therefore, this compensation may impact how, where and in what order products appear within listing categories. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Even the mortgage itself can determine what your interest rate will be. A loan with a shorter repayment term generally has better interest rates than a loan with longer terms. Your interest rate is also impacted by the type of refinance you plan on taking out. A cash-out refinance loan typically has a higher interest rate than other types of home loan refinancing.

Discover’s cash out refinance loan has a low, fixed rates that never change for the life of the loan, as well as has no cash due at closing. Check your credit report before refinancing to make sure there aren’t any errors. Build your credit score before refinancing by paying your bills on time and keeping credit utilization low. Annual Percentage Rate represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased after the closing date for adjustable-rate mortgage loans. You may also want to avoid refinancing simply to get a slightly lower interest rate.

On a $300,000 mortgage, that means $6,000 to $15,000 in closing costs. A rate and term refinance can save you money in the long run, but typically you’ll want the new rate to be at least 0.75% to 1% below your current rate. However, as rates have risen, the number of homeowners with rates well above current market rates has diminished dramatically. Right now, it’s as important as ever for homeowners to carefully consider whether or not now is the right time to refinance. With refi rates on the rise, the cost of borrowing is higher than it was a year ago. Keep in mind, when deciding to refinance there are other factors outside of just the rate to consider.

The Fed doesn't directly control fixed mortgage rates, however — the most pertinent number is the 10-year Treasury yield. Even so, high inflation all but forces the Fed to act aggressively, and it sets the tone for rates overall. The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

Main A mortgage refinance allows you to obtain a new mortgage loan replacing your current mortgage. At times when mortgage rates are low, you may want to consider a refinance to lower your rate so that you are paying less money over the life of your mortgage. You can also choose to extend or shorten your current loan term with your new loan depending upon your personal goals.