Travel

Today's refi rates trend higher | September 2, 2022 – Bankrate.com





Financing a home purchase
Refinancing your existing loan
Finding the right lender
Additional Resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare Accounts
Use calculators
Get advice
Bank reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Compare by category
Compare by credit needed
Compare by issuer
Get advice
Looking for the perfect credit card?
Narrow your search with CardMatch™
Personal Loans
Student Loans
Auto Loans
Loan calculators
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Best of
Brokerages and robo-advisors
Learn the basics
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Get the best rates
Lender reviews
Use calculators
Knowledge base
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Selling a home
Buying a home
Finding the right agent
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Car insurance
Homeowners insurance
Other insurance
Company reviews
Elevate your Bankrate experience
Get insider access to our best financial tools and content
Retirement plans & accounts
Learn the basics
Retirement calculators
Additional resources
Elevate your Bankrate experience
Get insider access to our best financial tools and content
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
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.
While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for .
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Several closely watched refinance rates rose today compared to a week ago, according to data compiled by Bankrate.
As price inflation persists, the Federal Reserve again moved aggressively at its July 27 meeting. The Federal Reserve raised rates three-quarters of a percentage point for the second consecutive meeting, a strong policy move that may – or may not – translate to rising mortgage rates. The central bank is ramping up efforts to fight inflation, which has remained high after a bout of pandemic stimulus and supply chain problems. In June, annual price increases clocked in at 9.1 percent. However, the strong move also could tip the U.S. economy into recession, which would push mortgage rates down.
The rise hasn’t been straight upward. Mortgage rates are being whipsawed by concerns that the U.S. economy will contract. The Fed doesn’t directly control fixed mortgage rates — the most pertinent number is the 10-year Treasury yield, and it has bounced around in recent weeks. Even so, high inflation all but forces the Fed to act aggressively, and it sets the tone for rates overall.
Here’s a pro tip: Getting multiple offers can save you thousands of dollars over the life of your mortgage.
“No matter whether the housing market is red-hot, in a cooling-off stage or something in-between, one can and should seek to save money on financing by seeking multiple offers on a mortgage,” says Mark Hamrick, Bankrate senior economic analyst. “The result is savings on the monthly payment, as well as during the entire experience of ownership, and the peace of mind that one got the best rate. That can literally equate to saving thousands of dollars in the long term.”
The average 30-year fixed-refinance rate is 6.05 percent, up 21 basis points over the last seven days. A month ago, the average rate on a 30-year fixed refinance was lower, at 5.40 percent.
At the current average rate, you’ll pay $599.55 per month in principal and interest for every $100,000 you borrow. Compared with last week, that’s $15.34 higher.
You can use Bankrate’s mortgage calculator to get a handle on what your monthly payments would be and see the effect of adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
The average rate for a 15-year fixed refi is 5.25 percent, up 16 basis points over the last week.
Monthly payments on a 15-year fixed refinance at that rate will cost around $547 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.
The average rate for a 10-year fixed-refinance loan is 5.27 percent, up 16 basis points over the last seven days.
Monthly payments on a 10-year fixed-rate refi at 5.27 percent would cost $546.64 per month for every $100,000 you borrow. That hard-to-swallow monthly payment comes with the benefit of paying even less interest over the life of the loan than you would with a 15-year term.
Since the beginning of the coronavirus pandemic in 2020, rates have been hovering around historic lows. But now rates are edging higher as the Federal Reserve aims to contain inflation.
Most experts predict rates will increase through 2022.
“Until inflation peaks, mortgage rates won’t either,” says Greg McBride, CFA, Bankrate chief financial analyst.
To see where Bankrate’s panel of experts expect rates to go from here, check out our Rate Trend Index.
Want to see where rates are right now? See local mortgage rates.
Refinancing your mortgage means taking out a new home loan. In the process, you’ll fully pay off your existing loan, and then start payments on a new one. The two most prevalent kinds of mortgage refinances are rate-and-term changes — which result in a new interest rate and a reset payment clock — and cash-out refinances. The latter allow homeowners to take advantage of their equity by taking out a new mortgage with a larger principal based on the home’s current value.
No matter what kind of refinance you choose, once you close on your new loan, the payment clock goes back to zero. So, for example, if you take out a new 30-year mortgage, you’ll have another 30 years of payments in front of you.
That said, a 30-year refi is the right choice for many people. Extending the term of your loan means lower monthly payments, which can ease the squeeze if you find yourself with a tight budget.
A 15-year mortgage refinance has some advantages, too, namely that you pay a lot less interest over the life of the loan. 15-year mortgages tend to charge lower rates than 30-year mortgages, and they also have a shorter repayment window, so the overall savings can be significant. Keep in mind, though, that a short repayment window is a double-edged sword. It does help you save in the long run, but with less time to pay, 15-year mortgages have higher monthly payments.
Here are sample payments on a $300,000 mortgage at 5.5 percent interest:
A new mortgage can also help you tap your home equity if you exercise a cash-out option. If you have enough equity in your home, you can apply for a new mortgage with a larger principal balance and take the difference from what you owe on your old loan in cash. Doing so can allow you to finance other spending at a low rate compared with other forms of borrowing. Some of the most common uses for cash-out funds are home improvements, debt consolidation or education financing.
Refinance costs can change based on where you’re located, the lender you’re working with and a number of other factors. The general rule of thumb, however, is that costs are around 2 to 5 percent of the loan’s principal amount. On a $300,000 mortgage, that comes out to $6,000 to $15,000 in closing costs.
Perhaps, depending on your situation. Because rates rose sharply in late 2021 and early 2022, the easy savings no longer are available. However, a cash-out refinance remains a smart way to pay for home renovations.
Keep in mind, however, you’ll want to calculate your break-even timeline. If you’re planning to move soon, you may not save enough to recoup your closing costs before you do.
Shopping around is crucial to get the best deal on your mortgage. Make sure to get quotes from at least three lenders, and pay attention not just to the interest rate but also to the fees they charge and other terms. Sometimes it’s a better deal to choose a slightly higher interest loan if the other aspects are favorable.
Different mortgages have different minimum requirements for their borrowers. Although lenders are free to adjust these requirements as they please, here are the most common credit score minimums for some common mortgage types:
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. However, if your credit score is higher than these minimums, you may be able to secure a better interest rate.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s Rate Averages.”
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
Bankrate, LLC NMLS ID# 1427381 | NMLS Consumer Access
BR Tech Services, Inc. NMLS ID #1743443 | NMLS Consumer Access
© 2022 Bankrate, LLC. A Red Ventures company. All Rights Reserved.

source



Related posts
Travel

Rebel violence in eastern Congo causes hunger to soar - ABC News

Humanitarian workers say hunger is now soaring in eastern Congo after months of fighting between M23…
Read more
Travel

Earth's northernmost town where it's 'illegal to die', you need a gun and cats are banned - Daily Star

The remote archipelago of Svalbard is classed as part of Norway and has some very unusual rules…
Read more
Travel

"That's a lot of water..." - American Rivers

American Rivers recently had the pleasure of co-hosting a whitewater rafting trip with a local…
Read more
Newsletter
Join THE PRO PEOPLE Family

Sign up for The Pro People Community's Daily Digest and get the best of Industry updates, tailored for you.

Leave a Reply

Your email address will not be published.