Mortgage of the day, refinancing rate: January 13, 2022


Mortgage rates have risen over the past two weeks, especially fixed rates. Data from Freddie Mac shows that 30-year and 15-year fixed rates are slowly rising, while adjustable rates have fallen over the past 12 months:

You can get a lower variable rate than a fixed rate today. But since rates are gradually increasing, your rate will likely be higher after the variable rate mortgage introductory period ends. Fixed rates are still relatively low today, so they are worth considering.

Mortgage rates today

Mortgage refinance rates today

mortgage calculator

You can enter today’s mortgage interest rates into our free mortgage calculator to see the impact of different rates on your monthly payments.

mortgage calculator

$1,161
Your estimated monthly payment

  • pay one 25% a higher down payment would save you $8,916.08 on interest charges
  • Lower the interest rate by 1% would save you $51,562.03
  • Pay an extra fee $500 each month would reduce the term of the loan by 146 month

You can enter today’s mortgage interest rates into our free mortgage calculator to see the impact of different rates on your monthly payments.

How do mortgage rates work?

A mortgage interest rate is the fee charged by a lender to borrow money, expressed as a percentage. For example, you get a $200,000 mortgage with an interest rate of 2.75%.

Mortgage rates can be fixed or adjustable. A fixed rate mortgage keeps your rate the same for the life of your loan. A variable rate mortgage fixes your rate for the first few years or so, then changes it periodically. With a 7/1 ARM, your rate would remain stable for the first seven years and then change every year.

The longer your mortgage term, the higher your rate will be. For example, you will pay more for a 30-year mortgage than for a 15-year mortgage. However, longer terms come with lower monthly payments because you spread out the repayment process.

How to get the best mortgage rate?

Here are some steps you can take to get the lowest mortgage rate possible:

  • Consider fixed rates versus adjustable rates. You may be able to get a lower introductory rate with an adjustable rate mortgage, which can be beneficial if you plan to move before the end of the introductory period. But a fixed rate might be better if you’re buying a house forever, because you don’t risk your rate going up later. Examine the rates offered by your lender and weigh your options.
  • Look at your finances. The stronger your financial situation, the lower your mortgage rate should be. Look for ways to increase your credit score or reduce your debt ratio, if necessary. Saving for a larger down payment also helps.
  • Choose the right lender. Each lender charges different mortgage rates. Choosing the right one for your financial situation will help you get a good rate.

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