Today’s Mortgage, Refinance Rates: Jan. 16, 2022

Mortgage rates are still relatively low, but they have already started to increase in 2022. In December 2021, the


Federal Reserve

announced that it will taper asset purchasing (including the purchasing of mortgage-backed securities) at twice the speed that it had previously expected. It also plans to increase the federal funds rate three times in 2022.

These new plans mean that rates will likely go up this year. If you’re financially ready to buy a home, you may want to lock in a mortgage rate while rates are still low.

Current mortgage rates

Current refinance rates

Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates would impact your monthly payments. By plugging in different rates and term lengths, you’ll also understand how much you’ll pay over the entire length of your mortgage.

Mortgage Calculator

$1,161
Your estimated monthly payment

  • Paying a 25% higher down payment would save you $8,916.08 on interest charges
  • Lowering the interest rate by 1% would save you $51,562.03
  • Paying an additional $500 each month would reduce the loan length by 146 months

Click “More details” for tips on how to save money on your mortgage in the long run.

What is a mortgage rate?

A mortgage interest rate is a fee for borrowing money from a lender, expressed as a percentage. For example, you may take out a mortgage for $200,000 with an interest rate of 2.75%. You’ll repay interest along with the amount you borrow, so you’ll pay back more than $200,000.

How are mortgage rates determined?

In general, mortgage rates tend to be high when the US economy is thriving and low when it is struggling. Mortgage rates have been at all-time lows as the coronavirus pandemic impacts the country.

There are factors you can control, though. The stronger your finances are, the lower your rate will probably be. You can secure a better rate with a good credit score, low debt-to-income ratio, and substantial down payment.

How do I find personalized mortgage rates?

Some mortgage lenders let you customize your mortgage rate on their websites by entering your down payment amount, zip code, and credit score. The resulting rate isn’t set in stone, but it can give you an idea of what you’ll pay.

If you’re ready to start shopping for homes, you may apply for preapproval with a lender. The lender does a hard credit pull and looks at the details of your finances to lock in a mortgage rate.

How do I compare mortgage rates between lenders?

You can apply for prequalification with multiple lenders. A lender takes a general look at your finances and gives you an estimate of the rate you’ll pay.

If you’re farther along in the homebuying process, you have the option to apply for preapproval with several lenders, not just one company. Your mortgage rate is locked in for a set amount of time when you are preapproved. By receiving letters from more than one lender, you can compare personalized rates.

Applying for preapproval requires a hard credit pull. Try to apply with multiple lenders within a few weeks, because lumping all of your hard credit pulls into the same chunk of time will hurt your credit score less.

When should I lock in a mortgage rate?

You’ll probably want to apply for preapproval and lock in a rate once you are ready to actively shop for homes. Most lenders lock in your rate for 60 to 90 days when they preapprove you.

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