Jan 16, 2022
If you haven’t refinanced your mortgage in the last two years, you could be losing money every month. Mortgage rates remain low by historical standards, which means homeowners still have an opportunity to save money by taking out a new loan.
Average mortgage rates have been falling since early 2019. They hit an all-time low in early January 2021, according to mortgage giant Freddie Mac, and they’re still significantly lower than they’ve been in decades.
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Even if your current mortgage is just two years old, refinancing now could cut your monthly payment by hundreds of dollars and save you tens of thousands of dollars over the course of your loan in mortgage interest.
But most experts say rates will climb throughout 2022. If you want to save money for years to come, now’s the time to snatch a cheap interest rate.
Get pre-qualified for a better rate — without affecting your credit
Even though average rates are low, not all lenders will offer you the same interest rate on a mortgage refinance. You have to shop around and compare rates to get the refinance offer that’ll save you the most money over time.
Homeowners who comparison shop before refinancing can reap thousands of dollars in additional savings, according to studies from Freddie Mac and others.
A good rule of thumb when you’re refinancing a mortgage is to compare loan offers from at least three lenders before officially applying.
The tool below can help you see which rates you can qualify for — before you apply.
Enter your information to get matched with lenders. If you’re a match, they’ll reach out with your pre-qualified offer, so you can compare offers and consider your options without a pushy sales person staring at you from across a desk.
Getting pre-qualified for a refinance loan doesn’t affect your credit score, and you don’t have any obligation to accept an offer if you don’t find something that’ll save you money.
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Dana Sitar has been writing and editing since 2011, covering personal finance, careers and digital media. She’s written about work and money for The New York Times, Forbes, CNBC, The Motley Fool, a column for Inc. and more.
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