Should I Refinance My Home Mortgage in 2022?

home mortgage refinance


Over the past few years, many homeowners have chosen to refinance their home mortgage, taking advantage of historically low rates. In 2022, those rates are expected to rise, which has prompted many homeowners to wonder: Is a mortgage refinance still worth it?   

Find out more about the benefits of refinancing, and whether 2022 is still a good time to do it, from the team at Loan Fleet. Check out our latest blog post for insights and tips about how to get the best mortgage refinance rates in California.

Should I Refinance My House Mortgage in 2022?

Refinancing offers homeowners the chance to lower their mortgage rates, potentially reducing
their monthly payments, shortening their loan term, or simply giving themselves some financial
breathing room. And over the past couple of years, homeowners have been especially zealous
to refinance, taking advantage of record‐low mortgage rates.

The question is, will 2022 continue to offer a good environment for a mortgage refinance? After
all, most experts anticipate that mortgage rates will rise over the course of the year, potentially
starting quite soon. With mortgage refinance rates looking a tad less favorable, many
homeowners might wonder whether the process is even worth it.

Why a Mortgage Refinance is Still Worth It

The short answer is that, even with mortgage refinance rates looking a little less rosy than they
did last year, it’s still well worth considering the benefits of refinancing. Indeed, a mortgage
refinance can still be advantageous for millions of homeowners in California and across the

Consider a few relevant details:

a) Right now, mortgage rates are still incredibly low. While the Fed is set to take action
that will likely cause rates to increase, they remain extraordinarily low right now. So, if
you’re looking to take advantage of the best mortgage refinance rates in California, the
time to act is now!

b) Even later in the year, rates will remain very favorable. Even with the mortgage rate
rising a little bit, the reality is that conditions are still historically favorable for
borrowers. As such, 2022 may be a good opportunity to convert your adjustable rate
mortgage into a steadier fixed rate mortgage.

c) Home equity levels are high. Another consideration is that today’s homeowners have a
fairly high level of home equity. (Again, thank the historically low mortgage rates we’ve
enjoyed over the past few years). As such, there is ample opportunity for homeowners
to use the mortgage refinance process to cash out, potentially freeing up some cash for
renovations or other major expenses.

Tips for Your Mortgage Refinance

As you consider a potential mortgage refinance, here are a few tips to help you get the best
possible rates.

Remember, your credit score is key. Also keep in mind that applying for a mortgage
refinance is similar to applying for a standard mortgage loan: You’ll still need to show
some proof of your financial reliability. As such, demonstrating a decent credit score will
be an important part of the process.

Ask about a rate lock. If you find a mortgage refinance rate that you’re comfortable
with, you may wish to ask the lender about a rate lock, which will allow you to “save”
that rate while you go through the application process. This is especially relevant in
2022, with rates so likely to change.

Choose the Right Lender for Your Mortgage Refinance

One more tip? Make sure you choose a trustworthy lender for your mortgage refinance. And
pick that lender sooner rather than later so as to take advantage of the best possible rates!
Refinance now with Loan Fleet.