Current Mortgage Refinance Rates

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Best mortgage refinance rates, Compare today’s refinance rates.

Updated: September 20, 2022

Fed Continues Ratcheting Rates With 75-Basis

As of today, September 20, 2022, the average 30-year term mortgage refinances rate is 6.78%; the FHA 30-year fixed is 6.71%; the jumbo 30-year fixed is 5.65%, and the 15-year fixed is 6.11%. The ad rates may be different from the rates you see in lenders’ online ads, but they should be more representative of what you can expect from the lender’s bid based on your eligibility. See the Methods section of this page to learn more about what differentiates our rates.

You would refinance a mortgage by paying off the existing home loan with a new home loan. You can refinance for a number of reasons, and you can expect mortgage refinance rates on the loan to be similar to regular mortgage rates. You will, however, usually pay a higher rate if you opt for a cash-out refinance.

Today’s Mortgage Refinance Rates

Loan TypeRefinancePurchase
30-Year Fixed6.78%6.57%
FHA 30-Year Fixed6.71%6.57%
VA 30-Year Fixed6.80%6.69%
Jumbo 30-Year Fixed5.65%5.64%
20-Year Fixed6.70%6.47%
15-Year Fixed6.11%5.81%
Jumbo 15-Year Fixed5.65%5.65%
10-Year Fixed5.98%5.76%
10/6 ARM6.34%6.16%
7/6 ARM6.37%6.24%
Jumbo 7/6 ARM5.56%5.47%
5/6 ARM6.07%6.17%
Jumbo 5/6 ARM5.44%5.44%

Given the low interest rate environment in the United States, mortgage refinancing can be a great way to reduce your monthly principal and interest (P&I) payments and your overall interest costs. Also, depending on your current rate, you may be able to lower your rate and pay off your loan without significantly impacting your monthly P&I payments. In the long term, this can save you a ton of money.

mortgage refinance rates

However, you should not base your decision solely on the interest rate you will receive. Be sure to consider the costs associated with refinancing, as it usually does not come for free. If you decide to refinance your mortgage, then the new loan should put you in a better financial position than your old loan. For example, you should get a better rate or repayment terms. If you are not in a better financial position, you can also keep your old loan.

Frequently Asked Questions

What Is Mortgage Refinancing?

Refinancing a mortgage is when you get a new mortgage and use it to pay off your existing mortgage. Homeowners often use mortgage refinancing to lower their interest rate, extend their repayment period to reduce payments, shorten the repayment period, take out some of their equity as cash, or consolidate other debt to pay off debt more quickly. Home equity loans and real estate loans are combined into a single loan. Determining why you want to refinance your loan can help you find the best mortgage refinance option.

Keep in mind that your mortgage refinances rates are only one factor you should consider when deciding whether a mortgage refinance is right for you. Be sure to consider things like how much the refinance will cost and the repayment terms you will meet (for example, a fixed rate versus an adjustable rate, a 15-year term versus a 30-year term). Ultimately, you should only refinance your existing mortgage if you will end up in a better financial position.

Why Should I Consider Refinancing My Mortgage?

Some common reasons why most people choose to refinance their mortgage are:

  • Lower the interest rate: Those with an existing mortgage right now can get a lower interest rate with a mortgage refinance.
  • Lower your payments with longer repayment periods: Another way to reduce your payments is to lower your interest rate. Another way is to get a longer repayment period, which is why some people refinance their mortgages. For example, a P&I payment with a 3% rate on a $250,000 15-year fixed-rate mortgage would be $1,726.45, compared to a monthly P&I payment of $1,054.01 with a 30-year term.
  • You pay it off more quickly with a shorter repayment period: Conversely, some people may choose to use a mortgage refinance to pay off their loan more quickly. Let’s say you had an existing 30-year mortgage with a 6% rate and a principal balance of $300,000, which you had been paying for the last five years. If you want to refinance the principal balance of a 15-year mortgage with a rate of 2.20%, your P&I payment will increase slightly from $1,798.65 per month to $1,822.26 per month, but you will pay off your loan in full over 15 years will go
  • You cash out some of your equity. Most people sometimes choose to refinance their mortgage to cash out some of their equity. And with a mortgage refinance, you may be able to get a bigger mortgage than your original mortgage. Your extra money will be distributed to you in cash. You’ll need to keep in mind that you’ll need enough equity in your home to support the refinance, either from an appreciation in the value of your home or from the principal payments you’ve made over time.
  • You consolidate other home loans. Sometimes, most people have a second mortgage or home equity loan. And they can more often use a mortgage refinance to consolidate this debt into one loan. Doing so makes it easier for you to keep track of the outstanding balance. Also, home equity loans often have variable rates. And with variable rates, there is an added risk in most cases because your payout will change as rates increase or decrease. By combining your loans into a fixed rate mortgage, you no longer need to worry about changes in your P&I payments.

There are many, many reasons why people might use mortgage refinancing. Before you decide to do so, think about what you’re trying to achieve and how much it will cost you to refinance. And you will need to pay a considerable number of fees as well as other closing costs for a new appraisal on your home. That said, consider a mortgage refinance carefully to be sure whether it is worth it in the long run and whether it is helping you improve your financial situation.

And remember, you should take precautions to avoid situations that could potentially put you in a worse financial position. For example, you may be able to get a lower rate on an adjustable-rate mortgage (ARM) than on a fixed-rate mortgage, but you may pay a higher rate if it is adjusted in the future. So, make sure you are not sacrificing long-term benefits for short-term gains.

How Are Mortgage Refinance Rates Different From Regular Mortgage Rates?

The purpose of your refinancing will play a role in how much your mortgage refinance rate differs from the regular refinance rate. If you’re refinancing your mortgage to get a lower rate to further reduce your interest costs, or if you’re getting a shorter repayment period to pay off your loan more quickly, there may not be much difference. could. However, if you want to take cash equity out of your home (called a cash-out refinance), the mortgage refinances rate will be higher than regular mortgage rates.

With a cash-out refinance, you are not only increasing your loan amount, but you are also reducing the amount of equity you hold in your home. This means your loan-to-value (LTV) ratio will be higher (worse) after your cash-out refinance. Your increased loan amount and high LTV ratio are risky for the lender. Lenders usually make up for this added risk by charging a higher interest rate, which is what you can get if you don’t carry any extra cash.

Why are refinancing rates different from standard mortgage rates?

With a regular mortgage, the rate you can get on a mortgage refinance will vary depending on the type of mortgage you get, that is, your 15-year fixed rate versus a 30-year fixed rate. rate. Your rates may be higher if you plan to take a cash-out to refinance. In any case, mortgage rates will generally be lower on a mortgage refinance with shorter fixed rate terms than on a refinance with longer fixed rate terms.

The reason rates are lower with a lower fixed rate mortgage than with a longer fixed rate mortgage is that shorter terms are considered less risky than longer terms in most cases. One of the reasons why longer terms are often riskier for lenders is your higher interest rate risk. If rates go up, the lender potentially leaves you stuck with a lower-rate loan for a longer period. This means they won’t be able to create as many new loans, which can lead to higher rates and make them more money.

Another reason that longer terms are riskier for most lenders is that there is a greater chance that something unexpected will occur that will severely impair your ability to repay the loan. For example, you may lose your job or there may be a recession or economic downturn that affects your ability to repay. To cover this additional risk to you, lenders will charge higher interest rates on longer-term loans.

How Can I Get Better Rates on Mortgage Refinancing?

The biggest thing you can do to qualify for a better mortgage refinance rate is to make sure your credit score is as good as possible. Your credit score affects the mortgage rate you can get because it is a very good measure of how risky you are as a borrower. Most lenders see people with better credit scores as having a lower level of risk. As a result, if you have a much better credit score, you will usually be able to get a much better mortgage to refinance rate.

To put this in perspective and to explain this to you better, the estimated APRs and monthly payments on a $350,000 30-year fixed-rate mortgage for four different credit scores are shown in the chart below. so that you can understand it better.

As you can see, people with exceptional credit may be able to get around 1.6% lower rates than someone with fair credit. In our example, the effect on monthly P&I payments for the $350,000 loan was a difference of over $300. All this extra money goes toward interest costs, making the same loan cost higher for people with bad credit.

mortgage refinance rates

That said, it’s smart to wait until your credit score is as high and good as it can be before applying for a mortgage refinance. Paying off your credit card ahead of time is the most important thing for improving your credit score. The amount of time will depend on the severity of your credit issues. For example, if you’ve built up a large credit card balance, this may be a quicker problem to solve than having to take over the car recently. But if you want to qualify for the best possible mortgage rate, be patient and stay the course. Ultimately, you will improve your credit score.

That said, it’s smart to wait until your credit score is as high and good as it can be before applying for a mortgage refinance. Paying off your credit card ahead of time is the most important thing for improving your credit score. The amount of time will depend on the severity of your credit issues. For example, if you’ve built up a large credit card balance, this may be a quicker problem to solve than having to take over the car recently. But if you want to qualify for the best possible mortgage rate, be patient and stay the course. Ultimately, you will improve your credit score.

Credit ScoreClassificationEstimated APRMonthly P&I Payment
740Very Good2.542%$1,391

What Are the Average Refinancing Rates for Mortgages Right Now?

Although you may pay a little more for a cash-out mortgage refinance, you can expect that the rates you pay for a non-cash-out mortgage refinance will be similar to your regular mortgage rates. The average 15-year fixed-rate mortgage in the United States is 4.81% as of June 2022. This compares with the 30-year fixed-rate mortgage average in the United States of 5.78%.

In addition, rates also depend on whether you get another conforming or FHA loan, be it a loan from the Department of Veterans Affairs (a VA loan), a loan insured by the USDA, or even insured by a jumbo loan. For example, as of June 2022, the average 30-year fixed rate for a VA loan was 5.520%, compared to a rate of 5.950% for a conforming mortgage.

Rates for some of the most common types of mortgages for the most recent three years are shown in the chart below. so that you can be a part of a better society 

You have to keep in mind that mortgage rates fluctuate based on inflation set by the Federal Reserve, and even more economic trends, such as the unemployment rate and monetary policies. For this reason, in a low interest rate environment, it’s a great idea to lock in your rate as early as possible. In high-interest environments where rate cuts are expected in the near future, it may be prudent to postpone locking in rates for a while. However, in that case, you run the risk that interest rates may rise before you lock in.

The bottom line is that interest rates change from time to time depending on the situation. Mortgage rates change quickly and frequently. Pay attention to what is happening in the market so that you can secure the best possible interest rate.

Type of Mortgage Rate as of January 28, 2021Rate as of January 28, 2020Rate as of January 28, 2019
30-Year Fixed-Rate Conforming Mortgage2.812%3.710%4.796%
30-Year Fixed-Rate FHA Mortgage2.803%3.874%4.938%
30-Year Fixed-Rate VA Mortgage2.422%3.448%4.649%
30-Year Fixed-Rate USDA Mortgage2.711%3.753%4.860%
30-Year Fixed-Rate Jumbo Mortgage2.878%3.802%4.574%
15-Year Fixed-Rate Conforming Mortgage2.298%3.136%4.093%
mortgage refinance rates


To find the best good mortgage refinance rates, we averaged the lowest rates offered by over 200 of the nation’s top good lenders, assuming an applicant with a loan-to-value ratio (LTV) of 80% and a FICO credit score in the 700 to 760 range. The rates resulting from this represent what most customers should expect to see when getting an actual quote from lenders based on their ability, and may differ from the rates advertised by lenders.

These mortgage rates are for informational purposes only. And rates are subject to change at any time from day to day and without notice to you. And the loan terms for loans above a certain limit may vary, and the products used in our calculations may not be available in all states. Taxes and insurance premiums are not included in the loan rates. Personal lender terms will apply.

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