The latest refi mortgage rates were released on October 15, 2025.

Current refi rates data

Note that Coins2Day reviewed the most recent Zillow data available as of Oct. 14.

Understanding the process of mortgage refinancing

Refinancing a mortgage means replacing your current home loan with a different one. Just like when you first got your mortgage, you'll have to apply for the new loan and satisfy the lender's requirements concerning your credit history, income verification, debt-to-income (DTI) percentage, and other factors. 

You'll typically see a slight decrease in your credit score because of the hard inquiry. Also, be mindful that denial is a possibility if you don't satisfy the lender's criteria.

What's the current situation with mortgage rates in the market?

Contrary to the expectations of some observers who anticipated mortgage interest rates would decline following the Federal Reserve's reductions to the federal funds rate late last year, this did not materialize. Instead, interest rates persisted stubbornly close to the 7% threshold—representing the national average for 30-year, fixed-rate mortgages—for an extended period. 

Rates did drop slightly toward the end of February, moving closer to 6.5% than had been seen in a while. Still, rates remain elevated well above pandemic-era lows, when some homeowners got mortgages with rates in the 2% and 3% range. 

According to a Redfin report, by the third quarter of 2024, 82.8% of homeowners with mortgages had an interest rate below 6%. A significant number of Americans have felt trapped, either unable or unwilling to relocate or refinance due to persistently high rates.

Mortgage rates saw a welcome decrease in late August and early September of 2025, anticipating the Fed's meeting on September 16-17. During this gathering, the Federal Reserve lowered its key interest rate by 0.25%.

Consider refinancing your mortgage when it could be beneficial.

Refinancing involves expenses, making it vital to assess the associated costs. A common guideline suggests refinancing is beneficial if you can obtain a rate that's at least one percentage point below your existing rate. For instance, if interest rates decline and you can switch from a 7% rate to a 6% rate, this warrants careful evaluation.

Consider refinancing to access your home's equity through a cash-out refinance, usually necessitating at least 20% equity in your property.  

Refinancing offers the possibility of altering your loan duration or transitioning between loan categories, for instance, shifting from an FHA loan to a conventional loan to eliminate a lifelong mortgage insurance premium (MIP), or converting an adjustable-rate mortgage (ARM) into a fixed-rate loan.

Refinancing might also be advantageous if you're looking to modify your loan's duration. For example, moving from a 15-year to a 30-year mortgage could result in lower monthly installments, potentially making them easier to handle if your financial circumstances have shifted since the loan was initially secured.

Expenses associated with refinancing your home loan

Refinancing involves closing costs, typically ranging from 2% to 6% of the loan amount. For a $300,000 loan, costs might range from $6,000 to $18,000, for example. Some common costs include:

• Lender origination fees.
• Appraisal fees.
• Title search and insurance fees.
• Loan application fees.
• Survey fees.
• Attorney fees (if required in your state).
• Recording fees.
• Prepayment penalties (if applicable with your existing lender).

Various kinds of mortgage refinancing options

Several types of refinance options exist, each suited to different goals:

• Rate-and-term refinance: When aiming to reduce your interest rate or modify your loan's duration, this is the path to consider; however, be mindful that a shorter repayment period will very likely lead to increased monthly installments.
• Cash-out refinance: Leverage your home equity by paying off your existing loan and taking out a larger loan, while receiving the difference in cash.
• No-closing-cost refinance: The lender covers closing costs in exchange for a higher interest rate. This is a refi to approach with educated caution, but could be worthwhile in certain cases. 
• Streamline refinance: Available for FHA, VA, and USDA loans, offering a simpler application process and oftentimes less paperwork. 

Refinancing with your current lender versus a new one

You don't have to stick with your initial lender for a refinance. Exploring other options could lead to better interest rates and potentially superior customer care. 

However, certain lenders provide inducements, like forgoing closing fees, to retain your business. Therefore, you ought to discuss refinancing with your current lender prior to finalizing any choice. 

If Fannie Mae or Freddie Mac has acquired your mortgage, you may qualify for initiatives such as Refi Now and Refi Possible.