Refi mortgage rates Nov. 3, 2025

Current refi rates data

Note that Coins2Day reviewed the most recent Zillow data available as of October 31, 2025.

Understanding the process of mortgage refinancing

Refinancing a mortgage involves replacing your current home loan with a new one. Similar to your initial mortgage application, you'll need to submit an application and satisfy the lender's requirements concerning your credit history, income verification, debt-to-income (DTI) ratio, and other factors. 

Your credit score will probably see a slight decrease because of the hard inquiry. Additionally, if you don't satisfy the lender's criteria, your refi loan application could be rejected.

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

Contrary to what some observers had anticipated, mortgage interest rates did not decline in conjunction with The Federal Reserve's reductions to the federal funds rate late last year. Instead, mortgage rates persisted stubbornly close to the 7% threshold—referring to the national average for 30-year, fixed-rate mortgages—for an extended period.

Rates have remained well above the pandemic-era lows, when some homeowners snagged loans with rates in the 2% and 3% range. Many remain locked in, unwilling to move or refinance in the current environment. A report from Redfin showed that as of the third quarter of 2024, 82.8% of homeowners with a mortgage had a rate below 6%.

Still, homeowners finally started getting some relief in late August and early September of 2025, when mortgage rates started trending noticeably downward ahead of the Fed’s Sept. 16-17 meeting—at which the central bank delivered the year’s first rate cut.

Consider refinancing your mortgage when it could be advantageous.

Refinancing your home loan incurs expenses, as we'll discuss further in the subsequent section. Therefore, when is it advisable to incur these initial costs and proceed with refinancing? A frequently cited rule of thumb suggests that if you can secure a new interest rate that is a full percentage point below your existing rate, the refinancing is likely beneficial. Considering current market trends, an individual with a home loan at 7% might find it advantageous to refinance if rates decline and they can obtain a new loan at a 6% rate.

Consider also refinancing your home to access its equity via a cash-out refinance. Keep in mind that you'll generally require a minimum of 20% equity in your property for this option. Therefore, if you initially bought your home with the common 5% down payment—or 3% for those buying their first home—often seen with conventional loans, you might have to wait some time before qualifying for a cash-out refi.

You could also find refinancing advantageous if you wish to alter your loan's duration. For instance, perhaps you secured a 15-year mortgage with the goal of reducing overall interest costs through larger monthly installments. However, circumstances can change, and you might find those monthly payments are straining your finances. By refinancing to a 30-year loan, you could gain the ability to make lower monthly payments that are more manageable for your budget.

It's also sometimes beneficial to change loan types. For example, if you currently have an FHA loan that mandates lifelong mortgage insurance payments, refinancing to a conventional loan could allow you to eliminate that insurance expense (known as MIP for FHA loans or PMI for conventional ones). 

Alternatively, if you originally secured an adjustable-rate mortgage (ARM) and now anticipate holding onto the loan for an extended period, converting to a fixed-rate mortgage could be a prudent move to sidestep potential interest rate increases once your ARM's adjustment phase begins.

Expenses associated with refinancing your home loan

Much like a traditional home loan taken out to purchase a property, refinancing a mortgage involves closing costs that run about 2% to 6% of the loan amount. For instance, if you do a rate-and-term refi on a $300,000 loan, you might  pay anywhere from $6,000 to $18,000 in refi closing costs. Here are some of the costs you might see on your refinance loan estimate:

• 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 your current loan servicer charges one).

Various kinds of mortgage refinance options

Numerous mortgage refinance loan choices are available, and selecting the most suitable one for your circumstances hinges on your objectives and the kind of mortgage you presently hold. Below are several prevalent refi alternatives:

• Rate-and-term refinance: This is the most popular refi option that allows you to lower your interest rate and/or shorten your loan term. While shortening your loan term does typically earn you a lower rate and hefty lifetime interest savings, you’ll be locked into higher monthly mortgage payments.
• Cash-out refinance: With a cash-out refi, you can tap your home’s equity by replacing your existing loan balance with a new, larger one and withdraw the difference in cash. You can use the money for home improvements, consolidating high-interest debt or other financial goals.
• No-closing-cost refinance: Your lender will pay your closing expenses if you agree to a higher interest rate. This choice might be advantageous if you lack immediate funds for closing costs but could still gain from refinancing.
• Streamline refinance: Available to existing FHA, VA and USDA loan borrowers, these refi options involve less documentation and a more straightforward application and approval process.

Refinancing with your current lender versus a new one

You aren't obligated to refinance your mortgage with the same company that issued your initial loan. Therefore, it's advisable to compare offers to secure the most competitive rate and superior service available. 

Some lenders might provide enticements for remaining with them, like forgiving a part of the closing expenses. Given that these fees can represent a significant initial outlay, it's advisable to inquire with your current lender regarding incentives, as this could lower the hurdle to refinancing and make it simpler to do so than you might otherwise manage. 

If your mortgage was acquired by Fannie Mae or Freddie Mac, you could qualify for initiatives like Refi Now and Refi Possible.