Mortgage rates Nov. 10, 2025

Refi rates now

Note that Coins2Day reviewed the most recent Zillow data available as of Nov. 7.

Mortgage refinancing explained

A mortgage refinance essentially pays off your existing home loan with a new one. Just like when you applied for a mortgage the first time around, you’ll need to apply and meet lender criteria regarding your credit profile, proof of income, your debt-to-income (DTI) ratio, and more. 

Note that this means your credit score will likely take a small hit due to the hard inquiry. And it also means if you don’t meet the lender’s requirements, you can be denied for a refi loan.

Mortgage rates now: what's happening?

Some observers hoped mortgage interest rates would fall in tandem cuts made by the Federal Reserve to the federal funds rate late last year. But, that didn’t happen, and mortgage rates remained stubbornly near the 7% mark—looking at the nationwide average for 30-year, fixed-rate loans—for months.

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. The Fed followed up with a second cut to the federal funds rate at the end of October, as well.

When to refinance your mortgage

As we’ll cover more in the next section, it’s not free to refi your home loan. So, when does it make sense to accept the upfront costs and refinance? One common guideline is that if you can get a new rate that’s a full percentage point lower than your current rate, it’s worth refinancing. Using recent market conditions as an example, someone who took out a home loan at 7% might find it worth their while to refinance if rates drop and they can get a new loan with a 6% rate.

It may also be worth refinancing to tap your home equity through a cash-out refi. Note that you’ll typically need to have at least 20% equity in your home for this. So, if you purchased the place with the 5% minimum down payment—or 3% for first-time homebuyers—typically available on conventional loans, it could take a while before you’re eligible for a cash-out refi.

Yet another situation where you might benefit from refinancing is to change your loan term. Perhaps you opted for a 15-year mortgage, aiming to reduce overall interest costs over time, even if it meant larger monthly installments. However, life can be unpredictable, and perhaps you've determined that the monthly payments are straining your budget excessively. Opting for a 30-year loan through refinancing could provide the ability to secure lower monthly payments, aligning better with your financial plan.

Sometimes, changing your loan type can be a sensible decision. If you're holding an FHA loan that mandates lifetime mortgage insurance, consider that refinancing into a conventional loan might offer a way to eliminate that expense. (Known as MIP for FHA loans or PMI for conventional ones). 

Alternatively, if you originally obtained an adjustable-rate mortgage (ARM) and now plan to hold onto the loan for an extended period, converting to a fixed-rate mortgage through refinancing could be a prudent move to Prevent interest rate increases when your adjustable-rate mortgage's reset date arrives.

The expense of 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. When you do a rate-and-term refinance on a $300,000 loan, you could incur refi closing costs ranging from $6,000 to $18,000. You'll find several potential charges listed 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 imposes one).

Various kinds of mortgage refinance options

Numerous mortgage refinancing options are available, and the best choice for you hinges on your objectives and your present mortgage type. Here are some typical refinancing choices:

• 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. Although shortening your loan term generally leads to a lower interest rate and significant savings on total interest paid over the loan's life, it will also result in increased monthly mortgage obligations.
• 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: With this option, your lender covers your closing costs in exchange for charging you a higher interest rate. If you don’t have cash upfront for closing costs and could otherwise benefit from a refinance, this option may be worth looking into.
• 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.

Your lender or a new one for refinancing

There’s no requirement that you refinance with the same lender you got your original mortgage from. Thus, it’s worth shopping around for the lowest rate and best service you can find. 

However, some lenders may offer incentives if you stick with them, such as waiving a portion of the closing costs. Since these charges can be an expensive upfront cost, it’s worth checking with your existing lender about incentives—as that might reduce the barrier to refinancing and allow you to refi more easily than you’d otherwise be able to. 

Finally, know that if your mortgage was purchased by Fannie Mae or Freddie Mac, you might be eligible for programs such as Refi Now and Refi Possible.