Refinance mortgage rates for November 13, 2025

Current refi rates data

Note that Coins2Day reviewed the most recent Zillow data available as of Nov. 12.

Understanding the mortgage refinancing process

Boiled down to the basics, mortgage refinancing involves paying off your existing loan with a new one. This process requires meeting the lender’s criteria as is the case for any loan—including your credit profile, income verification, and debt-to-income (DTI) ratio. 

Applying for the product might slightly impact your credit score because of a hard inquiry, and there's also the possibility of rejection if you fail to meet the lender's criteria.

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

Despite expectations that mortgage interest rates would fall after the Federal Reserve lowered the federal funds rate at the end of last year, 30-year, fixed-rate mortgages nationally stayed close to 7%. 

Mortgage rates are still considerably higher than the 2% to 3% levels seen during the pandemic. Redfin data from Q3 2024 indicates that 82.8% of homeowners with mortgages are currently paying less than 6%. Consequently, a substantial portion of the U.S. Population is facing the "lock-in effect," preventing them from relocating or refinancing due to their exceptionally low, historical interest rates. 

A degree of improvement appeared toward the close of August and start of September 2025, persisting into October. Mortgage interest rates showed a significant decline, with 30-year, fixed-rate loans averaging nearer to 6%, a level not observed for nearly a year. This shift was primarily linked to market expectations that the Federal Reserve would reduce the federal funds rate at its September 16-17 meeting.

In line with expectations, the central bank lowered its key interest rate by 0.25% in September, subsequently implementing another 0.25% reduction in October.

Consider refinancing your mortgage when the circumstances are favorable.

Refinancing involves initial expenses, making it crucial to determine its advantages. A common recommendation is to refinance when you can obtain a rate that's at least one percentage point below your existing rate. For example, if your loan was initially at 7% and interest rates have since dropped, switching to a 6% rate would likely be a prudent decision for future cost reductions.

You could also consider a cash-out refinance to access your home's equity, a process that generally necessitates having a minimum of 20% equity established. 

Refinancing may also be beneficial if you aim to alter your loan duration or transition between loan categories, for instance, shifting from an FHA loan to a conventional one to eliminate the FHA loan's lifelong mortgage insurance (MIP) obligation, or moving from an adjustable-rate mortgage to a fixed-rate one to prevent possible interest rate increases.

Additionally, refinancing can be advantageous if you wish to modify your loan duration. For instance, transitioning from a 15-year to a 30-year mortgage could result in lower monthly installments, which may prove more manageable should your financial circumstances have shifted.

The expenses involved in refinancing your home loan

When you refinance, you'll encounter closing expenses, which usually fall between 2% and 6% of the total loan sum. For a $300,000 mortgage, these expenses could be anywhere from $6,000 to $18,000. Certain common costs may 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 in the terms of your current loan).

Various kinds of mortgage refinancing options

Numerous mortgage refinance options exist, and the most suitable choice hinges on your objectives and present mortgage. Below are several prevalent refi categories:

• Rate-and-term refinance: This is likely the most common type of refinancing, allowing you to get a more favorable interest rate or adjust your loan's duration. Keep in mind that opting to shorten your loan term, while often resulting in a lower rate and significant overall interest savings, will require you to allocate more funds for your monthly mortgage installments.
• Cash-out refinance: With a cash-out refi, you can tap your home’s equity by paying off your existing loan balance and accepting a new, larger one. You withdraw the difference in cash. That money can then be used for home improvements, consolidating high-interest debt, or virtually any other financial goal you may have.
• No-closing-cost refinance: Approach this one with a healthy level of skepticism. With this type of refi, your lender covers the closing costs in exchange for charging a higher interest rate. If you don’t have cash on hand for closing costs and could otherwise benefit from a refinance, this option may be worth a look.
• Streamline refinance: Available to existing FHA, VA and USDA loan borrowers, a streamline refi will typically involve less documentation and offer a more straightforward application and approval process.

Refinancing with your current lender compared to a new one

You don't have to stick with your initial lender for a refinance. Exploring other options could lead to more favorable rates and improved service. 

However, certain lenders provide enticements, like forgoing closing fees, if you remain with them. Therefore, you ought to at least conduct the necessary research by contacting your current lender prior to deciding. 

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