Refinance mortgage rates update for November 18, 2025

Current refi rates data

Note that Coins2Day reviewed the most recent Zillow data available as of Nov. 17.

Understanding the mechanics of mortgage refinancing

Refinancing a mortgage means substituting your current home loan with a different one. Just like when you first applied for your mortgage, you'll have to submit an application and satisfy the lender's requirements, which encompass your credit history, proof of income, debt-to-income ratio, and other factors. 

A hard inquiry usually causes a slight drop in your credit score, and you might be rejected if you don't satisfy the lender's criteria.

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

Despite expectations that mortgage interest rates would decline after the Federal Reserve lowered the federal funds rate at the end of last year, rates for 30-year, fixed-rate mortgages across the country have persisted around the 7% level. 

While rates saw a minor decrease near February's close, approaching 6.5%, they are still considerably elevated compared to the 2% to 3% range seen during the pandemic. A Redfin report indicated that in Q3 2024, 82.8% of homeowners with mortgages held rates under 6%. This suggests a substantial number of homeowners are effectively stuck, either unwilling or unable to relocate or refinance given the present high rates. 

Homeowners did experience some reprieve beginning in late August and early September of 2025, as mortgage rates began to decline leading up to the Fed's meeting on September 16-17. Rates fell to a level not observed in nearly twelve months, and the Fed enacted a widely expected decrease of 0.25% to the federal funds rate. The central bank subsequently implemented another reduction of the same magnitude during its October session.

Consider refinancing your mortgage when it could be beneficial.

Refinancing isn’t free, so it’s crucial to weigh the costs before you apply for a refi. 

A common piece of advice suggests that refinancing is beneficial when you can obtain an interest rate that's a full percentage point below your existing rate. For instance, if your current loan has a 7% interest rate, seeking to refinance at a 6% rate might be a prudent decision to reduce the total interest paid throughout the loan's duration.  

Another option could be a cash-out refinance, allowing you to access your home's equity, though this usually necessitates having at least 20% equity. Borrowers enjoy considerable freedom in how they spend the funds received from this type of refinance, as there are typically no limitations on the use of the cash obtained. For instance, you could invest the money, use it for a down payment on a second home or investment property, or settle outstanding credit card balances. 

By refinancing, you can also adjust your loan's duration. For example, an individual who initially secured a 15-year mortgage but is experiencing financial strain might find it advantageous to switch to a 30-year term, resulting in a lower monthly installment.  

Refinancing also offers the possibility of changing loan types; for instance, you could transition from an FHA loan to a conventional loan to eliminate the FHA loan's lifelong mortgage insurance (MIP) obligation, or switch from an adjustable-rate mortgage (ARM) to one with a fixed interest rate.

Expenses associated with refinancing your home loan

When you refinance, you'll encounter closing costs, which generally fall between 2% and 6% of the total loan sum. For instance, on a $300,000 loan, these expenses could be anywhere from $6,000 to $18,000. Typical charges you might see are:

• 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 current loan).

Various kinds of mortgage refinancing options

Numerous mortgage refinance options exist, and the most suitable choice for you will hinge on your objectives and the kind of mortgage you presently hold. Below are several prevalent refi selections:

• Rate-and-term refinance: This is likely the most common kind of refi. It allows you to reduce your interest rate and/or adjust your loan term. Keep in mind that if you choose a shorter term, while this usually results in a lower rate and significant savings on interest over the life of the loan, your monthly mortgage payments will increase.
• Cash-out refinance: A cash-out refinance allows you to access your home's equity by taking out a new, larger mortgage to pay off your current one and receiving the surplus as cash. This cash can be utilized for numerous reasons, such as home renovations, combining debts with high interest rates, or achieving other financial objectives.
• No-closing-cost refinance: With this type of refi, the lender covers closing costs in exchange for levying a higher interest rate. If you don’t have the cash on hand to pay for closing costs and could otherwise benefit from a refinance, this option might be worth evaluating.
• Streamline refinance: These refis are for existing FHA, VA and USDA loan borrowers, and generally involve less documentation plus 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 original lender for a refinance; comparing offers can lead you to the best interest rate and potentially superior service. 

Your current lender may provide incentives, like covering closing costs, if you decide to remain with them. Therefore, you should at least discuss this possibility with your existing lender.

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