Compare today’s refinance rates

The average rate on 30-year mortgages rose to 6.49% this week, Bankrate’s weekly survey of lenders showed. That’s up from 6.48% the previous week.

If you bought your home between 2022 and 2025, when rates peaked, you might be in a good position to refinance at current rates. Bankrate’s Hidden Homeownership Tax research found that 87% of mortgage borrowers from that period paid above the most competitive rate available for their profile, overpaying by $3,343 a year on average — that's $278 every month, gone for no reason tied to their credit or their loan. If your current rate is above 7%, refinancing at today's average could put real money back in your pocket.

That said, refinancing won't make financial sense for many homeowners. Most Americans are locked into rates well below 5%, so as long as rates stay above 6%, refinancing will appeal to only a narrow slice of homeowners — and housing economists expect rates to stay above that level through the rest of the year. In recent years, homeowners have turned away from refinancing and toward home equity lines of credit (HELOCs) and home equity loans. If you’re hoping for another refinancing boom, be careful what you wish for — a plunge in rates typically occurs only after a recession or other economic shock. If your goal is lower payments, the current rate environment may already be enough.

To choose the right mortgage refinance, you need two things: math and strategy. Get your finances in order and explore your options before committing to a lender. Being clear on what you want to accomplish — lower payments, faster payoff, access to equity — makes it easier to find the right fit.

• If today's rates are at least 0.75 to 1.0 percentage points below your current rate, refinancing is worth running the numbers. Use Bankrate’s mortgage refinance calculator to weigh the costs and benefits.
• If your goal is long-term savings and you can absorb a higher monthly payment, a 15-year term will shorten your payoff period and reduce your total interest costs. Your monthly payment will be higher than on a 30-year loan, but the overall savings could be substantial.
• If you need cash flow relief now, a 30-year term reduces your monthly payment, though you'll pay more in total interest over the life of the loan.
• If you're on an adjustable-rate mortgage (ARM), refinancing to a fixed-rate loan before your rate adjusts locks in a stable monthly payment.
• If you want to access equity, proceed with caution: A cash-out refinance lets you borrow against your home's value, but you're taking on a larger loan balance at a higher rate than your current mortgage. If you're using the funds for renovations that will increase the home's value, that tradeoff may be worth it. Avoid cashing out equity to cover discretionary spending or depreciating assets.

Compare lenders on both rate and APR, which folds in fees and other costs for a true side-by-side comparison. Neglecting to find the best rate is what leads to overpayment: according to Bankrate's Hidden Homeownership Tax research, 87% of people who borrowed a mortgage between 2022 and 2025 paid above the most competitive rate available for their profile — costing the typical borrower $3,343 a year, or $78,186 over the life of the loan. Request quotes from at least three lenders so you're comparing equivalent offers.

Before you refinance, check your current loan for a prepayment penalty. It's uncommon in mortgages originated after 2014, but if your loan has one, it can erode part of your savings and needs to be factored into your break-even math. 

Aside from the numbers, evaluate lenders for convenience and responsiveness. Take a look at what other borrowers have had to say about them, too.

Bankrate's Hidden Homeownership Tax research analyzed 3.2 million mortgage originations from 2025 and found that 78.7% of refinancers paid above the most competitive rate available for their profile. A lower payment isn't automatically a better deal. Which number matters more to you decides whether refinancing is worth it.

Refinancing typically costs 2% to 5% of the loan amount in closing costs. On a $300,000 loan, that's $6,000 to $15,000 in out-of-pocket costs. To find your break-even point, divide your total closing costs by your monthly savings. If a refinance saves you $200 a month but costs $9,000, it would take 45 months (nearly four years) before you'd see a net benefit. 

• If you need payment relief now: The break-even calculation is your primary test. If you'll stay in the home past the break-even point, a 30-year refi that drops your payment by $200 a month is a real win, even if total interest over the life of the loan is higher than what you'd pay today.
• If you're optimizing for total cost: The break-even calculation still applies, but it's not the primary test. What matters more is total interest saved over the life of the loan. If you're early in your term and refinancing into a 15-year, for example, you'll likely hit break-even quickly — and every month after that, the savings compound. Run the total interest comparison alongside the break-even math.
• Skip the refinance if: You plan to move or sell before you reach the break-even point, regardless of which goal you're chasing.

Use Bankrate’s break-even calculator to input your numbers and determine whether refinancing makes sense for you.

There are several types of mortgage refinance options, and each serves a different purpose. “Your choice should come down to what matters most to you right now,” says Bankrate lead analyst Linda Bell, “whether you want to reduce payments, pull out cash or keep things simple." 

• Rate-and-term refinance: This is the most common type of refi. “If you’re looking to lower your interest rate or change your loan term to save money over time, a rate-and-term refinance is often the best fit,” says Bell. Choose this option if you’re locked into a rate that’s higher than current market rates. 
• Cash-out refinance: This type of refinance replaces your existing mortgage with a larger loan and pays you the difference in cash. The risk is real: You're increasing your loan balance, likely at a higher rate than your current mortgage, and your home is the collateral. Rates on cash-out refinances run higher than on rate-and-term refis because lenders take on more risk as your equity cushion shrinks. If your credit score is below 640, the rate surcharge can be substantial enough to make this option significantly more expensive than alternatives. This product can make sense for home improvements that increase your property's value — but it's not the right tool for vacations, discretionary spending or anything that doesn't directly strengthen your financial position.
• Streamline refinance: Homeowners with Federal Housing Administration (FHA), Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA) loans can apply for a streamline refinance — a faster, lower-documentation path to a shorter term or lower rate. “If your priority is a fast and simple experience with minimal hassle, a streamline refinance might be the best option,” says Bell. Qualified borrowers can apply for shorter loan terms or lower interest rates with less documentation and faster closing times.
• No-closing-cost refinance: It’s possible to refinance your mortgage without paying any closing costs upfront. While this option might seem appealing, keep in mind that the costs don’t simply go away — they’re rolled into the loan, meaning you pay them off over time, with interest. If your goal is immediate payment relief and you plan to sell or refinance again within a few years, rolling costs into the loan can make sense. But if you're trying to minimize total interest paid and plan to stay for the long haul, paying closing costs upfront will almost always be cheaper.

If refinancing doesn't fit your situation, there are other ways to reach the same financial goals.

If you want to pay off your loan faster without refinancing, making additional principal payments can shorten your term without the cost of a new loan. Check with your lender first to confirm the extra payments will be applied to the principal, not held for the next scheduled payment.

If you need access to cash, a home equity loan or a HELOC both let you tap equity while keeping your existing mortgage and rate intact. For borrowers who locked in rates during the record lows of 2020 and 2021, preserving that first mortgage is worth a great deal.

If you're struggling to keep up with payments and need relief without taking on a new loan, talk to your lender about a loan modification — an adjustment to your loan's interest rate, term or both that can make payments more manageable during financial hardship.