Compare today’s refinance rates

The average rate on a 30-year mortgage fell to 6.48% this week, Bankrate’s weekly survey of lenders showed. That’s down from 6.55% the previous week.

Reflecting the rise in rates from their 2026 low of 6.09%, the Mortgage Bankers Association reported this week that its Refinance Index was up 17% compared to a year ago. Earlier in the year, refi activity had been running double 2025 levels.

Only a minority of homeowners benefit from refinancing now: Most Americans are locked into rates well below 5%, so as long as rates stay above 6%, few people will refinance. And housing economists expect rates to remain above that level as the year progresses. In the past few years, homeowners have turned away from refinancing and toward home equity lines of credit (HELOCs) and home equity loans. However, 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.

”For many homeowners who locked in low first-mortgage rates during the pandemic era, a higher-rate cash-out refinance may make sense for a specific segment of borrowers, particularly those looking to consolidate debt or simplify their finances into a single loan. For others, we’re seeing more homeowners explore HELOCs and home equity loans to access equity while preserving their existing mortgage rate,” says Kyle Bass, production business manager of Refi.com.

Choosing a refinance loan is part math and part strategy. “Planning for your new refinance loan is like shopping for any big purchase,” says Stephen Kates, CFP, Bankrate financial analyst. “Before you choose a loan, take care to get your finances in order and explore your options. Don’t settle for the first offer you see.” 

Consider your priorities: What do you hope to achieve? Being clear on exactly why you want to refinance your mortgage will help you select the right option for your needs.

• To lower your interest rate: If current interest rates are significantly lower than the one you’ve currently got, refinancing could be a smart option.
• To maximize long-term savings: Refinancing into a 15-year term will allow you to pay off the debt much faster than a 30-year, with a lower interest rate — though your monthly payment will be higher.
• To maximize short-term savings: A 30-year term can lower your monthly payments, freeing up cash for other purposes. 
• To gain predictability: Refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate loan before the initial fixed rate period ends can give you a stable monthly payment that won’t fluctuate with the market. 
• To leverage equity: A cash-out refinance may be a good option if you hope to fund home improvements or consolidate debt. 

As you compare lenders, it’s important to look at the interest rate, of course. But you’ll also want to pay attention to the APR, or annual percentage rate. APRs include the interest rate as well as any associated fees and other costs, so it’s a truer comparison of total cost. And keep in mind that mortgage rates fluctuate constantly. Getting quotes from at least three lenders simultaneously can help you make an accurate comparison. 

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

A recent Bankrate analysis found that nearly 2.7 million homeowners with a 30-year fixed-rate mortgage could lower their monthly payments by refinancing — but a lot depends on how far out your break-even point will be. It’s important to determine how long it will take for the monthly savings to actually outweigh the closing costs. “The decision of whether to refinance comes down to the upfront closing costs and the length of time required to break even,” says Kates. 

Refinancing typically costs between 2% and 5% off the loan principal. That can be a significant sum: 5% of $200,000, for example, is $10,000. To find your break-even point, divide your total closing costs by your monthly savings. If a refinance saves you $100 a month but costs $5,000, it would take 50 months to break even — that’s more than four years before you’d realize the savings. 

• Refinance if: You plan to stay in the home longer than the break-even period.
• Skip it if: You plan to move or sell before you’ll break even.

There are various types of mortgage refinance options, and each one 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. This option can make good sense for homeowners who are locked into rates that are higher than current market rates. 
• Cash-out refinance: For homeowners who have seen their equity grow in recent years, a cash-out refinance can provide an opportunity to convert that value into cash — useful if you need to access funds for a major expense, especially renovations that will increase the value of your home.
• Streamline refinance: Homeowners with FHA, VA or USDA mortgages have the option for a streamline refinance. “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 even 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 you’re not sure a refinance is the right move for you, it's worth considering other options to meet your financial goals. 

For example, you can effectively shorten your loan term without refinancing by simply making additional payments, which helps pay it down faster. (Reach out to your lender first to make sure the extra payments are being applied to the loan principal.)

If you need access to cash, you might choose to tap into your equity with a home equity loan or HELOC. Both of these options allow you to keep your existing mortgage and rate in place, an especially appealing option for borrowers who locked rates during the record lows of 2020 and 2021. While a home equity loan can provide a lump sum with fixed payments, a HELOC offers more flexibility with a revolving line of credit. 

And if you’re struggling to keep up with your payments and need relief without taking on a new loan, it’s worth talking to your lender about the possibility of a loan modification. This adjusts terms such as the interest rate or loan length to make payments more manageable for homeowners experiencing financial hardship.