Today’s 30-year refinance rates

How to compare 30-year fixed refinance rates

Mortgage rates and closing costs can vary widely from lender to lender, so shopping around can really save you money. Borrowers could save an average of $1,500 over the life of the loan by getting one additional rate quote, and an average of $3,000 by seeking out five more, according to Freddie Mac research. It also found that the reward for shopping around increased even more during the rate volatility of 2022.

Lenders nationwide provide weekday mortgage interest rates to our comprehensive national survey to bring you the most current rates available. Here you can see the latest marketplace average interest rates for a wide variety of refinance loans (as well as purchase loans, for comparison).

The interest rate table below is updated daily to give you the most current rates when choosing a home loan, whether for a refinance or a home purchase. APRs and rates are based on no existing relationship or automatic payments. For these averages, the customer profile includes a 740 FICO score and a single-family residence. To learn more, see understanding Bankrate's rate averages.

Why choose a 30-year refinance?

The most common reason is to reduce your interest rate, which reduces your monthly mortgage payment. If rates have dropped by around 1 percentage point since you bought your home, or if you’ve improved your credit score significantly in that time and could now be approved for a lower rate, a refi can probably save you money.

Refinancing to a lower rate can also reduce the total amount of interest paid over the life of the loan. But keep in mind that if you’re already, say, 10 years into your mortgage, and you refinance to extend it another 30 years, you’re paying interest for 10 additional years (albeit at a lower rate). 

Homeowners can also use a cash-out refinance to fund expenses such as home improvements, consolidating credit card debt or covering financial emergencies. But again, whether it’s worth it depends on the rate: “In general, if you [already] have a low rate, it doesn’t make sense to pull cash out of your equity through refinancing,” says Andrew Dehan, a Bankrate senior writer and home lending expert. “If you need to tap your equity for debt consolidation or home repairs, using a home equity loan or HELOC makes more financial sense.”

It’s key to understand why you’re refinancing — whether it’s to reduce your monthly payment, lower the amount of interest you'll pay over time or pull out equity for home repairs or debt repayment — so that you can make a choice that moves you toward your goal.

How to refinance into a 30-year loan 

1. Check your credit score: The best refinance rates go to borrowers with the highest credit scores — typically 740 or higher. You can start shopping around for a loan whenever you’re ready, but if your number’s not stellar, consider waiting a few months (or more) to boost your credit score so you can secure a better rate.
2. Shop around and compare: You can potentially save thousands by getting quotes from three or more lenders. Because rates change constantly, checking them all on the same day is the best way to ensure your comparison is accurate. If you find a rate you like, lock it in. And don’t forget to compare the APR from each lender as well as the rate — this includes expenses such as closing costs, fees and points, which can give you a better idea of the overall cost.
3. Gather your paperwork: Just like when you got your initial mortgage, a refinance will require plenty of documentation. This will include proof of income (such as pay stubs), tax returns, bank statements and more. The more thorough and organized you are, the more smoothly the underwriting process is likely to go.
4. Calculate your break-even point: “Refinancing isn’t free,” cautions Dehan. Closing costs typically range from 2% to 5% of the loan amount, so you’ll need to stay in the home long enough to break even in order to realize the savings. “As a rule, if you’re trying to lower your rate, you should aim to break even within two to three years,” says Dehan.

Pros and cons of refinancing to a 30-year loan

Pros

• Lower monthly payments: Extending the loan over three decades gives you lower monthly payments than with shorter loan terms.
• More monthly cash flow: Lower payments offer more flexibility, freeing up money for other goals like paying down debt or investing.
• Plenty of choices: The 30-year fixed is the most popular type of mortgage, so you’ll have a wide range of lenders and loan programs to choose from.

Cons

• Paying interest for longer: Those lower payments come with a downside — you pay significantly more interest over the life of a 30-year loan term than you would with a shorter one, like a 15-year loan.
• Slightly higher rates: Because lenders are taking on risk for a longer period of time, 30-year loans usually carry higher interest rates than shorter 15-year loans.
• Slower equity growth: With a longer repayment timeline, it takes more time to build equity in your home. 

Alternatives to a 30-year mortgage refinance

A 30-year refinance isn’t your only option, and it might not be the best one for your needs. Here are a few other mortgage refinance types to consider before you reset your loan for another 30 years. 

• 15-year refinance: While it can make your monthly payment higher, you may be offered a lower interest rate. “Switching from a 30-year mortgage to a 15-year mortgage is a solid idea if your goal is to pay off your home at twice the rate,” says Dehan. “On top of that, you’ll pay much less in interest over the remainder of the loan.”
• 20-year refinance: This option can be a good fit for homeowners who want to balance a manageable payment with long-term savings. You get the benefit of lower payments than a 15-year refinance with a lower interest rate than a 30-year mortgage. 
• Adjustable-rate mortgage (ARM): If you plan to move, sell or refinance your mortgage before the fixed-rate period ends, the lower introductory rate of an ARM loan could work for you. 
• HELOC: If you are happy with your current mortgage but need extra cash, a home equity line of credit can let you tap your home’s equity without replacing your existing loan. It works more like a credit card than a traditional loan, giving you a revolving line of credit. 

Frequently asked questions

Next steps

Before you refinance your existing home loan, check out Bankrate's mortgage refinance resources to prepare you for the process.