Compare today’s refinance rates
On Tuesday, May 30, 2023, the national average 30-year fixed refinance APR is 7.24%. The average 15-year fixed refinance APR is 6.69%, according to Bankrate's latest survey of the nation's largest refinance lenders.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money.
About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.
Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.
Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.
Loans Above $726,200 May Have Different Loan Terms: If you are seeking a loan for more than $726,200, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.
Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.
Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.
Weekly national mortgage interest rate trends
Current refinance rates
|30 year fixed refinance||7.15%|
|15 year fixed refinance||6.53%|
|10 year fixed refinance||6.64%|
|5/1 ARM refinance||5.95%|
Mortgage refinance industry insights
Current mortgage and refinance interest rates
|30-Year Fixed Rate||7.22%||7.24%|
|20-Year Fixed Rate||7.10%||7.13%|
|15-Year Fixed Rate||6.66%||6.69%|
|10-Year Fixed Rate||6.76%||6.79%|
|30-Year Fixed Rate FHA||6.63%||7.56%|
|30-Year Fixed Rate VA||6.77%||6.98%|
|30-Year Fixed Rate Jumbo||7.25%||7.26%|
Rates as of Tuesday, May 30, 2023 at 6:30 AM
How does mortgage refinancing work?
When you refinance your mortgage, you replace your existing loan with a new one. The process is similar to applying for a purchase mortgage: You’ll submit to a credit check, verify your income and possibly pay for an appraisal. At the end of the process, your new lender pays off your original mortgage, and you’ll then make monthly payments on the new loan.
How to refinance your mortgage in 5 steps
If you can get an adequately lower rate, refinancing can save you a substantial amount in interest charges, but it does require some work:
1. Check your credit score
A better credit score will help you secure a better rate and make your refinance even more cost-effective. If you're not happy with your credit score or the rates you're being quoted, work on boosting your credit first, then try to refinance again once you've improved it. Typically, mortgage lenders want to see a credit score of 620 or better for a refinance, but there are some refinance options if you have poor credit, including streamline programs. You can improve your credit score by reducing your credit utilization ratio (the proportion of credit you’re using compared to your credit limit) and paying down your highest-interest or highest-payment debt.
2. Calculate the cost vs. savings of refinancing
One of the most important factors in refinancing is figuring out your break-even timeline. A refi usually comes with upfront costs at the closing, just like an initial mortgage, and those can add up. If you're not planning to stay in your current home for more than a few years, the savings you get from a lower rate might not outweigh those costs before you move. Bankrate's refinance breakeven calculator can help you figure out this timeline.
3. Find the best refinance rates today
It's just as important to shop around when you refinance as it was when you applied for your first mortgage. Explore refinance offers from at least three mortgage lenders (your bank or current lender might be good places to start), and keep an eye on rates while you comparison-shop — this can help you decide when to lock in a rate. Check out Bankrate's lender reviews, as well, to help guide your decision.
Compare the best mortgage refinance lenders.
4. Get your paperwork in order
Once you've identified a lender, find out what paperwork you need in order to complete a refinance application. Among the requirements, your lender will want to review tax returns, pay stubs, W-2s and other proof of income, as well as documentation about any assets such as savings.
5. Prepare for closing on your mortgage refinance
Refinancing isn't quite as hard as shopping for a house, but it still takes some time. While your new loan is processing, don't open new credit accounts or make other large purchases. Doing so can derail your application.
How to get the best mortgage refinance rate
Shopping around for quotes is key for every mortgage applicant. When you shop, consider not just the interest rate, but also all the other terms of the loan. Be sure to compare APRs, which include many additional costs of the mortgage not shown in the interest rate. Some lenders offer lower closing costs and fees than others, or your current bank or credit union might extend you a special offer. Don’t be afraid to walk away from your current lender if you find a better deal elsewhere. Consider working with a mortgage broker, who can help you compare offers from several lenders.
Pros and cons of refinancing
Refinancing can be a smart move, whether it helps you secure a lower rate or tap your home equity to fund a home renovation or other project through a cash-out deal.
Pros of mortgage refinance
- You can lock in a lower rate by refinancing, which can reduce your monthly payments and put some money back in your budget.
- If your home’s value has increased, you might be able to stop paying private mortgage insurance (PMI), which will also lower your monthly expenses. PMI should end automatically once you get to at least 20 percent equity owned free and clear, but it’s usually a good time to consider a refinance once that happens, too.
- If you need money for renovations, a cash-out refi offers relatively cheap capital. It can make your monthly payments more expensive, but home improvements tend to boost your equity value even more.
Cons of mortgage refinance
- Refinancing costs money. Closing costs can total 2 percent to 5 percent of the amount of the mortgage, which is why it’s so important to make sure you’ll recoup those costs before you move.
- If you refinance from a 30-year loan to another 30-year loan, you’ll extend your repayment period. A new loan restarts the repayment clock.
Should you refinance your mortgage?
You should refinance if doing so will help you to save money, build equity or pay off your mortgage faster. For example, if interest rates have dropped since you closed your mortgage, you could do a rate-and-term refinance to obtain a lower rate. In addition to a lower rate, you could save by eliminating PMI, or tap your home’s equity via a cash-out refinance. When rates are low, however, it’s important to consider your future plans. If you expect to sell your home in the foreseeable future, for instance, it might not make sense to start over with a new loan.
Mortgage refinance FAQs
Written by: Jeff Ostrowski, Senior Mortgage Reporter for Bankrate
Jeff Ostrowski covers mortgages and the housing market. Before joining Bankrate in 2020, he wrote about real estate and the economy for the Palm Beach Post and the South Florida Business Journal.
Reviewed by: Greg McBride, Chief Financial Analyst for Bankrate
Greg McBride, CFA, is Senior Vice President, Chief Financial Analyst, for Bankrate.com. He leads a team responsible for researching financial products, providing analysis, and advice on personal finance to a vast consumer audience.
Mortgage rates in other states
- United States
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- Washington DC
- West Virginia