Best Mortgage Refinance Rates in 2026

Mortgage refinance rates are the rates lenders offer when you replace your current home loan with a new mortgage. The new loan may lower your payment, shorten your term, switch your loan type, or let you take cash out of your home equity.

The rate is only the first number to compare. For a refinance, the APR matters even more because it includes lender fees, points, and other charges that can erase the savings from a lower interest rate. If two lenders quote the same rate but one charges higher fees, the APR should expose that difference.

Last verified June 18, 2026: Freddie Mac's weekly survey put the average 30-year fixed mortgage at 6.47% and the 15-year fixed at 5.81%. Those are broad market benchmarks, not guaranteed refinance offers. Your actual refinance mortgage rates depend on credit score, loan-to-value ratio, property type, points, cash-out amount, and the lender you choose.

Use the comparison tool on this page to compare current refinance rates. Then use the sections below to decide whether the lowest advertised rate is actually the cheapest loan for you.

Refinance rates today can change before tomorrow morning. Lenders reprice when bond yields move, when demand changes, or when their risk models shift. That is why we do not want you to rely on one static rate table copied from yesterday.

Instead, compare lenders by the numbers that decide your real cost:

• Interest rate: the annual cost of borrowing the principal
• APR: the broader annual cost after certain fees and points
• Points: upfront money paid to reduce the rate
• Origination and lender fees: charges the lender controls
• Third-party costs: appraisal, title, recording, and settlement fees
• Cash to close: how much you must pay now, unless costs are rolled into the new loan

If you are comparing mortgage lenders, ask each one for the same loan type on the same day. A 30-year fixed refinance should be compared with another 30-year fixed refinance, not with a 5/6 ARM or a 15-year loan.

For a quick reality check, look at both the rate and APR. The lowest interest rate is not automatically the best refinance rate if the APR is meaningfully higher than the rate.

A refinance is not the same decision as a purchase mortgage. Purchase borrowers often care most about closing speed and preapproval certainty. Refinance borrowers should care first about whether the new loan saves enough money to justify the cost.

Our ranking framework puts these factors first:

Advertised APR vs. interest rate. We prefer lenders that make the all-in cost easy to compare. A low rate with expensive points may look good in an ad and still be worse than a slightly higher rate with lower fees.

Origination and lender fees. Refinance closing costs are a major part of the decision. We look for lenders that disclose fees clearly and do not hide behind vague "no-cost" language.

Estimated closing costs. Appraisal, title, recording, and settlement charges vary by state and loan size. You need the Loan Estimate, not just a rate quote.

Rate-lock terms. A rate quote is not the same thing as a lock. We favor lenders that explain lock length, extension costs, float-down options, and what can cause a locked rate to change.

Loan types and terms. Strong refinance lenders offer more than one path: conventional, FHA, VA, jumbo, 30-year fixed, 20-year fixed, 15-year fixed, and adjustable-rate options where appropriate. If you are comparing FHA options specifically, start with our FHA loan guide.

Digital application experience. Refinance applications require documents, income verification, payoff statements, and sometimes an appraisal. A clean upload process can save real time, but it should never outrank APR and fees.

The interest rate tells you how much interest accrues on the loan balance. The APR gives you a broader annualized cost because it includes the interest rate plus certain fees, points, and mortgage broker charges.

That difference matters more on a refinance because you are choosing whether to pay new costs on a home you already own. A lender can quote an attractive rate and make the math work only if you pay points or roll costs into the new balance.

Here is the simple way to read it:

• If the rate and APR are close, lender fees and points may be modest.
• If the APR is much higher than the rate, the loan likely carries meaningful upfront costs.
• If a lender advertises a "no closing cost refinance," look for a higher rate or lender credits that offset fees. Free usually means the cost moved, not that it disappeared.

For a deeper explainer, see our guide to APR vs. interest rate. Then compare that concept against your actual Loan Estimates.

Discount points are prepaid interest. One point usually costs 1% of the loan amount, though the exact rate reduction depends on the lender, loan type, and market conditions. On a $300,000 refinance, one point costs about $3,000.

Points are not automatically good or bad. They are a bet on time. If paying $3,000 lowers your payment by $85 per month, your point break-even is about 35 months. If you keep the loan longer than that, the point may pay off. If you sell or refinance again sooner, it may not.

Closing costs create the same question. Fannie Mae says refinance costs often fall around 2% to 5% of the new loan amount. That means a $350,000 refinance could carry roughly $7,000 to $17,500 in costs before lender credits, state differences, and escrow changes.

Use our closing costs guide if you want a line-by-line explanation before reviewing offers.

Most homeowners start with 30 year refinance rates because the monthly payment is easier to handle. A new 30-year fixed loan spreads the balance over a longer period, which can lower the payment even if the rate is not dramatically lower.

The tradeoff is total interest. Restarting a 30-year clock can cost more over time if you are already several years into your current mortgage. The payment may feel better, but the loan can last longer.

A 15-year refinance usually comes with a lower rate and much less lifetime interest. The payment is higher because you are repaying principal faster. It works best when your income is stable, your emergency fund is solid, and your goal is to own the home free and clear sooner.

A 20-year refinance can be the middle path. It may lower the payment from a 15-year loan without fully restarting a 30-year timeline. Ask lenders to quote all three terms if your budget allows it.

A rate-and-term refinance changes the rate, term, or loan type without taking meaningful cash out. You might use it to lower the monthly payment, remove mortgage insurance, shorten the payoff schedule, or move from an ARM to a fixed-rate loan.

A cash-out refinance replaces your current mortgage with a larger loan and gives you part of the difference in cash. Homeowners use this for renovations, debt consolidation, or large expenses. The cash is not free money. You are borrowing against home equity and putting the home behind that debt.

Cash out refinance rates are often higher than rate-and-term refinance rates because the lender takes more risk. Conventional cash-out loans also tend to have stricter equity requirements. A common ceiling for a one-unit primary residence is around 80% loan-to-value, though the exact limit depends on loan program, property type, occupancy, and underwriting.

If your goal is to tap equity, compare a cash-out refinance with a HELOC before locking anything. Our cash-out refinance vs. HELOC guide walks through that choice.

The break-even calculation is the cleanest way to decide if refinancing is worth it.

Break-even months = total refinance costs / monthly savings

Example: your current mortgage payment is $2,250. A new refinance offer drops the payment to $2,050. That saves $200 per month. If the refinance costs $6,000, the break-even point is 30 months.

If you expect to keep the home and the loan for more than 30 months, the refinance may make sense. If you expect to move, sell, or refinance again in 18 months, it probably does not.

The old rule of thumb says refinancing can be worth it when your new rate is at least 0.5 to 1.0 percentage point lower than your current rate. That can be useful, but it is incomplete. A smaller rate drop can work on a large loan with low costs. A bigger drop can fail if points and fees are too high.

Also check lifetime interest, not only monthly payment. If you are 8 years into a 30-year mortgage and refinance into a brand-new 30-year loan, your payment may fall because you are stretching the debt back out. That can help cash flow, but it may increase total interest unless you make extra principal payments.

Lower monthly payment: Consider a 30-year fixed rate-and-term refinance if your current payment is straining the budget and the break-even math works.

Paying off faster: Compare 15-year and 20-year refinance offers if you can handle the higher payment and want to reduce lifetime interest.

Pulling cash for renovation or debt: Compare cash-out refinance rates with HELOCs, home equity loans, and doing nothing. Do not turn unsecured debt into mortgage debt unless the full plan is realistic.

Switching ARM to fixed: A fixed-rate refinance can trade future uncertainty for a stable payment. This can be useful if your ARM reset is near and you plan to stay in the home.

Shopping named lenders: You may see mortgage options from lenders such as LoanDepot, Axos Bank, or Citi in Financer coverage. Treat lender names as a starting point, then compare the live APR, fees, and Loan Estimate for your own file.