How can I find the best refinance rates?

It's essential to shop around to find the best refinance rates. You may find that different lenders have offers that vary widely.

Can I refinance my home more than once?

Yes. Homeowners can refinance as often as they'd like, but some lenders may have specific restrictions.

When can I find the best refinancing rates?

It depends. While there are ebbs and flows in refinancing rates throughout the year due to seasonality, it's best to shop around when the time is right for you.

Compare Current Mortgage Refinance Rates

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For today, June 25th, 2022, the current average mortgage refinance rate for a 30-year fixed-rate mortgage is 5.925%, the average rate for a 15-year fixed-rate mortgage is 5.081%, and the average rate for a 5/1 adjustable-rate mortgage (ARM) is 4.646%. Rates are quoted as annual percentage rate (APR) for refinance .

If you feel you're paying too much interest on your mortgage, it makes sense to look into refinancing. By lowering your interest rate, you could make your home far more affordable. You might even pay it off more quickly. Here's what today's mortgage refinance rates look like.

Current Refinance Rates

Rates As of Jun 24, 2022

Product	Interest Rate	Average Points/Credits
Fixed 30 Year	5.913%	0.771
Fixed 20 Year	5.571%	0.439
Fixed 15 Year	5.019%	0.974
ARM 10/1	5.014%	0.308
ARM 7/1	4.913%	0.654
ARM 5/1	4.789%	0.677
Fixed 30 Year - FHA	5.597%	1.204
Fixed 30 Year - VA	5.455%	0.963
Fixed 30 Year - Jumbo	5.468%	0.290
Fixed 30 Year	5.925%	1.313
Fixed 20 Year	5.680%	1.865
Fixed 15 Year	5.081%	1.979
ARM 10/1	4.925%	0.227
ARM 7/1	4.889%	0.552
ARM 5/1	4.646%	0.709
Fixed 30 Year - FHA	5.450%	2.130
Fixed 30 Year - VA	5.259%	1.787
Fixed 30 Year - Jumbo	5.569%	0.324

The Ascent's Mortgage Rates Tracking Methodology

What is mortgage refinancing?

Refinancing is trading in a current loan for a new one. It doesn't just apply to mortgages -- you can also refinance an auto loan, for example.

Typically, when you refinance a mortgage, you swap your existing loan for a new one with a lower interest rate. That should, in turn, result in lower monthly payments. But you don't always lower your loan's interest rate in refinancing.

It could also pay to refinance your mortgage if you need to change the terms of your loan to make it more affordable. If you have a 15-year mortgage whose payments you struggle to keep up with, refinancing to a 30-year loan might result in a higher mortgage rate, but lower monthly payments.

How does refinancing work?

Refinancing is swapping one loan for another, and it's common in the context of mortgages. When you refinance a mortgage, your old home loan is replaced by a new one with different terms. Usually, that means a lower interest rate than the rate you've been paying. In some cases, refinancing might change the length of your repayment period. For example, you might go from a 15-year to a 30-year loan, or vice versa.

As is the case when signing a regular mortgage, you'll need good credit to refinance. You'll also be subject to closing costs, which come into play with a regular mortgage as well.

How to find the best refinance rates

Start by applying to refinance with a number of mortgage lenders. You may find that different lenders have different offers, or varying standards for qualifying for the best mortgage rates. For example, one lender may be more flexible with your credit score than another -- it pays to seek out multiple offers.

If you're going to apply to refinance with multiple lenders, do so within a 30-day period. Each time you apply to refinance, it's considered a hard inquiry, which can affect your credit score slightly. A single hard inquiry generally isn't a big deal, but multiple hard inquiries can have a larger negative impact on your credit score. Fortunately, if you apply to refinance with multiple lenders within the same short time frame, those various hard inquiries for the same purpose will be considered only a single inquiry.

When shopping around for a refinance offer, keep these things in mind:

The interest rate you're presented with
The closing costs you'll need to pay (you should be able to get an estimate up front)
The terms of your loan (for example, the number of years you have to pay it off, and what happens if you pay it off early)

For more on finding the best refinancing rates for you, check out our guide on rate shopping.

How much could I save by refinancing?

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Are refinancing rates right for me to refinance now?

Refinancing is a good way to reduce the interest rate you're paying on your mortgage, which can result in substantial savings over time. But remember, there's a cost associated with refinancing, so if you're going to swap your old mortgage for a new one, make sure you plan to stay in your home long enough to recoup that expense and come out ahead. Many Americans refinanced their mortgage with record low interest rates in 2020, but it really depends on your situation if refinance rates in 2022 will be favorable for homeowners.

For example, imagine you're looking at a $200,000 mortgage refinance with closing costs of 3%, or $6,000. If refinancing lowers your mortgage payments by $150 a month, it will take you 40 months to break even, and you'll start reaping savings only then. If you don't plan to stay in your home for more than 40 months, refinancing doesn't make sense. Some of our favorite mortgage lenders for refinancing have below-average fees, but refinancing is still likely to cost you something. For more on how to determine if refinancing is worth it, check out our expert advice.

Also, if your credit score isn't in great shape, refinancing may not be worthwhile, as you may not snag a rate you're happy with. On the other hand, if your credit score has improved substantially since you signed your original mortgage, you may be eligible for a much more favorable rate that saves you a lot of money in the long run. For more on how your credit score affects mortgage rates, read our guide.

How much does it cost to refinance your mortgage?

When you refinance a mortgage, you pay closing costs, a series of fees to finalize your loan. The amount you pay for closing costs varies from lender to lender. Generally, they are 2% to 5% of your loan amount. So if you're borrowing $200,000, your closing costs might equal $4,000 to $10,000.

Closing costs can be paid up front, or they can often be rolled into your mortgage and paid off over time. Some closing costs may be negotiable, so it may be possible to lower the number your lender presents you with.

These fees are part of most closing costs:

Loan origination and application fees: these may be negotiable, because they're fees your specific lender sets.
Credit check fees: These are usually pretty low, so you may not be able to lower them further.
Appraisal fees: Some refinance lenders waive appraisals for refinances when home values are high, but if not, you may be able to hire your own appraiser and lower your fees.
Title search and insurance fees: You may be able to perform your own search and secure your own insurance, thereby saving a little money.
Recording fees: Mortgages, including refinances, are entered as public records, and the cost of doing so is passed along to you. It's generally not negotiable (since your lender doesn't set these fees, but rather, they're set at the municipal level).

When to refinance your mortgage

There are several situations when refinancing makes sense.

You want to lower your monthly mortgage payment

Refinancing your mortgage could leave you with a lower interest rate on your loan. That could lower your monthly payments. You can also lower your monthly payments by switching from a shorter-term loan to a longer-term one -- that way, you spread your loan balance out over more months.

You want to take cash out of your home

With a regular refinance, you take out a new home loan in the amount of your remaining mortgage balance. With a cash-out refinance, you borrow more than your remaining mortgage balance and get the rest in cash you can use for any purpose, whether it's making renovations or paying off costlier debt like a credit card balance.

You want to pay off your home sooner

You may want to pay your home off by a certain milestone, like retirement. Refinancing from a 30-year loan to a 15-year loan could make that easier. (While you can technically just repay a 30-year mortgage sooner, a 15-year loan generally gives you a lower interest rate, so it often makes sense to refinance in this situation.)

When not to refinance your mortgage

While refinancing is often a smart move, in these situations, it may not pay.

You don't plan to stay in your home very long

We learned earlier that there are closing costs that come with refinancing. If you don't plan to live in your home for long, you may not break even from those closing costs and come out ahead.

Say you're charged $5,000 in closing costs to refinance, and that lowers each of your monthly mortgage payments by $250. That means it will take you 20 months to break even. If you think you might move in a year and a half, you could lose money by refinancing.

Your credit is poor

If you don't have a very good credit score, you may not qualify for a much lower interest rate on a new mortgage. And if that's the case, you may not reap much or any savings on your mortgage payments.

You already have a low interest rate on your mortgage

Because you're charged closing costs to refinance, you want to eke out enough savings on a refinance to make those fees worth paying. Generally speaking, refinancing makes sense when you can shave about 1% or more off your existing loan's interest rate (unless you're refinancing for a different reason, such as to extend your loan's repayment period). So if you have a low interest rate on your existing loan, you may not be able to lower it all that much.