Current Mortgage Refinance Rates

Current Mortgage Refinance Rates, The average 30-year fixed mortgage refinances rate as of today, October 6, 2022, is 7.36%; the FHA 30-year fixed rate is 7.30%; the jumbo 30-year fixed rate is 5.90%, and the 15-year fixed rate is 6.77%. Our rates might be different than those you see in online lender advertisements. But based on your qualifications, they ought to be more indicative of what you might anticipate from a lender quote. To find out more about how our pricing is different, see the Methodology part of this page.

A mortgage refinance involves replacing an old mortgage with a new one. You can anticipate that the mortgage refinancing rates on loans will be around the same as regular mortgage rates. Homeowners can refinance for a variety of reasons. Although. If you opt for a cash-out refinance, you’ll usually pay a higher rate.

Today’s Mortgage Refinance Rates

30-Year Fixed 7.36% 6.97%
FHA 30-Year Fixed 7.30% 7.12%
VA 30-Year Fixed 7.31% 7.11%
Jumbo 30-Year Fixed 5.90% 5.90%
20-Year Fixed 7.35% 6.89%
15-Year Fixed 6.77% 6.62%
Jumbo 15-Year Fixed 5.78% 5.77%
10-Year Fixed 6.66% 6.55%
10/6 ARM 7.06% 6.94%
7/6 ARM 6.73% 6.75%
Jumbo 7/6 ARM 5.81% 5.73%
5/6 ARM 6.91% 6.63%
Jumbo 5/6 ARM 5.69% 5.69%

Refinancing your mortgage can be a great way to lower your monthly principal and interest (P&I) payments. And overall interest costs given the low-interest rate environment in the United States. Additionally, based on your current rate, you might be able to lower it and pay off your loan sooner without significantly increasing your monthly P&I payment. Long-term, you might save a lot of money by doing this.

But you shouldn’t make a choice based only on the interest rate you’ll get. Remember to factor in the fees of a refinance because they typically aren’t free. Your new loan should place you in a better financial position than your old loan if you opt to refinance your mortgage. For instance, you should receive a better rate or get better repayment terms. If you’re not going to be in a better financial position, then you may as well keep your old loan.

Current Mortgage Refinance Rates
Current Mortgage Refinance Rates

What Is Mortgage Refinancing?

Getting a new mortgage and using it to pay off your old one is known as refinancing a mortgage. Homeowners frequently use mortgage refinancing to lower their interest rate, lengthen the loan’s repayment period to lower their monthly payment, shorten the period to pay off the loan faster, and access some of their equity as cash. Or combine other real estate debt, such as a home equity loan, into a single loan. Finding the finest mortgage refinancing choices may be aided by knowing why you want to refinance your debt.

A mortgage refinance may be the right choice for you, but keep in mind that rates are only one aspect to take into account. Be sure to take such things as how much the refinance will cost and the repayment terms you’re going to get (e.g., a fixed rate versus an adjustable rate, a 15-year term versus a 30-year term). Ultimately, you should only refinance your existing mortgage if you’ll end up in a better financial position.

Why Should I Consider Refinancing My Mortgage?

People frequently seek to refinance their mortgages for the following motives:

Cheaper interest rate: People who already have a mortgage may be able to refinance it at a lower interest rate.

Reduce the payment by extending the payback period: Lowering your interest rate is one way to do this. Another option is to refinance your mortgage to extend the repayment term. When comparing a monthly P&I payment of $1,054.01 with a 30-year term, the P&I payment on a $250,000 15-year fixed-rate mortgage at a rate of 3% would be $1,726.45.

Reduce the payback period to pay it off faster: Instead, some people can decide to refinance their homes to pay off their debt more quickly. Let’s say you had an existing 30-year mortgage with a 6% rate and an original balance of $300,000 that you had been paying on for five years. If you were to refinance the principal balance into a 15-year mortgage with a rate of 2.20%, your P&I payment would increase slightly from $1,798.65 a month to $1,822.26 a month, but your loan would be paid in full in 15 years.

Cash-out some of their equity: Refinance their mortgage to take advantage of the opportunity to cash out some of their equity. You might be able to refinance your mortgage and obtain a larger mortgage than you had previously. You will receive the additional funds in cash. Remember that to qualify for a refinance, you must have built up sufficient equity in your house, either via value growth or principal reductions.

Consolidate additional mortgage debt: Home equity loans or second mortgages are occasionally held by persons. They might combine this debt into one loan through a mortgage refinance. It is easier to keep track of what is owed by doing this. And home equity loans can feature variable interest rates. There’s an additional risk with a variable rate since your payment will change as rates increase or decrease. By combining the debt into one fixed-rate mortgage, you’ll no longer have to worry about changes to your P&I payments.

Mortgage refinancing may be used for a variety of reasons. Consider your objectives and the costs associated with the refinancing before deciding to proceed. You’ll probably have to pay closing costs, as well as fees for a new assessment of your house. Having said that, give mortgage refinancing significant thought to ensure that it will be worthwhile in the long term and that it will help you better your financial situation.

And always be mindful to avoid circumstances that can potentially worsen your financial status. For instance, you might be able to obtain an adjustable-rate mortgage (ARM) at a lower rate than a fixed-rate mortgage. But you risk paying a higher rate after the ARM adjusts for the future. Therefore, make sure you aren’t sacrificing long-term benefits for short-term gains.

How Do Mortgage Refinance Rates Differ From Regular Mortgage Rates?

How much the mortgage refinances rate differs from a standard refinance rate depends on why you are refinancing. There might not be a difference if you’re only refinancing your mortgage to get a lower rate to minimize your interest charges or a shorter repayment term to pay off your loan more quickly. However, the mortgage refinances rate would probably be greater than conventional mortgage rates if you want to withdraw cash equity from your house (a cash-out refinance).

When you refinance your house using cash out, you decrease the amount of equity you have in your home while also raising the loan amount. This indicates that following the cash-out refinance, your loan-to-value (LTV) ratio will be higher (worse). The larger loan amount and higher LTV ratio are riskier to the lender. Lenders usually make up for this added risk by charging a higher interest rate than what you would have been able to get if you didn’t take out additional cash.

Why Are Refinance Rates Different from Traditional Mortgage Rates?

The rate you can get on a mortgage refinance can vary depending on the sort of mortgage you get, such as a 15-year fixed-rate vs. a 30-year fixed-rate mortgage, just as with a regular mortgage. Additionally, if you intend to refinance with a cash-out, rates may be higher. Mortgage rates are typically lower for refinancing a mortgage with a shorter fixed-rate period than one with a longer fixed-rate term in both scenarios.

Because shorter durations are viewed as less hazardous than longer terms, rates are lower for shorter fixed-rate mortgages than for longer fixed-rate mortgages. Longer terms are riskier for lenders for several reasons, including increased interest rate risk. If interest rates rise, lenders might be forced to continue offering low-interest loans for a longer time. This means they might not be able to make as many new loans, which could carry higher rates and make them more money.

Longer periods are riskier for lenders since there is a greater chance that something unexpected may occur that will adversely affect your capacity to repay the loan. For instance, losing your work or experiencing an economic downturn could have an impact on your ability to make loan payments. Lenders will demand a higher interest rate on longer fixed-rate term loans to offset this added risk.

How Do I Qualify for Better Mortgage Refinancing Rates?

The most important thing you can do to improve your ability to obtain a lower mortgage refinancing rate is to ensure that your credit score is as high as it can be. Your credit score has an impact on the mortgage rate you can acquire because it indicates how hazardous of a borrower you are. People having higher credit scores are perceived by lenders as carrying a lower level of risk. As a result, you’ll usually be able to get a better mortgage refinancing rate if you have a better credit score.


The figure below illustrates the expected annual percentage rates (APRs) and monthly payments for four different credit scores on a $350,000 30-year fixed-rate mortgage.

As you can see, those with excellent credit may be eligible for rates that are over 1.6% lower than those of individuals with fair credit. In our case, a $350,000 loan, the difference in the monthly P&I payment was over $300. All of this extra money goes toward interest costs, increasing the cost of the identical loan for borrowers with bad credit.

Having said that, it’s a good idea to hold off on applying for a mortgage refinance until you’ve raised your credit score to the highest possible level. How long it will take for your credit score to increase will depend on the severity of your credit issues. For example, if you’ve built up large credit card balances, this may be a quicker issue to resolve than a recent car repossession. But if you want to qualify for the best mortgage rate possible, be patient and stay the course. Eventually, you’ll improve your credit score.

800 Excellent 2.32% $1,350
740 Very Good 2.542% $1,391
680 Good 2.719% $1,423
620 Fair 3.909% $1,653

What Are the Current Average Mortgage Refinancing Rates?

The rates you’ll pay for a non-cash-out mortgage refinance should be comparable to ordinary mortgage rates, even though you might spend a little bit more for a cash-out mortgage refinance. The average 15-year fixed-rate mortgage in the US is 4.81% as of June 2022. This contrasts with the US average for a 30-year fixed-rate mortgage of 5.78%.

Additionally, prices may differ if you choose a conforming loan as opposed to an FHA loan, a VA loan, a USDA loan, or a loan guaranteed by the Department of Veterans Affairs. Or even a jumbo loan. For instance, in June 2022, the average 30-year fixed rate for a VA loan was 5.520%, while the rate for a conforming loan was 5.950%.

Rates for some of the most common types of mortgages for the most recent three years are shown in the chart below.

Remember that changes in mortgage rates are influenced by a variety of economic factors, including inflation, unemployment, and Federal Reserve monetary policies. For this reason. It’s a good idea to lock in your rate as soon as you can in an environment with low-interest rates. On the other hand. It might be a good idea to delay locking in the rate for a little while in higher interest conditions when rate decreases are anticipated shortly. You do, however, run the danger of interest rates rising before you lock in your own in that circumstance.

The truth is that mortgage rates fluctuate swiftly and continuously. To get the best interest rate possible, keep an eye on what’s going on in the market.

30-Year Fixed-Rate Conforming Mortgage 2.812% 3.710% 4.796%
30-Year Fixed-Rate FHA Mortgage 2.803% 3.874% 4.938%
30-Year Fixed-Rate VA Mortgage 2.422% 3.448% 4.649%
30-Year Fixed-Rate USDA Mortgage 2.711% 3.753% 4.860%
30-Year Fixed-Rate Jumbo Mortgage 2.878% 3.802% 4.574%
15-Year Fixed-Rate Conforming Mortgage 2.298% 3.136% 4.093%


We averaged the lowest rates provided by more than 200 of the top lenders in the nation, assuming an applicant with a loan-to-value ratio (LTV) of 80% and a FICO credit score in the 700-760 range. The resulting rates, which may differ from the rates lenders offer, are indicative of what clients might anticipate seeing when receiving genuine quotations from lenders based on their qualifications.

Only for informative purposes are these mortgage rates provided. Rates are subject to change daily and without prior notice. Loan terms may alter for loans beyond a particular amount, and the goods we utilized in our calculations might not be offered in every state. Tax and insurance payments are not included in the loan rates used.  Individual lenders’ terms will apply.

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