Loan Product | Interest Rate | APR |
|---|---|---|
| 30-year fixed rate refinance | 7.09% | 7.30% |
| 20-year fixed rate refinance | 7.24% | 7.32% |
| 15-year fixed rate refinance | 6.53% | 6.95% |
| 10-year fixed rate refinance | 7.05% | 7.69% |
| FHA 30-year fixed rate refinance | 6.33% | 7.05% |
| 30-year 5/1 ARM refinance | 6.60% | 7.22% |
| VA 30-year 5/1 ARM refinance | n/a% | n/a% |
| VA 30-year fixed rate refinance | 6.28% | 6.67% |
| VA 15-year fixed rate refinance | 6.05% | 6.75% |
Written by Rene Bermudez | Edited by Crissinda Ponder | Updated December 19, 2024The current mortgage interest rates forecast is for rates to remain elevated compared to where they sat before the pandemic, even if they do move down slightly as we close out 2024. Our senior economist, Jacob Channel, expects home sales to remain slow as 2025 begins.
Here are the U.S. weekly average rates from the Freddie Mac Primary Mortgage Market Survey, as of December 19, 2024:
30-year rates went down by 0.12 percentage points this week, and 15-year rates dropped by 0.08 percentage points. As we head into the last few weeks of the year, rates are roughly on par with where they were at the end of 2023, and have remained below 7% for over six months.
So far, concerns about inflation and rising 10-year treasury yields are keeping rates above 6.5%. It’s unlikely we’ll see mortgage rates climb back above 7% before the year ends, but if that happens, homes will be much less affordable.
The Federal Reserve announced its final rate cut of the year on December 18th, and indicated that it expects to make fewer cuts in 2025 than it did this year. Still, there is no guarantee that this rate cut will translate to lower mortgage rates.
Senior economist |
“Mortgage refinance rates are likely to climb higher as 10-year treasury yields rise. As long as bond investors remain especially worried that high inflation will once again rear its ugly head, we should expect mortgage refinance rates to climb.” |
Refinance rates are based on both factors you can control, like your personal finances, and some you can’t, like the market environment.
To get a lower mortgage refinance rate, you need to get your credit score as high as you can, save for a larger down payment amount, and choose the right type of mortgage loan for you.
Also remember to get offers from three to five lenders before moving forward with a loan offer. This will save you thousands of dollars over time.
Learn more about how to improve your credit score.
It’s also essential to comparison shop with three to five refinance lenders before moving forward with a loan offer. There are two ways you can compare mortgage refinance rates:
Pick what feels best to you — the most important thing is to reach out to multiple lenders. Get started by browsing our top choices for the best refinance lenders below.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Not published
0% to 3.5%*
Specializes in online mortgage experience
$4,377
Available refinance products:
Additional loan products:
Founded in 2000, Guaranteed Rate is a mortgage lender specializing in a digital mortgage experience. Consumers can check out refinance rates online, find information about Guaranteed Rate’s loan products, or read articles about mortgage lending and an easy online application process. Guaranteed Rate offers seven different refinance programs, including a wide variety of fixer-upper refinance programs.
You’ll have the best chance of qualifying for a mortgage refinance with Guaranteed Rate if you have a 61% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, 63% of refinance borrowers had a debt-to-income (DTI) ratio under 40%.
Not published
0% to 3%*
37 states and D.C.
$3,080
Founded in 1799, JP Mortgage Chase is one of the oldest financial institutions in the United States. Chase mortgage advisors work with customers in 37 states and the District of Columbia. When it comes to refinancing, Chase provides a combination of online product information, mortgage finance articles and rates updated daily on six different products, earning it the best online mortgage experience award for an institutional bank lender.
You’ll have the best chance of qualifying for a mortgage refinance with Chase if you have a 49% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 68% of refinance borrowers had a debt-to-income (DTI) ratio below 40%.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
620
0% to 3.5%*
Online rates tracking
$5,206
Zillow is probably best known for its home shopping platform, but the company also launched Zillow Home Loans in 2019 to give aspiring homeowners a place to go mortgage shopping as well. Zillow offers a solid menu of refinance types but especially shines when it comes to the amount of online mortgage rate information it offers. Consumers can track rates for conventional, FHA and VA fixed-rate loans and even peruse a number of adjustable-rate mortgage (ARM) rates with initial rates that are fixed for three, five or seven years.
You’ll have the best chance of qualifying for a mortgage refinance with Zillow if you have a 62% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 69% of refinance borrowers had a debt-to-income (DTI) ratio below 40%.
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
580 to 620*
0% to 3.5%*
All 50 states
$4,713
Available refinance products:
Additional loan products:
Fairway Independent Mortgage Corp. has more than 25 years of experience originating loans and currently offers home loans in all 50 states. In addition to most of the standard conventional and government-backed refinance home loans, it also offers refinance loans for borrowers with mortgages currently backed by the U.S. Department of Agriculture (USDA). It also has the widest array of renovation loans of the lenders we reviewed, including a USDA renovation refinance product.
You’ll have the best chance of qualifying for a mortgage refinance with Fairway if you have a 62% loan-to-value (LTV) ratio or better, according to nationwide data from 2022. That year, about 62% of refinance borrowers had a debt-to-income (DTI) ratio under 40%.
Read more about how we chose our picks for the best refinance lenders.Refinancing your mortgage means replacing an existing home loan with a new one. You usually follow the same steps you did to apply for your purchase mortgage, except the new loan pays off your old loan. People commonly refinance to change their loan term or interest rate, both ways to help lower your monthly mortgage payments.
The whole mortgage refinance process usually takes about 1-2 months.
Estimate how much you could save using our refinance calculator.A cash-out refinance is a way to refinance your mortgage with a larger home loan so you can receive the difference between what you still owe and the rest of the loan balance in cash. This type of refinance mortgage lets you access your home’s equity, up to a certain limit, for anything you need.
See how much money you could get using a cash-out refinance calculator.Unless your current mortgage rate is near or above 8%, refinancing may not make sense right now. There are a few exceptions that may be worth considering, though:
Here are a few tweaks to your finances that could help land you the best mortgage rate:
| Pros | Cons |
|---|---|
Lower rates. Refinance rates tend to be lower than second mortgage rates. | Closing costs. You'll pay 2% to 6% of the loan amount in closing costs. |
Start comparing mortgage refinance rates on LendingTree today.It’s easy to get overwhelmed by all of the details involved in the mortgage refinance process, but following these six steps will get you on your way:
A typical refinance will cost between 2% and 6% of your loan amount, but there are different ways to pay the costs.
→ Ask for a no-closing-cost option. You’ll trade a lower closing cost bill for a higher interest rate if your lender offers a no-closing-cost refinance. The catch: You’ll spend more on interest charges over the life of your mortgage.
→ Add the costs to your loan amount. If you have enough home equity, you can borrow more and use the extra money to pay your costs. This is referred to as “rolling your costs” into your loan amount.
Read more about mortgage refinance closing costs and what to expect.
Ready to refinance your mortgage? Compare Free Refinance OffersAPR stands for annual percentage rate and is a measure of your total refinance loan costs, including interest and origination fees. Your mortgage interest rate is the percentage you’ll pay as a fee for borrowing the money. The higher your APR is compared to your interest rate, the more you’re paying in total closing costs.
Your break-even point is a measure of how long it takes to recoup your refinance closing costs. Try our mortgage refinance calculator to see if refinancing makes sense.
Mortgage refinance requirements
The table below gives you a quick glance at the refinance requirements for credit score, debt-to-income (DTI) ratio and LTV ratio for the types of refinance loans listed above:
| Loan program | Refinance purpose | Credit score | LTV ratio | DTI ratio |
|---|---|---|---|---|
| Conventional | Rate and term | 620 | 97% | 45% to 50% |
| Cash out | 620 | 80% | 45% to 50% | |
| FHA | Rate and term | 500 to 580 | 97.75% | 43% |
| Cash out | 500 | 80% | 43% | |
| Streamline | N/A | N/A | N/A | |
| VA | Rate and term | No minimum, but lenders typically require 620 | 100% | 41% |
| Cash out | No minimum | 90% | 41% | |
| Streamline | No minimum | N/A | N/A | |
| USDA | Streamline | N/A | N/A | N/A |
The most common types of mortgage refinance options are offered by conventional lenders, as well as lenders approved by the Federal Housing Administration (FHA loans), U.S. Department of Veterans Affairs (VA loans) and U.S. Department of Agriculture (USDA loans).
Rate-and-term refinance loans. Most homeowners choose this type of refinance to lower their rate or pay off their loan faster. One major perk: You can roll in your closing costs even if you have little to no equity in your home.
Cash-out refinance loans. With a cash-out refinance, you borrow more than you currently owe and pocket the difference between the two loans in cash. One drawback: You can’t borrow more than 80% of your home’s value unless you’re eligible for a VA cash-out refinance.
Streamline refinance loans. The streamline refinance option is exclusive to homeowners with government-backed loans from the FHA, VA or USDA, and it typically doesn’t require a home appraisal or income documentation. To qualify, you must currently have an FHA, VA or USDA loan and prove the refinance will benefit you financially.
Mortgage refinance rates tend to be slightly more expensive than purchase mortgage rates. However, refinance rates differ from lender to lender, which is why it’s important to shop around and find a rate that’s competitive enough to replace your current mortgage rate.
It’s typically cheaper to refinance your home. Your refi closing costs won’t include line items like prepaid homeowners insurance, and you may even qualify for an appraisal waiver. Still, a mortgage refinance is likely to cost you 2% to 6% of your loan amount.
To determine the best refinance lenders, we reviewed data from LendingTree’s 35 lender reviews and evaluated the lenders’ refinance loan programs and services.
Each lender review gives a rating between zero and five stars based on several features including digital application processes, available loan products and the accessibility of product and lending information. To evaluate refinance-specific factors, we awarded extra points to lenders that publish a wide variety of refinance rates online, offer the most conventional and government-backed refinance loan types and offer renovation refinance loans for homeowners that want to fix up their homes and roll the costs into one loan.
Our editorial team brought together the star ratings, as well as the scores awarded for refinance-specific characteristics, to find the lenders with a product mix, information and guidelines that best serve the needs of refinance borrowers. To be included in the “best of” roundup, lenders must offer mortgages in at least 35 states.
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