Introduction
If you already have a mortgage, keeping track of refinance rates is one of the smartest financial moves you can make. Refinancing your home loan can lower your monthly payment, shorten your loan term, or help you tap into home equity.
In 2025, refinance rates remain closely tied to broader economic conditions, and even a 0.5% difference can save you thousands over the life of your loan. In this guide, we’ll cover the current refinance rates, the best lenders, and strategies to lock in the lowest rate.
What Is a Refinance Rate?
A refinance rate is simply the interest rate you get when you replace your current mortgage with a new one.
- Rate-and-Term Refinance: Swap your existing loan for a new one with better terms.
- Cash-Out Refinance: Borrow against your home equity and receive cash for expenses.
- Streamline Refinance: Available for FHA, VA, and USDA loans—simplified process, often with lower rates.
Refinance Rates Today (2025 Snapshot)
(Rates vary by lender, loan type, and credit score. Always confirm with the lender.)
- 30-Year Fixed Refinance Rate: ~6.70% APR
- 15-Year Fixed Refinance Rate: ~5.85% APR
- 5/1 ARM Refinance Rate: ~6.15% APR
- FHA Refinance Rate: ~6.05% APR
- VA Refinance Rate: ~5.80% APR
Best Lenders for Refinance Rates in 2025
1. Rocket Mortgage
- Fast digital applications
- Transparent rate estimates
- Great for conventional and cash-out refinancing
2. Chase Bank
- Rate discounts for existing customers
- Good refinance options for jumbo loans
- Reliable customer service
3. Bank of America
- Discounts for Preferred Rewards members
- Strong refinance options for FHA and VA loans
- Competitive closing costs
4. Better Mortgage
- 100% online process
- No commission fees
- Known for competitive refinance rates
5. loanDepot
- Streamlined digital tools
- Offers lifetime guarantee on refinances (no lender fees on future refinances)
- Good for repeat refinancers
Factors That Affect Refinance Rates
- Credit Score → Higher scores unlock better refinance rates.
- Home Equity → More equity means lower risk for lenders = lower rates.
- Loan Term → Shorter terms generally have lower rates.
- Debt-to-Income Ratio → A lower DTI improves your approval odds.
- Economic Conditions → Inflation, Fed decisions, and bond markets impact daily rates.
Tips to Get the Best Refinance Rate
- Check Your Credit First → Pay down credit cards and fix errors.
- Shop Around → Compare offers from at least 3–5 lenders.
- Consider Shorter Terms → A 15-year refinance can save big on interest.
- Lock Your Rate → Protects you if rates rise before closing.
- Boost Equity → Making extra principal payments before refinancing can help.
Refinance Rates: Comparison Table
| Loan Type | Average Refinance Rate (2025) | Best For |
|---|---|---|
| 30-Year Fixed | ~6.70% APR | Lower monthly payments, long-term stability |
| 15-Year Fixed | ~5.85% APR | Faster payoff, less total interest |
| 5/1 ARM | ~6.15% APR | Lower upfront rate, short-term borrowers |
| FHA Refinance | ~6.05% APR | Low equity homeowners, first-time buyers |
| VA Refinance | ~5.80% APR | Veterans and military families |
FAQs: Refinance Rates
Q1: Are refinance rates lower than purchase mortgage rates?
Often yes, but not always—rates depend on credit, equity, and loan type.
Q2: When is the best time to refinance?
When rates are at least 0.5%–1% lower than your current mortgage.
Q3: Does refinancing hurt my credit score?
A hard inquiry will drop your score slightly, but it usually recovers quickly.
Q4: Can I refinance with bad credit?
Yes, but you may need to choose an FHA refinance or add a co-signer.
Q5: How much does refinancing cost?
Expect closing costs of 2–5% of the loan balance, but savings often outweigh costs.
Conclusion
Watching refinance rates in 2025 can help you decide when to swap your current mortgage for a better deal. Whether you want to lower your monthly payment, shorten your loan term, or tap into equity with a cash-out refinance, there are options available.
The key is to compare multiple lenders, improve your financial profile, and lock in your rate at the right time. Even a small drop in refinance rates can save you thousands over the life of your loan.
Disclaimer: Rates are estimates and subject to change. Always confirm current rates with lenders before applying.