The current average refinance rate for a 30-year fixed-rate mortgage stands at 6.39%, according to recent data from Zillow, a popular real estate marketplace. For homeowners looking to refinance for a lower rate or to access home equity, it’s crucial to understand the average interest rates associated with various loan types and terms.
As of now, the average refinancing rates are as follows:
– **Conventional Mortgages:**
– 30-year: 6.39%
– 20-year: 6.41%
– 15-year: 5.64%
– 10-year: 5.84%
– **Jumbo Mortgages:**
– 30-year: 7.06%
– 15-year: 6.28%
– **FHA Loans:**
– 30-year: 7.25%
– 15-year: 5.25%
– **VA Loans:**
– 30-year: 6.53%
– 15-year: 6.20%
These figures reflect the most up-to-date data as of November 3.
Refinancing a mortgage means replacing your current home loan with a new one, and homeowners must meet the lender’s criteria, which include their credit profile, income verification, and debt-to-income ratio. Homeowners should be aware that this process can temporarily impact their credit scores due to hard inquiries, and there’s always a chance of denial if the lender’s requirements aren’t met.
Mortgage rates have remained near the 7% threshold for 30-year fixed-rate loans, despite some hopes for a decrease after the Federal Reserve cut the federal funds rate late last year. Rates exhibited only a slight dip recently, moving closer to 6.5%, yet they remain significantly higher than the historic lows seen during the pandemic. As per a Redfin report from the third quarter of 2024, an impressive 82.8% of homeowners with mortgages have rates below 6%, indicating that many are currently locked into their existing loans and hesitant to refinance given the prevailing higher rates.
Good news appeared on the horizon starting in late August and early September 2025 as mortgage rates began to decline. This trend continued leading up to the Federal Reserve’s meetings in October, which resulted in an additional quarter percentage point cut in the federal funds rate.
When considering refinancing, it’s essential for homeowners to evaluate the costs involved, which typically range from 2% to 6% of the loan amount. For instance, refinancing a $300,000 loan might require paying between $6,000 and $18,000 in closing costs. Common fees may include lender origination fees, appraisal fees, title search and insurance fees, and more.
Several refinancing options exist, including:
– **Rate-and-Term Refinance:** This popular option allows borrowers to lower their interest rate and change their loan term.
– **Cash-Out Refinance:** This taps into home equity by replacing the existing loan with a larger one, allowing homeowners to use the difference in cash for various purposes.
– **No-Closing-Cost Refinance:** In this option, lenders cover the closing costs in exchange for a higher interest rate, benefiting those without cash for upfront fees.
– **Streamline Refinance:** Designed for existing FHA, VA, and USDA borrowers, this option typically involves less documentation and a more straightforward process.
Homeowners looking to refinance are not limited to their original lender. Shopping around can yield better rates, and current lenders may offer incentives for staying, such as waiving closing costs. If a mortgage has been purchased by Fannie Mae or Freddie Mac, borrowers might even qualify for specific programs like Refi Now and Refi Possible.
Overall, while current refinancing rates may seem high compared to previous years, there are still viable options for homeowners looking to take advantage of the evolving mortgage landscape.