Refinance Rates Today: Compare the Best Refi Deals

> Key Takeaways > - 30-year fixed refinance rates average 6.44–6.46% in early April 2026, per Bankrate and Freddie Mac's Primary Mortgage Market Survey — down from 6.64% a year ago > - The "1% rule" for refinancing is outdated and causes homeowners to either miss savings or overpay closing costs — break-even math is the only reliable framework > - Cash-out refinances carry rates 0.25–0.625% above rate-and-term loans; that spread has real long-term cost implications > - A 740+ credit score versus a 680 score can save 0.5–0.875% on your refinance rate — a difference worth tens of thousands over the loan term > - The Mortgage Bankers Association projects $882 billion in total refinance originations for 2026, up 142% from 2024 — competitive lender pricing is currently available

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Today's Refinance Rate Snapshot

Here is where the market stands as of early April 2026:

| Loan Type | Rate Range | APR (Est.) | 1 Year Ago | |-----------|-----------|------------|------------| | 30-Year Fixed Refi | 6.44–6.46% | 6.55–6.70% | 6.64% | | 15-Year Fixed Refi | 5.77–5.83% | 5.95–6.10% | 6.17% | | 30-Year Cash-Out Refi | 6.70–6.95% | 6.80–7.05% | 6.85% | | FHA Streamline Refi | 6.10–6.35% | 6.25–6.45% | 6.50% | | VA IRRRL | 5.90–6.15% | 6.05–6.25% | 6.30% | | 30-Year Jumbo Refi | 6.55–6.75% | 6.65–6.85% | 6.90% |

*Sources: Freddie Mac Primary Mortgage Market Survey (April 2, 2026); Bankrate national lender survey (April 2026). Rates vary by credit score, loan-to-value ratio, loan size, and lender.*

The 30-year fixed refinance rate at 6.44–6.46% represents a modest improvement from 6.64% a year ago, according to Freddie Mac's PMMS. That may not sound like a dramatic shift, but on a $400,000 loan balance, a 0.20% rate reduction is worth approximately $50/month — or $18,000 over the remaining loan term. For borrowers who locked in at 7.0–7.5% during the 2022–2023 rate spike, the savings case is considerably stronger.

The more interesting story is in the 15-year refinance, which sits 0.63–0.67% below the 30-year rate. That spread makes term-shortening refinances unusually attractive for borrowers who can absorb the higher monthly payment.

The Myth That's Costing Homeowners Money

There's a piece of refinancing conventional wisdom I've heard repeated for 20 years: "Only refinance when you can drop your rate by at least 1%." I understand where it came from. It's a useful heuristic — but it's wrong in enough situations that following it blindly costs real money.

Here's the problem. The 1% threshold conflates two separate questions: *will I save money monthly?* and *will I recoup my closing costs before I move or pay off the loan?* The only metric that answers both is the break-even period.

Let me show you what I mean. Say you have a $320,000 balance at 7.0% and current 30-year rates are 6.44%.

• Old payment (principal + interest): approximately $2,129/month
• New payment at 6.44%: approximately $2,004/month
• Monthly savings: $125
• Estimated closing costs at 2.5%: $8,000
• Break-even: 64 months (about 5.3 years)

That's a 0.56% rate reduction — well below the mythical 1% — and it still works perfectly if you plan to keep the home for at least six years. Conversely, someone dropping from 6.8% to 5.8% (a full 1%) on a $150,000 balance might save only $85/month, and if they're moving in three years, they'll never recoup $4,000 in closing costs.

The break-even framework is the only way to make this decision correctly. Use the refinance calculator to plug in your specific numbers — it takes about five minutes and replaces guesswork with actual math.

Why Refinance Rates Differ from Purchase Rates

Borrowers are sometimes surprised to find that refinance rates run slightly higher than the purchase rates they see advertised. The difference is typically 0.10–0.30%, and it stems from how lenders price risk.

On a purchase transaction, the lender knows you're motivated — you have a house under contract. On a refinance, you might be comparison shopping across six lenders simultaneously, and the lender who quotes too low loses money if rates move before closing. They build a small premium into refinance pricing to offset that risk.

Cash-out refinances carry an even larger premium — typically 0.25–0.625% above rate-and-term loans — because the lender is simultaneously underwriting a new loan at a higher balance. From their perspective, you're taking equity out of a depreciating or stagnant asset. The additional risk is priced accordingly.

This is why mixing up "purchase rates" and "refinance rates" when running your math leads to incorrect projections. Always get actual refinance quotes, not purchase rate estimates, when evaluating your options.

Rate-and-Term vs. Cash-Out: Two Very Different Products

The refinance market broadly divides into two products, and understanding the difference before you call a lender prevents a lot of confusion.

Rate-and-term refinance: You replace your existing mortgage with a new one at a different rate, different term, or both. No equity is extracted. The goal is a lower rate, shorter payoff period, or both. This is the most straightforward refinance type, carries the lowest rates, and usually has the most streamlined underwriting.

Cash-out refinance: You borrow more than your current balance, pocketing the difference. You could refinance a $280,000 balance into a $340,000 loan and receive $60,000 at closing (minus fees). This makes sense for home improvements that increase value, high-interest debt consolidation (if the math truly works), or major expenses — but it resets your amortization clock and increases your loan balance.

A less common but valuable hybrid is the cash-in refinance: bringing money to closing to reduce your loan balance, lower your LTV, and qualify for a better rate. This works particularly well for borrowers who are close to the 80% LTV threshold — crossing it eliminates PMI and often unlocks meaningfully better pricing.

Per the Consumer Financial Protection Bureau, cash-out refinances represented approximately 62% of all refinance volume in 2023, the most recent year with full data available. That share has likely shifted in 2025–2026 as rate-and-term refinancing has become more attractive to borrowers who locked in at peak 2022–2023 rates.

Comparing the Two on a $350,000 Loan Balance

| Factor | Rate-and-Term | Cash-Out | |--------|--------------|---------| | Rate premium vs. purchase | +0.10–0.20% | +0.25–0.625% | | Underwriting intensity | Moderate | Heavy | | PMI implications | May eliminate if LTV improves | May add PMI if LTV rises above 80% | | Typical closing time | 30–40 days | 40–55 days | | Best use case | Lower rate or shorten term | Home improvements, debt consolidation | | Risk | Low | Medium-high |

How Your Credit Score Moves the Rate

Nothing affects your refinance rate more predictably than your credit score. Lenders use tiered pricing models — called loan-level price adjustments or LLPAs — that increase costs significantly at each tier boundary.

Here's what the Freddie Mac pricing grids imply for a 30-year fixed refinance on a $350,000 loan with 75% LTV:

| Credit Score Tier | Approximate Rate | Monthly Payment | 30-Year Interest Cost | |-----------------|-----------------|-----------------|----------------------| | 760+ | 6.25% | $2,156 | $426,160 | | 740–759 | 6.44% | $2,196 | $440,560 | | 720–739 | 6.75% | $2,271 | $467,560 | | 700–719 | 7.00% | $2,329 | $488,440 | | 680–699 | 7.25% | $2,389 | $510,040 |

*Note: Approximate rates based on Freddie Mac LLPA schedules and current market pricing, April 2026.*

The gap between a 760 and a 680 credit score is roughly 1.0%, which on a $350,000 loan represents nearly $84,000 in additional interest over the loan term. If your score is close to a tier boundary — say, 718 or 738 — spending 60–90 days paying down revolving balances to cross the next tier is almost always worth the wait. I've seen credit scores jump 20–30 points from paying a single credit card below 10% utilization.

Before submitting any refinance application, pull all three bureau reports at annualcreditreport.com, dispute any errors, and check for unverified collection accounts that can sometimes be removed. The CFPB estimates that one in five Americans has a material error on at least one bureau report.

The Streamline Refinance Advantage

If you currently have an FHA or VA loan, you have access to streamlined refinance programs that bypass much of the standard underwriting process. These deserve serious attention because they can dramatically reduce your time-to-close and, in some cases, the documentation burden.

FHA Streamline Refinance: No appraisal required. No income verification in most cases. You must be current on your mortgage and demonstrate a "net tangible benefit" — typically a rate reduction of at least 0.5% or a switch from an ARM to a fixed rate. The FHA requires a minimum 210-day waiting period from your original closing date and six payments made on time.

VA Interest Rate Reduction Refinance Loan (IRRRL): Similarly streamlined, with no appraisal or income verification required in most cases. The funding fee is just 0.5% — dramatically lower than the 2.15% on a new VA purchase loan. According to the Department of Veterans Affairs, IRRRL loans typically close in 20–30 days, compared to 30–45 days for standard VA refinances.

Both programs trade flexibility (you can't take cash out, and you generally can't change loan terms dramatically) for speed and simplicity. For borrowers who simply want a lower rate on an existing government-backed loan, they're hard to beat.

For a current comparison of these programs against conventional refinance options, the mortgage rates page has an updated breakdown.

How to Actually Compare Lenders

Getting one refinance quote is like getting one plumber's estimate — technically you have a number, but you have no idea if it's good. The Freddie Mac research consistently shows that borrowers who get five quotes save, on average, $1,500 in fees compared to borrowers who get one. Some analyses show savings exceeding $3,000 on larger loans.

Here's how to compare quotes effectively:

Step 1: Collect Loan Estimates, not verbal quotes. The Loan Estimate is a standardized three-page form the lender is legally required to provide within three business days of a complete application. It shows the rate, APR, closing costs, and monthly payment in a format designed for comparison. Verbal quotes are meaningless because they're not binding.

Step 2: Compare APR, not just interest rate. The APR incorporates origination fees, discount points, and other lender charges into an effective annual cost. A lender offering 6.25% with $6,000 in points may have a higher APR — and a longer break-even — than a lender offering 6.44% with $2,000 in fees. Always convert to APR for comparisons.

Step 3: Watch for discount points. One point equals 1% of the loan balance, paid at closing to buy down the rate by approximately 0.25%. Whether points make sense depends entirely on how long you'll keep the loan. If break-even on the points themselves is 4 years and you're planning to move in 3 years, paying points is a bad trade even if the rate looks attractive.

Step 4: Check the estimated closing costs line by line. Legitimate closing costs include appraisal, title insurance, government recording fees, and prepaid items (homeowner's insurance, property tax escrow). Watch for "administrative fees," "processing fees," or "underwriting fees" that vary widely across lenders and represent pure margin — not actual services.

Step 5: Lock once you're ready to commit. Rate locks typically run 30–60 days. Lock too early and you risk paying for an extension if closing takes longer than expected. Lock too late and you risk rates moving against you. For most standard refinances, locking immediately after submitting a complete application is the right approach.

The closing cost estimator can give you a realistic benchmark for total costs before you start soliciting quotes.

When Refinancing Probably Doesn't Make Sense

Every refi discussion focuses on when to do it. But knowing when *not* to is equally important:

When your break-even exceeds your expected tenure. If your break-even is 48 months and you're likely to sell in 3 years, refinancing costs money on net.

When you're far into your loan term. If you've paid 22 years on a 30-year mortgage and refinance into a new 30-year loan, you're restarting the amortization clock. Your payment drops — but your payoff date extends by 22 years. A 15-year refinance in this scenario is usually far superior to a 30-year, though the payment will be higher.

When your DTI is in a tight range. Pulling out cash or extending your loan balance can push your debt-to-income ratio above conventional limits (typically 43–45%). Run your numbers through the DTI calculator first.

When rates might drop further. This is the hardest judgment call. If credible economic indicators suggest a Federal Reserve rate cut cycle is underway, waiting 6–12 months to refinance might be worth avoiding two sets of closing costs. There is no certainty here — but the opportunity cost of one more set of closing costs should factor into your timing.

The MBA's 2026 Refinance Forecast

The Mortgage Bankers Association projects total refinance originations of $882 billion for 2026 — a 142% increase from 2024's $364 billion. The refinance share of weekly mortgage applications hit 61.9% in January 2026, the highest share in over two years, per MBA weekly survey data.

This volume surge has a straightforward explanation: roughly 2.5 million U.S. borrowers took out mortgages at rates above 7.0% during 2022–2023, according to CFPB analysis. Many are now mathematically positioned to reduce their rates by 0.5% or more — which clears a typical break-even threshold in under four years.

The implication for borrowers: lenders are actively competing for refinance business. This is a favorable environment for shopping and negotiating. Use it.

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Frequently Asked Questions

What is the refinance rate today for a 30-year fixed loan? As of early April 2026, the average 30-year fixed refinance rate is 6.44–6.46%, according to Bankrate's national survey and Freddie Mac's Primary Mortgage Market Survey. Individual rates vary significantly based on credit score, loan-to-value ratio, loan size, and lender. Borrowers with 760+ credit scores and under 70% LTV will typically see rates at or below these averages; those with lower scores will see premiums.

How much does it cost to refinance a mortgage? Refinancing typically costs 2–3% of the loan balance in closing costs. On a $350,000 refinance, expect $7,000–$10,500 at closing, covering appraisal ($400–$600), title insurance ($1,000–$2,500), origination fees ($1,000–$3,000), and prepaid items (tax/insurance escrow). Some lenders offer "no-closing-cost" refinances that roll these costs into a higher rate or the loan balance — useful if you're cash-constrained or plan to refinance again soon.

How long does refinancing take in 2026? A standard rate-and-term refinance typically closes in 30–45 days from complete application submission. FHA Streamline and VA IRRRL programs often close in 20–30 days due to reduced documentation. Cash-out refinances typically take 45–55 days because of heavier underwriting. Submitting a complete application (all income/asset documents upfront) is the single biggest factor in accelerating the timeline.

Should I refinance to a 15-year or 30-year mortgage? The 15-year refinance rate (around 5.77–5.83% currently) is approximately 0.63% below the 30-year rate, and you'd pay off your mortgage roughly 15 years sooner. The tradeoff is a materially higher monthly payment — on a $350,000 refinance, expect the 15-year payment to be $600–$750/month higher than a 30-year. If the higher payment is affordable and you want to eliminate the mortgage before retirement, the 15-year is usually the right call. If cash flow is a concern, stick with 30-year and pay extra when you can.

Is it worth refinancing if I only save $100/month? It depends entirely on how long you'll keep the loan. A $100/month savings with $7,000 in closing costs has a 70-month (5.8-year) break-even. If you plan to keep the home for at least 7–8 years, the lifetime savings are substantial. If you're likely to sell or pay off the loan sooner, the math doesn't work. Use the [refinance calculator](/refinance-calculator/) to model your exact scenario before deciding.

Can I refinance if my home value has dropped? Yes, but options are limited. Conventional refinances require at least 5% equity (95% LTV). The best rates come with 20%+ equity. If your LTV is over 97%, you're effectively locked out of conventional refinancing. FHA Streamline and VA IRRRL programs don't require an appraisal, so they can work even if your home value has declined — as long as you remain current on payments and can document the "net tangible benefit" requirement.

What's the difference between APR and interest rate on a refinance? The interest rate is the base cost of borrowing, expressed annually. APR (annual percentage rate) includes the interest rate plus lender fees — origination charges, points, and some other costs — amortized over the loan term. APR is a better comparison metric because it accounts for the upfront costs. A lender offering 6.25% with $8,000 in fees may have a higher APR than a lender at 6.44% with $2,500 in fees, making the nominally lower rate the more expensive option over time.

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Your Next Step

If you're seriously considering refinancing, the most useful thing you can do right now is pull your current mortgage statement and note three numbers: your remaining balance, your current interest rate, and your monthly principal and interest payment.

Then run those numbers through the refinance calculator against current rates. It will show you your projected monthly savings, total interest savings over the loan term, and break-even period — the three numbers that actually determine whether refinancing makes sense for your specific situation.

Refinancing is not a commodity decision where faster is always better. But when the break-even math works and your rate is meaningfully above current market levels, the only risk is waiting too long.