Refinance Your Mortgage: Compare Current Mortgage Rates

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Compare refinance mortgage rates

Below are the average weekly mortgage rates as of November 14, 2019 based on data provided by S&P Global Market Intelligence. Our rate table shows current refinance rates nationally and is updated once per week.

Compare refinance mortgage rates
Mortgage product Average rate
30-yr fixed refi 4.01%
20-yr fixed refi 3.84%
15-yr fixed refi 3.53%
7/1 ARM refi 3.79%
5/1 ARM refi 3.76%
3/1 ARM refi 3.75%
30-yr VA fixed 3.69%
30-yr FHA fixed 3.96%

VA and FHA rate data sourced from Ellie Mae and are updated monthly with a 2-month lag. Rates current as of September 2019.

What is refinancing?

A mortgage refinance is when you replace your mortgage with a new loan that has better terms, such as a lower interest rate or monthly payment. Other reasons to refinance a mortgage could include shortening a loan term, eliminating a loan with private mortgage insurance or switching from an adjustable rate to a fixed rate.

How does refinancing work?

In a home refinance, your new loan will pay off the old loan, and allow you to start over with a new rate and better terms. Lenders take your application and do a thorough check of your finances and credit (again) before providing you with a loan estimate that outlines the terms and costs of your new mortgage.

Shopping around can save you money when refinancing your home. To get the lowest refinance rates, shop with at least three or more lenders, and make sure your credit and finances are in good shape to boost your chances of a refinance approval. 

Refinance lenders will also order a home appraisal to gauge the current value of your home and determine how much equity you have. Typically, you need at least 20% equity for a home refinance, however, some loan programs allow you to refinance with much less equity.

When should I refinance my mortgage?

A mortgage refinance makes sense when you're able to get a positive net benefit from doing so. When you should refinance depends on a number of things, including current mortgage refinance rates, how close you are to paying off your home loan, how long you plan on staying in your home and your financial goals. Here are some of the most common reasons for refinancing a mortgage:
  • Lower your interest rate

    If you refinance your home mortgage, you may be able to cut your rate by 0.50% or more. This can add up to tens of thousands of dollars in savings over the life of your loan.

  • Lower your payment

    A mortgage refinance can help you lower your monthly payments, either by reducing your interest rate or extending your loan term. This helps make payments more manageable.

  • Adjust your loan term

    Borrowers who refinance their mortgage can significantly reduce the time it takes to pay off their home loan. This allows you to become debt-free earlier. Plus, refinance rates for a 15-year fixed mortgage are typically lower than 30-year refinance rates.

  • Tap home equity

    If you need money for home repairs or improvements, college costs or debt consolidation, a cash-out refinance allows you to withdraw your home equity, oftentimes with a lower interest rate than other products.

  • Convert a variable rate to a fixed rate

    If you have an adjustable-rate mortgage (ARM) and are worried about interest rates rising, refinancing your home mortgage into a fixed rate can buy you some peace of mind as well as get you a great low rate for the long term.

  • Remove private mortgage insurance (PMI)

    Annual PMI can cost up to 1.5% of your loan balance, and can’t be canceled on most loans insured by the Federal Housing Administration (FHA) regardless of how much equity you have. Refinancing into another mortgage lets you reduce or even eliminate burdensome PMI costs, especially if you have extra cash on hand.

How to get the best refinance rates

By comparing lenders and having them compete for your business, you can get the best mortgage refinance rates. The better your rate, the lower your payments will be and the more money you’ll save in interest.

Refinance lenders will evaluate your credit and finances in the application process. Having a good credit score, solid repayment history, low debt-to-income ratio and 20% or more equity in your home are just a few ways to get the best mortgage refinance rates.

Using a mortgage rate comparison site like LendingTree helps you compare several different lenders at once — just input the basic parameters of what you’re looking for and matching lenders will contact you. This saves you time and headaches of reaching out to multiple lenders to compare mortgage refinance rates.

How much could you save by shopping for the best refinance rates in your area?

The following heatmap shows how much you may stand to save over the life of your new mortgage by comparing the most and least competitive refinance rates offered in a given metropolitan area. Hover over a locale near you to see how much median homeowners are saving in your area.

Benefits of refinancing a mortgage

No matter what your mortgage refinance goals are, the key is ensuring you get a distinct financial benefit from the process. In other words, refinancing should help you save money in some way. Here are some of the potential benefits of refinancing a mortgage:
  1. Get a lower refi rate. A lower refinance rate means you could save thousands in interest payments over your loan’s lifetime. It could also lead to lower monthly payments.
  2. Lower your monthly payments. By snagging a lower refinance rate or extending your loan term, you could reap monthly savings, freeing up more of your budget for other goals. However, keep in mind that resetting your loan term to a new 30-year loan will lead to more total interest paid.
  3. More stable mortgage payments. When ARMs reset, the interest rate can go up or down, and this can take borrowers by surprise in a rising rate environment when interest rates increase, driving up monthly payments. With a fixed-rate loan at current refinance interest rates, though, you’ll have stable payments for the life of the loan — and more peace of mind.
  4. Ditch PMI costs. PMI can add up over the long term. If you have an FHA loan with the maximum financing option, mortgage insurance premiums cannot be canceled. The only way to remove it is to refinance into a conventional loan once you’ve gained 20% equity.
  5. Borrow cash. Home equity can be a powerful tool when used wisely. Cash-out refinance rates are often lower than those for other financial products. If you put the money toward improving your home, you’ll increase its value. If you use a cash-out refi to consolidate high-interest debt, you could reap substantial interest savings and pay off debt more quickly.
  6. Remove a person’s name from your mortgage. If you get a divorce or otherwise need to remove a co-borrower from the mortgage, refinancing is the only way to do it. This frees them of the financial liability to the mortgage, but it does not remove their name from the title of the home, which is a separate process.
  7. Combine two mortgages into one loan. If you have a second mortgage, like a home equity loan or HELOC, mortgage refinancing may save on interest and hassle by combining the second loan with your existing loan balance into one new mortgage.