Refinance Your Mortgage
Lower your rate, reduce your payment, or tap into your equity. Compare refinance options from top lenders and see how much you could save.
6.80%
Avg 30-Yr Refi Rate
$287
Avg Monthly Savings*
30 days
Avg Close Time
See Your Refinance Options
Get personalized rates from multiple lenders.
Today's Refinance Rates
Average rates based on $400,000 loan balance with 20% equity and 740+ credit score.
30-Year Fixed Refi
6.80%
6.88% APR
15-Year Fixed Refi
6.05%
6.15% APR
20-Year Fixed Refi
6.50%
6.60% APR
10-Year Fixed Refi
5.85%
5.98% APR
| Refinance Type | Rate | APR |
|---|---|---|
| 30-Year Fixed Refi | 6.80% | 6.88% |
| 15-Year Fixed Refi | 6.05% | 6.15% |
| 20-Year Fixed Refi | 6.50% | 6.60% |
| 10-Year Fixed Refi | 5.85% | 5.98% |
| Cash-Out Refi | 7.00% | 7.12% |
| FHA Streamline | 6.30% | 7.20% |
| VA IRRRL | 6.10% | 6.35% |
*Monthly savings based on average customer reducing rate by 1% on $400K loan.
Types of Mortgage Refinancing
Choose the refinance option that matches your financial goals.
Rate-and-Term Refinance
Lower your interest rate or change your loan term without taking cash out.
Best for: Homeowners who want lower payments or to pay off their mortgage faster
Requirements:
- Typically need 3-5% equity
- 620+ credit score
- Stable income
Potential Savings:
Could save $200-500/month on a $400K loan with 1% rate reduction
Cash-Out Refinance
Tap into your home equity by refinancing for more than you owe and taking the difference in cash.
Best for: Home improvements, debt consolidation, or major expenses
Requirements:
- Usually need 20%+ equity
- 620+ credit score
- DTI under 43%
Potential Savings:
Access up to 80% of your home equity
Streamline Refinance
Simplified refinance for FHA, VA, or USDA loans with less paperwork and faster closing.
Best for: Current FHA, VA, or USDA loan holders
Requirements:
- Current on existing loan
- Net tangible benefit required
- Same loan type
Potential Savings:
Lower closing costs and faster approval (often 2-3 weeks)
Cash-In Refinance
Bring cash to closing to lower your loan balance and qualify for better rates or remove PMI.
Best for: Removing PMI, getting better rates, or reducing loan amount
Requirements:
- Cash available for closing
- Wanting to reduce debt
- Close to 20% equity
Potential Savings:
Eliminate $100-300/month PMI payments
When Should You Refinance?
Refinancing makes sense in several situations. Here are the most common reasons homeowners refinance.
Rates have dropped significantly
A general rule: refinance if you can lower your rate by at least 0.75-1%. This typically results in enough savings to offset closing costs within 2-3 years.
Your credit score has improved
If your credit score has increased by 50+ points since your original mortgage, you may qualify for much better rates.
You want to remove PMI
If you've built 20%+ equity, refinancing can eliminate private mortgage insurance, saving $100-300/month.
You need cash for major expenses
Cash-out refinancing can be cheaper than personal loans or credit cards for home improvements, education, or debt consolidation.
You want to change loan terms
Switch from a 30-year to 15-year to build equity faster, or extend your term to lower monthly payments.
When NOT to Refinance
Refinancing may not make sense if: you're planning to move within 2-3 years (won't recoup closing costs), your credit has declined significantly, you're extending the term and increasing total interest paid, or current rates aren't meaningfully better than your existing rate.
The Refinance Process
Check your current loan details
Know your current rate, balance, and any prepayment penalties.
Set your refinance goals
Decide if you want lower payments, shorter term, or cash out.
Compare lenders
Get quotes from 3-5 lenders to find the best rate and terms.
Gather documents
Prepare pay stubs, tax returns, bank statements, and home info.
Apply and lock rate
Submit your application and lock your rate when you're ready.
Appraisal and underwriting
Your home is appraised and your application is reviewed.
Close on your new loan
Sign final documents and your old loan is paid off.
Refinancing FAQ
How much does it cost to refinance a mortgage?
Refinancing typically costs 2-5% of the loan amount in closing costs. On a $300,000 loan, expect $6,000-$15,000. Costs include appraisal ($300-700), title insurance, origination fees, and other charges. Some lenders offer "no-cost" refinancing by rolling costs into the loan or charging a slightly higher rate.
How long does refinancing take?
A typical refinance takes 30-45 days from application to closing. Streamline refinances (FHA, VA, USDA) can close in 2-3 weeks. Factors affecting timeline include appraisal scheduling, document verification, and lender workload. Having your documents ready can speed up the process.
Will refinancing hurt my credit score?
Refinancing may cause a small, temporary drop in your credit score (typically 5-10 points) due to the hard inquiry and new account. However, this usually recovers within a few months. The long-term benefits of lower payments often outweigh this short-term impact.
Can I refinance with bad credit?
Yes, but options are more limited. FHA refinances accept scores as low as 580. Some lenders work with scores in the 600-620 range for conventional loans at higher rates. Improving your credit before refinancing can save significant money over the loan term.
How much equity do I need to refinance?
Requirements vary by loan type: Conventional typically needs 5-20% equity, FHA needs 3.5-5%, VA has no equity requirement. For cash-out refinancing, most lenders require 20%+ equity and will only let you borrow up to 80% of your home's value.
See If Refinancing Makes Sense for You
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