Current 30 year-fixed mortgage refinance rates are averaging 7.31%
The current average rate for a 15-year fixed mortgage refinance is 6.76%
Rates fell in November and December, finally dipping below 7% and continuing to fall steadily as 2024 progresses. Our market expert predicts that rates are likely to remain below 7% and may be closer to 6% by the end of 2024. For now, he recommends cautious optimism with a dash of realism. Lower rates can move things in the right direction, but even if rates continue to decline, it will take time for true affordability to come into focus for most.
Here are the U.S. weekly average rates from the Freddie Mac Primary Mortgage Market Survey, as of January 18, 2024:
Unless your current mortgage rate is near or above 8%, refinancing may not make sense right now. There are a few exceptions that may be worth considering, though:
See whether refinancing makes sense for you using our mortgage refinance calculator.Refinance rates are based on both factors you can control, like your personal finances, and some you can’t, like the market environment.
To get a lower mortgage refinance rate, you need to get your credit score as high as you can, save for a larger down payment amount, and choose the right type of mortgage loan for you.
It’s also essential to comparison shop with three to five lenders before moving forward with a loan offer. This small step can save you thousands in the long run.
Learn more about how to improve your credit score.
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Here are a few tweaks to your finances that could help land you the best mortgage rate:
We’ve already covered the importance of comparison shopping, but there are two ways you can go about it:
Pick what feels best to you — the most important thing is to reach out to three to five lenders, and you can start by browsing our top choices below.
| Lender | LendingTree rating and "best of" category | Available features | Lender review |
|---|---|---|---|
 |  Overall refinance products | Minimum credit score: Not published Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo, HELOC, interest-only and renovation loans | Read our review |
 | Online mortgage experience for traditional bank | Minimum credit score: Not disclosed Minimum down payment: 0% to 3% Available loan products and programs: Conventional, FHA, VA, jumbo | Read our review |
 |  Rate transparency | Minimum credit score: 620 Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo | Read our review |
 |  Variety of refinance products | Minimum credit score: 580 to 620 Minimum down payment: 0% to 3.5% Available loan products and programs: Conventional, FHA, VA, jumbo, HELOC, interest-only and renovation loans, reverse mortgages, physician loans | Read our review |
Read more about how we chose our picks for the best refinance lenders.
It’s easy to get overwhelmed by all of the details involved in the mortgage refinance process, but following these six steps will get you on your way:
Refinance closing costs: How much will you spend?A typical refinance will cost between 2% and 6% of your loan amount, but there are different ways to pay the costs.
→ Ask for a no-closing-cost option. You’ll trade a lower closing cost bill for a higher interest rate if your lender offers a no-closing-cost refinance. The catch: You’ll spend more on interest charges over the life of your mortgage.
→ Add the costs to your loan amount. If you have enough home equity, you can borrow more and use the extra money to pay your costs. This is referred to as “rolling your costs” into your loan amount.
Ready to refinance your mortgage? Compare Free Refinance Offers
| Pros | Cons |
|---|---|
Lower rates. Refinance rates tend to be lower than second mortgage rates. | Closing costs. You'll pay 2% to 6% of the loan amount in closing costs. |
Less interest. You can save thousands in lifetime interest charges by reducing your interest rate. | Lost equity. You'll lose equity if you increase your loan amount to cover closing costs or take out cash. |
Lower monthly payment. You'll also pay less per month when your interest rate drops (assuming you didn't add to the outstanding loan amount). | Longer time frame. You might not break even on costs if you sell too soon, so make sure you're prepared to stay in the home past your break-even point. |
Potential savings. If you can get rid of mortgage insurance, you stand to save thousands of dollars over the life of your loan. | Depends on appraised value. Your house may not appraise for what you think it's worth, which could reduce your borrowing power. |
Flexibility. You can use equity tapped during a refinance to pay off debt, make home improvements or take action on whatever is your highest priority right now. | Higher monthly payments. Your payment may become unaffordable if you shorten your loan term since you'll need to pay off the same amount more rapidly. |
APR stands for annual percentage rate and is a measure of your total refinance loan costs, including interest and origination fees. Your mortgage interest rate is the percentage you’ll pay as a fee for borrowing the money. The higher your APR is compared to your interest rate, the more you’re paying in total closing costs.
Your break-even point is a measure of how long it takes to recoup your refinance closing costs. Try our mortgage refinance calculator to see if refinancing makes sense.
Mortgage refinance requirements
The table below gives you a quick glance at the refinance requirements for credit score, debt-to-income (DTI) ratio and LTV ratio for the types of refinance loans listed above:
| Loan program | Refinance purpose | Credit score | LTV ratio | DTI ratio |
|---|---|---|---|---|
| Conventional | Rate and term | 620 | 97% | 45% to 50% |
| Cash out | 620 | 80% | 45% to 50% | |
| FHA | Rate and term | 500 to 580 | 97.75% | 43% |
| Cash out | 500 | 80% | 43% | |
| Streamline | N/A | N/A | N/A | |
| VA | Rate and term | No minimum, but lenders typically require 620 | 100% | 41% |
| Cash out | No minimum | 90% | 41% | |
| Streamline | No minimum | N/A | N/A | |
| USDA | Streamline | N/A | N/A | N/A |
The most common types of mortgage refinance options are offered by conventional lenders, as well as lenders approved by the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA).
Rate-and-term refinance loans. Most homeowners choose this type of refinance to lower their rate or pay off their loan faster. One major perk: You can roll in your closing costs even if you have little to no equity in your home.
Cash-out refinance loans. With a cash-out refinance, you borrow more than you currently owe and pocket the difference between the two loans in cash. One drawback: You can’t borrow more than 80% of your home’s value unless you’re eligible for a VA cash-out refinance.
Streamline refinance loans. The streamline refinance option is exclusive to homeowners with government-backed loans from the FHA, VA or USDA, and it typically doesn’t require a home appraisal or income documentation. To qualify, you must currently have an FHA, VA or USDA loan and prove the refinance will benefit you financially.
Mortgage refinance rates tend to be slightly more expensive than purchase mortgage rates. However, refinance rates differ from lender to lender, which is why it’s important to shop around and find a rate that’s competitive enough to replace your current mortgage rate.
To determine the best refinance lenders, we reviewed data from LendingTree’s 35 lender reviews and evaluated the lenders’ refinance loan programs and services.
Each lender review gives a rating between zero and five stars based on several features including digital application processes, available loan products and the accessibility of product and lending information. To evaluate refinance-specific factors, we awarded extra points to lenders that publish a wide variety of refinance rates online, offer the most conventional and government-backed refinance loan types and offer renovation refinance loans for homeowners that want to fix up their homes and roll the costs into one loan.
Our editorial team brought together the star ratings, as well as the scores awarded for refinance-specific characteristics, to find the lenders with a product mix, information and guidelines that best serve the needs of refinance borrowers. To be included in the “best of” roundup, lenders must offer mortgages in at least 35 states.
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