Compare Today’s Refinance Rates

Getting the Best Refinance Rates: How to Shop and Compare

How to find today’s refinance mortgage rates

How does a mortgage refinance work?

How do you get the best refinance mortgage rate?

• Interest rate
• Annual percentage rate (APR)
• Estimated closing costs and other fees

• Your credit score: In terms of factors you can alter, your credit score is front and center for influencing the mortgage refinance rate you will receive. Check your credit report before refinancing to make sure there aren’t any errors. Build your credit score before refinancing by paying your bills on time and keeping credit utilization low.
• How much debt you have: For a conventional loan refinance, lenders usually want a debt-to-income ratio of no more than 36%. Your DTI is the amount of debt you pay each month divided by your gross, or pre-tax, monthly income.

How much does it cost to refinance a mortgage?

• Origination fee
• Appraisal fee
• Discount points, which are an optional fee that brings down your interest rate (learn when it makes sense to pay for discount points)

How long does it take to refinance a mortgage?

Reasons to refinance your mortgage

• Reduce your interest rate. If rates have dropped since you bought your home or your credit score has improved, a rate and term refinance may allow you to reduce your monthly mortgage payment. A lower interest rate could also save you a considerable amount of cash over the life of the loan.
• Pay off your mortgage quicker. You can pay off your loan faster by refinancing from a 30-year mortgage to a 15-year mortgage, for example. While your monthly payments will rise, shortening your loan term could dramatically reduce the amount of interest you'll pay.
• Tap into your home equity. With a cash-out refinance, you take out a new mortgage for more than your current loan balance. You receive the difference between the two amounts in cash, which you can use as you like. A cash-out refinance can be risky because you're getting a larger loan with your home as collateral, so it's generally considered safest to use the proceeds for something that improves your bottom line. For example, a major renovation could add to your home's value.
• Switch from an adjustable-rate to a fixed-rate mortgage. If you want more payment stability, you can refinance your adjustable-rate mortgage to a fixed-rate mortgage. After a specified amount of time, the rate on the ARM may adjust higher, while the rate stays the same with a fixed-rate loan.
• Eliminate private mortgage insurance. If you bought your home with less than 20% down on a conventional loan, your lender likely required you to take private mortgage insurance, or PMI. This protects the lender in the event you default on the loan. If you’ve gained enough equity in your home, you can refinance to eliminate the PMI. However, it may make more sense simply to pay for an appraisal to cancel your mortgage insurance early.
• Cancel FHA mortgage insurance. Refinancing is usually necessary to remove FHA mortgage insurance, which is determined by the amount of your down payment, not your equity. Going from an FHA loan to a conventional loan allows you to drop FHA mortgage insurance. But be sure you'll have at least 20% equity, so you don't end up paying private mortgage insurance.
• Add or remove a borrower from the loan. Changing who's on the mortgage doesn't alter who owns the property — that's what the title or deed is for — but it does affect who's on the hook for the home loan. Generally, if you want to remove someone from your home loan and that person is still living, you'll have to refinance. (This could be necessary in a divorce, for instance.)

At what interest rate should you refinance?

Learn more about refinancing your mortgage: