7.307% APR

Compare today's refinance rates

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Cash-out

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.


Trends and insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

7.307%
30-year fixed-rate

On Tuesday, April 16th, 2024, the average APR on a 30-year fixed-rate mortgage rose 10 basis points to 7.307%. The average APR on a 15-year fixed-rate mortgage rose 7 basis points to 6.456% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 2 basis points to 7.871%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 38 basis points higher than one week ago and 77 basis points higher than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

ProductInterest rateAPR
30-year fixed-rate7.224%7.307%
20-year fixed-rate7.140%7.249%
15-year fixed-rate6.320%6.456%
10-year fixed-rate6.281%6.518%
7-year ARM6.900%7.697%
5-year ARM6.949%7.871%
3-year ARM8.125%8.355%
30-year fixed-rate FHA6.050%6.875%
30-year fixed-rate VA6.319%6.711%

Data source: ©Zillow, Inc. 2006 – 2021. Use is subject to the Terms of Use

Best Mortgage Lenders

A BEGINNER’S GUIDE TO MORTGAGE REFINANCING
Kate Wood
By
Last updated on April 16, 2024
Reviewed by
Edited by
✅ Fact checked
Michelle Blackford
Reviewed by
Mary Makarushka
Edited by
✅ Fact checked

How to find today’s mortgage refinance rates

NerdWallet’s comparison tool can help you find current refinance rates for your mortgage. In the filters above, click or tap "Refinance" and enter a few details about your home loan. We’ll scan multiple lenders to provide you with personalized rate quotes within moments and without a credit check.

How do you get the best mortgage refinance rate?

In terms of factors you can alter, your credit score is front and center for influencing the 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.

Debt is also important. 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.

The type of refinance can also affect your interest rate. Lenders generally consider cash-out refinances to be the most risky, because they entail borrowing against home equity and taking out a larger loan. As a result, cash-out refinances tend to have higher interest rates than rate and term refis.

To ensure you’re getting the best possible rate, request quotes from multiple refinance lenders. Compare the interest rate, annual percentage rate (APR), estimated closing costs and other fees included on each Loan Estimate.

And don’t forget to lock in your refinance rate. A rate lock will prevent the interest rate you've been offered from rising before your loan closes. Some lenders also offer a “float down” option, which will protect you if rates take a downward turn.

How does a mortgage refinance work?

With a mortgage refinance, you replace your current home loan with a new one. Much like when you bought your home, you’ll have to meet the lender’s refinance requirements and go through the application and closing process. A record of paying your mortgage on time isn't enough; you'll need to be sure you can qualify for the new loan.

Though you don't make a down payment when you refinance, refinancing isn't free. You'll pay refinance closing costs, which generally run from 2% to 6% of the amount of your new loan. So for example, if you're refinancing $250,000, your closing costs will probably be between $5,000 and $15,000. Closing costs on a refinance include the origination fee, the appraisal and discount points.

Some lenders offer no-closing-cost refinances. With these loans, you don’t have to pay the closing costs upfront, but you will pay them one way or another. Lenders cover the cost of the refinancing by charging a higher interest rate or rolling the fees into the total loan amount. Increasing your loan amount bumps up the amount you'll pay monthly as well as over the life of the loan.

Refinancing also takes time, at least four to six weeks. Among other things, you'll go through underwriting, and the lender will get an appraisal. In most instances, this isn't a big deal; it's not like you're waiting to move. But if you were, say, looking to get money from a cash-out refinance to fix something urgent, a refi may not be your best bet. Depending on the amount you need, you might consider another way to finance major home repairs or renovations.

When should you refinance your mortgage?

There are several reasons you might choose to refinance your mortgage. In some cases, you may be able to accomplish more than one of these goals at once: for example, switching loan types and changing the loan's term. You might refinance to:

Lower 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, 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. The person or people remaining on the loan will have to be able to qualify for the refi without that borrower. It's a similar drill for adding someone to the mortgage. That person will need to qualify along with the current borrower.

Is it worth it to refinance?

There isn’t a standard rule about when it makes sense to refinance your mortgage. Some experts recommend refinancing if you can lower your mortgage rate by 1% or more. But a smaller drop may still make sense for you. Crunch the numbers with this mortgage refinance calculator.

Keep in mind that your credit score affects the interest rate you're quoted. The higher your credit score, the lower the mortgage rate you'll be offered.

When deciding if you should refinance, consider how long you plan to live in your home. If you plan to move away soon, you might not have time to recoup the costs of refinancing, sometimes called the break-even point. You break even on a refinance when the money saved from refinancing outweighs how much you spent on closing costs. Note that if saving money isn't your refinancing goal — for example, if you're taking cash out — this isn't a helpful metric.

And ask your lender about any prepayment penalties. While these penalties aren’t common, some lenders may charge them if you close the loan within the first three to five years of a mortgage.

Learn more about refinancing your mortgage:


About the author: Kate writes about mortgages, homebuying and homeownership for NerdWallet. Previously, she covered topics related to homeownership at This Old House magazine.

Check out our other mortgage and refinance tools

Lenders

Get pre-approved
Get pre-approved

Get your true budget and find a home with ease.

Agents

Find a real estate agent

Get matched with a top agent in your area.

Calculator

Calculate your mortgage
Calculate your mortgage

Figure out your estimated payments the easy way.

Calculator

Should You Refinance
Should You Refinance

Calculate how much you can save by refinancing


Explore more quotes