Compare today’s refinance rates

Current mortgage refinance news - Oct. 29, 2025

The average rate on 30-year mortgages decreased to 6.25 percent as of Oct. 29, Daily Tech Finance’s weekly survey of lenders shows. Rates were above 6.5 percent earlier this year — and much higher during most of the last few years — and the downward trend has motivated some homeowners to refinance. With mortgage rates now at their lowest levels in a year, the Mortgage Bankers Association’s Refinance Index rose 81 percent compared to a year ago.

However, most Americans are locked into rates well below 5 percent — fully 70 percent of homeowners with mortgages have loans below that threshold, according to ICE Mortgage Technology. As a result, they’re turning away from refinancing and toward home equity lines of credit and home equity loans. Housing economists expect rates to stay above 6 percent for the rest of 2025. Another refinancing boom might happen only after a recession or other economic shock.

There are many variables that determine your interest rate, including:

• Economic factors like inflation
• The lender
• The loan type
• Your credit score
• Your income
• Your loan-to-value (LTV) ratio

Here's how to compare refinance offers and increase your odds of getting the best possible rate:

• Nail down your goals. This will help you decide what term — 30 years, 15 years or something else — is best for you. For example, if your aim is to more quickly pay down your loan, a shorter term might make more sense.
• Shop around. Get rate quotes from at least three mortgage lenders, ideally on the same day so you have an accurate basis for comparison. Here's how to shop for and compare mortgage offers.
• Compare the interest rate and APR. The interest rate and annual percentage rate (APR) reflect the cost of the loan. The interest rate is the cost to borrow the funds, while the APR includes the interest rate and other costs such as the origination fee and any mortgage points.
• Consider the lender’s ratings and your experience. Aside from the numbers, evaluate lenders for convenience and responsiveness. Take a look at what other borrowers have had to say about the lender, too.

Should you refinance your mortgage?

Whether you should refinance your mortgage right now depends on a few factors:

• Can you get a significantly lower rate? Refinancing to a lower rate will help you lower your monthly payment and save money over the loan term.
• Do you need to change from a variable rate to a fixed rate? If you have an adjustable-rate mortgage (ARM) that’s resetting soon, refinancing to a fixed rate would provide a more predictable payment for your budget.
• Do you want to change your term? Many people also adjust the length of their mortgage when they refinance. Typically this means shortening the term from 30 years to 15 years to pay off the mortgage faster or lengthening the term up to 30 years to reduce the monthly payments.
• Do you want to tap equity? Many people perform a cash-out refinance to turn their home equity into cash by borrowing against it. This cash can then be used to make home renovations, pay college tuition or cover other major expenses.

Once you know the answers to those questions, review the pros and cons:

How to refinance your mortgage

The process of refinancing your mortgage is similar to the first time you applied for one to buy a home. The key difference: You won’t have to pay nearly as much in closing costs. Here’s an overview of the steps:

1. Check your credit score: Refinances typically require a credit score of at least 620, but a better credit score will help you secure a better rate and make your refi even more cost-effective. You can check your credit reports at AnnualCreditReport.com.
2. Choose a refinance type: Many borrowers opt for a rate-and-term refinance, which changes the interest rate, term or both. This isn’t the only way to refinance a mortgage, however.
3. Calculate the break-even timeline: A refi usually comes with upfront costs at closing, just like a home purchase mortgage. Our refinance break-even calculator can help you figure out when you’ll start realizing savings.
4. Estimate your equity: If you want to refinance to a bigger mortgage and take cash out of your home, it's important to know how much available equity you have. Here's how to calculate your home equity.
5. Compare refinance rates: Explore refinance offers from at least three mortgage lenders and keep an eye on rates while you comparison-shop. This can help you decide when to lock in a rate.
6. Organize your paperwork: Among the requirements, your lender will want to review tax returns, pay stubs and other proof of income, as well as documentation about any assets or debt.
7. Apply: Once you know which lenders you're interested in and have your documents ready, complete an application to learn your specific refinance rate and terms.

Refinance resources

• Everything to know about mortgage refinancing
• How to get a low-cost refinance
• Cash-out refinancing: What it is and how it works