See today’s mortgage rates on Zillow (2024)

Adjust the graph below to see historical refinance rates tailored to your refinance program, credit score, down payment and location. Consider recent fluctuations before deciding the best time to refinance your mortgage.

Is it worth refinancing?

When you refinance your home loan, you pay off your existing mortgage with funds from the new loan, which means you will have a new loan note. If your objective is to save money, then your new refinance rate should be low enough to offset the cost of acquiring the loan. Use a mortgage refinance calculator to determine the refinance interest rate that would make it financially worthwhile.

Refinancing can accomplish more than saving on mortgage interest. Here is a list of common reasons to refinance your home.

• Reduce the total interest paid over the life of the loan
• Reduce the cost of each monthly payment
• Shorten the length of the loan
• Change rate type (for example, from adjustable rate to fixed rate)
• Eliminate mortgage insurance premiums
• Draw cash out to pay off other expenses or higher-interest debts

How to refinance a mortgage

The process of refinancing your mortgage follows similar steps to acquiring your initial mortgage. Learn more about how refinancing works before contacting a lender.

• 1

  Prepare qualifying criteria

  Make sure your credit score is in good condition. Collect supporting financial documentation such as your existing mortgage term and rate, current home equity, recent pay stubs, and social security number.

• 2

  Choose a type of refinance mortgage

  Most common refinances are rate-and-term but you can also choose from cash-in, cash-out or streamline refinancing to suit your needs.

• 3

  Shop refinance rates

  Start by using the customized rates from lenders quoting on Zillow. to evaluate your customized rate offerings. When ready, contact lenders with the best refinance rates. The lender may request documentation to determine your rate and loan amount qualification. They can provide a detailed payment scenario, which itemizes estimated loan costs and summarizes loan details. Note that until you’ve officially applied with a lender and received a Loan Estimate, loan costs may change.

• 4

  Apply for a refinance

  Once you have applied, your lender will provide you with initial disclosures as well as a Loan Estimate. The Loan Estimate outlines the terms of the loan application and includes a list of loan costs and closing costs. These preliminary disclosures are based on various federal and state requirements, coupled with unique lender requirements and must be signed to proceed.

• 5

  Lock your refinance interest rate

  Choose the best refinance offer for you, and work with the lender to lock the rate before rates change.

• 6

  Possibly complete a home appraisal

  It’s common for a lender to require a home appraisal to ensure the current value of your property. Appraisal requirements are lender and loan type specific.

• 7

  Pay and close

  Review the closing paperwork, including the Closing Disclosure, provided by your lender, and sign your closing documents.

How to find the best refinance rates

Refinance rates change daily, and can vary widely depending on your location, credit score, loan amount and property value. Here are some strategies to help you find the best refinance mortgage rate for your circ*mstances.

• 1

  Improve your credit score

  Get your credit score in the best shape possible before refinancing your mortgage. Your credit score is one of the biggest factors affecting the mortgage rates offered to you by lenders. A higher credit score may result in a lower refinancing interest rate. Credit scores of 740 or greater tend to yield the most favorable interest rates. However, rates are still very good for most borrowers with credit scores of 620 or greater. Explore tactics to improve your credit score.

• 2

  Compare rates

  Using the same lender you used for your existing mortgage does not ensure you'll receive the lowest refinance rates. To get the best refinance rate, try comparing offers from several different lenders. There is no limit to the number of refinance rates you can compare using customized rates from lenders quoting on Zillow. Your credit score is only impacted when you apply for a loan and receive a Loan Estimate.

• 3

  Compare fees

  Compare multiple lenders' fees and closing costs to assess the total cost of the new loan. Make sure the refinancing costs do not outweigh the savings.

• 4

  Check rates daily

  Continue checking rates until you find the lowest refinance rate with the least fees. Lock your rate quickly when you're satisfied with your offered rate because they can change regularly.

• 5

  Consider your loan program

  If you can budget the higher monthly payment of the 15-year fixed or 10-year fixed loan, or if you're comfortable with the possibility of your rate changing with the ARM, these options may help you get a lower refinance rate.

Frequently asked questions about refinancing

• Are refinance rates the same as mortgage rates?

• How much does a mortgage refinance cost?

• How much equity do you need to refinance?

• What do you need to refinance your home?

• Is it cheaper to refinance with your current lender?

• What is APR?

• What are basis points for mortgages?

• Is it worth it to refinance for a 1% interest rate change?

Refinance resources