Today's mortgage refinance rates
Example rates based on a home in
60629 (Chicago, IL)
Example rates based on a home in
6.25%Interest rate 6.446%APR
These example refinance results are based on a $350,000 loan using a 30-year fixed rate conventional loan for ZIP code 60629 with 2.04 discount points.
Rates as of 9:36 AM ET, September 2nd, 2026.
Find answers
Mortgage rates are based on a combination of your personal financial situation and broader market conditions. Personal factors include your credit score, loan amount, down payment amount, and the length of the loan. Economic factors also play a role, such as the Federal Reserve rate, the prime rate, the overall economy, and the state of the housing market.
Note: We’re showing our current mortgage rates for homes in Chicago, IL for demonstration purposes. Your actual mortgage rate can differ from the rates shown.
Sometimes—refinance rates can be slightly higher than purchase rates because refinance loans may be priced differently. However, the gap varies by lender, loan type (rate-and-term vs. cash-out), credit score and loan-to-value ratio (LTV).
Yes, refinance rates can depend on your home equity because it affects your loan-to-value ratio. In general, more equity can qualify you for more favorable rates, while less equity may lead to higher rates or additional costs. Your credit score, debt-to-income ratio, loan type, and market rates also play major roles in the rate you get.
Closing costs are the main refinancing expense. The exact amount varies by lender, but it’s usually about 2% to 6% of your loan amount. However, it may be possible to refinance without paying upfront closing costs. Some lenders allow you to roll these costs into the loan, charge a higher interest rate, or some combination of both.
There is no one-size-fits-all approach when it comes to what credit score you need to refinance your mortgage. Requirements vary depending on the lender and what type of refinance you’re looking to do. However, your credit score plays a significant role in the interest rates a bank offers you.
Cash-out refinancing can help if you want to consolidate high-interest debt. Because your mortgage interest rate is likely to be lower than rates on credit cards or personal loans, consolidating debt may reduce your overall monthly debt payments.
Mortgage refinance rates, explained
Refinance rates are the interest rates lenders offer when you’re replacing your current mortgage with a new loan, often with different terms or conditions. As such, refinance rates may be higher or lower than the original mortgage rate, depending on market conditions and your financial circumstances.
When to refinance your mortgage
There are various reasons you might consider refinancing, including the potential for lower refinance rates or due to a significant change in your finances. Let’s look at a few reasons some homeowners might explore mortgage refinancing:
Lower rates
A big reason to refinance is to help secure a lower interest rate. By lowering your rate, you can potentially reduce both the size of your monthly payments and the total interest you pay over the lifetime of the loan.
Shorter terms
Another reason is to shorten the terms of your mortgage. This could mean moving from a 30-year to a 15-year mortgage, for example. While reducing your mortgage term could potentially increase what you pay monthly, it may also substantially decrease the amount of interest you pay overall.
Removing PMI
Typically, you can remove private mortgage insurance (PMI) once you reach 20% equity in your home. If your home's value has gone up since you got your loan, you might now own 20% of its value, even if you haven't paid down the loan to that level. This happens because the higher home value lowers your loan-to-value ratio, increasing your equity percentage without you having to make extra payments on the loan.
How to get a better mortgage refinance rate
When homeowners seek to refinance, securing a better rate is often a top priority. The way to get a lower refinance rate can vary based on individual circumstances, but there are few general tips that may help:
- Improving your credit: Your credit score is a major factor that lenders consider when determining your refinance rate. Generally, higher credit scores may help qualify you for lower interest rates. Improving your credit score by paying bills on time, reducing debt and correcting any inaccuracies in your credit report can be a helpful first step before you refinance.
- Comparing multiple rates: Different lenders evaluate refinance applications differently, so getting multiple quotes may help you find more competitive rates. It might be wise to note the annual percentage rate (APR), as that includes the interest rate along with any fees the lender charges to give you a clearer picture of your expected annual costs of borrowing.
- Timing your application: Mortgage refinance rates fluctuate based on economic conditions and market trends. Keeping an eye on these trends may give you an opportunity to refinance when rates are generally lower, potentially saving you money over the life of your loan.
- Evaluating different terms: Different loan terms offer different rates. For example, shorter loan terms tend to carry lower interest rates compared to longer terms but with higher monthly payments. Depending on your financial situation, choosing a shorter term might be a cost-effective decision if you can manage the higher monthly expenses.
Your mortgage refinance journey begins here
We'll guide you every step of the way. Rates may vary depending on area.
Learn about mortgage rates
Mortgage rates are the rate of interest that is charged on a mortgage. Calculated by your lender, mortgage rates can either be fixed for the length of your mortgage or adjustable based on the current market.
Based on a number of factors, mortgage rates are indicators of the level of risk a potential homebuyer presents to a lender. The higher the risk, the higher the mortgage rate. Qualified homebuyers can find lower mortgage rates by having a good credit score, a higher down payment and shorter loan terms.
Mortgage interest rates are just one part of your mortgage and they are often confused with annual percentage rate. Learn more about how interest rates differ from APRs.
Locking in an interest rate is also an option to ensure a lower mortgage rate. However, as mortgage rates change daily, work with your Home Lending Advisor to secure a rate for your budget and mortgage.
Mortgage refinance rate resources
Mortgage interest rate vs. APR
Learn the difference between mortgage interest rates and APRs or annual percentage rates.
7 ways to reduce mortgage rates
Whether you're shopping for mortgages, close to signing or a few years into yours, there are always ways to reduce your monthly payments.
When can you refinance a mortgage?
Read the factors you should first consider when determining if refinancing makes sense for you.
How to use a mortgage calculator
Follow this step-by-step guide for calculating your estimated mortgage payments.