Mortgage Refinance Rates Hover Near Yearly Lows as Homeowners Weigh Options

WASHINGTON, D.C. — The current average refinance rate on a 30-year fixed-rate home loan is 6.28%, according to data sourced from the real estate marketplace Zillow as of November 24, 2025. Homeowners looking to lower their mortgage rate or tap into home equity are exploring refinancing options.

Mortgage refinancing involves replacing an existing home loan with a new one, which can potentially offer a lower interest rate. Homeowners must meet lender criteria, including credit scores and income verification, during this process. It’s important to note that refinancing can temporarily impact credit scores due to hard inquiries.

Despite some homeowners anticipating lower rates following cuts to the federal funds rate, mortgage rates have remained near the 7% mark for much of the year. However, recent trends indicate a slight decline in rates as of late August and early September when the Federal Reserve cut the federal funds rate.

The average mortgage interest rate for a 30-year term is now at 5.99%, with a 15-year option at 5.37%. This change can present significant savings opportunities, especially for those who purchased homes at higher rates in 2023 or 2024.

Experts recommend that homeowners should consider refinancing if they can secure a rate that is at least a full percentage point lower than their current rate. Closing costs for refinancing typically range from 2% to 6% of the loan amount. For instance, on a $300,000 loan, refinancing could cost between $6,000 and $18,000.

Another option available to homeowners is the cash-out refinance, which allows them to leverage home equity for various purposes like investing or consolidating debt. Typically, homeowners need at least 20% equity in their home to access this type of refinance.

In addition to refinancing, homeowners can also change their loan terms, potentially moving from a 15-year to a 30-year mortgage to lower monthly payments, or switch from an FHA loan to conventional financing to eliminate mortgage insurance requirements.

As of the latest update, the average refinance rate for a 30-year term stands at 6.82%, with the 15-year average at 5.62%. These rates are significantly lower than those witnessed in past years, presenting favorable conditions for refinancing for those who missed opportunities earlier.

Homeowners are encouraged to shop around to ensure they find the best refinancing options that suit their financial needs while taking advantage of current market conditions.