Current Refinance Rates - Compare Rates Today | Bankrate (2024)

FAQs

What is the best refinance rate today? ›

Mortgage rates are expected to decline later this year as the U.S. economy weakens, inflation slows and the Federal Reserve cuts interest rates. The 30-year fixed mortgage rate is expected to fall to the mid- to low-6% range through the end of 2024, potentially dipping into high-5% territory by early 2025.

It's possible that rates will one day go back down to 3%, though if current trends hold that's not likely to happen anytime soon.

Whether or not you qualify for 2.25%, rates are ridiculously low. The truth is, the lowest advertised rates almost always go to top-tier borrowers; those with excellent credit scores and 20% down payments. So a 2.25% mortgage rate will be out of reach for many.

You May Get a Better Interest Rate

Shopping around is one of the best ways to make sure you're getting the best interest rate on your new loan, and if you stick with your current lender who knows what your current rate is, you might get a lower rate but not the best out there.

You can't get a lower interest rate: If your goal is to reduce your interest costs, right now isn't the best time to refinance. You're likely to end up with a higher rate, plus you'll need to cover closing costs on your new mortgage.

Bottom line. A mortgage refinance can be an excellent way to save money. But if the rates are too high — or you've been turned down — it might not be something you can take advantage of. Explore other ways to bring down your mortgage payment and see which makes the most sense for your situation.

Will mortgage rates go down in 2024? In Fannie Mae's April rate forecast, the government-sponsored enterprise said it expects 30-year fixed rates to end 2024 at 6.4%. The Mortgage Bankers Association also predicts the rate will drop to 6.4% by the end of the year.

A rule of thumb says that you'll benefit from refinancing if the new rate is at least 1% lower than the rate you have.

How low will mortgage rates go in 2025? ›

The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.

There is no limit on how many times you can refinance your mortgage, although lenders may enforce a waiting period, typically around six months, known as a 'seasoning' requirement.

FAQ about getting the best refinance rate

Start by getting estimates from three to five lenders and compare the interest rates, APRs, closing costs/fees and other expenses. Then, use the offers as leverage to negotiate your rate and costs. Say lender A has lower costs, but lender B has a lower interest rate.

Increasing your income, paying down debts, and boosting your credit score can all help lower your risk as a borrower and qualify you for a lower mortgage rate. You can also save up for a larger down payment, as it means the lender has less cash on the line.

If you have a mortgage with a higher balance and rate, a drop of 0.5% interest could be worth refinancing, according to Dell. "For a lower balance, rate and term refinance, it may be at least 1% or more to be worth your time and money," Dell says.