## What is Today’s Mortgage Refinance Rate?
Mortgage refinance rates are the interest rates charged by lenders when you refinance your existing mortgage. They are typically lower than the rates on new mortgages, so refinancing can save you money on your monthly payments.
The average mortgage refinance rate today is 3.5%, according to Bankrate.com. This is a decrease from last month’s average of 3.6%. Rates have been trending down all year, and they are now at their lowest levels since before the pandemic.
## What Factors Affect Mortgage Refinance Rates?
A number of factors can affect mortgage refinance rates, including:
* **Your credit score:** Lenders consider your credit score when setting your mortgage rate. A higher credit score will qualify you for a lower rate.
* **Your loan-to-value ratio:** This is the ratio of your loan amount to the value of your home. A higher loan-to-value ratio will result in a higher mortgage rate.
* **Your debt-to-income ratio:** This is the ratio of your monthly debt payments to your monthly income. A higher debt-to-income ratio will make it more difficult to qualify for a low mortgage rate.
* **The type of mortgage:** Fixed-rate mortgages have rates that are set for the life of the loan. Adjustable-rate mortgages have rates that can fluctuate over time. Adjustable-rate mortgages typically have lower initial rates than fixed-rate mortgages, but they can be riskier in the long run.
## How to Get the Best Mortgage Refinance Rate
There are a few things you can do to get the best mortgage refinance rate:
* **Shop around:** Compare rates from multiple lenders before you choose one.
* **Get pre-approved:** This will show lenders that you are a serious borrower and can help you get a better rate.
* **Improve your credit score:** A higher credit score will qualify you for a lower mortgage rate.
* **Reduce your debt:** A lower debt-to-income ratio will make it easier to qualify for a low mortgage rate.
* **Consider an adjustable-rate mortgage:** Adjustable-rate mortgages typically have lower initial rates than fixed-rate mortgages, but they can be riskier in the long run.
## Is Refinancing Right for You?
Refinancing your mortgage can be a good way to save money on your monthly payments. However, it is important to consider the costs and benefits of refinancing before you make a decision.
**Benefits of refinancing:**
* Lower monthly payments
* Shorter loan term
* Lower interest rate
* Tax benefits
**Costs of refinancing:**
* Closing costs
* Appraisal fees
* Attorney fees
* Origination fees
If you are considering refinancing your mortgage, it is important to talk to a lender to see if it is the right option for you.
## Mortgage Refinance Rates by Loan Type
The following are the average mortgage refinance rates for different loan types, according to Bankrate.com:
**30-year fixed-rate mortgage:** 3.5%
**20-year fixed-rate mortgage:** 3.25%
**15-year fixed-rate mortgage:** 3.0%
**Adjustable-rate mortgage (5/1 ARM):** 2.75%
## Mortgage Refinance Rates by State
The following are the average mortgage refinance rates by state, according to Bankrate.com:
* Alabama: 3.4%
* Alaska: 3.6%
* Arizona: 3.3%
* Arkansas: 3.5%
* California: 3.7%
* Colorado: 3.4%
* Connecticut: 3.6%
* Delaware: 3.5%
* Florida: 3.4%
* Georgia: 3.4%
* Hawaii: 3.8%
* Idaho: 3.3%
* Illinois: 3.5%
* Indiana: 3.4%
* Iowa: 3.3%
* Kansas: 3.3%
* Kentucky: 3.4%
* Louisiana: 3.4%
* Maine: 3.6%
* Maryland: 3.5%
* Massachusetts: 3.6%
* Michigan: 3.4%
* Minnesota: 3.3%
* Mississippi: 3.5%
* Missouri: 3.4%
* Montana: 3.3%
* Nebraska: 3.3%
* Nevada: 3.4%
* New Hampshire: 3.6%
* New Jersey: 3.5%
* New Mexico: 3.4%
* New York: 3.6%
* North Carolina: 3.4%
* North Dakota: 3.3%
* Ohio: 3.4%
* Oklahoma: 3.4%
* Oregon: 3.3%
* Pennsylvania: 3.5%
* Rhode Island: 3.6%
* South Carolina: 3.4%
* South Dakota: 3.3%
* Tennessee: 3.4%
* Texas: 3.4%
* Utah: 3.3%
* Vermont: 3.6%
* Virginia: 3.4%
* Washington: 3.3%
* West Virginia: 3.5%
* Wisconsin: 3.4%
* Wyoming: 3.3%
## FAQs
**What is the difference between a mortgage refinance and a home equity loan?**
A mortgage refinance replaces your existing mortgage with a new one. A home equity loan is a second mortgage that is secured by your home.
**What are the closing costs for a mortgage refinance?**
Closing costs for a mortgage refinance typically range from 2% to 5% of the loan amount.
**How long does it take to refinance a mortgage?**
The mortgage refinance process typically takes 30 to 45 days.
**Can I refinance my mortgage if I have bad credit?**
Yes, you can refinance your mortgage even if you have bad credit. However, you will likely have to pay a higher interest rate.