Mortgage Rates Today: Is Refinancing Worth It in 2026?
The current average refinance rate for a 30-year, fixed-rate home loan is 6.15%, according to recent data from Zillow. If you’re a homeowner considering a refinance to secure a lower rate or access home equity, understanding the current landscape is crucial. This article provides a comprehensive overview of average refinance interest rates for various loan types and terms, keeping you informed as of February 13th, 2026.
What is a Mortgage Refinance?
A mortgage refinance essentially replaces your existing home loan with a new one. Similar to your initial mortgage application, you’ll need to meet lender requirements regarding your credit score, income verification, debt-to-income (DTI) ratio, and other financial criteria. Be aware that applying for a refinance will likely result in a small dip in your credit score due to a hard inquiry. Approval isn’t guaranteed; lenders will assess your eligibility based on their specific standards.
Recent Trends in Mortgage Rates
Many anticipated that mortgage interest rates would decrease following cuts to the federal funds rate by the Federal Reserve in late 2024. However, rates remained stubbornly close to 7% for several months. These rates are significantly higher than the pandemic-era lows, where some homeowners secured loans in the 2% to 3% range. A substantial number of homeowners are currently holding onto these lower rates, hesitant to move or refinance in the current market.
According to a Redfin report from the third quarter of 2024, 82.8% of homeowners with a mortgage had a rate below 6%. Fortunately, homeowners began to see some relief in late August and early September of 2025, as mortgage rates started to decline ahead of the Federal Reserve’s September 16-17 meeting, which resulted in the first rate cut of the year. The Fed followed with additional cuts in October and December.
Is Refinancing Right for You?
Refinancing isn’t free. Closing costs typically range from 2% to 6% of the loan amount. A common rule of thumb is that refinancing is worthwhile if you can secure a new rate at least one full percentage point lower than your current rate. For example, if you have a 7% loan, a 6% rate could make refinancing beneficial.
Refinancing to Tap Home Equity
A cash-out refinance allows you to access the equity you’ve built in your home. Typically, you’ll need at least 20% equity to qualify. If you initially purchased your home with a small down payment (e.g., 5% or 3% for first-time homebuyers), it may take time to build sufficient equity for a cash-out refinance.
Adjusting Your Loan Term
Refinancing can also be used to change your loan term. If you initially opted for a 15-year mortgage to save on interest but now find the payments too burdensome, refinancing to a 30-year loan could lower your monthly payments and improve your budget flexibility.
Switching Loan Types
Consider refinancing to switch loan types. For example, if you have an FHA loan with lifetime mortgage insurance, refinancing to a conventional loan could eliminate this ongoing cost. Similarly, if you have an adjustable-rate mortgage (ARM) and plan to stay in the home long-term, switching to a fixed-rate mortgage can protect you from future rate increases.
Refinance Costs to Consider
Just like a purchase mortgage, refinancing involves closing costs. These typically range from 2% to 6% of the loan amount. For a $300,000 loan, this could translate to $6,000 to $18,000 in closing costs. Common costs include:
- Appraisal fees
- Credit report fees
- Origination fees
- Title insurance
- Recording fees
Types of Mortgage Refinance Loans
Several refinance options are available, each suited to different needs:
- Rate-and-Term Refinance: Changes your interest rate and/or loan term.
- Cash-Out Refinance: Allows you to borrow against your home equity.
- FHA Streamline Refinance: A simplified refinance option for FHA loan holders.
Shop Around for the Best Rate
You’re not obligated to refinance with your current lender. Shopping around is crucial to find the lowest rate and best service. Some lenders may offer incentives for loyalty, such as waiving a portion of closing costs.
If your mortgage is backed by Fannie Mae or Freddie Mac, you may be eligible for programs like Refi Now and Refi Possible.
Disclaimer: This information is for general guidance only and should not be considered financial advice. Consult with a qualified mortgage professional for personalized recommendations.
Zillow provides valuable resources for researching mortgage rates and understanding the refinance process.
