Mortgage Refinance Rates Today: June 5, 2025

Forbes

2 days ago

The rate on a 30-year fixed refinance declined to 6.88% today, according to the Mortgage Research Center. Rates averaged 5.76% for a 15-year financed mortgage and 6.69% for a 20-year financed mortgage.
Related: Compare Current Refinance Rates
Currently, the average rate for a 30-year, fixed-rate mortgage refinance is 6.88%, down 1.36% from this time last week. Borrowers with a 30-year, fixed-rate mortgage of $100,000 will pay $658 per month for principal and interest at the current interest rate, according to the Forbes Advisor mortgage calculator, not including taxes and fees. Over the life of the loan, the borrower will pay total interest costs of about $137,385.
Another way of looking at loan costs is the annual percentage rate, or APR. For a 30-year, fixed-rate mortgage, the APR is 6.91%, lower than last week's 7.01%. The APR is essentially the all-in cost of the home loan.
For a 20-year fixed refinance mortgage, the average interest rate is currently 6.69%, compared to 6.87% last week.
The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.73%. It was 6.91% last week.
At today's interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $757 per month in principal and interest – not including taxes and fees. That would equal about $82,131 in total interest over the life of the loan.
For a 15-year fixed refinance mortgage, the average interest rate is currently 5.76%. The same time last week, the 15-year fixed-rate mortgage stood at 5.91%.
The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.81%. Last week, it was 5.95%.
Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $831 per month in principal and interest—not including taxes and fees. That would equal about $50,033 in total interest over the life of the loan.
The average interest rate for a 30-year, fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) decreased week-over-week to 7.26%, versus 7.62% last week.
At today's interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $683 per month in principal and interest on a $100,000 loan.
A 15-year, fixed-rate jumbo mortgage refinance is 6.39% on average, up 0.68% from last week.
At today's interest rate, a borrower with a 15-year, fixed-rate jumbo refinance would pay $865 per month in principal and interest per $100,000 borrowed. Over the life of the loan, that borrower would pay around $55,950 in total interest.
No, mortgage refinance rates are typically higher than purchase loan rates due to additional risk for the lender. Cash-out refinance rates are also higher than a standard rate-and-term refinance as you are increasing your loan balance by tapping your equity.
The application process for refinancing a mortgage is similar to getting a home purchase loan regarding the required paperwork and home appraisal. Additionally, similar closing costs from 2% to 6% of the loan amount apply, which is an extra expense.
When you refinance, your new rate is based on current refinance rates and your loan term. This rate replaces your existing mortgage repayment terms.
When considering a mortgage refinance, compare your current interest rate, mortgage balance and loan term with the new interest rate and term. This comparison helps you estimate your new monthly payment and savings, making it easier to determine if refinancing is the right choice.
There are a number of reasons why you should refinance your home, but many homeowners consider refinancing when they can lower their interest rate, reduce their monthly payments or pay off their home loan sooner. Refinancing also may help you access your home's equity or eliminate private mortgage insurance (PMI).
Refinancing your mortgage can make sense if you plan to remain in your home for a number of years. There is, after all, a cost to refinancing that will take some time to recoup. You'll need to know the loan's closing costs to calculate the break-even point where your savings from a lower interest rate exceed your closing costs. You can calculate this by dividing your closing costs by the monthly savings from your new payment.
Our mortgage refinance calculator could help you determine if refinancing is right for you.
Refinancing a mortgage isn't that different than taking out a mortgage in the first place, and it's always smart to have a strategy for finding the lowest rate possible. Here are some suggested approaches to get the best rate:
Having a strong credit score is one of the best things you can do to get approved and get a lower rate. You're also likely to look better to mortgage refinance lenders if you don't have too much debt relative to your income. You should keep a regular watch on mortgage rates, which fluctuate often. Also see if you can manage a mortgage payment for a shorter loan term since they usually have lower interest rates.
National average mortgage interest rates will have the most significant impact on refinancing trends throughout 2025, whether they rise or fall.
While predicting mortgage interest rates is challenging, experts expect them to remain in the middle-to-high 6% range during the first half of 2025, similar to the final quarter of 2024. However, rates could potentially decrease by the end of the year.
If inflation slows and national unemployment levels remain steady or increase, the Federal Reserve might cut the federal funds rate, leading to lower mortgage rates. On the other hand, if the opposite happens, average rates will likely see little movement.
Since experts anticipate minimal movement in average mortgage rates during the first half of the year, those looking to refinance at a lower rate may want to wait until later in the year to secure the best rate. In the meantime, improving your credit score, making on-time payments and paying down your loan amount will put you in the best position to secure a low rate when you begin shopping for a refinance offer.
Closing costs for a refinance can be anywhere from 2% to 6% of the cost of the loan. It's always a good idea to ask the lender what kind of closing costs they'll charge before you decide to borrow from them.
You should always shop around when you're trying to get a new mortgage or refinance an existing one. Take a look at the best mortgage refinance lenders as a starting point and try applying online. Always find out the closing costs each lender will charge, and make sure you're able to communicate well with the lender you want to choose. In a bumpy housing market, you'll probably be in touch with the lender more often than you realize.
You can usually refinance a mortgage in as quickly as 45 to 60 days, but it depends on many factors – like the type of home loan you choose. Always check with your lender before committing to borrow.