A refinance offer is worth considering when its financial benefit fits your goal and the time you expect to keep the home. We may refinance to change a monthly payment, pay off a loan sooner, or use home equity through a cash-out refinance. Each goal calls for a different loan comparison.
APR is the annual percentage rate, a measure of borrowing cost that includes the interest rate and certain fees. We compare offers with the same loan amount, term, and purpose, not by the lowest advertised rate alone. A lower payment can still mean higher costs over time if repayment stretches longer.
Key Takeaways
- Match the refinance loan to your payment, payoff, or equity goal.
- Compare APR, points, fees, and payment assumptions across offers.
- Estimate how long you will keep the home before judging savings.
- Check whether a new term extends repayment or changes your total interest.
- Compare personalized offers using the same loan amount, term and loan purpose.
What Are Mortgage Refinance Rates Today?
The national averages and lender examples available on October 28, 2026, give a starting point, not a personalized refinance quote. Rates can shift with the market, and an advertised rate may depend on points and other loan assumptions. The figures below show how offers can differ even for similar products.
A displayed rate alone does not show the full upfront cost. Borrower profile, location, loan purpose, and lender assumptions affect the quote each homeowner receives. Listed payment examples exclude taxes and insurance, which change the full monthly housing cost.
| Lender and product | Rate | APR | Points | Upfront costs |
|---|---|---|---|---|
| Sage Home Loans, 30-year fixed | 6.373% | 6.565% | 1.651 | $8,924 |
| Tomo Mortgage, 30-year fixed | 6.375% | 6.611% | 1.87 | $10,115 |
| Optimum First Mortgage, 30-year fixed | 6.375% | 6.592% | 1.795 | $10,073 |
| Aurora Financial, 30-year fixed | 6.990% | 6.990% | 0 | $0 |
| Optimum First Mortgage, 5/6 ARM | 5.750% | 6.411% | 1.982 | $10,914 |
These lender offers were listed as of October 28, 2026. Sage Home Loans showed a 6.373% rate, while Aurora Financial showed 6.990% with no points or upfront costs. The lower rate does not automatically mean a lower total expense.
National averages also vary by product and survey date. On October 28, 2026, average refinance rates were 7.51% for a 30-year fixed loan, 6.83% for a 15-year fixed loan, 6.77% for a 10-year fixed loan, and 7.01% for a 5/1 ARM.
The average 30-year mortgage rate was 7.39% in the week reported October 27, down from 7.47% the prior week. Freddie Mac’s weekly survey reported a 7.32% 30-year fixed rate on October 22, down from 7.40% the prior week, but above 6.19% a year earlier.
Freddie Mac’s October 22 average for a 15-year fixed loan was 6.68%, compared with 6.71% the prior week and 5.44% a year earlier. Its survey draws on thousands of applications submitted through Loan Product Advisor. It covers weekly conventional, single-family loans within conforming limits.
Request a current quote using your own loan details before treating a displayed rate as available to you.
That dated snapshot is a benchmark, not a promise of your individual rate. Your own loan amount and property details can change the offer you receive.
How Should We Compare Rate, APR and Points?
Two refinance offers can show similar interest rates and still differ in APR, points, and upfront charges. Compare the full price of each loan, using the same amount, term, and purpose. The interest rate alone does not show every borrowing cost.
What APR adds to the interest rate
APR combines the interest rate with certain loan charges, giving us a broader way to compare costs. The exact calculation and fees included may differ between lenders. It helps most when both offers use the same loan details and assumptions.
A lender may show a low rate but charge more in fees, which can raise its APR. Another offer may have a higher rate but fewer charges. We should read the Loan Estimate to see which costs feed into each offer.
Freddie Mac stopped publishing average mortgage fees and points in November 2022. Lenders were not always required to provide those details under current Loan Product Advisor rules. That change limits how well a national rate average can show a borrower’s full cost.
How discount points change the upfront cost
Discount points are upfront charges a borrower pays to obtain a lower interest rate. One point equals 1% of the loan amount. For example, one point on a $300,000 loan costs $3,000.
Points may reduce the monthly payment, but the savings take time to make up for the initial charge. A homeowner planning to sell soon may not keep the loan long enough to recover that expense. Someone staying longer may see a different result.
Check that the advertised rate, APR, points, and payment estimate all describe the same loan amount, term, and purpose. A mismatch can make one offer look better than it is. Compare both offers’ Loan Estimates rather than judging the displayed interest rate alone.
Which Refinance Loan Fits Your Goal?
The right refinance structure depends on whether the priority is a lower required payment, faster payoff, stable payments, or access to equity. Start with the goal, then choose a term and rate type that support it. A shorter term usually raises the payment but pays the balance off sooner.
Match the term to your payment and payoff goals
A 30-year loan spreads repayment over more years. It can lower the required monthly payment, but it may extend repayment and increase total interest. A 15-year loan usually costs more each month and ends sooner.
| Loan type | Rate and payment behavior | Common fit |
|---|---|---|
| 30-year fixed | Rate stays unchanged; payment is spread over 30 years | Lower required payment |
| 15-year fixed | Rate stays unchanged; higher payment, shorter payoff | Faster debt payoff |
| 5/6 ARM | Fixed for five years, then may adjust every six months | Borrowers able to manage future rate changes |
Choose a fixed rate, ARM or equity option
A fixed-rate mortgage keeps its interest rate unchanged for the loan term. An adjustable-rate mortgage, or ARM, can change after its initial fixed period. A 5/6 ARM holds its rate for five years, then can adjust every six months.
ARM contracts commonly cap rate changes at each adjustment and over the loan’s life. A five-year initial fixed period suits borrowers who need payment certainty beyond two years. A two-year period may suit someone planning to sell or refinance before its reset, if the added risk is acceptable.
A cash-out refinance increases the loan balance to provide cash from home equity. Eligible FHA, VA, or USDA borrowers may have a streamline refinance option with reduced documentation requirements. Those programs still have their own eligibility rules.
Before choosing an ARM, check its first adjustment date, adjustment caps, and maximum possible payment. A payment that fits today may not fit after the rate changes.
What Closing Costs Should You Expect?
A useful refinance budget starts with a percentage range, then checks which charges the estimate actually includes. Plan for about 2% to 6% of the new loan amount in refinance closing costs in 2026. A $300,000 refinance at that range means about $6,000 to $18,000 before credits, financed costs, or escrow effects.
What the closing-cost total can include
The bill can include lender charges, an appraisal, title and recording costs, prepaid items, and escrow adjustments. One $350,000 refinance example puts costs at $8,550, excluding discount points and certain other charges. Costs vary with the items counted and the loan.
- Lender origination charges
- Appraisal
- Title services
- Recording charges
- Prepaid taxes or insurance
A national report issued in May 2026 found average refinance closing costs of $2,207 for 2025 loans, or 0.67% of the loan amount. That average differs from a planning range because reports may count different fees and prepaid items.
How to pay the costs
Borrowers can pay costs upfront, add them to the new loan when allowed, or use lender credits tied to a higher rate. Each method changes the cash needed at closing and the longer-term expense.
| Payment method | Cash due at closing | Tradeoff |
|---|---|---|
| Pay upfront | Higher, based on costs due | Does not add those costs to the loan balance |
| Finance costs when allowed | Lower for financed charges | Raises the new loan balance |
| Use lender credits for a higher rate | Lower by the credit amount | Higher interest rate over time |
A no-closing-cost refinance still has costs. The lender may offset them with a higher interest rate, or the borrower may roll them into the loan balance.
Ask the lender to identify discount points, prepaid items, and escrow adjustments separately on the Loan Estimate. Those line items can explain why two closing totals differ.
How Do You Calculate Your Refinance Break-Even Point?
Divide the refinance’s total costs by the monthly savings to estimate how many months it takes to recover the expense. That is the break-even point, not a full measure of whether a new loan costs less overall. $8,000 in costs divided by $200 in monthly savings equals 40 months.
Use a mortgage calculator to compare payments
A mortgage refinance rates calculator should use your current balance, current payment, proposed rate, new term, closing costs, and expected time in the home. A mortgage calculator can estimate the change in principal-and-interest payments. Add taxes and insurance separately when setting a household budget.
Use the current loan’s remaining term, not only its original term. A new 30-year loan may lower the payment by spreading the balance across more years. That can extend repayment even when the monthly bill falls.
Calculate break-even and total loan cost
The formula is total refinance closing costs divided by monthly savings. If costs are $8,000 and the payment falls by $200, the math gives 40 months. Savings begin to offset the expense after that point, if the assumptions hold.
Break-even only measures when monthly savings equal the costs. It does not compare total interest across the old and new loan schedules. A longer term may reduce the required payment while leaving the borrower paying interest for more years.
Compare the loan balance and payment schedule at the time you expect to move or refinance again. Then decide whether the payment change serves your plans. Do not count a payment reduction as a net gain if you expect to leave before the break-even month.
What Determines Your Personalized Refinance Rate?
Your actual refinance rate reflects both market pricing and the risk details of your application. Your profile matters, but market rates can move outside your control. Lenders may change rates daily or several times within one day.
Borrower and property details
Lenders may price a loan based on credit history, debt-to-income ratio, loan-to-value ratio, property type, and occupancy. Loan-to-value compares the loan balance with the home’s value. More equity can affect the lender’s view of the loan’s risk.
Loan purpose matters, too. A cash-out refinance may be priced differently from a rate-and-term refinance. Credit history and debts are borrower details, while property type and value affect how the home supports the loan.
Borrowers can check their credit reports and reduce outstanding debt before applying. They can also estimate home equity from a current home value and mortgage balance. Those steps do not control broader market pricing.
Market conditions and loan choices
Market rates respond to economic and financial conditions, so a quote may change before a borrower locks it. Fannie Mae forecast an average 30-year fixed mortgage rate of 7.4% for the fourth quarter of 2026 and 7.5% for 2027 in its October 14, 2026 forecast.
Fannie Mae’s housing and economic outlook is a forecast, not a promise of future rates. A forecast can help frame expectations, but it cannot tell us the rate a lender will offer later.
Loan term and rate type also shape pricing. A fixed rate and an ARM have different payment risks, while points can affect the offer’s upfront price. Before applying, check your credit report for errors and estimate your loan-to-value ratio using a current home value.
How Can We Compare Lender Offers Fairly?
Request at least three written quotes for the same loan purpose, balance, term, and rate-lock period. Keep the assumptions matched so differences in price are easier to see. Compare at least three lender quotes side by side.
Compare the same loan assumptions
Ask each lender for a Loan Estimate based on the same loan details. Record these fields from every estimate:
- Loan amount and term
- Interest rate
- APR
- Points and lender fees
- Estimated cash to close
Small differences in loan amount or rate-lock period can change the offer. A clear comparison keeps those details visible and makes fees easier to review. A lower APR still deserves a check for points and lender credits.
How flat-fee mortgage brokers charge
A flat-fee mortgage broker should disclose the borrower’s fee and any lender-paid compensation in writing. The broker’s own compensation model does not automatically show what a borrower will pay. Review the actual Loan Estimate and written fee terms.
UMortgage’s disclosed 2026 broker model pays brokers 2.75 percentage points per originated loan. It also lists a $995 platform fee, a $300 closing quality-control fee, and a 10% payroll and administration tax on each funded loan.
UMortgage caps its corporate margin at $49,750. It waives the $995 platform fee after a broker funds 50 units in an anniversary year. These are internal broker charges, not a borrower quote or a standard market fee.
Confirm whether points or lender credits are included before choosing the offer with the lowest APR. A fee disclosure can clarify what the broker charges, while the Loan Estimate shows the borrower’s loan terms.
Can Older and Self-Employed Borrowers Qualify?
A 70-year-old can apply for a 20-year mortgage, subject to the same repayment and credit underwriting that applies to other borrowers. Age alone is not a bar to a mortgage. Federal law generally bars lenders from denying or charging more for a loan based on age alone.
Age alone does not set a mortgage term
A lender generally cannot require a 15-year term instead of a 30-year term solely because a borrower is older. The lender can still review repayment ability, income, debt, credit, and home equity.
Social Security, pensions, annuities, and regular 401(k) or IRA distributions can count as qualifying income. The lender assesses income alongside debts and the proposed payment. Age does not replace that review.
Bank statement loans and local availability
Non-QM mortgage rates today and bank statement loan rates today depend on the lender’s underwriting, the borrower’s profile, and the property. Bank statement loan rates near you are available only from lenders serving your area.
Non-QM bank statement loans commonly assess 12 to 24 months of deposits for self-employed borrowers. Consumer-purpose non-QM lenders must make a reasonable, good-faith determination that a borrower can repay.
Self-employed applicants can organize these records before applying:
- 12-24 months of bank statements
- Business-account records
- Documentation of recurring deposits
- A current debt-and-asset summary
Ask the lender how it distinguishes qualifying business income from deposits that are transfers or one-time receipts. A deposit total alone may not show the income available for loan payments.
When Should You Use an Alternative to Refinancing?
Keeping an existing low-rate first mortgage can be preferable when a new loan would raise its rate and add closing costs. Preserve the first loan when another option can meet your goal. Extra principal payments can shorten payoff without replacing the mortgage.
Cut years by paying principal or choosing a shorter term
To cut 10 years off a 30-year mortgage, make extra principal payments or refinance into a shorter term. Use the remaining balance and payment schedule to calculate the amount needed. Make sure extra funds go to principal, not toward the next scheduled payment.
These options may fit different needs:
- Extra principal payments can help homeowners seeking a faster payoff.
- A home equity loan can provide cash while leaving the first mortgage in place.
- A HELOC can provide access to equity without replacing the first mortgage.
- A loan modification may adjust the existing rate or term for borrowers struggling with payments.
Keep the first mortgage and access equity another way
A home equity loan or home equity line of credit, called a HELOC, can provide funds while the first mortgage stays in place. The new borrowing still adds another payment. Compare that payment with the available cash and expected use.
A loan modification changes terms on the existing mortgage rather than replacing it with a new loan. It may adjust the interest rate or term for a borrower having trouble making payments. The current servicer can explain whether a modification is an option.
A new 30-year refinance can extend repayment and reset the amortization schedule, even if its monthly payment is lower. Ask the current servicer to confirm in writing how extra principal payments will be applied.
What Steps Should You Take Before Closing?
Once you choose an offer, check its formal disclosures and conditions before committing to the closing date. Review the paperwork carefully and keep a copy of every final figure. For most covered mortgage applications, a lender must provide a Loan Estimate within three business days after receiving the application.
- Submit the chosen application.
- Confirm the rate-lock terms.
- Review the Loan Estimate.
- Respond to appraisal and underwriting requests.
- Check the Closing Disclosure against the final quote.
The lender must provide the Closing Disclosure at least three business days before closing for most covered loans. Use that time to review the final charges and terms, not just the payment amount.
Verify the payoff amount on the existing mortgage. Budget for property taxes, insurance, and escrow adjustments beyond principal and interest, since those items affect cash needed.
Compare the final cash-to-close figure with the funds you have available before signing.
Make sure the funds will be available in the form and by the date the closing agent requires. A last-minute shortfall can delay the signing.
Conclusion
A strong refinance choice is the one whose total cost and loan terms fit your finances, not simply the offer with the lowest displayed rate. Match the loan to your goal, then weigh its costs against how long you expect to keep the home.
A lower monthly payment can help your budget, but a longer term may extend repayment. A sound choice accounts for both the near-term payment and the remaining years on the loan.
Gather your current mortgage statement and request comparable written quotes from at least three lenders. Use the same loan amount, term, and purpose for each quote.