Current refi mortgage rates report for Jan. 19, 2026

Current refi rates data

Note that Fortune reviewed the most recent Zillow data available as of Jan. 16.

How mortgage refinancing works

A mortgage refinance essentially pays off your existing home loan with a new one. Just like when you applied for a mortgage the first time around, you’ll need to apply and meet lender criteria regarding your credit profile, proof of income, your debt-to-income (DTI) ratio, and more. 

Note that this means your credit score will likely take a small hit due to the hard inquiry. And it also means if you don’t meet the lender’s requirements, you can be denied for a refi loan.

What’s happening with mortgage rates in the market?

Some observers hoped mortgage interest rates would fall in tandem cuts made by the Federal Reserve to the federal funds rate in late 2024. But, that didn’t happen, and mortgage rates remained stubbornly near the 7% mark—looking at the nationwide average for 30-year, fixed-rate loans—for months.

Rates have remained well above the pandemic-era lows, when some homeowners snagged loans with rates in the 2% and 3% range. Many remain locked in, unwilling to move or refinance in the current environment. A report from Redfin showed that as of the third quarter of 2024, 82.8% of homeowners with a mortgage had a rate below 6%.

Still, homeowners finally started getting some relief in late August and early September of 2025, when mortgage rates started trending noticeably downward ahead of the Fed’s Sept. 16-17 meeting—at which the central bank delivered the year’s first rate cut. The Fed followed up with a second cut to the federal funds rate at the end of October and a third in December.

When it might make sense to refinance your mortgage

As we’ll cover more in the next section, it’s not free to refi your home loan. So, when does it make sense to accept the upfront costs and refinance? One common guideline is that if you can get a new rate that’s a full percentage point lower than your current rate, it’s worth refinancing. Using recent market conditions as an example, someone who took out a home loan at 7% might find it worth their while to refinance if rates drop and they can get a new loan with a 6% rate.

It may also be worth refinancing to tap your home equity through a cash-out refi. Note that you’ll typically need to have at least 20% equity in your home for this. So, if you purchased the place with the 5% minimum down payment—or 3% for first-time homebuyers—typically available on conventional loans, it could take a while before you’re eligible for a cash-out refi.

Yet another situation where you might benefit from refinancing is to change your loan term. For example, maybe you took out a 15-year mortgage intending to save on interest charges in the long run in exchange for higher monthly payments. But life is unpredictable, and maybe you’ve decided the monthly payments are spreading your budget too thin. Refinancing to a 30-year loan may offer the flexibility to make smaller monthly payments that fit your budget better.

There are also cases where it can make sense to switch loan types. If you have an FHA loan with a lifetime requirement to pay mortgage insurance, for instance, refinancing so you can change your mortgage to a conventional loan could provide an opportunity to ditch that insurance cost (called MIP on an FHA loan or PMI on a conventional). 

Or, if you initially took out an adjustable-rate mortgage (ARM) and you’ve realized you intend to keep the loan for a significant number of years, refinancing to switch to a fixed-rate mortgage might be a smart way to avoid rate hikes when your ARM’s adjustment period kicks in.

Costs to refinance your mortgage

Much like a traditional home loan taken out to purchase a property, refinancing a mortgage involves closing costs that run about 2% to 6% of the loan amount. For instance, if you do a rate-and-term refi on a $300,000 loan, you might  pay anywhere from $6,000 to $18,000 in refi closing costs. Here are some of the costs you might see on your refinance loan estimate:

• Lender origination fees.
• Appraisal fees.
• Title search and insurance fees.
• Loan application fees.
• Survey fees.
• Attorney fees (if required in your state).
• Recording fees.
• Prepayment penalties (if your current loan servicer charges one).

Different types of mortgage refi loans

There are a wide variety of mortgage refinance loans on the market, and the right one for your needs will depend on what you’re aiming to accomplish and what type of mortgage you currently have. Here are some common refi options:

• Rate-and-term refinance: This is the most popular refi option that allows you to lower your interest rate and/or shorten your loan term. While shortening your loan term does typically earn you a lower rate and hefty lifetime interest savings, you’ll be locked into higher monthly mortgage payments.
• Cash-out refinance: With a cash-out refi, you can tap your home’s equity by replacing your existing loan balance with a new, larger one and withdraw the difference in cash. You can use the money for home improvements, consolidating high-interest debt or other financial goals.
• No-closing-cost refinance: With this option, your lender covers your closing costs in exchange for charging you a higher interest rate. If you don’t have cash upfront for closing costs and could otherwise benefit from a refinance, this option may be worth looking into.
• Streamline refinance: Available to existing FHA, VA and USDA loan borrowers, these refi options involve less documentation and a more straightforward application and approval process.

Refinancing with your existing lender vs. a new one

There’s no requirement that you refinance with the same lender you got your original mortgage from. Thus, it’s worth shopping around for the lowest rate and best service you can find. 

However, some lenders may offer incentives if you stick with them, such as waiving a portion of the closing costs. Since these charges can be an expensive upfront cost, it’s worth checking with your existing lender about incentives—as that might reduce the barrier to refinancing and allow you to refi more easily than you’d otherwise be able to. 

Finally, know that if your mortgage was purchased by Fannie Mae or Freddie Mac, you might be eligible for programs such as Refi Now and Refi Possible.