Current Mortgage Refinance Rates: October 16, 2025 – Rates Fall

The rate on a 30-year fixed refinance declined to 6.32% today, according to the Mortgage Research Center. Rates averaged 5.32% for a 15-year financed mortgage and 6.02% for a 20-year financed mortgage.

Related: Compare Current Refinance Rates

30-Year Fixed Refinance Interest Rates Drop 1.30% 

The average rate for a 30-year fixed-rate mortgage refinance is 6.32%, down 1.30% from a week ago.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.34%, lower than last week’s 6.43%. APR, or annual percentage rate, includes a loan’s interest rate and a loan’s finance charges. It’s the all-in cost of your loan.

At the current interest rate of 6.32%, a 30-year fixed mortgage refi would cost $620 per month in principal and interest (not accounting for taxes and fees) per $100,000, according to the Forbes Advisor mortgage calculator. You’d pay about $123,840 in total interest over the life of the loan.

20-Year Refi Rates Drop 0.95%

The average interest rate on the 20-year fixed refinance mortgage is 6.02%. Last week, the 20-year fixed-rate mortgage was at 6.08%.

The APR on a 20-year fixed is 6.06%, compared to 6.12% last week.

A 20-year fixed-rate mortgage refinance of $100,000 with today’s interest rate would cost $718 per month in principal and interest. Taxes and fees are not included. Over the life of the loan, you would pay around $72,734 in total interest.

15-Year Fixed Refinance Rates Drop 0.63% 

The average interest rate on the 15-year fixed refinance mortgage is 5.32%. The same time last week, the 15-year fixed-rate mortgage was at 5.36%.

On a 15-year fixed refinance, the annual percentage rate is 5.37%. Last week, it was 5.4%.

At the current interest rate, you would pay $808 per month in principal and interest for every $100,000 borrowed. Over the life of the loan, you would pay $45,808 in total interest.

30-Year Jumbo Refinance Rates Drop 0.64%

The average interest rate on the 30-year fixed-rate jumbo mortgage refinance (a loan above the federal conforming loan limit of $806,500 in most places) inched down week-over-week to 6.68%. A week ago, the average rate was 6.72%.

Borrowers with a 30-year fixed-rate jumbo mortgage refinance with today’s interest rate will pay $644 per month in principal and interest per $100,000 borrowed.

15-Year Jumbo Refinance Rates Drop 0.99%

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.78%, down 0.99% from last week.

At today’s rate, a borrower would pay $832 per month in principal and interest per $100,000 borrowed for a 15-year, fixed-rate jumbo refi. Over the life of the loan, that borrower would pay around $50,024 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

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.

Know When To Refinance Your Home

Refinancing your mortgage can be a wise move for many reasons, most notably lowering your interest rate or your monthly payments. It can also help you pay down your mortgage sooner, access your home’s equity or get rid of private mortgage insurance (PMI).

But there are closing costs associated with refinancing, so it probably makes more sense to refinance if you know you’ll be keeping your home for some time. You can determine the “break-even point” for a potential refinance, or how long it will take for savings from a new mortgage to surpass any closing costs. Find out what those costs will be and divide them by the monthly savings you’ll realize with the new mortgage.

The Forbes Advisor mortgage refinance calculator can help you run the numbers to see if it’s a good time for you to refinance.

How To Qualify for Today’s Best Refinance Rates 

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: 

• Polish up your credit score
• Lower your debt-to-income ratio
• Keep an eye on mortgage rates
• Consider a shorter loan

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.

Refinance Rate Trends for 2025

National average mortgage rates have remained in the middle-to-high 6% range for most of 2025, and experts expect this trend to continue through the rest of the year.

If inflation slows and unemployment levels hold steady or rise, the Federal Reserve may reduce the federal funds rate, potentially leading to lower mortgage rates. However, if inflation stays high and unemployment decreases, rates are likely to remain stable.

Since mortgage rates aren’t expected to change much for the remainder of 2025, those looking to refinance at a lower rate should consider waiting until the new year. In the meantime, improving your credit score and paying down your loan balance will help you secure the lowest possible rate when you’re ready to explore refinancing options.

Frequently Asked Questions (FAQs)