Current Mortgage Refinance Rates: October 2, 2025 – Rates Decline

The rate on a 30-year fixed refinance dropped to 6.41% today, according to the Mortgage Research Center. For 15-year fixed refinance mortgages, the average rate is 5.36%, and for 20-year mortgages, the average is 6.13%.

Related: Compare Current Refinance Rates

30-Year Fixed Refinance Interest Rates Drop 0.31%

At 6.41%, the average rate on a 30-year fixed-rate mortgage refinance is down 0.31% from this time last week.

On a 30-year fixed mortgage refi, the APR (annual percentage rate) is 6.43%, lower than last week’s 6.46%. 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.

According to the Forbes Advisor mortgage calculator, borrowers with a 30-year fixed-rate mortgage refi of $100,000 will pay $626 per month in principal and interest (not accounting for taxes and fees) at the current interest rate of 6.41%. You’d pay around $125,984 in total interest over the life of the loan.

20-Year Refi Rates Climb 0.59%

The 20-year fixed mortgage refinance average rate stands at 6.13%, versus 6.1% last week.

The APR, or annual percentage rate, on a 20-year fixed mortgage is 6.17%. It was 6.14% last week.

At the current interest rate, a 20-year, fixed-rate mortgage refinance of $100,000 would cost $724 per month in principal and interest. That doesn’t include taxes and fees. That borrower would pay roughly $74,292 in total interest over the life of the loan.

15-Year Fixed Refinance Rates Drop 1.22%

For a 15-year fixed refinance mortgage, the average interest rate is currently 5.36%. The same time last week, the 15-year fixed-rate mortgage stood at 5.42%.

The APR, or annual percentage rate, on a 15-year fixed mortgage is 5.4%. Last week, it was 5.47%.

Based on the current interest rate, a 15-year, fixed-rate mortgage refinance of $100,000 would cost $809 per month in principal and interest—not including taxes and fees. That would equal about $46,112 in total interest over the life of the loan.

30-Year Jumbo Refinance Interest Rates Drop 1.63%

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) declined week-over-week to 6.71%, versus 6.82% last week.

At today’s interest rate on a 30-year, fixed-rate jumbo mortgage refinance, a borrower would pay $646 per month in principal and interest on a $100,000 loan.

15-Year Jumbo Refinance Rates Drop 2.26%

A 15-year, fixed-rate jumbo mortgage refinance has an average interest rate of 5.76%, down 2.26% from last week.

At today’s rate, a borrower would pay $831 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 $49,802 in total interest.

Are Refinance Rates and Mortgage Rates the Same?

Refinance rates are different from mortgage rates and tend to be slightly higher. The rate difference can vary by program and is something to consider as you compare the best mortgage refinance lenders.

In addition to having different refinance rates for conventional, FHA, VA and jumbo applications, cash-out refinance rates are higher as you’re borrowing from your available equity.

Rates for government-backed loan programs such as FHA and VA mortgage refinances can be lower than a conventional or jumbo refinance, as there is less risk for lenders. Still, you should compare your estimated loan’s annual percentage rate (APR), which includes all additional fees and determines the interest charges.

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.

When Refinancing Makes Sense

There are lots of good reasons to refinance your mortgage, but for most homeowners, it comes down to lowering the interest rate, reducing monthly payments or paying off the loan more quickly. Refinancing can also allow you to tap some of your home’s equity or eliminate private mortgage insurance (PMI).

It’s important to keep in mind that refinancing carries costs, and for that reason makes more sense if you plan to stay in your home for some time. It can be helpful to calculate the “break-even point” for a potential refinance – to see how long it will take for savings from the new mortgage to outweigh closing costs. Try to find out what those fees will be and divide them by the monthly savings from the new mortgage.

Check out our mortgage refinance calculator to help you decide if this is a good time to refinance.

How To Qualify for Today’s Best Refinance Rates

Just like when you took out your original mortgage, it pays to have a strategy for finding the lowest rate when you want to refinance. Here’s what you should be doing to get a good mortgage rate:

• Improve your credit 
• Consider a shorter loan term 
• Lower your debt-to-income ratio 
• Watch mortgage rates

There are no guarantees when it comes to borrowing, but a strong credit score is one of the best things you can do to present yourself to lenders. Banks and other mortgage refinance lenders are more likely to approve you if you don’t have too much debt relative to your income. You should check in on mortgage rates, which fluctuate frequently, on a regular basis. And use calculators like ours to see if you can swing a home loan that’s shorter in duration than the popular 30-year mortgage. These loans usually have lower interest rates.

Mortgage Refinance Rate Trends for 2025

Since the final quarter of 2024, national average mortgage rates have remained in the middle-to-high 6% range, and experts expect this trend to continue through the first half of 2025.

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 in the second half of the year. However, if inflation stays high and unemployment decreases, rates are likely to remain stable.

Since mortgage rates are expected to change little in the first half of the year, those looking to refinance at a lower rate should consider waiting until later in the 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.

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