What are Current Refinance Rates?

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The current refinance rates are very similar to the current mortgage rates. Whenever you refinance your home you are actually just exchanging your old loan for a new one, and a variety of factors can come into play to affect your new monthly rates.

Individual Factors

Individual factors in refinance rates can include your credit score, how much equity you have in the home, and how much cash reserve you have. Your credit score may have improved since you took out the original mortgage loan and this could help you to get a better refinance rate. It is important that you get a copy of the current refinance rates from the lender that you are thinking of refinancing with. This may not necessarily be the same lender you are currently with as refinancing can also give you the opportunity to switch lenders. Current refinance rates will reflect the current interest rates on the type of loan you have, or that you are thinking of getting.

The amount of equity in the home can largely affect whether or not refinancing is a good idea in the first place, but it can also affect your interest rate as well. If you have been paying on your mortgage loan for more than ten years, your monthly payment goes more towards the principal than the interest rate. Even though it may seem like you’d be saving money with the refinance, in actuality you have started paying more interest within the monthly amount just as you did when you originally took out the loan.

Cash reserve factors in because there will be closing costs with the refinance just as there was with the original purchase. Having a cash reserve to pay the closing costs instead of rolling them in with the new loan can help affect your current refinance rate, and lower your monthly payments.

Cash out Refinance

Cash out refinance is a good option for anyone who is looking to lower their interest rate and access the equity that has built in their home over time. Cash out refinance works when the new loan amount is higher than the amount still owed on the original loan, or the balance, and a check covering the difference is given to the homeowner. There are still closing costs involved, but this kind of refinance can help people to make home repairs, make investments, or to consolidate their debt into a single loan in addition to saving them money with current refinance rates.


Current refinance rates are at an all time low, and they don’t seem to be going up. The same can be said of the current mortgage rates. A lot of this has to do with the state of the economy. It is a good time to buy, but not necessarily a good time to sell, and so refinancing can be the best option for many people who are struggling, or who need to access the equity that has built up in their home.

By Rachel West

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