Question 1

What are refinance rates today in 2026?

Accepted Answer

As of July 2026, refinance rates average 6.75%–7.0% for 30-year fixed, 6.5%–6.75% for 20-year fixed, and 6.0%–6.3% for 15-year fixed. Cash-out refinance rates are typically 0.125%–0.375% higher than rate-and-term refinancing. Your exact rate depends on credit score, loan-to-value ratio, and lender — borrowers with 740+ credit scores and 80% LTV or lower qualify for the best rates.

Question 2

Is it worth refinancing in 2026?

Accepted Answer

Refinancing typically makes sense if you can lower your rate by at least 0.5%–0.75%, plan to stay in the home long enough to recoup closing costs (typically 2–5 years), want to shorten your loan term to save on total interest, or need to access equity for important purposes. If you have a mortgage rate below 6%, refinancing in the current 6.75%–7% environment usually doesn't make financial sense unless you're consolidating high-interest debt via cash-out refinance.

Question 3

What is the difference between rate-and-term and cash-out refinance?

Accepted Answer

Rate-and-term refinance replaces your current mortgage with a new loan at a different rate or term without taking cash out (or taking out less than $2,000). Cash-out refinance lets you borrow more than you owe and take the difference in cash — for example, if you owe $200K and your home is worth $400K, you could refinance for $280K and receive $80K cash. Cash-out rates are 0.125%–0.375% higher and typically cap at 80% LTV, meaning you need 20% equity remaining.

Question 4

How long does it take to break even on a refinance?

Accepted Answer

Break-even time = Total closing costs ÷ Monthly savings. Example: $6,000 closing costs, $150/month savings = 40 months (3.3 years). If you plan to move or pay off the loan before the break-even point, refinancing costs more than it saves. Use the refinance calculator to model your exact scenario. Most refinances break even in 2–5 years depending on rate drop and loan size.

Loan Term	Average Rate	APR	Monthly P&I on $300,000	vs 30-Year
30-year fixed	6.85%	7.00%	$1,973	—
20-year fixed	6.60%	6.75%	$2,277	+$304/mo
15-year fixed	6.10%	6.25%	$2,567	+$594/mo
10-year fixed	5.85%	6.05%	$3,339	+$1,366/mo

Loan Term	Average Cash-Out Rate	APR	Monthly P&I on $300,000
30-year fixed	7.10%	7.28%	$2,012
20-year fixed	6.85%	7.05%	$2,319
15-year fixed	6.35%	6.55%	$2,601

Refinance Rates 2026: Current Mortgage Refinance Rates by Term

Current Refinance Rates by Term (July 2026)

Rate-and-Term Refinance (No Cash Out)

Cash-Out Refinance Rates