To find the lowest refinance rates, we analyzed data on every refinance loan from the biggest lenders in 2020 (the most recent data available).1
The companies with the best 30-year refi rates on average are shown below.
Just remember, rates are different for each borrower. So you’ll have to compare a few different lenders to find your best deal. Your lowest refinance rate may or may not come from one of the companies listed here.
Lenders With The Best Refinance Rates
Using data from 2020 — the most recent numbers available — the 10 lenders with the lowest refinance rates on average are:
- Freedom Mortgage
- American Financial Network
- Better Mortgage
- Navy Federal Credit Union*
- Veterans United*
- Quicken Loans
- Bank of America
A note on current refinance rates
To find the lenders with the best refinance rates, we looked at loan-level data filed in 2020.
Keep in mind that mortgage interest rates hit record lows in 2020 and early 2021. Today’s mortgage refinance rates may be higher, as most experts expect rates to continue rising in 2022 and beyond.
The rates you’re quoted today are likely to be different than what you see below.
Still, these average rates provide a helpful way to compare lenders side by side so you know where to start looking.
The lowest refinance rates, ranked
Among the 40 biggest mortgage lenders in 2022, these 25 had the best mortgage refinance rates on average:
|Lender||Average 30-Yr Refinance Rate|
|American Financial Network||2.98%|
|Navy Federal Credit Union*||3.01%|
|Bank of America||3.06%|
|New American Funding||3.12%|
|Primary Residential Mortgage||3.14%|
|Caliber Home Loans||3.15%|
|Guild Mortgage Co.||3.15%|
|Sierra Pacific Mortgage||3.17%|
|Finance of America||3.18%|
|Paramount Residential Mortgage Group||3.18%|
|Bay Equity LLC||3.18%|
|Prosperity Home Mortgage||3.19%|
*These lenders predominantly issue VA loans, which come with lower rates than other loan types. This skews their rates lower. Additionally, they may only serve eligible veterans, service members, and military-affiliated persons.
As this table indicates, refinance rates vary a lot from lender to lender. But they also vary by borrower.
For example, Freedom Mortgage has the lowest refinance rates of any lender in our study — at least on average. But its rates for individual borrowers ranged from just 1.75% to over 5%. So some homeowners got much lower refi rates than others.
In addition, rates change constantly based on how busy a lender is and what type of borrower it prefers. For instance, some might only want high-credit homeowners while others might be more lenient.
The point is, you have to find a lender offering low rates for your situation, at the time you’re looking.
Prepare to fill out refinance applications with at least 3-5 lenders and compare the loans you‘re offered to find the very best deal.
Refinance closing costs
Don’t forget: Opting for a lender with the lowest refinance rate doesn’t mean it will be least expensive overall.
You also have to factor in lender fees and closing costs, which typically cost around 2-5% of your new loan amount.
Refinance closing costs include the lender’s own fees as well as a new home appraisal and other third-party fees, just like when you bought your home. For example, you’ll pay:
- Mortgage origination fee
- Underwriting fee
- Credit reporting fee
- Discount points to lower your rate (optional)
- Home appraisal (you can skip this with a Streamline Refinance)
- Title and escrow fees
- Prepaid taxes and homeowners insurance
- Mortgage insurance or guarantee fee (if applicable)
Fortunately, closing costs can often be rolled into your loan when you refinance.
If the lender agrees, they can add the amount to your principal borrowed or increase the interest rate charged to offset closing costs.
Who has the lowest refinance fees?
The table below shows how much each lender charged in total refinance closing costs in 2020, as a percentage of their average loan amount.
It also shows how much each lender would likely charge on a $250,000 refinance loan, to give you a better benchmark for comparison.
|Lender||Median Refinance Loan Costs, 2020 (as % of Average Loan Size)||Example: Upfront Cost for a $250,000 Refinance Loan|
|Bank of America||0.97%||$2,423|
|Finance of America||1.01%||$2,527|
|Sierra Pacific Mortgage||1.03%||$2,581|
|Prosperity Home Mortgage||1.03%||$2,582|
|Navy Federal Credit Union||1.08%||$2,702|
|Bay Equity LLC||1.12%||$2,795|
|Caliber Home Loans||1.13%||$2,823|
*Only available to eligible veterans, service members, and military-affiliated persons
How much should you care about closing costs? That depends.
If you’re planning to keep the loan for decades, you likely want the lowest interest rate possible. This will save you more money over the life of the loan, and slightly higher closing costs might not matter as much.
But if you’re only going to keep the new mortgage a few years before moving or refinancing again, then lower closing costs might be more important. In that case, a few thousand dollars of extra upfront fees can really eat into your savings.
Your loan officer can help you crunch the numbers. Or, you can use a refinance calculator to model your potential refi savings versus closing costs.
Finding your best refinance rate
Be aware that the actual interest rate and fees you pay will vary. And the lenders we ranked may not necessarily offer you the best rate for your needs.
The lowest refinance rate you can get will depend on:
- Your credit score and credit report
- Your home’s value
- How much home equity you have
- Your income and employment
- Your existing loan-to-value ratio (LTV)
- Your debt-to-income ratio (DTI)
Typically, the lowest refinance rates go to borrowers with good credit, plenty of home equity, and low debt levels.
Keep in mind that the lender advertising the lowest rates won’t necessarily be your least expensive option. First off, rates are personal. And second off, it may have higher closing costs to offset those low rates.
Mortgage refinancing strategies
If all you want is a lower interest rate and monthly mortgage payment, then the choice is simple.
But if your refinance goals are more complex, you might have to be more careful when selecting a lender.
For instance, say your current loan is an FHA loan. You may want to refinance into a conventional loan to remove mortgage insurance premiums — but you have to find a new lender that will approve you for conventional financing.
If you want to take cash-out when you refinance, you’ll notice that cash-out refinance rates are a little higher than standard rates. In this case, you want to be extra careful to find a lower mortgage rate and maximize your savings.
There are other reasons to refinance, too.
- You might switch from an adjustable-rate mortgage to a safer, fixed-rate mortgage
- You might switch from a 30-year mortgage to a shorter-term loan to pay off your current home faster
Whatever your reason for refinancing, find a lender that can help you understand your loan options and meet your goals as well as offering a low rate.
The right choice depends on your financial situation and your refinance options.
Today’s mortgage rates and refinance rates
Whether you’re a first-time home buyer or a homeowner refinancing their existing loan, mortgage interest rates affect the size of your monthly mortgage payment and the cost of borrowing.
Your loan type is important, too.For instance, 15-year mortgages have lower rates than 30-year mortgages. VA loans have lower rates than FHA loans. And adjustable-rate mortgages typically have lower rates than fixed-rate mortgages — but only at the outset.
So consider all your options carefully before deciding on a refinance loan. You might see bigger savings with a different loan type than the one you currently have.
Current mortgage refinance rates*
|Conventional 30-year fixed rate||4.625% (4.655% APR)|
|Conventional 15-year fixed rate||3.75% (3.81% APR)|
|FHA loan 30-year fixed rate||5% (5.4% APR)|
|FHA loan 15-year fixed rate||4% (4.253% APR)|
|VA loan 30-year fixed rate||4.5% (4.695% APR)|
|VA loan 15-year fixed rate||4.625% (4.968% APR)|