Mortgage Refinance Rates Dip to 6.69% for 30-Year Fixed Loans in Mid-2025

According to the latest report on current refinance mortgage rates for August 11, 2025, the average refinance rate for a 30-year fixed-rate conventional mortgage stands at 6.69% [1]. Other conventional loan options show a 6.65% rate for a 20-year term, 5.76% for a 15-year term, and 5.48% for a 10-year term. Jumbo mortgages remain higher, with a 7.47% rate for 30-year loans and 6.71% for 15-year loans. FHA loans offer slightly lower rates, with 6.33% for 30-year and 5.63% for 15-year terms. VA loans are also competitive, at 6.27% for 30-year and 5.55% for 15-year terms [1].

These figures were reviewed by Fortune using data from Zillow, which is based on the most recent data available as of August 8, 2025 [1]. Mortgage refinancing involves replacing an existing loan with a new one and requires meeting lender criteria such as credit score, income documentation, and debt-to-income ratios. A small credit score drop is typical due to the hard inquiry, and refinancing may be denied if the borrower fails to meet lender standards.

Despite expectations that mortgage rates would decline alongside the Federal Reserve’s cuts to the federal funds rate, they have remained near 7% for months, though they have recently dipped closer to 6.5% [1]. These rates remain significantly higher than the pandemic-era lows, which saw rates as low as 2% or 3%. A Redfin report from the third quarter of 2024 indicated that 82.8% of homeowners had mortgage rates below 6%, suggesting many remain locked into favorable terms and are hesitant to refinance in the current market [1].

Refinancing can be a viable option under several circumstances. One common scenario is when a borrower can secure a rate at least 1 percentage point lower than their current rate, making the upfront costs worth the long-term savings. For example, a borrower with a 7% rate might find refinancing to a 6% rate beneficial [1]. Additionally, homeowners with at least 20% equity may consider a cash-out refinance to access funds for home improvements or debt consolidation. Refinancing can also be useful for adjusting loan terms—such as switching from a 15-year to a 30-year mortgage—to better align with a borrower’s budget or goals [1].

Closing costs for refinancing typically range between 2% and 6% of the loan amount, and can include lender fees, appraisal costs, title insurance, and others. These costs should be carefully considered before proceeding with a refinance [1]. Borrowers have several refinance options, including rate-and-term refinancing to reduce interest rates or change the loan term, cash-out refinancing to access equity, no-closing-cost refinancing in exchange for higher rates, and streamlined refinancing for existing FHA, VA, or USDA loan holders [1].

While refinancing with a current lender can offer convenience and potential incentives, such as reduced closing costs, borrowers are not limited to their original lender and are encouraged to shop around for the best terms. Some lenders may offer programs like Refi Now and Refi Possible for borrowers with mortgages held by certain servicers [1].

Source: [1] Current refi mortgage rates report for Aug. 11, 2025 (https://fortune.com/article/current-refi-mortgage-rates-08-11-2025/)