Mortgage Refinance Rates Hold Steady at 6.62% for 30-Year Loans

As of Aug. 26, 2025, the current average refinance rate for a 30-year, fixed-rate home loan stands at 6.62%, according to Zillow, a leading real estate marketplace [1]. This figure reflects the latest data available as of Aug. 25, 2025. The refinance rates vary by loan type and term, with conventional mortgages offering a 30-year rate of 6.62%, a 20-year rate of 6.43%, a 15-year rate of 5.70%, and a 10-year rate of 5.79%. Jumbo mortgages show a slightly higher trend, with a 30-year rate of 7.17% and a 15-year rate of 6.62%. FHA loans and VA loans also differ, with FHA 30-year and 15-year rates at 6.22% and 5.71%, respectively, while VA loans offer 30-year and 15-year rates of 6.14% and 5.47% [1].

Mortgage refinancing remains a strategic option for homeowners seeking to lower their interest rates or access home equity. The process involves replacing an existing mortgage with a new one and requires meeting lender criteria such as credit score, income verification, and debt-to-income ratio. Refinancing may temporarily impact a borrower’s credit score due to a hard inquiry and carries the risk of denial if requirements are not met [1].

The broader market context shows that mortgage rates have remained near the 7% threshold for 30-year, fixed-rate loans, despite the Federal Reserve’s cuts to the federal funds rate late in the previous year. Although a slight dip occurred toward the end of February 2025, bringing rates closer to 6.5%, they remain elevated compared to the 2%-3% range seen during the pandemic [1]. According to a Redfin report, 82.8% of homeowners with mortgages in the third quarter of 2024 had rates below 6%, meaning a large portion of homeowners are either unwilling or unable to refinance or move due to current conditions [1].

Refinancing is generally considered beneficial if a homeowner can secure a rate at least 1 percentage point lower than their existing rate. For example, a borrower with a 7% loan could see meaningful savings by refinancing to a 6% loan. A cash-out refinance allows homeowners to tap into home equity, provided they have at least 20% equity in their property. This option provides flexibility, as the funds can be used for various purposes, including investments, down payments on secondary properties, or debt repayment [1].

Additionally, refinancing can help adjust loan terms or types. For instance, homeowners with a 15-year mortgage who face budget constraints may benefit from switching to a 30-year term for lower monthly payments. Those with FHA loans might consider switching to conventional loans to eliminate the requirement for lifetime mortgage insurance, or those with adjustable-rate mortgages might transition to fixed-rate loans for more predictable monthly costs [1].

However, refinancing comes with costs typically ranging from 2% to 6% of the loan amount. For a $300,000 loan, this could translate to $6,000 to $18,000 in closing costs. Common expenses include lender origination fees, appraisal fees, title and insurance fees, and various administrative charges [1].

Homeowners have several refinance options to consider, including rate-and-term refinancing to adjust the interest rate or loan term, cash-out refinancing to access home equity, no-closing-cost refinancing, which compensates for closing costs by offering a higher interest rate, and streamline refinancing, which simplifies the process for existing FHA, VA, and USDA loan holders [1].

While refinancing with the original lender is an option, it may also be beneficial to explore new lenders to find the most competitive interest rates and favorable terms. Existing lenders may offer incentives, such as waiving closing costs, to retain customers. Borrowers with mortgages held by certain entities might also be eligible for specialized programs like Refi Now and Refi Possible [1].

Source: [1] Current refi mortgage rates report for Aug. 26, 2025 (https://fortune.com/article/current-refi-mortgage-rates-08-26-2025/)