If you’re thinking about refinancing your mortgage, understanding current refinance rates is a smart first step. Rates can shift daily based on economic trends, lender policies, and borrower profiles, so staying updated helps you make a well-timed move. 

Whether you’re looking to lower your monthly payment, shorten your loan term, or tap into your home equity, today’s rates play a major role in determining your potential savings. Keep reading to see what influences refinance rates and how they stack up against rates for new home purchases.

KEY TAKEAWAYS

  • Mortgage refinance rates are influenced by factors like credit score, loan type, debt-to-income ratio, and broader economic conditions.
  • Refinance rates can be similar to or slightly higher than purchase mortgage rates, depending on risk and loan structure.
  • There are multiple types of refinance loans, including conventional, DSCR, bank statement, asset-based, VA, and SOFR ARM, and each is suited to different borrower needs.
  • Timing your refinance based on market trends and personal financial goals can help maximize savings and long-term benefits.

What Affects Mortgage Refinance Rates?

Several key factors impact the mortgage refinance rates lenders offer:

  • Credit Score: Borrowers with higher credit scores typically qualify for lower refinance rates. Lenders view them as less risky.
  • Loan-to-Value Ratio (LTV):  If you have significant equity in your home, you’re more likely to get favorable refinance terms.
  • Debt-to-Income Ratio (DTI): A lower DTI suggests better financial health, making lenders more comfortable offering lower rates.
  • Loan Term: Shorter-term loans often come with lower rates, though they may have higher monthly payments.
  • Type of Refinance Loan: Cash-out refinances tend to have higher rates than rate-and-term refinances.
  • Property Type and Use: Primary residences typically receive better rates than second homes or investment properties.
  • Economic Conditions:  Inflation, Federal Reserve policy, and general market conditions can all influence rate trends.

When comparing refinance rates to rates for buying a new home, you’ll often find that they’re quite similar but not always identical. In some cases, refinance rates may be slightly higher due to added risk for the lender or different pricing structures. Both are influenced by the same factors that affect mortgage rates, such as borrower creditworthiness and market conditions.

Today’s Refinance Rates

Refinancing rates can change daily, influenced by shifts in the economy, market demand, and borrower qualifications. Understanding today’s refinance rates helps homeowners make informed decisions about timing, savings, and long-term financial goals. 

As you compare loan options, it’s important to factor in both current mortgage rates and any applicable mortgage refinance limits based on location or loan type. Whether you’re aiming to lower your payment, shorten your term, or access cash from your equity, staying up to date on rates is key. Below, explore refinance rate trends by loan type to find the option that best fits your situation.

Conventional Loans

Conventional loans are one of the most common types of mortgage loans and are not backed by a government agency. They typically require higher credit scores and lower debt-to-income ratios but often offer lower interest rates for qualified borrowers. Refinancing into a conventional loan can help you reduce your interest rate, adjust your loan term, or eliminate mortgage insurance if you’ve built enough equity. 

These loans are available for primary residences, second homes, and investment properties, giving borrowers flexibility in how they use their funds. Many homeowners use conventional refinances to switch from an FHA or VA loan once they qualify. Explore today’s refinance rates to see if a conventional loan aligns with your goals.

DSCR Loans

Debt service coverage ratio (DSCR) loans are aimed at real-estate investors whose income is evaluated by rental cash flow rather than personal income. Instead of traditional employment verification, lenders assess whether the rental income from the property covers the loan payments—this is the DSCR metric. If the property’s cash flow is strong enough, you may qualify without tax returns or pay stubs, making this ideal for portfolio investors. 

DSCR refinances are useful for expanding your real estate holdings or improving cash flow with better terms. These loans are available for short-term and long-term rentals, including Airbnb properties. Check current refinance rates for DSCR loans to determine if this investor-friendly option is right for you.

Bank Statement Loans

Bank statement loans are perfect for self-employed borrowers, freelancers, or independent contractors who have strong cash flow but don’t meet traditional income documentation requirements. Instead of relying on W-2s or tax returns, lenders review 12–24 months of business or personal bank statements to verify income. This makes it easier for non-traditional earners to refinance at competitive rates. 

Bank statement refinance loans can be used to lower monthly payments, consolidate debt, or free up cash for business investments. These loans can also be structured for primary residences, second homes, or investment properties. If you fall outside the box of standard underwriting, compare today’s refinance rates for bank statement loans to see what’s possible.

Purchase
Refinance
3 YR ARM BANK STMT
5 YR ARM BANK STMT
7 YR ARM BANK STMT
30 YR Fixed BANK STMT
3 YR ARM BANK STMT
5 YR ARM BANK STMT
7 YR ARM BANK STMT
30 YR Fixed BANK STMT

Asset-Based Loans

Asset-based loans allow you to qualify for a mortgage based on the value of your liquid assets rather than income. Lenders calculate how long your assets can cover your mortgage payments, taxes, and insurance, creating an alternative pathway to approval for retirees, investors, or high-net-worth individuals. These loans are often used for refinancing luxury properties, second homes, or even to consolidate debt while preserving liquidity. 

Asset-based refinance options offer flexibility without forcing you to draw down on your investments. They are also helpful for borrowers with significant net worth but minimal monthly income. Review current refinance rates for asset-based loans to find out if leveraging your portfolio could unlock better terms.

VA Loans

VA loans are available exclusively to eligible veterans, active-duty service members, and certain surviving spouses, offering major benefits like no down payment and no private mortgage insurance (PMI). VA refinance options include the Interest Rate Reduction Refinance Loan (IRRRL), which allows you to quickly lower your interest rate with limited paperwork. Cash-out VA refinances are also available for borrowers who want to access their home equity. 

These loans often come with lower rates and more favorable terms than conventional options. With no appraisal or income verification required in some cases, VA refinancing is one of the most streamlined and affordable ways to lower your payment or access cash. Check today’s VA refinance rates and take full advantage of your earned benefits.

SOFR Adjustable-Rate Mortgage

A SOFR adjustable-rate mortgage is a type of variable-rate loan that’s indexed to the Secured Overnight Financing Rate (SOFR), which has replaced LIBOR in most lending scenarios. These loans typically start with a lower introductory rate for a fixed period—often 5, 7, or 10 years—before adjusting annually based on the SOFR index. Explore today’s refinance rates for SOFR ARMs if you’re comfortable with some future rate variability in exchange for upfront savings.

Lock In Your Refi Rate Today

Alt text: Two people working on a laptop in front of a calculator, clipboard, and model home. 

Ready to take the next step toward financial flexibility? Locking in your refinance rate today could help you lower monthly payments, shorten your loan term, or access equity when you need it most. At Griffin Funding, we offer a wide range of mortgage refinance solutions tailored to fit your unique financial goals—whether you’re self-employed, an investor, or a veteran. 

Our team makes the process simple and transparent from start to finish. Using the Griffin Gold app, you can track your loan progress, upload documents securely, and stay connected with your loan officer in real time. Don’t miss your opportunity to refinance while rates are favorable. Get started online today and see how much you can save with Griffin Funding.

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Frequently Asked Questions

How do I get the best refinance rate?

To get the best refinance rate, start by improving your credit score, reducing your debt-to-income ratio, and building equity in your home. Shopping around with multiple lenders can also help you find the most competitive offer. Locking in your rate when market conditions are favorable can make a big difference. Using tools like Griffin Funding’s prequalification process or the Griffin Gold app can streamline your search.

Are home refinance rates going to drop?

Refinance rates are influenced by many factors, including inflation, Federal Reserve policy, and economic conditions. While it’s difficult to predict exact movements, rates may drop if inflation eases or the Fed lowers interest rates. However, waiting for the "perfect" rate can be risky—sometimes locking in a competitive rate now is the better long-term move. Keep an eye on market trends and talk with a loan advisor to make an informed decision.

When is the right time to refinance your mortgage?

The right time to refinance depends on your financial goals. If current rates are significantly lower than your original rate, or if you want to shorten your loan term or access home equity, it may be a good time. It’s also worth considering a refinance if your credit has improved or if you want to remove mortgage insurance. Use a refinance calculator to weigh potential savings against costs.

How much does it cost to refinance?

Refinancing typically costs between 2% and 5% of your loan amount, which includes lender fees, appraisal costs, title insurance, and other closing costs. Some lenders offer no-closing-cost refinances by rolling fees into the loan balance or interest rate. Be sure to compare loan estimates to understand what you'll pay upfront versus over time. Knowing your break-even point can help you decide if the refinance is worth it.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 11 years in business.