30-Year Mortgage Refinance Rates

For borrowers considering a refinance, getting a good mortgage rate is vital. Refinancing your mortgage isn't cheap, but getting a low rate can help you recoup your closing costs, in addition to freeing up space in your monthly budget for other financial goals.

The exact rates available to you will depend on your individual financial situation as well as what the mortgage lenders you apply with can offer you. To ensure you're getting a good deal, check out today's 30-year refinance rates.

30-year refinance rates

In April, 30-year refinance rates averaged around 6.74%, according to Zillow data. This is 25 basis points higher than the previous month's average and just three basis points above March's average 30-year mortgage rate for purchase mortgages.

Rates have been elevated recently as the economic outlook has become less certain. Most forecasts expect mortgage rates to go down this year, but how much they fall depends on how the economy evolves in response to tariffs. If tariffs push up inflation, rates might not drop as much — or at all — this year. So we'll need to wait and see to find out if 2025 will be a good year to refinance or not.

See how today's 30-year refinance rates compare with other types of refinance loans.

Why refinance with a 30-year mortgage?

Lower monthly payments

Borrowers may refinance into a 30-year mortgage even if they have less time left on their current mortgage in order to lower their monthly payments. By stretching out the term length, you give yourself more time to pay off the loan. This typically results in a smaller monthly mortgage payment. 

But beware that this will also add a lot to your overall interest costs. It might be the right move if you're struggling to afford your mortgage payments, but if you can handle your current payment, you should consider waiting to refinance until mortgage rates drop so you can lower your payment that way. 

Cash-out option

You can also use a refinance to access your home equity. To do this, you'll get a cash-out refinance.

The cash you get at closing from one of these refinances can be used for whatever you want, though people commonly use it to fund home projects or repairs or to pay off other debt. 

To get a 30-year cash-out refinance, you'll first want to make sure you have enough equity. Lenders will typically let you borrow up to 80% of your home's value, so you'll need a substantial amount of equity already in your home. 

Interest rate stability

The benefit of a fixed-rate mortgage over an adjustable-rate mortgage is that you can be confident that your monthly payment won't fluctuate as rates do. With a fixed-rate mortgage, your rate will remain the same throughout the life of the loan.

However, other costs that make up your mortgage payment, including your property taxes and homeowners insurance, can change. If these costs go up, your monthly payment can increase, too.

Average 30-year refinance rates vs. 15-year refinance rates

The longer your term, the higher your mortgage refinance rate will be.

In April, the average 30-year fixed refinance rate was 64 basis points higher than the average 15-year fixed rate, according to Zillow data. This means that over the life of the loan, 30-year mortgage borrowers could end up spending hundreds of thousands more in interest than 15-year mortgage borrowers.

However, the benefit of a 30-year mortgage is that it comes with lower monthly payments. A borrower with a 30-year mortgage may spend more in interest, but they'll also have a monthly mortgage payment that's hundreds of dollars cheaper than a comparable 15-year mortgage borrower.

Mortgage calculator

Use Business Insider's simple mortgage calculator to see how a lower rate could impact your monthly payment if you refinance.

Pros and cons: 30-year fixed-rate refinance

Pros

• Lower monthly payments. If you have less than 30 years left on your current mortgage, you could potentially lower your monthly mortgage payment by a significant amount when you refinance into a 30-year term.
• Predictable payments. Unlike adjustable-rate mortgages, fixed-rate mortgages keep your rate the same for the entire life of the loan, meaning your monthly payment won't change (other than adjustments for taxes or insurance).
• Flexibility. If you want a shorter term, like a 15-year mortgage refinance, but aren't sure you can handle a higher monthly payment, you can always get a 30-year refinance and treat it like a shorter-term mortgage. This way you can pay more toward your principal when you have extra cash, but you'll still have a lower payment just in case you need to use that money elsewhere. 

"Almost all 30-years can be paid off early, and any additional payments you make over your monthly obligation can be directed toward principal only," says Shawn O'Regan, a real estate broker and owner of Vee Real Estate Brokers in Raleigh, North Carolina. "So you can quickly reduce your loan balance and interest, since interest is calculated monthly based on the remaining balance."

Cons

• Higher rates. Longer mortgage terms come with higher interest rates than shorter terms.
• Pay more in interest. The longer it takes you to pay off your mortgage, the more you'll pay in interest. If you're refinancing from a shorter term into a 30-year mortgage, you'll probably be significantly increasing the amount you'll pay over the life of the loan.

Factors affecting your 30-year refinance rate

Credit score

Your credit score will have a big impact on the rate you get, so it's important to make sure yours is in good shape if you're planning to refinance.

If you have room to improve your credit, doing things like paying down debt can help boost your score and get you a better rate.

Home equity

Just as your down payment was so important when you initially bought your home, the amount of equity you have in it will make a difference when it comes to the refinance rates available to you. 

The more equity you have, the lower your rate will likely be. This is because borrowers with more equity tend to be less at risk of defaulting on their mortgage compared to borrowers with little equity.

Market conditions

The biggest force affecting mortgage rates is out of your control. Rates fluctuate every day based on larger economic trends. For example, mortgage rates hit historic lows during the COVID-19 pandemic when the Federal Reserve cut the federal funds rate to near zero. But they've risen dramatically over the last couple of years in response to high inflation. 

How to find the best 30-year refinance rates

Compare multiple lenders

You don't necessarily need to work with your current lender when you refinance. The best thing you can do to ensure you get a low refinance rate is to get approved with at least two or three mortgage lenders to compare offers. 

Get pre-qualified or preapproved

Before you officially start the refinancing process, you may want to check out rates with a few different lenders or even get preapproved just to get an idea of what rates are available to you. Some lenders may even let you do this with a soft credit check, meaning it won't impact your credit score. 

Consider closing costs

When comparing lenders, remember that the rate isn't the only thing that you should be looking at. Some lenders may offer low rates but charge more in closing costs to make up for it. Be sure to look at all your potential costs when considering a mortgage refinance lender. 

Is it a good time to refinance into a 30-year fixed-rate mortgage?

Whether it's a good time to refinance depends on your current rate and whether it's higher or lower than today's average rates. 

For most borrowers, now probably isn't a good time to refinance. Many homeowners already have mortgage rates that are significantly lower than current rates, so refinancing likely wouldn't save them any money. If rates go down later this year, more borrowers may be able to benefit by refinancing.

Should I get a 30-year fixed-rate refinance?

If you're considering a refinance, it's important to think about your goals.

Typically, homeowners refinance when they want to decrease their monthly payments, lower their interest rates, or take cash out of their homes. But doing so is only worth it if the benefits outweigh the costs.

Because you'll pay closing costs, it can cost a couple thousand dollars or more to refinance. If you plan to move soon or you can't get a lower rate, you might not be able to recoup the cost of refinancing.

30-year refinance rates FAQs