Current refi mortgage rates report for Jan. 6, 2026

---

current ref rate data

note that Luck The latest Zillow data available was reviewed as of January 5.

How does mortgage refinancing work?

Mortgage refinancing involves replacing your existing home loan with a new loan. Similar to your initial mortgage application, you will need to apply and meet lender criteria including your credit profile, income verification, debt-to-income (DTI) ratio, and more.

This process usually results in little impact on your credit score due to the hard inquiry, and there is also a risk of denial if you do not meet the lender’s requirements.

What’s happening with mortgage rates in today’s market?

Some observers expected mortgage interest rates to decline after the Federal Reserve cut the federal funds rate late last year. However, mortgage rates for 30-year, fixed-rate loans nationwide remain near the 7% mark.

Although rates dropped slightly to near 6.5% in late February, they still remain well above pandemic-era lows in the range of 2% and 3%. By the third quarter of 2024, 82.8% of homeowners with mortgages will have rates below 6%, Redfin reports. This means that a large portion of homeowners are locked out, unwilling or unable to move or refinance at rates as high as current rates.

Still, homeowners got some relief in late August and early September of 2025, when mortgage rates began moving downwards ahead of the September 16-17 Fed meeting. They fell to the lowest level not seen in nearly a year, and the Fed made a much-anticipated cut in the federal funds rate by a quarter percentage point. The central bank made a second cut of the same amount at its October meeting and a third (by the same amount) in early December.

When it may make sense to refinance your mortgage

Refinancing is not free, so it is important to assess the costs before applying for a refi.

One guideline you’ll often hear is that refinancing makes sense when you can secure a rate that’s a full percentage point lower than your current rate. For example, if you have a 7% loan, refinancing when you’re able to get a 6% rate might be a smart move to save on interest charges over the life of your loan.

You may also consider a cash-out refinance to access your home equity – which typically requires at least 20% equity in your home. Homeowners have significant flexibility to use the cash disbursements from such refi as they wish, as there are generally no restrictions on what you can do with the cash portion of a cash-out refi. For example, you are free to use them to invest those funds, cover the down payment on a vacation home or rental property, or pay off credit card debt.

Refinancing may also allow you to change your loan term. For example, someone who originally took out a 15-year mortgage but finds that his budget is stretched may benefit from switching to a 30-year term for smaller monthly payments.

And, refinancing can be a way to change loan types, such as going from an FHA loan to a conventional loan to get rid of your FHA loan’s lifetime mortgage insurance (MIP) requirement, or going from an adjustable rate mortgage (ARM) to a fixed rate mortgage.

Cost of refinancing your mortgage

Refinancing involves closing costs, which typically range from 2% to 6% of the loan amount. For example, for a $300,000 loan, you might make payments between $6,000 and $18,000. Some common costs include:

• Lender Origination Fee.
• Appraisal fee.
• Title search and insurance fees.
• Loan application fee.
• Survey fee.
• Attorney’s fees (if required in your state).
• Recording fee.
• Prepayment penalty (if applicable to your existing loan).

Different Types of Mortgage Refi Loans

There are a wide variety of mortgage refinance loans out there, and the right loan for your needs will depend on your goals and what type of mortgage you currently have. Here are some common refi options:

• Rate-and-Term Refinancing: This is probably the most popular type of refi. This lets you lower your interest rate and/or change your loan term. Note that if you opt for a shorter term, while this typically gets you a lower rate and substantial lifetime interest savings, you’ll be stuck with higher monthly mortgage payments.
• Cash-out Refinance: A cash-out refi taps your home’s equity by replacing your existing loan balance with a new, larger loan balance and withdrawing the difference in cash. You can use this money for a variety of purposes, including home improvements, consolidating high-interest debt, or other financial goals.
• No-Closing-Cost Refinance: With this type of refi, the lender covers the closing costs in exchange for charging a higher interest rate. If you don’t have the cash to pay closing costs and might otherwise benefit from refinancing, this option may be worth evaluating.
• Streamlined Refinancing: These refis are for existing FHA, VA and USDA loan borrowers, and typically involve less documentation and offer a more simplified application and approval process.

Refinancing with your existing lender vs. a new lender

You are not obligated to refinance with your original lender, and shopping around can help you find the lowest interest rate available to you and perhaps even the best service.

However, your existing lender may offer incentives like waiving closing costs if you stick with them. So you should at least discuss this topic with your current lender.

Also know that if your mortgage is purchased by Fannie Mae or Freddie Mac, you may be eligible for programs like Refi Now and Refi Possible.

Join us at the Fortune Workplace Innovation Summit May 19-20, 2026, in Atlanta. The next era of workplace innovation is here—and the old workbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will gather to explore how AI, humanity and strategy unite to redefine the future of work. register now.