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If you’re a homeowner who’s given up on the possibility of refinancing into a lower rate, it’s easy to understand why. After plummeting to record lows at the start of the decade, mortgage interest rates gradually – then sharply – increased in the years that followed. At one point in 2023, mortgage interest rates were at their highest level since 2000. This left homebuyers with no choice but to buy at a high rate and hope to refinance it at a later point. And it left existing homeowners with no choice but to sit still.
However, the mortgage interest rate climate markedly improved in 2025. Mortgage interest rates for buyers declined by more than a full point over 12 months, and that, in turn, has opened up new windows of opportunity both for purchasers and owners who have been waiting for a new, better rate. While rates here are still significantly higher than the anomalies offered in 2020 and 2021, owners who bought homes in 2023, 2024 and even 2025 may be able to realize significant relief by refinancing now. And that’s true whether you’re simply looking to secure a rate a half a percentage point lower than your current one or, as many suggest, a rate at least a full percentage point lower.
To better determine the value of refinancing now, though, at the start of 2026, it helps to first know what a “good” mortgage refinance interest rate is actually considered to be. Below, we’ll break down today’s rates and detail how you may be able to secure a below-average mortgage refi rate in today’s still-developing rate environment.
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What’s a good mortgage refinance interest rate in 2026?
The average mortgage refinance interest rate on a 30-year term is currently 6.48% and it’s 5.48% for a 15-year alternative, according to Zillow. So, if you can find a rate around or below those averages right now, you can consider it to be a good one, even if it’s higher than what was available to owners a few years ago. But how do you, exactly, find a mortgage refinance rate now that’s lower than these averages? Fortunately, the same tried-and-true advice applies.
Shopping around for mortgage interest rates is always one of the better ways to secure a lower mortgage rate, but what most existing owners don’t realize is that this is applicable for refinancing, too. You don’t automatically need to use your current mortgage lender, nor should you if a competitor is offering a lower refinance rate. But that doesn’t mean that you should fully circumvent your existing lender, either. Instead, secure quotes from competitors and then go back to your current lender to see if they can beat those deals or reduce costs elsewhere that make staying with them cost-effective.
You also may be able to purchase “mortgage points,” which allow you to secure a lower interest rate in exchange for a fee to the lender. This fee can be incorporated into your new loan or paid upfront during closing on the refi, but it can be worth it for those owners who need their rate offer to be just a little bit lower to justify taking action now. And, as noted above, refinance rates are considerably better for 15-year terms instead of 30-year ones. So if you can make the math work, you may have more options to choose from with that shorter term than you would by refinancing into another 30-year loan instead.
Compare mortgage rates and lenders online to learn more.
The bottom line
A “good” mortgage refinance interest rate isn’t what it was considered to be in 2020 through 2022, but it’s not as high as it was in recent years, either. And with options here ranging from 6.48% to as low as 5.48% (or lower), there may now be cost-effective rates that can justify refinancing activity for owners. Take the time, then, to shop around to compare your options. With a little research, you may be able to find a low refinance rate now and start saving significant sums of money on your monthly mortgage payments.