The latest statistics reveal that the average refinance mortgage rate for a 30-year fixed-rate home loan is currently 6.24%, based on data collected by Zillow as of January 5, 2026. Homeowners considering refinancing should be aware of the prevailing rates for various mortgage types and terms.
Current Refinance Mortgage Rates for January 6, 2026
Despite hopes for lower mortgage rates following previous reductions in the federal funds rate, rates have remained stubbornly high. The average rate for a 30-year fixed mortgage has hovered close to 7% across the nation. Although rates showed a slight decrease towards the end of February 2026, they are still significantly higher than the historic lows seen during the pandemic.
Mortgage Rate Trends
As of the third quarter of 2024, a significant 82.8% of homeowners with mortgages were locked into rates below 6%. This has contributed to a reluctance among many to refinance, given the current higher rates.
- End of 2025: Rates began to trend downward, especially before the Federal Reserve’s meetings in mid-September.
- December 2025: The Federal Reserve implemented a series of interest rate cuts, with increments of 0.25% that year.
Understanding Mortgage Refinancing
Mortgage refinancing involves replacing an existing mortgage with a new one. Homeowners must go through an application process that typically includes credit checks and income verification. Be advised that this procedure might negatively impact your credit score due to a hard inquiry.
When to Consider Refinancing
Deciding to refinance involves weighing the costs and potential benefits. Generally, refinancing is advisable if homeowners can secure a lower rate by at least one percentage point. For instance, refinancing from a 7% loan to 6% can lead to substantial savings over time.
- Cash-out refinancing: This option allows homeowners to tap into their home equity by taking out a larger loan and receiving the difference in cash.
- Changing loan terms: Homeowners can shift from a shorter-term mortgage to a longer one for lower monthly payments.
- Switching loan types: Refinancing can enable a change from an FHA loan to a conventional mortgage, eliminating certain fees.
Cost Breakdown of Refinancing
Homeowners should be prepared for various closing costs associated with refinancing, which typically range from 2% to 6% of the loan amount. For example, on a $300,000 loan, closing costs could amount to anywhere between $6,000 and $18,000.
| Common Costs |
|---|
| Lender origination fees |
| Appraisal fees |
| Title search and insurance fees |
| Loan application fees |
| Survey fees |
| Attorney fees (if applicable) |
| Recording fees |
| Prepayment penalties (if applicable) |
Types of Mortgage Refinance Loans
There are several refinancing options available, including:
- Rate-and-term refinance: This most common option allows for lowering interest rates and changing loan terms.
- Cash-out refinance: Utilizes home equity by replacing an existing loan with a larger one.
- No-closing-cost refinance: The lender covers the closing costs in exchange for a higher interest rate.
- Streamline refinance: Designed for existing FHA, VA, and USDA loan holders, featuring a more straightforward application process.
Your Lender Options
Homeowners are not limited to refinancing with their current lender. It is advisable to shop around to find the best rates and terms. However, current lenders may provide incentives, such as waiving closing costs for loyalty.
In conclusion, as of January 6, 2026, homeowners seeking to refinance should consider the current rates and evaluate their individual circumstances. Thorough research and understanding costs can lead to beneficial refinancing decisions.
