Rate-and-Term Refi — Today's Rates
6.880%Current avg · Updated 2026-04-28
What is a Rate-and-Term Refi?
A rate-and-term refinance replaces your existing mortgage with a new one that has a better interest rate, shorter term, or both. No cash is taken out. This is the most common type of refinancing and is ideal when rates drop, allowing you to save on monthly payments or pay off your home faster without increasing your loan balance.
Pros
- Lower interest rate
- Reduce loan term
- No cash taken out
- Potentially remove PMI
Cons
- Closing costs required
- Break-even period applies
- Must qualify for new loan
Quick Facts
Current Rate
6.880%
Min. Credit Score
620
Equity Requirement
N/A (equity-based)
Best For
Homeowners who want to lower their rate or switch from ARM to fixed
Top Lenders for Rate-and-Term Refi
| Lender | Rate-and-Term Refi Rate | APR | Action |
|---|---|---|---|
| 🏘PennyMac | 6.255% | 6.405% | Apply |
| 🏦AmeriSave | 6.280% | 6.430% | Apply |
| ✨Better Mortgage | 6.305% | 6.455% | Apply |
| 💎SoFi | 6.305% | 6.455% | Apply |
| 🗽Freedom Mortgage | 6.305% | 6.455% | Apply |