Who has the best refinance rates? 2023 Lender rankings

August 16, 2022 - 15 min read

Who has the best refinance rates?

To find the best refinance rates, we analyzed data on every loan from the 50 biggest refi lenders in 2021 (the most recent data available).1,2 The companies with the lowest 30-year refinance rates on average are shown below.

Just remember, rates are different for each borrower. So you’ll have to compare a few different lenders to find your best deal. Your lowest refinance rate may or may not come from one of the companies listed here.

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Note: Refinance rates cited in this article are from 2021 and do not reflect the rate you will be offered today. Interest rates are shown for general comparison purposes only.

Banks with the best refinance rates

According to our study of average mortgage interest rates, the 10 lenders with the lowest refinance rates are:

  1. New Day Financial
  2. Freedom Mortgage
  3. Village Capital and Investment*
  4. Navy Federal Credit Union*
  5. PennyMac
  6. Bank of America
  7. AmeriSave
  8. loanDepot
  9. Better
  10. Home Point Financial

*These lenders specialize in select loan types and may not help every borrower.

The best refinance rates, ranked

To find the lenders with the best refinance rates, we looked at loan-level data filed in 2021 under the Home Mortgage Disclosure Act (HMDA).

Keep in mind that mortgage interest rates hit record lows in 2020 and 2021. Today’s mortgage refinance rates have risen and industry experts predict they’ll stay elevated throughout 2022. That means the rates you’re quoted today are likely to be significantly higher than what you see below.

Still, these average rates provide a helpful way to compare lenders side by side so you know where to start looking.

Lenders with the best refinance rates

  1. New Day Financial: 2.42%
  2. Freedom Mortgage: 2.57%
  3. Village Capital and Investment*: 2.60%
  4. Navy Federal Credit Union*: 2.63%
  5. PennyMac: 2.70%
  6. Bank of America: 2.74%
  7. AmeriSave: 2.77%
  8. loanDepot: 2.78%
  9. Better Mortgage: 2.79%
  10. Home Point Financial: 2.82%
  11. Caliber Home Loans: 2.84%
  12. Rocket Mortgage: 2.86%
  13. Citizens Bank: 2.88%
  14. Newrez: 2.90%
  15. Lakeview Loan Servicing: 2.91%
  16. Wells Fargo: 2.91%
  17. Guaranteed Rate: 2.92%
  18. New American Funding: 2.92%
  19. Cardinal Financial Company: 2.93%
  20. Chase Bank: 2.93%
  21. PNC: 2.97%
  22. Truist Bank: 2.98%
  23. CrossCountry Mortgage: 2.98%
  24. Fairway Independent Mortgage Corp.: 3.03%
  25. Flagstar Bank: 3.04%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different. *These lenders specialize in select loan types and may not help every borrower.

As this list indicates, refinance rates vary a lot from lender to lender. But they also vary depending on the borrower and the overall interest rate market. That means you have to find a lender offering low rates for your situation at the time you’re looking. This will take some shopping around.

Prepare to fill out refinance applications with at least three to five lenders and compare the loans you‘re offered to find the very best deal.

Best refinance rates by loan type

Refinance rates are different for each loan type as well as for each individual borrower. If you know exactly what type of refinance loan you need — for instance, a conventional refinance or an FHA or VA Streamline Refinance — it helps to find a lender offering low rates for that specific product.

Here are the lenders with the best refinance rates for each major refinance program, using the same ranking criteria above but focusing on loan type as well as loan purpose.

Best conventional refinance rates

  1. Bank of America: 2.74%
  2. Provident Funding: 2.77%
  3. AmeriSave: 2.79%
  4. Better Mortgage: 2.79%
  5. loanDepot: 2.84%
  6. Home Point Financial: 2.90%
  7. Citizens Bank: 2.91%
  8. Navy Federal Credit Union*: 2.93%
  9. Chase Bank: 2.93%
  10. Rocket Mortgage: 2.94%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different. *These lenders specialize in select loan types and may not help every borrower.

Best FHA refinance rates

  1. Homebridge Financial: 2.63%
  2. Home Point Financial: 2.64%
  3. American Financing Corp.: 2.70%
  4. The Federal Savings Bank: 2.72%
  5. Rocket Mortgage: 2.74%
  6. Caliber Home Loans: 2.74%
  7. Finance of America: 2.76%
  8. Guaranteed Rate: 2.77%
  9. Guild Mortgage Co.: 2.78%
  10. Planet Home Lending: 2.79%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different.

Best VA refinance rates

  1. Rocket Mortgage: 2.34%
  2. Home Point Financial: 2.34%
  3. Sun West Mortgage Co.: 2.34%
  4. American Financial Network: 2.38%
  5. Village Capital and Investment*: 2.38%
  6. Freedom Mortgage: 2.39%
  7. PennyMac: 2.39%
  8. loanDepot: 2.40%
  9. Guaranteed Rate: 2.40%
  10. New Day Financial: 2.41%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different. *These lenders specialize in select loan types and may not help every borrower.

Best USDA refinance rates

  1. Sun West Mortgage Co.: 2.43%
  2. Citizens Bank: 2.47%
  3. Freedom Mortgage: 2.58%
  4. Home Point Financial: 2.62%
  5. Stearns Lending: 2.62%
  6. Wells Fargo: 2.63%
  7. Movement Mortgage: 2.64%
  8. Guaranteed Rate: 2.67%
  9. Newrez: 2.69%
  10. American Financial Network: 2.69%

Source: 2021 Home Mortgage Disclosure Act data via CFPB. Historical average rates for comparison purposes only, your own interest rate will be different.

Current refinance rates

Today’s refinance rates have risen from the all-time lows seen in 2020 and 2021 during the Covid pandemic. The silver lining is that with rates on the rise, fewer homeowners are looking to refinance and lenders are more eager for their business. That means you might have more leverage to negotiate a lower interest rate and/or loan fees.

Apply with a few different mortgage lenders to see what refinance rates they can offer. You can even make lenders compete for your loan and play your quotes against one another. Mortgage shoppers can save thousands in interest by simply getting more than one refinance quote.

Current mortgage refinance rates*

Conventional 30-year fixed rate % (% APR) 
Conventional 15-year fixed rate % (% APR) 
FHA loan 30-year fixed rate % (% APR) 
FHA loan 15-year fixed rate % (% APR) 
VA loan 30-year fixed rate % (% APR) 
VA loan 15-year fixed rate % (% APR) 

*Current rates according to The Mortgage Reports' lender network. Rates are for sample purposes only; your own rate will be different. See our mortgage rate assumptions here

Refinance closing costs

Don’t forget: Opting for a lender with the lowest refinance rate doesn’t mean it will be the least expensive overall. You also have to factor in lender fees and closing costs, which typically cost around 2-5% of your new loan amount.

Refinance closing costs include the lender’s own fees as well as a new home appraisal and other third-party fees. These include:

  • Mortgage origination fee
  • Underwriting fee
  • Credit reporting fee
  • Discount points to lower your rate (optional)
  • Home appraisal (you can skip this with a Streamline Refinance)
  • Title and escrow fees
  • Prepaid taxes and homeowners insurance
  • Mortgage insurance or guarantee fee (if applicable)

Fortunately, closing costs can often be rolled into your loan when you refinance. If the lender agrees, they can add the amount to your principal borrowed or increase the interest rate charged to offset closing costs.

What’s more important, a low rate or low refinance fees?

How much should you care about closing costs? That depends. If you’re planning to keep the loan for decades, you likely want the lowest interest rate possible. This will save you more money over the life of the loan, and slightly higher closing costs might not matter as much.

But if you’re only going to keep the new mortgage a few years before moving or refinancing again, then lower closing costs might be more important. In that case, a few thousand dollars of extra upfront fees can really eat into your savings.

Your loan officer can help you crunch the numbers. Or, you can use a refinance calculator to model your potential refi savings versus closing costs.

How to find your best refinance rate

Be aware that the actual interest rate and fees you pay will vary. And the lenders we ranked may not necessarily offer you the best rate for your needs.

The lowest refinance rate you can get will depend on:

  • Your credit score and credit report
  • Your home’s value
  • How much home equity you have
  • Your income and employment
  • Your existing loan-to-value ratio (LTV)
  • Your debt-to-income ratio (DTI)

Typically, the lowest refinance rates go to borrowers with good credit, plenty of home equity, and low debt levels.

Keep in mind that the lender advertising the lowest rates won’t necessarily be your least expensive option. First off, rates are personal. And second off, it may have higher closing costs to offset those low rates.

That’s why it’s important to do your own homework and compare personalized rates before choosing a refinance lender.

5 tips to get a lower refinance rate

Want to score the lowest refinance interest rate possible? There are several steps you can take to improve your chances:

  1. Get your credit rating and debt-to-income ratio in good shape. Working to improve your credit score and pay off existing debts can earn you a lower refinance rate and big savings in the long run
  2. Shop around among several different lenders. It pays to request rate quotes from at least 3-5 mortgage lenders so that you can better compare rates, terms, and fees
  3. Factor in closing costs. Again, choosing a low-rate loan won’t necessarily get you the best deal. You should also compare annual percentage rate (APR), estimated closing costs, and monthly payments on each loan offer you receive
  4. Read your Loan Estimates carefully. When you apply with a lender, you’ll get a Loan Estimate which provides a thorough breakdown of the costs that come with your refinance loan. Be sure to compare your Estimates line by line and dollar for dollar
  5. Consider purchasing discount points. You may be able to buy down your interest rate using points. Every point you purchase costs 1 percent of your loan amount. Typically, buying one point will lower your interest rate by about 0.25%

Finally, when refinancing your current home or investment real estate, remember to keep your goals in mind when choosing a lender.

Mortgage refinancing strategies

If all you want is a lower interest rate and monthly mortgage payment, then the choice is simple. But if your refinance goals are more complex, you might have to be more careful when selecting a lender.

For instance, say your current loan is an FHA loan. You may want to refinance into a conventional loan to remove mortgage insurance premiums — but you have to find a new lender that will approve you for conventional financing.

If you want to take cash-out when you refinance, you’ll notice that cash-out refinance rates are a little higher than standard rates. In this case, you want to be extra careful to find a lower mortgage rate and maximize your savings.

There are other reasons to refinance, too.

  • You might switch from an adjustable-rate mortgage to a safer, fixed-rate mortgage
  • You might switch from a 30-year mortgage to a shorter-term loan to pay off your current home faster

Whatever your reason for refinancing, find a lender that can help you understand your loan options and meet your goals as well as offering a low rate. The right choice depends on your financial situation and your refinance options.

Refinance rates FAQ

Which bank is best for refinancing? 

The best lender for refinancing will vary depending on your circumstances and budget. Overall, you should find a lender that offers the lowest combination of interest rate, fees, closing costs, and total loan costs. Don’t just look at banks, either. Online lenders, credit unions, and mortgage brokers can all offer good deals for many borrowers.

What is a good interest rate for a refinance? 

Your objective and personal finances will determine this. “But in most cases where only the interest rate is being changed, the rate should be at least 0.50 percent lower than your current rate,” recommends Guy Silas, branch manager for Embrace Home Loans.

Is it worth refinancing for 1 percent? 

Dropping your mortgage rate by 1 percent will usually create enough savings to make a refinance worthwhile, explains Silas. “The true test, assuming only a rate reduction is the objective as opposed to shortening the term, is how quickly you can recover the transaction costs in your monthly savings,” he says. This is known as the break-even point. You typically want your savings to break even with your upfront costs to make refinancing truly worth it.

Is it worth refinancing to save $100 per month? 

Saving any amount of money is usually worth it. But it depends on the total cost of your loan. “There is little point in saving $100 per month if you have $10,000 in closing costs. You need to make sure you’re working with a lender that will evaluate your entire situation and provide good, solid advice here,” suggests David Ratti, branch manager for Envoy Mortgage.

When is refinancing a bad idea? 

Refinancing may not make financial sense if you’re very far into the loan term or if you’re not certain you’re going to remain in the home more than two years after refinancing, according to Jane Hammond, a mortgage loan officer with Compass Mortgage LLC. “Every situation is unique. So you need your loan officer to clearly indicate how quickly you will benefit from the cost of the refinance,” she says.

How much does it cost to refinance? 

A mortgage refinance typically costs 2 to 5 percent of your total borrowed amount. So for a $250,000 refinance loan, closing costs are likely to be around $5,000-$10,000.

Do I need a down payment to refinance?

No. However, you need a minimum amount of home equity. For instance, conforming loans typically require at least 3 percent equity to refinance — meaning your loan balance is no more than 97 percent of your home’s appraised value. If you refinance with at least 20 percent equity, you can often eliminate private mortgage insurance (PMI) payments.

Are refinance rates going up or down? 

Refinance rates hit record lows in 2020 and 2021 during the Covid pandemic. But they shot up quickly at the start of 2022 and experts do not expect rates to return to those record lows any time soon. In a rising rate environment, it’s doubly important to shop around for lenders offering a better deal on your refinance loan.

What’s the best refinance loan? 

The best loan product varies based on your goals. If you want to tap your home equity, a cash-out refinance might be best. If you want to shorten your loan term, consider a 15-year mortgage. If you simply want a lower rate and monthly payment, consider a plain vanilla 30-year refinance loan. For homeowners who currently have FHA, VA, and USDA loans, the answer is a little easier. A Streamline Refinance is often best, as this program offers reduced paperwork and typically has lower closing costs.

How do I shop for refinance rates? 

Compare rates from several different lenders to make a more informed decision. “Keep in mind that an advertised rate is designed to generate a phone call. Not everyone gets the same rate, either,” cautions Ratti. “Every lender is required to provide a Loan Estimate, which should help you compare apples to apples.”

Do I have to refinance with my current mortgage lender?  

You are not required to refinance with your current mortgage lender. However, it may be smart to start your search by requesting a refinance rate quote from your current lender, who may be able to beat loan rates, terms, and costs quoted by competitors.

How does the Federal Reserve impact refinance rates?

While the Federal Reserve doesn’t set refinance rates, it does affect them indirectly. As the country’s central bank, lenders adjust rates depending on the decisions and actions taken by the Fed.

Does mortgage insurance go away when you refinance?

Yes, private mortgage insurance premiums can be removed when you refinance your conventional loan. However, it’s generally removed automatically when you’ve reached 22 percent home equity, which is the same as 78 percent loan-to-value ratio. However if you’re paying mortgage insurance premiums (MIP) on an FHA loan, you’ll need to refinance to another loan type to remove mortgage insurance.

What are current mortgage rates?

Today’s refinance rates are rising, but savvy shoppers can still find lower rates by comparing refi lenders.

Remember that the rate you’re offered could be higher or lower than average depending on your credit, home equity, and finances. Check personalized rates from a few different lenders to find the best refinance rate for your situation.

1Rate and fee data were sourced from self-reported loan data that all mortgage lenders are required to file each year under the Home Mortgage Disclosure Act. Averages include all 30-year non-cash-out refinance loans reported by each lender for the previous year. Your own rate and loan costs will vary.

2Top lenders for 2021 based on 2020 HMDA data via Bundle Loan and 2021 HMDA data sourced directly from the HMDA data browser

Erik J. Martin
Authored By: Erik J. Martin

The Mortgage Reports contributor

Erik J. Martin has written on real estate, business, tech and other topics for Reader's Digest, AARP The Magazine, and The Chicago Tribune.