December 8, 2025: Updated Refinance Mortgage Rates Revealed
As of December 8, 2025, the average refinance mortgage rate for a 30-year fixed mortgage stands at 6.27%, according to Zillow’s recent data. Homeowners looking to refinance their mortgages or access home equity will find valuable information regarding current rates and refinancing options.
Current Refinance Mortgage Rates
Data from December 5 indicated that mortgage rates have remained relatively stable, despite expectations that the Federal Reserve’s recent rate cuts would lower mortgage costs. The average rates for 30-year fixed mortgages have stayed near the 7% mark, far above the pandemic-era lows of 2% to 3%.
Trends in Mortgage Rates
- 82.8% of homeowners with mortgages hold rates below 6% as of Q3 2024, according to Redfin.
- In late August and September 2025, mortgage rates began to decline.
- The Federal Reserve cut the federal funds rate in September and again at the end of October 2025.
Understanding Mortgage Refinancing
Refinancing involves replacing your existing mortgage with a new one that typically has different terms. To qualify, borrowers must meet specific criteria, including credit scores and debt-to-income ratios. This process may temporarily impact your credit score due to the hard inquiry.
When to Refinance
Refinancing is most beneficial when you can achieve a lower rate—ideally at least one full percentage point less than your current mortgage rate. It is also useful for cashing out home equity or changing loan terms to better fit your financial needs.
Costs of Refinancing
Closing costs for refinancing usually range from 2% to 6% of the loan amount. For a $300,000 mortgage, this translates to approximately $6,000 to $18,000. Common costs may include:
- Lender origination fees
- Appraisal and title search fees
- Loan application and survey fees
- Attorney fees (if applicable)
- Recording fees
- Prepayment penalties, if any
Types of Refinance Loans
Several refinance options are available depending on your needs:
- Rate-and-term refinance: Lowers your interest rate and/or shortens your loan term.
- Cash-out refinance: Allows you to withdraw equity in cash for personal use.
- No-closing-cost refinance: Higher interest rates in exchange for waived closing costs.
- Streamline refinance: Simplified process for existing FHA, VA, and USDA loan borrowers.
Choosing a Lender
Borrowers are not obligated to refinance with their original lender. It’s prudent to compare rates and terms from various lenders. Existing lenders may provide incentives that lower closing costs, reducing refinance barriers. Homeowners with loans from Fannie Mae or Freddie Mac may also qualify for programs like Refi Now and Refi Possible.
As homeowners reassess their mortgage options, keeping abreast of refinance rates and market trends will be essential for informed financial decisions going forward.
