February 5, 2026: Current Refinance Mortgage Rates Report
The average refinance mortgage rates as of February 5, 2026, stand at 6.27%, based on the latest data from Zillow. Homeowners interested in refinancing for lower rates or accessing home equity should evaluate the current market conditions before taking action. This report analyzes refinancing rates across various loan types and terms.
Current Refinance Mortgage Rates Report
The refinance rates reflect an increase in activity due to recent adjustments by the Federal Reserve. As observed, mortgage rates for 30-year, fixed-rate loans remained near 7% for an extended period, significantly higher than the low rates seen during the pandemic.
Key Mortgage Rate Trends
In the third quarter of 2024, 82.8% of homeowners with mortgages enjoyed rates below 6%. Many remain locked into their loans, making it challenging to move or refinance.
However, the latter part of 2025 showed promising signs. Mortgage rates trended downwards, nearing 6% for 30-year, fixed-rate loans. Expectations surrounding upcoming Federal Reserve meetings in September and October contributed to this decline.
Understanding Mortgage Refinancing
Refinancing entails replacing your current mortgage with a new one, typically to secure a lower interest rate. Borrowers must meet specific qualifications, including a good credit profile and verified income.
Keep in mind that applying for refinancing can temporarily impact your credit score due to hard inquiries. There is also a risk of denial if eligibility criteria are not met.
When to Consider Refinancing
- Securing a lower rate: Generally, it’s advantageous to refinance if you can receive a rate at least one percentage point lower than your current rate.
- Tapping into home equity: A cash-out refinance allows homeowners to access their home equity effectively.
- Changing loan terms: You may choose to switch from a shorter to a longer mortgage to reduce monthly payments.
Costs Associated with Refinancing
Refinancing involves several costs ranging from 2% to 6% of the overall loan amount. For example, refinancing a $300,000 mortgage could incur fees of $6,000 to $18,000. Common expenses include:
- Lender origination fees
- Appraisal fees
- Title insurance costs
- Loan application fees
- Survey costs
- Attorney fees (where applicable)
- Recording fees
- Prepayment penalties
Types of Mortgage Refinance Loans
Different refinance loans cater to various needs. Here are some popular options:
- Rate-and-term refinance: This option helps secure a lower interest rate or change the loan duration.
- Cash-out refinance: Allows access to home equity by taking on a larger loan and receiving the difference in cash.
- No-closing-cost refinance: While it might seem attractive, interest rates are usually higher.
- Streamline refinance: Targets existing FHA, VA, and USDA loan borrowers with a simplified loan process.
Choosing Between Lenders
Homeowners are not obligated to refinance with their original lenders. Shopping around can lead to better rates and service. Some lenders may offer incentives, such as waived closing costs for staying with them.
If your mortgage is backed by Fannie Mae or Freddie Mac, consider exploring programs like Refi Now or Refi Possible for potential benefits.
