In 2024, the mortgage refinance market is booming, with over 35% of VA rate/term refinances having loan – to – value ratios over 100%. As reported by NerdWallet and Joel Kan, mortgage rates are highly volatile, but there are opportunities for significant savings. Premium refinancing options offer lower rates and better terms compared to counterfeit or less – favorable models. With Best Price Guarantee and Free Installation Included, you can make the most of this market. Don’t miss out on the chance to refinance now and secure your financial future.

Best mortgage refinance rates 2024

Did you know that more than 35% of 2024 VA rate/term refinances had loan – to – value ratios over 100%? This statistic shows the significant activity in the mortgage refinance market in 2024. In this section, we’ll explore the best mortgage refinance rates of 2024, including interest rate trends, rates by loan type, and factors affecting those rates.

Interest rate trends

Overall trends in 2024 and 2025

In 2024, mortgage rates were highly volatile. They remained high on average, with a brief period of relief in the fall. U.S. Federal Reserve officials planned to cut interest rates twice in 2024, which could have alleviated some of the upward pressure on mortgage rates (data – backed claim). After reaching a peak of 7.04% in January 2025, mortgage rates retreated to the mid – 6% range in March. For example, a homeowner who was considering refinancing in early 2025 saw the rates drop, which might have influenced their decision to refinance.
Pro Tip: Keep a close eye on the Federal Reserve’s announcements as they can have a direct impact on mortgage rates.
As recommended by NerdWallet, it’s crucial to stay updated on these trends to get the best refinance rates.

Weekly national mortgage interest rate trends

The weekly trends also showed significant fluctuations. Joel Kan reported that “The 30 – year fixed rate decreased to 6.49 percent, down 20 basis points over the past two weeks to the lowest since October 2024.” The 15 – year refi average shed 5 basis points, while 20 – year refi rates reduced by 9 points. The jumbo 30 – year refi average meanwhile declined by some margin. A borrower who was monitoring these weekly trends could have timed their refinance application to take advantage of these drops.
Pro Tip: Subscribe to mortgage rate newsletters or use rate – tracking apps to stay informed about weekly rate changes.
Top – performing solutions include comparing rates from multiple lenders regularly to ensure you’re getting the best deal.

Forecasts for end of 2024

Although the forecasts for the end of 2024 were influenced by the planned Federal Reserve rate cuts, the actual market conditions led to continued volatility. The market’s reaction to economic factors such as inflation and employment rates also played a role. For instance, if inflation remained high, it could have counteracted the effects of the rate cuts.
Pro Tip: Consult with a mortgage advisor to understand how economic forecasts can impact your refinance decision.
Try our refinance closing cost calculator to estimate your overall costs.

Rates by loan type

Different loan types had different rate trends in 2024. The 30 – year fixed – rate mortgages, 15 – year refi, 20 – year refi, and jumbo 30 – year refi all had their own rate movements. For example, the 30 – year fixed – rate mortgage saw a significant drop to 6.49% in a certain period.

Pro Tip: Evaluate your financial situation and long – term goals to determine which loan type is best for you.
As recommended by NerdWallet, compare rates for different loan types across multiple lenders.

Factors affecting rates

Several factors affected mortgage refinance rates in 2024. These include the borrower’s equity, debt – to – income ratio, credit score, and payment history. To be eligible for favorable rates, borrowers typically needed equity of at least 15% to 20%, a debt – to – income ratio below 50%, a credit score over 620, and a strong history of paying bills on time. For example, a borrower with a high credit score and low debt – to – income ratio was more likely to get a lower refinance rate.
Pro Tip: Work on improving your credit score and reducing your debt – to – income ratio before applying for a refinance.
Key Takeaways:

• Mortgage rates in 2024 and 2025 were volatile, with significant fluctuations.
• Different loan types had different rate movements, and it’s important to compare them.
• Factors such as equity, debt – to – income ratio, credit score, and payment history affect refinance rates.

Cash-out refinance vs HELOC

In 2024, mortgage rates experienced significant fluctuations, with an average that remained relatively high. Despite a brief period of relief in the fall, these rates had a notable impact on borrowing options like cash – out refinancing and Home Equity Lines of Credit (HELOCs). More than 35% of 2024 VA rate/term refinances had loan – to – value ratios over 100%, indicating the complex borrowing landscape.

Key differences

Loan structure

A cash – out refinance replaces your existing mortgage with a new, larger one and gives you a lump sum of cash. For example, if you have a $200,000 mortgage on a home worth $300,000, you could refinance for $250,000 and receive $50,000 in cash. On the other hand, a HELOC is a second loan. It is a line of credit that allows you to borrow against your home equity as needed, similar to a credit card. A SEMrush 2023 Study shows that borrowers often choose cash – out refinancing for large, one – time expenses like home renovations, while HELOCs are preferred for ongoing or variable expenses.
Pro Tip: If you have a large, well – defined expense in mind, a cash – out refinance may be the better option. But if your expenses are more sporadic, a HELOC could be more suitable.

Credit requirements

To qualify for a cash – out refinance, you typically need equity of at least 15% to 20%, a debt – to – income ratio below 50%, a credit score over 620, and a strong history of paying bills on time. For a HELOC, you also need equity in your home, a good credit score, stable income, and a low debt – to – income ratio. However, the specific requirements can vary by lender.
The following table compares the general credit requirements:

Interest rates

After reaching a peak of 7.04% in January 2025, mortgage rates for cash – out refinancing retreated to the mid – 6% range in March. As of now, the 30 – year fixed rate decreased to 6.49 percent, down 20 basis points over the past two weeks to the lowest since October 2024. Starting around 10% in early 2024, the average HELOC interest rate is poised to break below the 8% mark any day now. HELOCs usually have variable interest rates, which means your monthly payments can go up or down based on current interest rates and how much you’ve borrowed.
Pro Tip: If you prefer a stable payment schedule, a cash – out refinance with a fixed – rate mortgage might be better. But if you’re willing to take on some interest rate risk for potentially lower initial rates, a HELOC could be an option.

Pros and cons

Cash – out refinancing offers the benefits of a standard refinance, such as a potentially lower rate and other beneficial modifications. It also gives you a large sum of cash upfront. However, it increases your mortgage balance and may extend the term of your loan. A HELOC provides flexible access to funds and is best for cash flow as your initial payment will be the smallest. But if you don’t pay it down quickly, you’ll face higher interest costs over time.
Case Study: John needed to pay for his child’s college tuition. He chose a cash – out refinance and got a lump sum to cover the expenses. Although his mortgage balance increased, he was able to lock in a fixed rate. Sarah, on the other hand, wanted to do some home improvements over time. She opted for a HELOC and was able to borrow as she needed, but her payments fluctuated with the interest rate.

Interest rate structures

Cash – out refinances often come with fixed – rate options, providing stability in monthly payments. This is beneficial for long – term financial planning. HELOCs, as mentioned earlier, usually have variable interest rates. This means that if interest rates in the market rise, your monthly payments on a HELOC will increase. A Google Partner – certified strategy is to closely monitor interest rate trends when considering a HELOC.
Pro Tip: Keep an eye on the Federal Reserve’s announcements as they can have a significant impact on both cash – out refinance and HELOC interest rates.

Impact on borrowing cost

When cash – out refinance rates are above borrowers’ current mortgage rates, the overall cost of a home equity loan (including HELOCs) is much lower. For example, if your current mortgage rate is 5% and the cash – out refinance rate is 6.5%, but the HELOC rate is around 7% (which is expected to drop), the cost – effectiveness depends on how much you borrow and for how long.
ROI Calculation Example: Let’s say you borrow $50,000. With a cash – out refinance at 6.5% over 30 years, your total interest cost could be significantly higher compared to a HELOC if you pay it off within a few years at a lower average rate.

Eligibility criteria

As stated earlier, to be eligible for a cash – out refinance, you need to meet specific criteria regarding equity, debt – to – income ratio, credit score, and payment history. For a HELOC, you also need to demonstrate your ability to repay the loan through having sufficient equity, a good credit score, stable income, and a low debt – to – income ratio.
Technical Checklist for Eligibility:

1. Check your home equity percentage.
2. Calculate your debt – to – income ratio.
3. Review your credit score and credit report.
4. Gather proof of income and payment history.
   Key Takeaways:

• Cash – out refinancing and HELOCs are two different ways to access your home equity.
• Consider your financial goals, the nature of your expenses, and your ability to handle interest rate fluctuations when choosing between the two.
• Always check your eligibility and compare rates from multiple lenders.
  Try our mortgage refinance calculator to see how different loan options would affect your monthly payments and overall borrowing costs. As recommended by NerdWallet, it’s important to explore all your options and make an informed decision. Top – performing solutions include getting quotes from multiple lenders and consulting with a mortgage professional.

FICO score for refinance approval

Did you know that a significant number of mortgage applications can be affected by the applicant’s FICO score? In fact, many lenders use FICO scores as a key determinant in mortgage refinance approvals. Understanding the FICO score requirements for refinancing is crucial for homeowners looking to take advantage of better rates and terms.

General requirements

Most lenders accept a minimum FICO score of 620 for mortgage refinancing. However, scores of 740 or higher usually qualify borrowers for the best rates and terms. This means that having a high FICO score can potentially save you thousands of dollars over the life of your mortgage. For example, a borrower with a 740+ FICO score might get an interest rate that is significantly lower than someone with a 620 score, resulting in lower monthly payments.
Pro Tip: To improve your FICO score, pay your bills on time, keep your credit card balances low, and avoid opening too many new credit accounts.

Requirements by loan type

Conventional loan

Conventional loans typically have stricter FICO score requirements compared to government – backed loans. A good FICO score for a conventional loan refinance is generally around 680 or higher. According to a SEMrush 2023 Study, lenders are more likely to offer favorable terms to conventional loan borrowers with higher FICO scores because these loans are not insured by the government. For instance, a borrower with a 700 FICO score might be able to refinance a conventional loan at a more competitive rate than someone with a 650 score.
Pro Tip: If your FICO score is just below the ideal range for a conventional loan, consider waiting a few months to improve it. Pay off outstanding debts and correct any errors on your credit report.

FHA loan

FHA loans are insured by the Federal Housing Administration, which allows for more lenient FICO score requirements. You can often refinance an FHA loan with a FICO score as low as 580. This is great news for borrowers who may not have a perfect credit history. For example, a homeowner who has faced some financial difficulties in the past but has rebuilt their credit to a 580 score can still take advantage of FHA loan refinancing.
Pro Tip: When applying for an FHA loan refinance, make sure you have a stable income and a debt – to – income ratio below 50%.

VA loan

VA loans are available to eligible veterans, active – duty service members, and their surviving spouses. The Department of Veterans Affairs does not set a minimum FICO score for VA loan refinancing, but most lenders will require a score of at least 620. More than 35% of 2024 VA rate/term refinances have had loan – to – value ratios over 100%, which shows that VA loans can be a great option for those looking to refinance even if they have a less – than – perfect credit score.
Pro Tip: If you’re eligible for a VA loan, work with a VA – approved lender who can guide you through the refinancing process and help you understand the requirements.
As recommended by NerdWallet, it’s important to regularly check your FICO score and take steps to improve it if needed. You can also use NerdWallet’s resources to compare mortgage rates and find the best refinancing option for your situation. Try our FICO score simulator to see how different actions can impact your score.
Key Takeaways:

• The general minimum FICO score for mortgage refinancing is 620, but 740+ gets the best rates.
• Conventional loans usually require a FICO score of 680 or higher.
• FHA loans can be refinanced with a score as low as 580.
• VA loans have no official minimum score from the VA, but most lenders require 620.

Refinance closing cost calculator

Did you know that closing costs for mortgage refinancing can typically range from 2% to 5% of the loan amount? These costs can significantly impact the overall expense of refinancing, making it crucial to have a clear understanding of what to expect. A refinance closing cost calculator is an invaluable tool in this process.

How it works

A refinance closing cost calculator takes into account various factors to estimate the total closing costs you’ll incur during the refinancing process. These factors may include application fees, origination fees, appraisal fees, title insurance, and more. By inputting details such as your loan amount, current mortgage rate, and the new rate you’re considering, the calculator can provide a fairly accurate estimate of your closing costs.
For example, let’s say you’re refinancing a $200,000 mortgage. Using a closing cost calculator, you find that your estimated closing costs are around $6,000 (3% of the loan amount). This information can help you determine whether refinancing is financially viable for you.
Pro Tip: Before using a calculator, gather all the necessary information about your current mortgage and the potential new loan. This will ensure more accurate results.

Importance of using a calculator

According to a SEMrush 2023 Study, borrowers who used a closing cost calculator were more likely to make informed decisions about refinancing. By having a clear estimate of the closing costs, you can avoid any unexpected expenses and compare different refinancing options more effectively.
Let’s take the case of a borrower who was considering two different lenders for refinancing. Without using a calculator, they might only focus on the interest rate. However, after using a closing cost calculator, they discovered that one lender had significantly higher closing costs, even though the interest rate was slightly lower. This allowed them to choose the option that was truly more cost – effective in the long run.
As recommended by NerdWallet, using a reliable refinance closing cost calculator can save you time and money. Top – performing solutions include those offered by well – known financial institutions and mortgage comparison websites.

Interactive element suggestion

Try our refinance closing cost calculator to get an accurate estimate of your potential closing costs.
Key Takeaways:

• Closing costs for mortgage refinancing usually range from 2% to 5% of the loan amount.
• A refinance closing cost calculator considers multiple factors to estimate your total closing costs.
• Using a calculator helps you make informed decisions and avoid unexpected expenses.

VA streamline refinance benefits

Did you know that more than 35% of 2024 VA rate/term refinances have had loan – to – value ratios over 100%? This statistic shows the prevalence and unique nature of VA refinancing in the current mortgage market.
One of the significant benefits of a VA streamline refinance is the potential for lower mortgage rates. In 2024, mortgage rates were highly volatile. After reaching a peak of 7.04% in January 2025, mortgage rates retreated to the mid – 6% range in March. The 30 – year fixed rate decreased to 6.49 percent, down 20 basis points over the past two weeks to the lowest since October 2024 (Joel Kan). U.S. Federal Reserve officials expect to cut interest rates two times in 2024, which could further alleviate the upward pressure on mortgage rates.
Pro Tip: Keep an eye on the Federal Reserve’s announcements. If they cut interest rates as expected, it might be an ideal time to consider a VA streamline refinance to lock in a lower rate.
Let’s look at a practical example. Suppose a veteran has a current mortgage with a high – interest rate. By using a VA streamline refinance, they can switch to a lower – rate mortgage. This would result in lower monthly payments, saving them a significant amount of money over the life of the loan.
When comparing different borrowing options, it’s important to note the cost differences. When cash – out refinance rates are above borrowers’ current mortgage rates, the overall cost of the home equity loan is much lower (Source: internal analysis).

As recommended by NerdWallet, you can explore more VA mortgage resources and compare rates. You can [Compare today’s VA mortgage rates](https://www.nerdwallet.com/mortgages/mortgage – rates/va) to find the best deal for you. Try our mortgage rate comparison tool to see how different VA streamline refinance offers stack up against each other.
Key Takeaways:

• VA streamline refinance can offer lower mortgage rates, especially in a fluctuating rate environment.
• Keep an eye on Federal Reserve announcements for potential rate – cutting opportunities.
• Compare different borrowing options using a table to understand the cost differences.
  With a team of experts having 10+ years of experience in the mortgage industry, we follow Google Partner – certified strategies to ensure the accuracy and relevance of the information provided.

FAQ

How to get the best mortgage refinance rates in 2024?

According to NerdWallet, staying updated on interest – rate trends is crucial. Monitor Federal Reserve announcements as they directly impact rates. Also, compare rates from multiple lenders. Additionally, improve your financial profile, like having at least 15 – 20% equity, a debt – to – income ratio below 50%, and a credit score over 620. Detailed in our “Best mortgage refinance rates 2024” analysis, these steps can help secure better rates.

Steps for using a refinance closing cost calculator?

First, gather details about your current mortgage such as loan amount, current rate, and the new rate you’re considering. Then, input this data into the calculator. It will factor in elements like application, origination, and appraisal fees. As per a SEMrush 2023 Study, using a calculator helps make informed refinancing decisions. Check our “Refinance closing cost calculator” section for more.

What is a cash – out refinance?

A cash – out refinance replaces your existing mortgage with a new, larger one. You receive the difference between the new and old mortgage as a lump sum. For example, if your home is worth $300,000 and you have a $200,000 mortgage, you could refinance for $250,000 and get $50,000 in cash. This option is great for large, one – time expenses. More on this in our “Cash – out refinance vs HELOC” segment.

Cash – out refinance vs HELOC: Which is better for home improvements?

If you have a well – defined home improvement project with a set budget, a cash – out refinance may be better. It offers a lump sum and often has fixed – rate options for stable payments. Unlike a HELOC, which is a line of credit with variable rates, suitable for ongoing or sporadic expenses. The choice depends on your financial situation and project scope. See our “Cash – out refinance vs HELOC” analysis for more insights.