Compare Current 15-Year Refinance Rates

Current Mortgage Rate Trends

The average 15-year refinance rate was 6.32% in June 2025, compared with 7.38% for a 30-year refinance. Although monthly payments on a 15-year loan will be larger than they are on a 30-year loan, lower annual percentage rates (APRs) on a 15-year mortgage can make the difference in payment size less impactful.

^*Source: Curinos LLC, June 6, 2025; assumes a 720 FICO^® Score^Θ, $350,000 mortgage
^**Source: FRED via Optimal Blue, June 6, 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down; APR calculation assumes 5% in fees

Mortgage Rate Trends for the Last 5 Years

Mortgage rates have been trending upward over the past five years, with many ups and downs along the way. From a low of 2.68% in December 2020, average 30-year rates peaked in October 2023 at 7.62% and are at 6.85% in June 2025, according to Freddie Mac.

30-Year Mortgage Rate Trends 2020 to 2025

What Affects 15-Year Refinance Rates?

Mortgage rates are set based on a range of market and individual indicators. If you're considering a 15-year refinance, these are some of the factors that may affect your rate:

• Economic factors: Lenders follow various economic indicators, including 10-year Treasury notes, the federal funds rate, inflation and the government's fiscal policy to determine where to set their mortgage rates. As these indicators change, so can mortgage rates.
• Loan term: Longer-term loans tend to have higher interest rates, so a 15-year refinance will typically have a lower annual percentage rate (APR) than a 30-year loan.
• Credit scores: Your credit scores can affect the interest rate you receive. Generally speaking, a higher score helps you qualify for a lower rate.
• Refinancing: Rates on refinanced loans can be a bit higher than rates on new mortgages.
• Home equity: Having greater home equity may help you qualify for a lower APR by improving your loan-to-value (LTV) ratio. You may also save money by eliminating the need for private mortgage insurance (PMI) by making a larger down payment.
• Prepaid points: Prepaying interest (or paying points) at closing is one reliable way to lower your APR. Bear in mind that you won't necessarily lower your interest costs, since you're still paying interest; you're just paying it in advance.
• Cash out: Because lenders view cash-out refinances as riskier, interest rates on cash-out refinances tend to be higher.
• Fixed versus variable rates: Fixed-rate loans tend to carry higher interest rates than adjustable-rate loans, though their rates are predictable and won't change over time. Adjustable-rate mortgages may start out with lower rates, but they have the potential to adjust to a higher rate, which can make financial planning difficult.
• Loan amount: A jumbo mortgage (for an amount over $806,000 or $1,209,750 in 2025, depending on where you live) tends to have a higher APR than a conventional or conforming loan.
• Residency: Interest rates are usually more favorable when you're financing or refinancing a primary residence.
• Lender relationship and perks: If you're refinancing with your primary bank or credit union, they may offer you a favorable rate based on your relationship as a valued customer or member.

Mortgage Refinance Requirements

Lender requirements for a refinance are similar to the qualifications for a new mortgage. Here are four basic factors lenders consider when reviewing your loan application:

• Credit history and score: Lenders will look at your FICO^® Score—and potentially your VantageScore^® credit score—to help determine the interest rate you receive. Higher credit scores generally translate to lower rates. Your lender will also review your credit reports for information on your outstanding debts and credit history.
• Home value and home equity: A home appraisal will show the fair market value of your home, which you can use to calculate your home equity. If your home equity is at least 20% of your home's value, you can refinance without PMI.
• Income and employment history: Lenders want to know that you have stable, reliable income to make monthly payments.
• Debt-to-income ratio (DTI): Ideally, your total monthly debt obligations shouldn't exceed 43% of your monthly gross income. For lenders, the lower your DTI, the better.

Learn more: What Credit Score Do I Need to Buy a House?

Pros and Cons of a 15-Year Refinance

Refinancing to a 15-year mortgage has many pros and cons, many of them related to your individual situation and needs. Here are some arguments for and against that might help you clarify your position:

Learn more: 15-Year vs. 30-Year Mortgage: Calculate the Best Loan

Should You Refinance Your Mortgage?

If your current mortgage is at least 1% higher than your refi rate, you may be able to meaningfully reduce your monthly payment or shorten your loan term, even after factoring in closing costs. You might also consider refinancing if you have an ARM that makes financial planning difficult or if your credit and financial profiles have improved since you took out your original loan, qualifying you for a lower interest rate now.

Tip: Use a mortgage calculator to estimate what your monthly payments would be, using different APRs and loan terms. You'll also see your total payments over the life of the loan, so you can compare overall savings on multiple loans.

Though everyone's situation is different, here are a few arguments for and against refinancing to a 15-year mortgage.

When to Consider a 15-year Refinance

• You can refinance to a better interest rate and lower your overall interest costs.
• Refinancing to a smaller loan will result in a lower monthly payment.
• You want to build equity faster with a shorter-term loan.
• You can pay your loan off sooner with a 15-year loan.
• You want to add or remove someone from your mortgage.
• You want to switch from an adjustable-rate to a fixed-rate mortgage.

When Not to Consider a 15-year Refinance

• Interest rates are higher than they were when you got your original mortgage.
• You don't have enough cash to pay for closing costs upfront.
• Closing costs outweigh what you might save on interest, especially if you roll them into your loan.
• Your monthly payments will increase and become unaffordable.
• You have 15 years or less left on your 30-year mortgage and you don't want to reset your timeline.

How to Get the Best 15-Year Refinance Rates

However mortgage rates are trending, you can generally get a better rate by trying one of these money-saving strategies:

• Shop around: Rates vary from one lender to another, so it's always wise to comparison shop for a loan. Check online to see who has the best available rates on 15-year refinance loans based on your credit score and the terms you want.
• Improve your credit score: You should check your FICO^® Score and credit report to get a clear picture of what lenders will see. If your credit score can use some improvement, consider taking a few months to focus on paying your bills on time and reducing your credit utilization, then try again.
• Pay points: Prepaid interest can help you lower your APR over the life of your loan. If your goal is a lower monthly payment, paying a point or two upfront can make a difference.
• Choose fixed or adjustable: Here, each choice has its pros and cons. ARMs tend to have lower starting APRs than fixed-rate loans, but their interest rates—and monthly payments—can adjust upward over time.
• Pay closing costs upfront: Before you choose a loan that rolls closing costs into your loan (sometimes known as a "no closing cost" loan), check the APR. A loan that allows you to add closing costs to your loan amount may have a higher interest rate.

Learn more: How to Get the Best Mortgage Rate

Alternatives to a 15-Year Refinance

You have several options to consider if you aren't sure whether a 15-year refi is right for you. These alternatives can help you meet different financial goals when a 15-year refi isn't the perfect fit:

• Make larger payments to pay your loan faster. Instead of refinancing, make larger or more frequent payments on your current 30-year loan. Use a loan calculator to amortize your remaining loan balance over 15 years at your current interest rate. Make the 15-year monthly payment to pay your loan off in 15 years, no refinance or closing costs required.
• Recast your mortgage to lower your payments. If you have a lump sum you can use to pay down your loan balance, ask your lender to recast your mortgage. Recasting, also known as re-amortizing, simply means recalculating your payments based on a new lower loan balance and your remaining loan term.
• Take out a home equity loan or HELOC for cash out. You don't have to refinance to use your home equity to pull out cash. A home equity loan or home equity line of credit (HELOC) is a second mortgage you carry in addition to your primary loan. If the APR on your original loan is lower than current rates, a home equity loan or HELOC lets you keep that rate in place.
• Consider a home equity investment for cash without payments. A home equity sharing agreement is like a home equity loan, but instead of borrowing against your equity, you allow investors to purchase a stake in your home's value. You buy back their interest at the end of your agreement's term (or when you sell your home), generally at an appreciated value. These arrangements allow access to cash with no need for monthly payments, but they can ultimately be costly when it's time to repay.
• Refinance to a new 30-year loan at a better rate. You want a lower APR but you don't want the larger monthly payment that comes with a 15-year loan. If interest rates are favorable, you can refinance your 30-year loan to a new 30-year loan and still save money. Doing so can extend the number of years you'll make monthly mortgage payments, but may lower your monthly payments and save on total interest costs.
• Get an unsecured personal loan. If you want to borrow cash but you don't want to go through a whole refi process, you can apply for an unsecured personal loan. You'll typically pay a higher interest rate for an unsecured loan, but you don't have to put your home up as collateral or increase your monthly mortgage obligation.

The Bottom Line

Deciding whether to refinance your home involves many steps. Consider your current loan, financial goals and potential savings. If current rates on a 15-year refinance will help you build equity and pay your loan off faster, switch to a more suitable mortgage, or save money in total interest costs, refinancing may be worth a closer look.

Since your credit profile plays a significant role in determining what your interest rate might be, you may want to monitor your credit for free during the loan shopping process. You'll receive alerts whenever there's a change to your credit file, which can help you avoid any surprises.