Best Mortgage Refinance Rates of 2022

Rankings, ratings, and reviews of the nation's leading refinance companies offering the best rates.

Lower your mortgage payment, save a fortune on interest, even get the cash you need. Compare top lenders and make them compete for you.

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Best Refinance Rates makes the process of finding a refinance lender more streamlined and efficient. To enable us to provide our content, we do sometimes collect revenue from our clients for consumers who visit their site from our site. We do not make any compensation for a consumer merely viewing our content. Although we sometimes adjust the ordering of which companies are profiled based on compensation, we make a point of reviewing each company independent of any compensation that may or may not be received to ensure we preserve the value that consumers enjoy from visiting our site.

Best Refinance Options for

BestRefinanceRates.com - Ranking 2022
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National Average as of May 13, 2021 (Source: freddiemac.com)

Compare Refinance Options

BestRefinanceRates.com makes it easy to compare all the top mortgage companies in one place.

Explore the list above and see personalized rankings by entering your zip code and answering a couple of basic questions. Save time and money by comparing multiple lenders in one place. Review multiple quotes and have refinance companies compete for your business by negotiating the best rates and the lowest fees.

BestRefinanceRates.com also makes it easy to decide. We tell you what you need to know before you borrow.

Our expert ratings and reviews guide you every step of the way. Based on our research, see which of the nation’s leading lenders and brokers perform the best for:

We also provide resources and tools, including a simple refinance calculator to see how much you stand to save by refinancing your loan.

What Is a Mortgage Refinance?

A refinance is when you replace your current mortgage with a new one. Much like the original mortgage, a refinance has the same components: the loan amount, interest rate, and the term.

The loan amount, or the principle, is the amount you want to borrow. The interest rate is the additional portion you are charged by a lender when paying back the loan amount. The term is the life of the loan and your payments. Common refinance terms include:

Learn more about mortgage refinance here.

Is It a Good Time to Refinance?

Refinance rates are always changing.

How about your mortgage payment, is it time for a change? The answer is likely yes if you are interested in:

How about your financial situation? Has it changed since you first started your current mortgage? If it has, refinancing could help you save by taking advantage of better circumstances or help you to meet certain financial goals.

Though everyone’s needs are different, here is how to determine if it is a good time to refinance:

Essentially, any time you can lower your monthly payment, reduce the amount of total interest you pay, or take advantage of your home’s equity, it’s a good opportunity to refinance. Keep in mind that you must also factor in closing costs.

Closing Costs

Closing costs can include fees for loan origination, application, discount points, home inspection, and title. They will vary by lender, with most charging a one-time fee of about 2% to 3% of your loan amount, and some offering no closing costs at all. In most cases, closing costs can be spread across your monthly payments to blunt any immediate financial impact. With a lower interest rate, it often does not take long into your new loan to break even on closing costs.

After considering current interest rates, assessing your current financial needs and situation, and subtracting any closing costs, it should be apparent if now is a good time to refinance and save.

Refinance Examples

The numbers can be overwhelming. To make things easier, we have developed this simple refinance calculator, and included an example scenario below:

To begin, let’s say a homeowner purchased a house that costs $400,000. After giving a down payment of 20%, the homeowner took out a 30-year mortgage at an interest rate of 4.50%.

Scenario 1: Stay on the original mortgage.
Here are the numbers if this homeowner never refinances:

Loan Term Interest Rate Home Price % Down Payment Loan Amount Monthly Payment Closing Costs Loan Lifetime Interest Total Mortgage Cost
30 years 4.75% $400,000 20% $320,000 $1,660 $6,400 $277,725 $283,400
Loan Term Interest Rate Home Price % Down Payment Loan Amount
30 years 4.75% $400,000 20% $320,000
Monthly Payment Closing Costs Loan Lifetime Interest Total Mortgage Cost
$1,660 $6,400 $277,725 $283,400

In this scenario, after 30 years the homeowner ends up paying $277,725 in lifetime interest. Along with the $6,400 initial closing cost, the total cost to borrow $320,000 is $283,400.

Scenario 2: Refinance 5 years after date of home purchase.
Now, let’s say instead of completing the above mortgage, this same homeowner notices interest rates have dropped, and decides to refinance.

Here are the numbers for a 30-year refinance after being on the original mortgage for five years:

Refinance Term Refinance Interest Rate Principle Paid from Original Loan Interest Paid from Original Loan Refinance Loan Amount New Monthly Payment New Closing Costs New Loan Lifetime Interest Total Mortgage Cost
30 years 3.30% $27,919 $72,216 $292,081 $1,271 $5,842 $166,502 $246,220
Refinance Term Refinance Interest Rate Principle Paid from Original Loan Interest Paid from Original Loan
30 years 3.30% $27,919 $72,216
Refinance Loan Amount New Monthly Payment New Closing Costs New Loan Lifetime Interest Total Mortgage Cost
$292,081 $1,271 $5,842 $166,502 $246,220

With a more favorable interest rate of 3.30%, this homeowner stands to pay $166,502 in lifetime interest. Add the interest already paid from the original mortgage ($72,216), along with both closing costs, and this homeowner will spend $246,220 in mortgage costs. That is not only $37,100 less than the original loan, but this homeowner’s monthly payment is also lower by $389, or almost $5,000 per year. After considering the additional five years of being a loan, the monthly payment savings add up to another $40,440, bringing the total savings to $77,540.

Scenario 3: Refinance 5 years after date of home purchase, but with a shorter term.
How would the above look if this same homeowner refinanced from a 30 to a 20-year term?

Refinance Term Refinance Interest Rate Principle Paid from Original Loan Interest Paid from Original Loan Refinance Loan Amount New Monthly Payment New Closing Costs New Loan Lifetime Interest Total Mortgage Cost
20 years 3.30% $27,919 $72,216 $292,081 $1,655 $5,842 $106,103 $185,821
Refinance Term Refinance Interest Rate Principle Paid from Original Loan Interest Paid from Original Loan
20 years 3.30% $27,919 $72,216
Refinance Loan Amount New Monthly Payment New Closing Costs New Loan Lifetime Interest Total Mortgage Cost
$292,081 $1,655 $5,842 $106,103 $185,821

Though the monthly payments are comparable to the original mortgage, the reduction in lifetime interest paid would be substantial, or $97,579 in savings. Additionally, this homeowner would pay off their home five years faster. Those five years of fewer payments adds up to another $99,600, bringing the total savings to $197,179.

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