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Average Refinance Rate by Credit Score (2026 Guide)

By Wirly Editorial Team | Updated March 29, 2026

Average Refinance Rate by Credit Score (2026 Guide)

Quick Answer

Your credit score is one of the biggest factors determining what refinance rate you will pay. According to data from Freddie Mac and the Consumer Financial Protection Bureau, borrowers with credit scores of 760 and above typically qualify for the lowest refinance rates, while those with scores below 620 may pay significantly higher interest rates – sometimes 1.5 to 2 percentage points more. That difference can translate to hundreds of dollars per month on your monthly mortgage payment, and tens of thousands of dollars over the full loan term.

If you are considering a refinance loan, understanding how your credit score affects your rate is the first step toward saving money. Below, we break down current rate trends by credit score tier, explain what drives these differences, and outline practical steps to position yourself for the best rate available.

Disclaimer: This article is educational content only and does not constitute financial advice. Wirly is not a lender or mortgage broker. Rates change daily, and your individual rate will depend on your full financial profile. Consult a qualified financial professional before making refinancing decisions.

Current Mortgage Refinance Rate Trends – March 2026

According to FRED (Federal Reserve Economic Data), the average 30-year fixed mortgage rate has fluctuated throughout 2025 and into early 2026. As of late March 2026, the Freddie Mac Primary Mortgage Market Survey shows the average 30-year fixed rate hovering near 6.65%, though this figure represents an average across all credit tiers and borrower profiles.

It is important to understand that the “average rate” most people see in headlines reflects a blended figure. Your actual refinance rate will differ based on your credit score, loan amount, loan-to-value ratio, and the type of refinance you choose. A borrower with an excellent credit score might see rates well below the average, while someone with a fair or poor score could be looking at rates well above it.

Current rates for other loan types are also important context. The average 15-year fixed refinance rate is typically about 0.5 to 0.75 percentage points below the 30-year rate, according to Freddie Mac data. Adjustable-rate mortgage (ARM) products, such as a 5/1 ARM, may start even lower but carry the risk of rate increases after the initial fixed period.

How Credit Scores Affect Mortgage Rates

According to the Consumer Financial Protection Bureau, “Your credit score and the information on your credit report determine whether you’ll be able to get a mortgage, and the rate you’ll pay.” This is true whether you are getting a new home loan or choosing to refinance your mortgage.

Mortgage lenders use your credit score as a measure of risk. A higher score signals that you have a strong history of repaying debts on time, which makes lenders more comfortable offering you a lower interest rate. Conversely, a lower score suggests higher risk, and lenders compensate by charging higher interest rates.

Refinance Rate Tiers by Credit Score

While exact rates vary by lender and change daily, here is a general breakdown of how credit score tiers affect 30-year fixed refinance rates, based on pricing data published by Freddie Mac’s Loan-Level Price Adjustments (LLPAs) and general market observations:

  • 760 and above (Excellent): Borrowers in this tier typically qualify for the best rate available. They may see refinance rates at or slightly below the widely published average. Rate adjustments from lenders are minimal.
  • 740 to 759 (Very Good): Rates in this tier are still very competitive, usually within 0.125 to 0.25 percentage points of the top tier.
  • 720 to 739 (Good): Borrowers here may see rates approximately 0.25 to 0.5 percentage points above the best available rates.
  • 700 to 719 (Good): This tier often faces an additional 0.5 to 0.75 percentage point premium compared to the 760-plus tier.
  • 680 to 699 (Fair to Good): Rates typically run 0.75 to 1.0 percentage points higher than the best tier.
  • 660 to 679 (Fair): Borrowers may see rates 1.0 to 1.5 percentage points above top-tier pricing.
  • 620 to 659 (Fair): This is often the minimum credit score for conventional refinancing. Rates can be 1.5 to 2.0 percentage points above the best rates.
  • Below 620: Most conventional mortgage lenders will not approve a refinance loan at this level. FHA or VA refinance options may still be available, but they come with additional costs such as mortgage insurance.

What the Rate Difference Actually Costs You

To put this into real dollar terms, consider a $300,000 refinance loan on a 30-year fixed refinance. Using a rough illustration based on current rates:

  • At 6.25% (760+ credit score): Monthly mortgage payment of approximately $1,847 (principal and interest).
  • At 7.00% (680 credit score): Monthly mortgage payment of approximately $1,996 (principal and interest).
  • At 7.75% (640 credit score): Monthly mortgage payment of approximately $2,151 (principal and interest).

The difference between the top and bottom tiers in this example is about $304 per month, or roughly $109,440 over the full 30-year loan term. You can explore how different rates affect your own situation using our refinance calculator.

Weekly National Mortgage Interest Rate Trends

According to Freddie Mac’s Primary Mortgage Market Survey, mortgage rates have shown moderate volatility in early 2026. The 30-year fixed mortgage rate ended 2025 near 6.85% and has moved somewhat lower into the mid-to-low 6% range as of March 2026.

Several economic factors are influencing current rates:

  • Federal Reserve policy: The Federal Reserve’s decisions on the federal funds rate indirectly influence mortgage rates. While the Fed does not set mortgage rates directly, its policy signals affect the bond market, which in turn drives long-term rates like the 30-year mortgage rate.
  • Inflation data: Persistent inflation tends to push rates higher, while signs of cooling inflation can bring rates down. According to FRED data, the Consumer Price Index has shown gradual easing, which has contributed to the modest downward trend in rates.
  • Treasury yields: The 10-year Treasury yield, tracked by FRED, is closely correlated with 30-year mortgage rates. As Treasury yields have stabilized in early 2026, so have mortgage rates.
  • Housing market conditions: According to Census Bureau data, housing starts and existing home sales provide signals about housing demand, which can influence lender pricing.

Remember that rates change daily, and sometimes multiple times per day. The rate you see today may not be available tomorrow. Always check current rates with multiple mortgage lenders before making a decision.

What Else Affects Your Mortgage Rate?

While your credit score is a major factor, it is not the only one that determines your refinance rate. According to the CFPB, lenders also consider the following when setting your rate:

Loan-to-Value Ratio (LTV)

This is the ratio of your remaining loan amount to your home’s current value. A lower LTV – meaning you have more equity in your home – typically results in a lower rate. If your LTV exceeds 80%, you may also be required to pay mortgage insurance, which adds to your monthly costs.

Loan Type and Term

The type of refinance matters. A standard rate-and-term refinance (where you simply adjust your rates and terms without pulling cash out) typically gets better pricing than a cash-out refinance. According to FHFA pricing guidelines, cash-out refinance loans carry additional pricing adjustments that can increase your rate by 0.375 to 0.75 percentage points compared to a no-cash-out refinance.

The loan term also plays a role. A 15-year fixed refinance will generally carry a lower interest rate than a 30-year product, though the monthly payment will be higher due to the shorter repayment period.

Property Type and Occupancy

Refinancing a primary residence generally qualifies for the lowest rates. Investment properties and second homes carry higher rate adjustments. Multi-unit properties also face additional pricing premiums.

Debt-to-Income Ratio

Your total monthly debt payments compared to your gross monthly income matter. According to the CFPB, lenders look at how much debt you already have when deciding your eligibility and rate. A lower debt-to-income ratio can help you qualify for a lower rate.

Mortgage Points

You may have the option to pay mortgage points (also called discount points) upfront to buy down your interest rate. One point typically costs 1% of your loan amount and may reduce your rate by approximately 0.25 percentage points, though this varies by lender. Whether paying points makes sense depends on how long you plan to keep the loan.

Should You Refinance Your Mortgage?

Refinancing can be a smart financial move in several scenarios, but it is not always the right choice. Here are situations where a mortgage refinance may make sense:

  • Your current mortgage has an interest rate significantly higher than current rates (generally at least 0.75 to 1 percentage point higher).
  • You want to switch from an adjustable-rate mortgage to a fixed refinance for payment stability.
  • You want to shorten your loan term – for example, moving from a 30-year to a 15-year – to save on total interest.
  • Your credit score has improved substantially since you took out your current mortgage, which could qualify you for a lower interest rate.
  • You need to access equity through a cash-out refinance for a specific financial goal.

Use our mortgage calculator to estimate your potential savings based on your current mortgage details and expected new rate.

Risks and Considerations

Refinancing is not free, and it does not always save you money. Before moving forward, carefully consider these risks and costs:

Break-Even Period

Refinancing involves closing costs, which according to FHFA data typically range from 2% to 5% of the loan amount. You need to calculate your break-even point – the number of months it takes for your monthly savings to recoup those costs. If you plan to move or sell your home before reaching that break-even point, refinancing may actually cost you money.

Resetting Your Amortization Clock

One of the most commonly overlooked downsides of refinancing is the impact on loan amortization. If you are 10 years into a 30-year mortgage and refinance into a new 30-year loan, you are restarting the clock. Even if your new rate is lower, you may end up paying more in total interest over the life of the loan because you are extending the repayment period. Consider refinancing into a shorter loan term to avoid this trap.

Hidden Costs

Common refinancing costs that borrowers miss include:

  • Appraisal fees: Typically $400 to $700, required by most lenders to confirm your home’s value.
  • Title insurance and search fees: Can add $500 to $1,500 or more.
  • Prepayment penalties: Some existing mortgages charge a penalty for paying off the loan early. Check your current mortgage terms carefully.
  • Escrow adjustments: You may need to fund a new escrow account, which requires additional upfront cash.

Credit Score Impact

When you apply for a refinance loan, the lender will pull your credit report, resulting in a hard inquiry. Multiple hard inquiries in a short period can temporarily lower your credit score. However, most credit scoring models treat multiple mortgage inquiries within a 14 to 45 day window as a single inquiry, so it is wise to compare rates from multiple lenders within a concentrated timeframe.

Rate Lock Risks

When you lock in a rate, that rate is guaranteed only for a specific period – typically 30 to 60 days. If your closing is delayed beyond the lock expiration, you may face a higher rate or need to pay a fee to extend the lock. Ask your lender about float-down options, which allow you to take advantage of rate decreases after locking.

Common Complaints in the Refinance Process

According to CFPB complaint data from 2024, the most common mortgage-related complaints involve trouble during the payment process and difficulties when applying for a mortgage or refinancing an existing mortgage. Across major servicers, between 4% and 49% of complaints related specifically to refinancing applications. This underscores the importance of choosing a lender with a strong customer service record and staying proactive throughout the process.

How to Improve Your Credit Score Before Refinancing

If your credit score is not where you want it to be, taking steps to improve it before applying can save you significant money on your refinance rate. Here are practical strategies:

Check and Monitor Your Credit Score

According to the CFPB, “Errors on your credit report can reduce your score inappropriately – which could mean a higher interest rate and less money in your pocket.” Pull your free credit report from all three major bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com and dispute any errors you find.

Pay Down Existing Debt

Your credit utilization ratio – the percentage of available credit you are using – heavily influences your score. Paying down credit card balances to below 30% of your limit (and ideally below 10%) can boost your score meaningfully within a few months.

Avoid Opening New Credit Accounts

The CFPB specifically advises: “Don’t apply for a lot of new credit in a short time, especially if you are getting ready to get a mortgage. Doing so may negatively affect your score.” Hold off on new credit cards, auto loans, or other borrowing until after your refinance closes.

Make All Payments on Time

Payment history is the single largest factor in your credit score. Even one late payment can cause a significant drop. Set up autopay or reminders to ensure every bill is paid on time.

Give Yourself Time

Meaningful credit score improvement does not happen overnight. If your score is in the 660 to 700 range and you want to reach 740 or higher, plan to spend three to six months working on your credit before applying for a refinance.

How to Get the Best Refinance Rate

Beyond improving your credit score, there are additional strategies to help you secure the lowest possible refinance rate:

  • Compare rates from multiple lenders: According to the CFPB, shopping around is one of the most effective ways to save money on a mortgage. Even small differences in rate quotes can add up to substantial savings over the life of the loan. Use Wirly’s tools to compare rates across different lenders.
  • Consider paying mortgage points: If you plan to stay in your home for many years, buying down your rate with points can save money in the long run.
  • Choose the right loan type: A 15-year fixed refinance will typically have a lower rate than a 30-year. If you can afford the higher monthly mortgage payment, the interest savings are substantial.
  • Increase your home equity: If possible, make additional principal payments on your current mortgage before refinancing to lower your LTV ratio and potentially qualify for better pricing.
  • Lock your rate strategically: Once you find a rate you are comfortable with, lock it in promptly. Waiting for rates to drop further is essentially a gamble.

How to Refinance Your Mortgage – Step by Step

  1. Check your credit score and credit report. Know where you stand before you start shopping. Fix any errors and take steps to improve your score if needed.
  2. Determine your goals. Are you seeking a lower interest rate, a shorter loan term, a switch from an adjustable-rate mortgage to a fixed rate, or a cash-out refinance?
  3. Calculate your potential savings. Use our refinance calculator to estimate your new monthly mortgage payment and total interest savings.
  4. Shop and compare rates. Get quotes from at least three to five mortgage lenders. Be sure to compare the Annual Percentage Rate (APR), which includes fees and gives you a more complete picture of costs.
  5. Submit your application. Provide the required documentation, including income verification, tax returns, and details about your current mortgage.
  6. Get an appraisal. The lender will typically require a home appraisal to confirm your property’s value.
  7. Review the Closing Disclosure. You will receive this document at least three business days before closing. Review it carefully to confirm all rates and terms match what you were quoted.
  8. Close on your refinance. Sign the final documents and begin making payments on your new loan.

Not Seeing the Rates You Are Looking For?

If the rates available to you seem higher than what you have seen advertised, keep a few things in mind. Advertised rates often reflect the very best-case scenario: a borrower with a 760+ credit score, 20% or more equity, a primary residence, and no cash-out. Your actual rate will reflect your unique financial profile.

If you are not satisfied with the rates you are being quoted, consider these steps:

  • Work on improving your credit score and reapply in a few months.
  • Pay down your loan balance to improve your LTV ratio.
  • Ask lenders about different loan products that might offer better pricing for your situation.
  • Consider a shorter loan term, which often comes with a lower rate.

FAQs

What is the average refinance rate by credit score?

There is no single universal rate. Borrowers with scores of 760+ typically get the lowest rates (often close to or below the published average), while those with scores in the 620-659 range may pay 1.5 to 2 percentage points more. The exact rate depends on your full financial profile, the lender, and market conditions on the day you lock.

Have average refinance rates by credit score changed recently?

Yes. According to FRED data, overall mortgage rates have fluctuated throughout 2025 and into 2026. The spread between credit score tiers – meaning how much more lower-score borrowers pay compared to higher-score borrowers – has remained relatively consistent, as these spreads are largely driven by FHFA loan-level price adjustments that change less frequently than overall market rates.

Should my refinance rate be higher or lower than my current rate?

Ideally, you want your refinance rate to be lower than your current mortgage rate. Most financial advisors suggest that a reduction of at least 0.75 to 1 percentage point is typically needed to make refinancing worthwhile after accounting for closing costs. However, this depends on your loan amount, how long you plan to stay in the home, and the total closing costs involved.

Do refinance rate differences by credit score apply to all loan types?

Credit score affects rates across all loan types, including conventional loans, FHA loans, and VA loans. However, the specific impact varies. FHA loans, for example, have less rate variation by credit score than conventional loans but require mortgage insurance regardless of LTV. Government-backed loans may be more accessible to borrowers with lower scores.

Can I refinance with a credit score below 620?

Most conventional mortgage lenders require a minimum credit score of 620 for refinancing. However, FHA streamline refinance programs may be available with lower scores if you already have an FHA loan. VA refinance options may also be available to eligible veterans with lower credit scores.

Refinance Resources

Explore these tools on Wirly to help you make informed decisions about your mortgage refinance:

Sources

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Written by the Wirly Editorial Team. Last reviewed: March 29, 2026. Fact-checked against FRED March 2026, Freddie Mac PMMS, CFPB guidance (reviewed Dec 2024), FHFA LLPAs, CFPB complaint data 2024, HMDA 2023, Census Bureau. See our methodology for how we evaluate lenders.

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This guide is for educational purposes only. Consult a licensed mortgage professional for personalized advice. Wirly is not a lender or mortgage broker.