A good refinance rate is one that is at least 0.5%–1% lower than your current rate and qualifies you for a break-even point shorter than how long you plan to stay. The best rates go to borrowers with a credit score of 740+, at least 20% equity, and a stable income history.
There is no single "good" refinance rate — it depends on the current market, your credit profile, your loan type, and your loan term. What matters most is whether the rate is good for you, meaning it saves you enough money to justify the closing costs.
Here is how to think about it.
How credit score affects your rate
Your credit score is the single biggest factor in the rate you'll be offered. Lenders use it to assess risk — the higher your score, the lower the rate they'll offer.
Typical refinance rates by credit score
| Credit score | Rate tier | Approx. rate premium |
|---|---|---|
| 760 and above | Best available rates | +0.00% |
| 740–759 | Excellent | +0.125% |
| 720–739 | Very good | +0.25% |
| 700–719 | Good | +0.375% |
| 680–699 | Fair | +0.5% |
| 660–679 | Below average | +0.75% |
| 620–659 | Minimum qualifying | +1.0%+ |
The difference between a 620 and a 760 score on a $300,000 loan can mean paying over $50,000 more in interest over 30 years. If your score is below 740, it's worth taking 6–12 months to improve it before refinancing.
What else affects your refinance rate?
Loan-to-value ratio
The more equity you have, the better your rate. Having 20%+ equity avoids PMI and qualifies you for better pricing tiers.
Loan term
15-year rates are typically 0.5%–0.75% lower than 30-year rates. Shorter terms mean less risk for the lender.
Income and employment
Stable employment history and consistent income reassure lenders. Self-employed borrowers may face slightly higher rates.
Debt-to-income ratio
Lenders prefer a DTI below 43%. Lower DTI signals you can comfortably afford the new payment, which can improve your rate.
Property type
Primary residences get the best rates. Investment properties and second homes typically carry rates 0.5%–0.75% higher.
Points paid upfront
Paying discount points at closing can lower your rate. One point costs 1% of the loan and typically reduces the rate by 0.25%.
How to get the lowest refinance rate
6 ways to lower your refinance rate
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Compare Rates Now →Common questions
What is a good refinance rate?
A good refinance rate is one that is at least 0.5%–1% lower than your current rate. What counts as good depends on current market conditions, your credit score, and your loan term. The best way to know is to compare offers from at least three lenders.
What credit score gets the best refinance rate?
A credit score of 740 or higher typically qualifies you for the best available rates. Each 20-point improvement in your score can lower your rate by 0.125%–0.25%.
How do I get the lowest refinance rate?
Improve your credit score before applying, shop at least three to five lenders, consider a shorter loan term, maintain at least 20% equity, and consider paying points to buy down your rate.
Does a 15-year refinance have a lower rate than a 30-year?
Yes. 15-year refinance rates are typically 0.5%–0.75% lower than 30-year rates. The tradeoff is a higher monthly payment, but you pay significantly less interest overall.
How much does my credit score affect my refinance rate?
Your credit score is one of the biggest factors in your rate. The difference between a 620 and a 760 score can be 1% or more, which on a $300,000 loan translates to tens of thousands of dollars over the life of the loan.