Current refi mortgage rates report for Jan. 12, 2026
Fortune••business
Key Points:
- Mortgage refinancing involves paying off your existing home loan with a new one, requiring an application process that affects your credit score and depends on lender approval based on credit, income, and debt-to-income ratio.
- Despite Federal Reserve rate cuts in 2024 and 2025, mortgage rates have remained near 7% for 30-year fixed loans, well above pandemic-era lows, with most homeowners locked into rates below 6%, limiting refinancing activity.
- Refinancing makes financial sense if you can reduce your interest rate by about one percentage point, want to tap home equity via a cash-out refi (typically requiring 20% equity), adjust loan terms for monthly payment flexibility, or switch loan types to eliminate mortgage insurance or avoid adjustable-rate increases
