Refinance rates · May 2026
Homeowners who bought in 2022–2024 at 7.5–8% are now looking at potential savings of $300–$600/month. See your break-even, compare products, and get a personalized analysis — no hard credit pull.
May 2026 refi environment
With the Fed holding its benchmark rate steady since Q1 2026, mortgage rates have stabilized in the mid-6s — the first consistent refi window since the 2022–2023 rate surge. For buyers who locked at 7.5–8%, this is the crossover point where the math finally works.
Rates are stable in the mid-6s with no significant downward catalyst expected before summer. For 2023–2024 buyers, locking now rather than waiting for a drop that may not materialize is the lower-risk move.
When to keep floating
If your current rate is below 7%, the break-even may be tight at mid-6s rates. A 0.25–0.5% further drop meaningfully improves the math — but only float if you can absorb rates staying flat.
Savings calculator
Enter your current mortgage details — see your savings instantly.
Check your mortgage statement for the exact rate
Typically $5K–$10K in Washington; lender can quote exactly
Pre-filled from Freddie Mac PMMS · editable
Monthly savings
$424
$4,545/mo → $4,121/mo (P&I)
0.97% rate reduction
Annual savings
$5,083
Break-even
18 mo
November 2027
5-yr net savings
$17,917
10-yr net savings
$43,334
Today's refi rates
| Product | Rate | Est. APR | W/W change | Best for |
|---|---|---|---|---|
| 30-yr rate-and-term | 6.66% | 6.88%APR | Stable | Payment relief for 2022–2024 buyers |
| 15-yr rate-and-term | 6.00% | 6.19%APR | Stable | Build equity faster; higher monthly payment |
| 30-yr cash-out | ~6.91%est. | ~7.31%APR | — | Access equity for renovations or debt payoff |
| FHA streamline | ~6.28%est. | ~7.13%APR | — | Existing FHA borrowers — no appraisal needed |
| VA IRRRL | ~6.08%est. | ~6.50%APR | — | Eligible veterans — fastest path to a lower rate |
Conforming refi rates based on Freddie Mac PMMS + 0.125% refi premium. Cash-out, FHA, and VA are estimates. Not a lender commitment. APR includes estimated fees; FHA APR includes 1.75% upfront MIP; VA APR includes 2.3% funding fee.
Product comparison
In May 2026, homeowners have three main equity-access tools. The right one depends on your current rate, goal, and how long you plan to stay.
| Factor | Rate & Term Refi | Cash-Out Refi | HELOC |
|---|---|---|---|
| Best for | Lowering your payment | Renovations or debt payoff | Flexible short-term draws |
| Rate type | Fixed | Fixed (+0.25–0.375%) | Variable (prime + margin) |
| Replaces 1st mortgage | ✓ Yes | ✓ Yes | ✗ No — 2nd lien |
| Closing costs | $5K–$10K | $5K–$10K | Low / none |
| Best if current rate is | 7%+ (buy 2022–2024) | 7%+ with equity need | Sub-5% (don't disturb) |
| May 2026 fit | ★★★ Strong | ★★ Moderate | ★★ Good for 2020–21 owners |
Get your analysis
Tell us your current rate and goal. A RexMont advisor will send you a lender comparison, break-even analysis, and product recommendation — tailored to your scenario.
Check your mortgage statement — even an estimate works.
What you'll receive
Typical timeline
Most Washington State refis close in 21–30 days. FHA Streamline and VA IRRRL often close in 14–21 days.
Step-by-step guide
Step 01
Check your current rate and balance
Find your most recent mortgage statement. You need your current interest rate and remaining principal balance — these two numbers drive the entire break-even analysis.
Step 02
Calculate your break-even
Divide estimated closing costs by your projected monthly savings. If you plan to stay in the home past the break-even month, refinancing is likely beneficial.
Step 03
Choose your product
Rate-and-term for payment relief. Cash-out if you need equity access. FHA Streamline or VA IRRRL if eligible — these require the least documentation and close fastest.
Step 04
Get quotes from at least three lenders
APR is the apples-to-apples comparison. Include a local credit union or regional lender alongside national options — they often have better pricing on Washington jumbo files.
Step 05
Lock your rate
Once you've chosen a lender and the payment fits your budget, lock. Rate locks typically run 30–45 days. If your closing timeline is longer, ask about extended lock options.
The classic rule of thumb is a rate drop of at least 1% — but the real test is the break-even: divide your closing costs by your monthly savings. If you plan to stay in the home past that point, refinancing typically makes sense. For Seattle and Bellevue homeowners who bought in 2022–2024 at 7%+, the current mid-6s environment often clears the break-even in under 24 months.
A rate-and-term refi replaces your existing loan with a new one at a lower rate or different term — your loan balance stays roughly the same. A cash-out refi replaces your loan for more than you owe, giving you the difference in cash. Cash-out rates typically run 0.25–0.375% higher than rate-and-term because of the additional lender risk.
The FHA Streamline is a simplified refi for existing FHA borrowers — limited documentation, no new appraisal in most cases, and no income verification. It's designed purely to lower your rate or payment, not to pull out equity. If you have an FHA loan from 2022–2024 at a high rate, this is often the fastest and cheapest path to a lower payment.
The VA Interest Rate Reduction Refinance Loan (IRRRL) works like the FHA Streamline but for VA borrowers. It requires no appraisal, no income verification, and carries a reduced VA funding fee. Eligible veterans who bought in 2022–2024 can often complete an IRRRL in 2–3 weeks with minimal paperwork.
A refinance makes sense when your goal is a lower rate and payment on your entire loan balance. A HELOC makes sense when you want to access equity without disturbing a favorable first mortgage — or for flexible, shorter-term draws like renovation projects. In May 2026, homeowners who bought in 2020–2021 at sub-4% rates are often better served by a HELOC than a cash-out refi.
Typical Washington State refi closing costs run $5,000–$10,000, depending on loan size, title and escrow fees, and any points. Some lenders offer no-cost refis that roll the fees into the rate — you pay a slightly higher rate but nothing out of pocket. For most mid-6s refis in King County, a no-cost structure still generates positive monthly savings for 2022–2024 buyers.
Methodology: Rate-and-term refi rates add a 0.125% refi premium to the current Freddie Mac PMMS conforming rate, sourced via Federal Reserve FRED. Cash-out, FHA, and VA rates are market-spread estimates. APR estimates assume $7,500 in fees on a $650K loan; FHA includes 1.75% upfront MIP; VA includes 2.3% funding fee. All rates are educational and not a lender commitment. Consult a licensed mortgage professional before making financial decisions.