Mortgage Rates 2026: When to Refinance & Best Lenders (Rocket vs Better vs Chase)

Mortgage rates have eased from 2023 peaks, opening refinance opportunities for homeowners with existing loans above 7%. Whether you’re buying or refinancing, the right lender and timing can save tens of thousands. This guide covers mortgage rates in 2026, when to refinance, and how to compare top lenders.

Why Mortgage Rates Fell in Early 2026

According to Freddie Mac, the average 30-year fixed rate hovered near 6.5% in February 2026, down from 7%+ in 2023. Fed rate cuts and inflation moderation have helped. Refinancing from 7.5% to 6.5% on a $300,000 loan saves roughly $180/month.

Comparison Table: Rates, Fees, and Process

Rates change daily. Lock when you find a good offer.

When to Refinance: The Break-Even Rule

Calculate break-even: closing costs divided by monthly savings. If refinancing costs $4,000 and saves $200/month, you break even in 20 months. Plan to stay in the home longer than that. Otherwise, you lose money.

Practical Case: $300,000 Loan, 7.5% to 6.5% Refinance

Monthly payment drops from ~$2,098 to ~$1,896—$202 saved. With $5,000 in closing costs, break-even is about 25 months. If you’ll stay 5+ years, refinancing makes sense.

First-Time Homebuyer Programs: Down Payment Assistance

FHA, VA, and USDA loans offer low down payments. State and local programs add grants and forgivable loans. Check your state housing authority and HUD for options.

Best Mortgage Lender for 2026: Our Take

Rocket Mortgage and Better lead for online convenience. Chase suits those who want branch support. Shop at least three lenders—rates and fees vary widely.

Get quotes: Compare mortgage rates at Rocket Mortgage, Better, or Chase—most offer free rate quotes with no obligation.