What is refinancing a mortgage?

Refinancing a home loan basically means you’re swapping your current mortgage for a new one – usually with a new principal loan balance and interest rate. The new mortgage pays off your previous one so you’re left with just one loan and one monthly payment. By refinancing your mortgage you might be able to lower your interest rate, decrease your monthly payments or change terms.

Reach your goals with refinancing options from U.S. Bank.

Rate-and-term refinance

Lower your rate and term.

A rate-and-term refinance may help you lower your monthly mortgage payment or allow you to pay off your home sooner.

Cash-out refinance

Access your home’s equity

A cash-out refinance is a great way to get new mortgage terms and borrow funds for one-time expenses.

Decide if refinancing is right for you.

See how much you could save.

Our mortgage refinance calculator will give you an estimate of how much you could save by refinancing your existing mortgage.

Weigh the pros and cons of refinancing.

If interest rates have dropped, or your credit score has improved, you may be able to get better loan terms by refinancing.

Navigate the refinance process.

When considering a mortgage refinance, it’s important to understand the process and your potential benefits.

Choose when to refinance.

If the time is right, refinancing could save you money, but there’s more to consider than just interest rates.

See today’s refinance rates.

Refinancing might make sense for you if interest rates are lower than when you took out your home mortgage.

Get answers to common refinancing questions.

Save up to $1,000 on the closing costs of your next refinance.

If you have an existing U.S. Bank first mortgage, a U.S. Bank Smartly® Checking account or an existing Gold or Platinum Checking Package, you may be eligible for a client credit5 of 0.25% of the loan amount deducted from the closing costs of your new first mortgage, up to a maximum of $1,000.6

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Please enter an amount between $1,000 and $3,000,000.
Potential closing cost savings $0

See what sets us apart.

At U.S. Bank, we’re committed to serving our millions of clients and partners. Our dedication to doing what’s right places us a step above the rest. And we continue to be recognized for our ethical and inclusive culture, digital capabilities and more, including:

Learn more about refinancing and related topics.

Refinance to remove mortgage insurance.

What is cash-out refinancing and is it right for you?

Cash-out refinance vs. home equity loans and lines of credit

Want to use home equity to fund a major purchase without refinancing?

A home equity loan or a home equity line of credit might be just what you’re looking for. They’re great ways to pay for things like home improvements, tuition, big events and more.

Home equity loan

Better for a one-time expense

  • Fixed interest rates
  • Predictable repayment schedule
  • Terms up to 30 years11

Home equity line of credit

Better for ongoing access to funds as needed12

  • Rates typically lower than credit cards
  • Flexible repayment options
  • Option to lock in a fixed rate
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Disclosures

Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rate and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered through U.S. Bank National Association. Deposit products are offered through U.S. Bank National Association. Member FDIC.

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  1. Conforming fixed-rate loans: The annual percentage rate (APR) calculation assumes a $464,000 fixed-term loan with 25% borrower equity and borrower-paid finance charges of 0.862% of the loan amount, plus origination fees if applicable. If the borrower equity is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Conforming rates are for loan amounts not exceeding $766,550 ($1,149,825 in Alaska and Hawaii).

  2. Annual percentage rate (APR) represents the true yearly cost of your loan, including any fees or costs in addition to the actual interest you pay to the lender. The APR may be increased after the closing date for adjustable-rate mortgage (ARM) loans.

  3. The rates shown above assume you have a FICO® Score of 740+ and at least 25% equity for a conventional fixed-rate loan, an adjustable-rate mortgage (ARM) loan or a jumbo loan, at least 3.5% equity for an FHA loan and no equity for a VA loan. They also assume the loan is for a single-family home as your primary residence and you will purchase up to one mortgage point. Mortgage points, or discount points, are a form of prepaid interest you can choose to pay up front in exchange for a lower interest rate and monthly payment. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500. Connect with a mortgage loan officer to learn more about mortgage points.

  4. Conforming fixed-rate estimated monthly payment and APR example: A $464,000 loan amount with a 30-year term at an interest rate of 6.500% with borrower equity of 25% and no discount points purchased would result in an estimated monthly principal and interest payment of $2,933 over the full term of the loan with an annual percentage rate (APR) of 6.667%.

    Estimated monthly payment and APR calculation are based on borrower equity of 25% and borrower-paid finance charges of 0.862% of the base loan amount. If the borrower equity is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payment does not include amounts for taxes and insurance premiums and the actual payment obligation will be greater.

  5. Clients may be eligible for this credit with an existing U.S. Bank first mortgage, a U.S. Bank Smartly Checking account or an existing Gold or Platinum Checking Package. A minimum of $25 is required to open a U.S. Bank Smartly Checking account. For a comprehensive list of account pricing, terms and policies see the Consumer Pricing Information disclosure and the Your Deposit Account Agreement. These documents can be obtained by contacting a U.S. Bank branch or calling 800-872-2657.

  6. To calculate the U.S. Bank Client Credit, take 0.25% of your new first mortgage loan amount and deduct it from the closing costs. For purchase or refinance transactions, the maximum credit is $1,000. Certain mortgages may not be eligible for stated credits. Offer may not be combined with any other mortgage offers and can only be applied once per property within a 12-month period.

  7. The 2021 Kiplinger Best Financial Customer Service rankings gave U.S. Bank the highest score among mortgage lenders in its survey for best mortgage digital capabilities.

  8. U.S. Bank named one of the “World’s Most Ethical Companies®” Ethisphere Institute, February 2024 (also 2015–2023); for more information about the ‘World’s Most Ethical Company’ designation and scoring methodology, please visit www.worldsmostethicalcompanies.com.

  9. Industry executives, directors, and analysts from 660 companies in 29 countries, with revenues of $10 billion or more, were surveyed by Korn Ferry in collaboration with Fortune Magazine for their 2024 list. Survey responders rated their industry peers who paid a fee to be considered on nine criteria: management quality, people management, use of corporate assets, financial soundness, investment value, social responsibility, innovation, quality of products/services, and global competitiveness. Rankings were determined by an aggregate of how peers ranked the company in each of the key attribute categories. Companies that scored in the top half of their industry were recognized. Get more detail about the selection methodology.

  10. Digital financial services benchmarking firm Keynova Group ranked U.S. Bank #1 for mobile banking apps in its Q3 2023 Mobile Banker Scorecard.

  11. Home Equity Loan: As of March 15, 2024, the fixed Annual Percentage Rate (APR) of 7.65% is available for 10-year second position home equity installment loans $50,000 to $99,999 with loan-to-value (LTV) of 60% or less. Rates may vary based on LTV, credit scores or other loan amount. In order to receive the lowest rate advertised, a set-up of automatic payments from a U.S. Bank personal checking or savings account is required but neither are required for loan approval. Customers in certain states are eligible to receive the preferred rate without having automatic payments from a U.S. Bank personal checking or savings account. Loan payment example: on a $50,000 loan for 120 months at 7.65% interest rate, monthly payments would be $597.43. Payment example does not include amounts for taxes and insurance premiums. The monthly payment obligation will be greater if taxes and insurance are included and an initial customer deposit may be required if an escrow account for these items is established. Home equity loans not available for properties held in a trust in the states of Hawaii, Louisiana, New York, Oklahoma and Rhode Island. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Property insurance is required. Other restrictions may apply.

  12. Home Equity Line of Credit: The Annual Percentage Rate (APR) is variable and is based upon an index plus a margin. The APR will vary with Prime Rate (the index) as published in the Wall Street Journal. As of September 19, 2024, the variable rate for Home Equity Lines of Credit ranged from 8.45% APR to 12.10% APR. Rates may vary due to a change in the Prime Rate, a credit limit below $50,000, a loan-to-value (LTV) above 60% and/or a credit score less than 730. A U.S. Bank personal checking account is required to receive the lowest rate, but is not required for loan approval. Customers in certain states are eligible to receive the preferred rate without having a U.S. Bank personal checking account. The rate will never exceed 18% APR, or applicable state law, or below 3.25% APR. Choosing an interest-only repayment may cause your monthly payment to increase, possibly substantially, once your credit line transitions into the repayment period. Repayment options may vary based on credit qualifications. Interest-only repayment may be unavailable. Loans are subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Credit line may be reduced or additional extensions of credit limited if certain circumstances occur.

    An early closure fee of 1% of the original line amount, maximum $500, will apply if the line is paid off and closed within the first 30 months. Property insurance is required. Other restrictions may apply. An annual fee of up to $75 may apply after the first year and is waived or discounted with an existing U.S. Bank Platinum Checking Package or with enrollment in our Smart Rewards Program. Annual fees are assessed based on the tier in our Smart Rewards Program on your HELOC anniversary date. Please refer to your Smart Rewards terms and conditions for more information on tier assignment.

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“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC.

Fortune, ©2024 Fortune Media IP Limited. All rights reserved. Used under license. Fortune® is a registered trademark and Fortune World’s Most Admired Companies is a trademark of Fortune Media IP Limited and are used under license. Fortune and Fortune Media IP Limited are not affiliated with, and do not endorse the products or services of, U.S. Bancorp, N.A.

The rates shown above are the current rates for the refinance of a single-family primary residence based on a 45-day lock period. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your final rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors.

To lock a rate, you must submit an application to U.S. Bank and receive confirmation from a mortgage loan officer that your rate is locked. An application can be made by calling 888-291-2334, by starting it online or by meeting with a mortgage loan officer.

Minnesota properties: To guarantee a rate, you must receive written confirmation as required by Minnesota Statute 47.206. This statement of current loan terms and conditions is not an offer to enter into an interest rate or discount point agreement. Any such offer may be made only pursuant to subdivisions 3 and 4 of Minnesota Statutes Section 47.206.