A new LendingTree study suggests some Americans could be able to save over an estimated $50,000 on their existing mortgage if they refinance their homes at the best rate available.
Over the previous two years, LendingTree examined mortgage refinance requests for 30-year fixed-rate loans issued on our online loan marketplace, in addition to examining trends in the 50 largest cities in the country in addition to possible savings from refinancing.
Key Findings:
Homeowners may be able to save up to $50,000 on their existing mortgage by refinancing at the best rate available. The average request for a mortgage refinance in September 2025 was $328,856, with an average best rate of 6.51%. Refinancing a home at the best rate available today might save owners roughly $54,360 over the course of a 30-year fixed mortgage and lower monthly payments by $151 if the property was purchased it at that same price in September 2023, when the average APR offer was 7.20%.
Compared to the previous 12 months, mortgage refinance inquiries decreased by 7.5% in the 12 months ended September 30, 2025. Out of the 50 biggest metro areas, just three experienced growth:
- Charlotte, NC (4.6%)
- Memphis, TN (4.1%)
- Las Vegas (1.5%)
Columbus, Ohio (25.9%), Cincinnati (23.6%), and San Jose, CA (21.5%) experienced the biggest decreases.
Average refinance request amounts decreased by 1.7% over that same period, from $299,962 to $294,982. Refinance request amounts rose in 19 of the 50 largest metros, led by Richmond, VA (5.9%), Birmingham, AL (4.0%), and Cincinnati (3.0%). The largest declines were found in Austin, Texas, and Grand Rapids, MI (both 5.3%), and Jacksonville and Tampa, FL (both 4.8%).
As of the second quarter of 2025, American homeowners have $35.8 trillion in home equity, giving them substantial borrowing power. Cash-out refinances accounted for 70.4% of refinance inquiries for the 12 months ended September 30, 2025, followed by rate-and-term refinances (28.1%) and “other” (1.4%).
Even when interest rates drop, cash-out refinancing usually results in higher monthly payments. The average lowest offered rate in September 2025 was 6.49%, while the average cash-out request was $96,805. Borrowers could anticipate higher monthly payments due to the significantly larger loan total, even if that rate is far lower than the 7.20% average rate for offers in September 2023.
Refinancing May Mean Big Savings for Some Homeowners
According to the study, in September 2025, the average refinance loan request was $328,856. This is for refinancing a 30-year fixed-rate mortgage into another 30-year fixed-rate mortgage. For these refinance loans, the LendingTree platform offered an average annual percentage rate (APR) of 6.83%, with an average lowest rate of 6.51%.
LendingTree compared the aforementioned rates to Freddie Mac’s September 2023 average rate for a 30-year fixed-rate mortgage, which was around 7.20%, in order to determine the possible refinance savings. The savings were significant. A person with a $328,856 mortgage and a current annual percentage rate of 7.20% may save over $54,000 by selecting the average lowest offered rate and almost $30,000 by refinancing with the average offered rate. That can result in monthly savings of approximately $151, which LendingTree experts say is “a big deal.”
Savings by Refinancing Mortgage (Rate-and-term refinancing)
| Metrics | Average loan amount | Current rate | New refinance rate | Current monthly payment | New monthly payment | Monthly savings | Lifetime savings |
|---|---|---|---|---|---|---|---|
| Average offered APR | $328,856 | 7.20% | 6.83% | $2,232 | $2,150 | $82 | $29,520 |
| Average lowest offered APR | $328,856 | 7.20% | 6.51% | $2,232 | $2,081 | $151 | $54,360 |
Note: LendingTree calculations don’t include the closing costs involved with a refinance. Those closing costs can run from 2% to 6% of the loan amount—anywhere from about $6,600 to nearly $20,000 on a $328,856 loan. However, the savings are still noteworthy—even when factoring in those additional costs.
Refinance activity for the previous year (October 1, 2024, to September 30, 2025) and the previous year (October 1, 2023, to September 30, 2024) were also compared in the analysis. Between these times, a 7.5% drop in mortgage refinance activity was discovered, with at least double-digit declines observed in the majority of the country’s largest metro areas.
As mortgage rates dropped in August and September of 2025, LendingTree reported witnessing an increase in refinance activity. Overall refi activity was lower for the 12 months ending September 30, 2025, than it was for the preceding 12 months, but those levels were still far lower than what we observed in late 2024 and early 2025.
Only three of the 50 biggest metro areas in the country witnessed gains throughout the period under analysis. The largest increase was in Charlotte, NC (4.6%), followed by Memphis, TN (4.1%), and Las Vegas (1.5%). During that time, Milwaukee remained unchanged.
This means that during the time during the study, mortgage refi activity decreased in 46 of the 50 largest metropolitan areas in the country, including 31 with decreases of at least 10% and five with decreases of more than 20%.
The largest decreases were in:
- Ohio (led by Columbus at 25.9% and Cincinnati at 23.6%)
- California (led by San Jose at 21.5%)
- California (Riverside at 20.8% and Sacramento at 20.5%)
The Top 10 Changes in Refi Inquiries (Across the 50 largest metros)
| Rank | Metro | Refinance inquiries change |
|---|---|---|
| 1 | Charlotte, NC | 4.6% |
| 2 | Memphis, TN | 4.1% |
| 3 | Las Vegas | 1.5% |
| 4 | Milwaukee | 0.0% |
| 5 | Los Angeles | -0.3% |
| 6 | Phoenix | -1.1% |
| 7 | Grand Rapids, MI | -4.1% |
| 8 | Pittsburgh | -5.0% |
| 9 | Detroit | -5.2% |
| 10 | Hartford, CT | -5.4% |
The average amount of refinance requests decreased over the time under analysis, but not as much as the number of refinance queries. Over the last 12 months, the average amount decreased from $299,962 to $294,982, an approximate 1.7% decrease from the previous 12 months.
According to Federal Reserve data, American homeowners have an estimated $35.8 trillion in home equity. Many Americans are using so-called cash-out refinancing to take advantage of their vast borrowing ability.
Converting home equity into cash might undoubtedly have advantages, but there will be a cost. The average cash-out refinance request in September 2025 was $96,805, according to the study. APRs ranged from 6.98% on average to 6.49% on average. Again, LendingTree contrasted those typical figures with Freddie Mac’s September 2023 average rate of 7.20% for a 30-year fixed mortgage. Even though the rates are much lower, the average monthly payments will also be greater due to the larger loan amounts.
Savings by refinancing mortgage (cash-out refinancing)
| Metrics | Average loan amount | Average cash-out amount | Current rate | New refinance rate | Current monthly payment | New monthly payment | Monthly change |
|---|---|---|---|---|---|---|---|
| Average offered APR | $197,555 | $96,805 | 7.20% | 6.98% | $1,341 | $1,954 | $613 |
| Average lowest offered APR | $197,555 | $96,805 | 7.20% | 6.49% | $1,341 | $1,859 | $518 |
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The post Shopping Around for Mortgage Refi Rates Could Save Homeowners Thousands first appeared on The MortgagePoint.
