What is a "good rate" for a mortgage refinance?

The only way you'll get 2.5% is like for one year of an adjustable rate. It will certainly go up a year later. The going rate on 30 year fixed loans right now is in the 4% range (4.5, 4.8, etc). If you can get that, awesome! If you can do a 15 year, they can be in the high 3% range, even better. If your credit is good, you can google any mortgage or bank website and see what their rates are without having to apply. Or try Lending Tree, they scout out offers for you and it worked well for me.

That's not a simple question because there are quite a few different mortgage refinance products available. Anything that was in the 2.5% range is definitely going to be an adjustable rate mortgage but even then that rate seems a bit low. You can find 5 year adjustable rate mortgages in the 3.5% range. A traditional 30 year fixed is in the 4.75% range now days.

If you're interested in refinancing I would definitely recommend that you check out creditsesame.com. 2 things you can get there... first, you can get your credit score which you really want to know if you are refinancing. Second, if you qualify for a refinance they will pre-qualify you and you will get to see the fully adjusted pricing. The service is free and there is no obligation or even any unwanted phone calls from loan officers, etc. They also have some great money saving articles on the blog.

You could also check out lendingtree.com but I've found the pricing to be "teaser" rates when the loan officer calls you back.

Stay away from big banks like BofA, Wells Fargo, etc. their pricing is not competitive even though they have the majority of mortgage market share. People often pay too much on their mortgage.

I always use this tool. It shows the average rates by week, it has a calculator, and it shows lendors in your local area. Very handy

http://www.homemortgageloans.com/mortgage-rates

http://loanrefinanceadvice.com/refinance-programs/ has everything you need to know about refinancing, refinance rates, and what steps to take if you are interesting in refinancing.