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Compare mortgage refinance rates in Alaska.
Key Points
• Mortgage refinancing can be a smart financial move, whether borrowers are looking to save money, consolidate debt, or fund home improvements.
• A one-percentage-point interest rate reduction can save nearly $100,000 in interest on a $200,000 loan.
• To obtain a good mortgage refinance rate in Alaska, it helps to have a good credit score, a low debt-to-income ratio, and to compare offers from different lenders.
• Government loans such as FHA and VA refinances offer lower rates to those who meet specific eligibility criteria.
• Mortgage refinancing typically costs 2% to 5% of the loan amount, and those costs should be factored into the overall cost of a refinance.
Introduction to Mortgage Refinance Rates
What exactly is a mortgage refinance? It’s like a fresh start for your mortgage, with the potential for better terms or a lower interest rate. The kind of refinance you opt for will depend on what you’re aiming for, be it a lower rate or tapping into your home’s equity. This is your go-to guide for understanding how mortgage refi rates are set and how you can snag the best one out there. Whether you’re in Alaska or somewhere else, being in the know about the factors at play will help you make a savvy choice.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance interest rates are a product of both economic indicators and your personal financial situation. On the economic front, the bond market (and specifically the performance of the 10-year U.S. Treasury Note) is important to lenders setting current mortgage rates. When rates on the T note rise, mortgage interest tends to head north as well.
Housing inventory is also key. When the market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. Then there is the overall economy. A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. As for your personal financial metrics: A strong credit score and low debt-to-income ratio will help you qualify for the best possible rate.
How Interest Rates Affect Home Affordability
Interest rates play a major role in the affordability of your refinance. Your monthly payment amount is driven by your loan amount, the term for repayment, and the interest rate. Let’s break it down: A $200,000 loan with a 6.00% interest rate over 30 years equals a $1,199 monthly payment. Bump that interest rate to 8.00%, and your monthly payment jumps to $1,468. Over the life of the loan, you would save almost $100,000 with the lower interest rate.
Here’s a look at how other interest rates would affect your payments and total interest for that same $200,000, 30-year loan:
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Why Refinance in Alaska?
Homeowners refinance their mortgages for a multitude of reasons, each influencing the type of refinance and the interest rate. If current interest rates are lower than your existing mortgage, refinancing can save you money. It’s recommended to have at least 20% equity in your home, especially if you plan to cash out equity. Refinancing can also help you change your repayment term, switch from an adjustable-rate to a fixed-rate loan, or eliminate private mortgage insurance. Alaska refinance rates can play a significant role in these decisions.
Common Reasons to Refinance a Mortgage
Here are some common reasons homeowners refinance their mortgage:
• You qualify for a lower interest rate thanks to your improved credit score or better market conditions.
• You need a lower monthly payment amount to better fit your budget.
• You have more money available to put toward your mortgage and want to pay off the loan more quickly.
• You’re considering cashing out some of your home equity for expenses like education or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want a fixed rate for peace of mind.
• You have an FHA loan and 20% equity, and you’re itching to bid the FHA mortgage insurance premium goodbye.
• You’re thinking of consolidating high-interest debt into a lower-rate mortgage.
How to Get the Best Available Mortgage Refi Rate
There are some basic things you can do to secure a competitive mortgage refinance rate when you are starting to think about how to refinance a mortgage:
• Boost your credit score by keeping up with payments.
• Lower your debt-to-income ratio by paying off debt.
• Consider whether you have any extra cash on hand that you could use to purchase mortgage discount points — essentially paying to get a better rate.
• Choose a shorter mortgage term. Shorter term loans typically are offered lower rates because lenders perceive them as less risky.
To really up your game and compete for the best possible rate, you’ll want to take the following steps as well.
Understand Trends in Alaska Mortgage Interest Rates
Mortgage rates in Alaska have been on a bit of a roller coaster in recent years, and while many experts thought rates would start to fall in late 2024, they didn’t drop significantly in the first quarter of 2025. If you’re a homeowner in Alaska, it’s important to keep an eye on mortgage refinance rates in your area so that you can consider refinancing when the time is right. Here’s a look at past rates in the state (the Federal Housing Financing Agency stopped tracking state-by-state rates after 2018).
Historical U.S. Mortgage Interest Rates
For the bigger picture, have a look at mortgage interest rates in the United States over the last half-century. As you can see from the chart below, it’s pretty unusual to encounter a rate above 10% — or below 5%.
Historical Interest Rates in Alaska
Seeing the history of rates in your state can help put current rates into perspective.
| Year | Alaska Rate | National Rate |
|---|---|---|
| 2000 | 8.20 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.31 | 6.62 |
| 2003 | 5.55 | 5.83 |
| 2004 | 5.59 | 5.95 |
| 2005 | 5.86 | 6.00 |
| 2006 | 6.39 | 6.60 |
| 2007 | 6.29 | 6.44 |
| 2008 | 6.01 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.65 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.65 | 3.74 |
| 2013 | 3.78 | 3.92 |
| 2014 | 4.13 | 4.24 |
| 2015 | 3.85 | 3.91 |
| 2016 | 3.74 | 3.72 |
| 2017 | 4.04 | 4.03 |
| 2018 | 4.55 | 4.57 |
Choose the Right Mortgage Refi Type
Alaska refinance rates are as diverse as the options available to you, and choosing the right type for your situation can ensure your refi is a good fit. Here are some common types:
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a great option for homeowners looking to improve their mortgage terms. Conventional refis typically have higher rates than those for government-backed loans. But this type of refi is ideal for those who want to lower their interest rate or change their loan term. A 15-year refi and an adjustable-rate refi (see below) are two types of conventional mortgage refis. Some lenders offer a no-closing-cost refinance, in which the fees associated with the refi are rolled into the mortgage balance, but this option typically doesn’t have an interest-rate advantage.
Cash-Out Refi
A cash-out refinance is a nifty way for homeowners to leverage their home equity by borrowing more than their current mortgage balance. Let’s say your home is valued at $500,000 and you still have a $300,000 mortgage to pay off. You could potentially borrow up to 80% of your equity, which in this case would be $400,000. After settling your existing mortgage, you’d walk away with $100,000 in hand. This extra cash could be a game-changer for paying off high-interest debt or turning your home into your dream space. (There is also a cash-in refinance option for borrowers with a large lump sum on hand. In this situation, you pay down a portion of the principal to reduce the amount you are borrowing.)
FHA Refi
FHA refinances are tailored for those with existing Federal Housing Administration loans, with two main options: FHA Simple Refinance and FHA Streamline Refinance. These can help you lower your interest rate and monthly payments. If you don’t have an FHA loan, you can consider an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations. These options may offer more favorable Alaska refinance rates and terms, but they do have specific eligibility requirements.
VA Refi
If you have a current loan from the U.S. Department of Veterans Affairs, a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), is a great option. VA loans consistently offer some of the lowest current mortgage refinance rates available in Alaska, which makes them a great option for eligible borrowers looking to refinance their mortgage.
15-Year Mortgage Refi
Here’s a smart move: refinancing to a 15-year mortgage. Although your monthly payments may be higher if you shorten the term (unless you can score a significantly lower interest rate than the one you currently have), shortening the term can shave off a significant chunk of the total interest you’d pay over the life of the loan. A $1 million 30-year mortgage at 7.50% would have you paying around $6,992 monthly and a whopping $1,517,167 in total interest. Now, refinance to a 15-year mortgage at 7.00% and your monthly payment would rise to about $8,988, but the total interest paid would drop to roughly $617,891, saving you close to $900,000. (As noted above, shorter term mortgages often have slightly lower rates than 30-year mortgages.)
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) has a lower introductory interest rate than a fixed-rate loan, which makes it attractive to some homeowners. If you plan to move or sell your home before the rate changes, this could be a good way to lower your monthly mortgage costs. Refinancing into an ARM when rates are low can save you money, but you need to be prepared for the rate and payment to increase in the future if you stay in the home.
Compare Mortgage Refi Interest Rates
Once you’ve explored your mortgage refi type, you’ll want to shop around and compare mortgage refinance rates from different lenders. Compare the annual percentage rate (APR) on different loans. (You can often go through a brief online prequalification process to learn what rate a lender might offer you.) Consider the cost vs. benefit of purchasing discount points (also known as mortgage points), which can lower the rate you’re offered. Look closely at how lenders’ fees contribute to mortgage refinancing costs as well. Which brings us to the next step in the process: using a refi calculator.
Use an Online Refinance Calculators
Throughout the refi process, using an online refinance calculator can help you get a good estimate of what your new monthly payment could be and to compare different refinance options. These calculators take a number of factors into account, including your current loan balance, the interest rates you’re seeing in Alaska, and the terms of the new loan you’re thinking about (15-year vs. 30-year, for example). Here are three useful calculators for your journey.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
When you’re thinking about refinancing your mortgage, it’s important to weigh the potential benefits against the costs and long-term implications. Whether you’re considering a cash-out refinance, FHA refinance, VA refinance, 15-year fixed-rate mortgage, or adjustable-rate mortgage, it’s important to understand your options and compare Alaska refinance rates. By taking the time to explore your options, you’ll make the most of your mortgage.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can you refinance when rates drop?
When interest rates drop is a good time to refinance your mortgage, but it’s important to weigh the potential savings against the costs involved. One way to make sure the refi is worth the work and expense involved is to look at how long you would need to stay in your home before the savings on interest outweigh the fees associated with the refi.
How much does a one-percent reduction in interest lower your monthly payment?
In the world of real estate financing, a mere one percentage-point drop in the interest rate (from 7.00% to 6.00%) for a $300,000 mortgage can make a world of difference. That seemingly small change could reduce your monthly payment by almost $200.
Can I lower my interest rate without refinancing my mortgage?
It’s hard to lower a mortgage interest rate without a refinance, but you can reduce your monthly payments by doing a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. Your lender can then “recast” your monthly payment amount to reflect the lower principal. If you’re facing financial hardship, you could also explore a loan modification. Of course, if you have a solid credit score and stellar payment history, you can always ask your lender to modify your rate, but the lender is likely to suggest a refi or recast instead.
Can I get equity out of my house without refinancing?
It is possible to pull equity out of your home without refinancing. You can use a home equity line of credit (HELOC) or a home equity loan to access your equity. Shop around for home equity lending rates to make sure you’re getting the best deal for your financial situation.
How much are closing costs on a refinance?
When you’re mulling over a mortgage refinance, it’s wise to consider the average closing costs, which usually fall between 2% and 5% of the loan amount. These costs can fluctuate based on the lender, the type of refinance, and the property’s location.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance