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Compare mortgage refinance rates in Idaho.
Key Points
• Mortgage refinancing can help reduce monthly payments, shorten a loan’s duration, or unlock home equity.
• Mortgage refinance rates in Idaho are influenced by the 10-year U.S. Treasury Note and housing inventory levels, among other factors.
• Borrowers who can manage somewhat higher monthly payments might refinance to a 15-year mortgage and pay less in total interest over the life of the loan.
• VA refinances, supported by the U.S. Department of Veterans Affairs, are known for their competitive interest rates, making them a smart choice for those who qualify and are eligible in Idaho.
• A refinance might cause a slight, temporary drop in the borrower’s credit score due to the hard credit inquiry.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is the process of replacing your current home loan with a new one featuring updated terms and a different interest rate. Whether your goal is to lower your monthly payments, pay off your loan sooner, or take cash out of your home, the type of mortgage refinance you choose will play a big role in the interest rate you get. Below, we’ll explain how mortgage refinance rates are determined and give you some tips for getting the best rate possible. We’ll also cover the latest mortgage refinance rates in Idaho to help you make an informed decision.
💡 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?
Current mortgage rates for a refinance are a product of various economic and personal financial factors. On a large scale, they’re influenced by the bond market, specifically in the performance of the 10-year U.S. Treasury Note. When the rates on the note rise, mortgage interest tends to rise as well.
Another factor is the performance of the housing market. When the market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates.
How Interest Rates Affect Home Affordability
Your monthly payment is a product of your loan amount, repayment term, and interest rate, so interest rates play a big role in the affordability of your refinance. The chart below shows how different interest rates affect the size of the monthly payment and the total interest paid on a $200,000 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 Idaho?
Homeowners refinance their mortgages for various reasons. If interest rates are lower than your current rate, refinancing could certainly save you money. To qualify for a refinance, you typically need at least 20% equity in your home. Here are more reasons to consider a refinance.
Common Reasons to Refinance a Mortgage
• Your credit score has improved (or rates have declined), and you can qualify for a lower interest rate than you currently have.
• You want to change your repayment terms, either for lower monthly payments (which may mean a longer term) or for a faster loan payoff.
• You want to cash out some home equity to cover expenses like college or home improvements or to cover some higher-interest debt.
• You want to transition from an adjustable-rate mortgage to a fixed rate (or vice versa).
• You’d like to ditch the FHA mortgage insurance premium on your FHA loan once you’ve hit the 20% equity mark.
Think about Idaho refinance rates when considering these options.
How to Get the Best Available Mortgage Refi Interest Rate
To secure the best mortgage refinance rate, these are some key moves to make before you apply for a new loan. Think of this as how to refinance a mortgage in Idaho:
• Take good care of your credit score by paying your bills on time and sidestepping new debt.
• Aim for a debt-to-income (DTI) ratio of 36% or less. (Your DTI ratio is your monthly debts divided by your gross monthly income, multiplied by 100.)
• Think about whether your budget can accommodate the purchase of discount points. Also known as mortgage points, each one will cost about 1% of your principal amount and will reduce your interest rate — how large a reduction will depend on the lender.
• Determine how large a monthly payment you can afford. A shorter loan term, as we’ve noted, may mean a higher monthly payment but will result in less interest paid over the long haul.
While you’re taking the steps above, it also pays to become familiar with Idaho mortgage rates.
Understand Trends in Idaho Mortgage Interest Rates
Over the past few years, mortgage rates have been on a bit of a rollercoaster. In January 2021, the national average for a 30-year fixed mortgage hit a historic low of 2.65%. By 2023, that number had jumped to 7.79%. Here’s a look at trends in Idaho and nationally.
Historical U.S. Mortgage Interest Rates
If you’re awaiting an interest rate drop, understanding the longer history of U.S. mortgage rates can help you get some perspective on the current landscape. As the graphic below shows, there was a long span of time when rates sat comfortably under 5.00%. In more recent years, they have trended upward.
Historical Interest Rates in Idaho
Idaho’s mortgage refinance rates have generally followed national trends, with rates rising and falling in line with changes in the broader interest rate environment. It’s worth noting that it would be unusual for the average rate in Idaho to fall by more than a percentage point year to year.
| Year | Idaho Rate | National Rate |
|---|---|---|
| 2000 | 7.77 | 8.14 |
| 2001 | 6.93 | 7.03 |
| 2002 | 6.53 | 6.62 |
| 2003 | 5.66 | 5.83 |
| 2004 | 5.63 | 5.95 |
| 2005 | 5.86 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.43 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 5.00 | 5.06 |
| 2010 | 4.79 | 4.84 |
| 2011 | 4.67 | 4.66 |
| 2012 | 3.73 | 3.74 |
| 2013 | 3.83 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.91 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.08 | 4.03 |
| 2018 | 4.62 | 4.57 |
Choose the Right Mortgage Refi Type
Interest rates vary depending on the type of mortgage refi you’re considering. Here are a few of the more popular options:
Conventional Refi
Conventional refinance loans, also known as rate-and-term refinances, often have higher interest rates than government-backed FHA and VA loans. But conventional loans are a good option for homeowners who want to lower their interest rate or change their loan term. To be eligible for a conventional refinance, you will need a minimum credit score and adequate equity in your home. Two common types are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
It can be a smart move to refinance into a 15-year mortgage. Yes, it means higher monthly payments, but you stand to save substantial interest over the life of the loan. If you owed $350,000 on your mortgage and refinanced into a 15-year loan at 6.50%, your monthly payment would be $3,049 and you would pay a total of $198,798 in interest. Choosing a 30-year term would lower the monthly payment to $2,212 but increase the interest paid to $446,406.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, making them appealing for homeowners who plan to move before the rate adjusts. If you currently have a 30-year fixed-rate mortgage but anticipate leaving your home within a few years, switching to an ARM could lower your monthly payments. However, it’s important to understand the potential for rate increases in the future. (Some people, on the other hand, refinance out of an ARM and into a fixed-rate loan because they think rates will rise in the future and they want a predictable monthly payment.)
Cash-Out Refi
A cash-out refinance is a smart way to make your home’s equity work for you. Imagine your home is valued at $500,000 and you still owe $300,000 on your mortgage. That leaves you with $200,000 in equity. A lender might allow you to borrow up to 80% of that equity in a cash-out refi. You can use the extra cash for any purpose. It’s a popular solution for debt consolidation and renovations. While the rates for cash-out refis can be a bit higher, the financial flexibility they provide can be well worth it.
FHA Refi
An FHA loan refinance, insured by the Federal Housing Administration, often comes with an attractive low interest rate. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which simplifies the process. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance (the latter is designed for home renovations).
VA Refi
A VA loan refinance, backed by the U.S. Department of Veterans Affairs, offers some of the lowest interest rates available. The VA Interest Rate Reduction Refinance Loan (IRRRL) can help you secure a lower interest rate or move from an adjustable-rate mortgage to a fixed-rate one. VA refinance rates offer significant savings and financial flexibility for those who qualify.
Compare Mortgage Refi Interest Rates
Snagging a competitive mortgage rate can save you thousands of dollars on mortgage refinancing costs. Here are some tips:
• Shop around and compare current mortgage refinance rates in Idaho to find the best deal.
• When you’re comparing offers, look at the annual percentage rate (APR) to get a full picture of the costs, including fees and mortgage points.
• Think about the trade-off between rate and fees; lower rates often come with higher costs. Some lenders offer a no-closing-cost refinance but may have higher interest rates instead.
An online refinance calculator will be a valuable tool during this process.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get a rough estimate of what your new monthly payments and potential savings could be. You can put in different interest rates and loan terms to see how different offers compare. Here are a few of our favorite calculators.
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
Refinancing your mortgage can be a powerful way to manage debt and improve your financial situation. Whether you want to lower your interest rate, shorten your loan term, or tap into your home’s equity, it’s important to understand the different refinance options available. By getting your financial house in order and shopping around for the best mortgage refinance rates in Idaho, you can make a smart decision that helps you reach your financial goals.
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
When is it a good idea to refinance?
It’s a savvy financial play to refinance if you can snag a lower interest rate, consolidate debts, or pay off your loan faster. The key is to figure out at what point the money you spend on refinancing in the form of closing costs, discount points, and other fees is outweighed by the money you save in the refinancing process. How long do you plan to stay in the home? If you think you might move before you’ve recouped the cost, a refi may not make sense.
Can I ask my lender to lower my rate?
You can have a conversation with your lender and ask for a lower interest rate on your existing mortgage loan. If you’ve been diligent about making your payments on time, and your credit score is in good standing, your lender might just be open to the idea. But it’s also possible that the lender will instead suggest a refinance or a mortgage recast (which involves paying down a portion of the principal and then recomputing future payments).
How much are closing costs on a refinance?
On average, closing costs typically range from 2% to 5% of the loan amount. So for a $350,000 refinance, you might be looking at $7,000 to $17,500. The final figure can vary based on a few things, like where your property is located, the type of loan you’re getting, and your lender. Keep in mind that these costs can significantly impact the overall price of your loan.
How many times can you refinance your home loan?
There are no limits on how many times you can refinance your home. However, each time you do, you will have to pay closing costs and your credit score could be affected. And even the smoothest refinance takes time and energy. So it’s important to think about the pros and cons before you refinance to ensure that it makes sense for your financial situation.
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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