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Compare mortgage refinance rates in Kansas.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory, as well as your credit profile.
• Even a 1% drop in the refinance rate can translate to major monthly savings, which could add up to quite the sum over the life of the loan.
• The average 30-year fixed mortgage refinance rate in Kansas has fluctuated from historic lows in 2021 to 7.00% recently. Higher rates may continue through at least 2025.
• There are many different kinds of refi options, such as conventional, government-backed, adjustable-rate, cash-out, and 15-year mortgages.
• FHA and VA refinances often offer more competitive mortgage refinance rates compared to conventional loans, with VA refinances typically providing the lowest rates.
Introduction to Mortgage Refinance Rates
When you’re considering a mortgage refinance in Kansas, the rates you’ll be offered are pivotal. A refinance essentially means trading your current mortgage for a new one, complete with updated terms and a fresh interest rate. This might lower your monthly payments on your home loan, or it could be a way to shift your mortgage term or translate home equity into cash.
The reason behind your refinance will dictate the type you opt for, and this, in turn, influences the interest rate you’ll secure. Here, you’ll delve into how these rates are determined and how you can position yourself to snag the most favorable one.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Rates Come From?
Refi rates for home loans are a product of a complex interplay of economic factors and your own financial situation. The big economic factors include Federal Reserve policy, inflation, the bond market, and housing inventory levels.
Generally, higher inflation and more frequent federal funds rate hikes lead to higher refi rates. Conversely, when bond prices are rising, interest rates tend to fall. And when there’s a slowdown in home sales, that can also lead to lower rates.
What’s more, your own credit profile — which lenders factor in when deciding whether to approve an applicant and at what rate — counts, too. Your credit score reflects how well you have managed debt in the past. With a higher score, you appear to be a borrower who is likely to repay debt on time, and therefore you qualify for a lower interest rate. With a lower score, which indicates poor handling of debt, you will probably be assessed a higher interest rate since the lender wants to protect itself.
By understanding these factors, you can make a more informed decision about when and how to refinance your mortgage.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of your refinance. Your monthly mortgage payment amount hinges on the loan principal, repayment term, and the mortgage refinance rate. Here’s an example:
• If you take out a $200,000 home loan with a 6.00% interest rate and a 30-year repayment term, you would have a monthly payment of $1,199.
• Now, if the interest rate were 8.00%, that same loan would translate to a higher monthly payment of $1,467. That means almost $300 less per month in your bank account — and for three decades.
Qualifying and opting for a lower mortgage refinance rate can lead to significant savings over the life of your loan.
Why Refinance in Kansas
Refinancing your mortgage can be a savvy financial move. If current mortgage interest rates are lower than your existing home loan, it might be a good time to refi. The reason behind your refi will determine the type of refinance to choose, and that will impact your rate.
Common Reasons to Refinance a Mortgage
Each person’s financial path and refi motivations will be unique, but here are some common reasons homeowners refinance their mortgage:
• You qualify for a lower mortgage refinance rate because of market conditions or due to your building your credit profile.
• You’re considering adjusting your repayment term to better suit your financial goals.
• You may want to tap into your home’s equity to cover expenses like education or home improvements.
• Your adjustable rate is about to shift, and you’re considering a switch to a fixed-rate loan.
• You have an FHA loan and have reached 20% equity, and you want to eliminate your FHA mortgage insurance premium.
• You need to remove a cosigner from your loan.
How to Get the Best Available Mortgage Refi Interest Rate
On the topic of mortgage refinance rates, it’s wise to do your research and take steps to snag the best possible percentage for your situation. Here are some moves that can help you do that when thinking about a Kansas refi:
• Build your credit score by managing payments and debt wisely. The single most important facet: Pay your bills on time, every time.
• Strive for a debt-to-income ratio of 36% or less.
• Compare rates and fees from multiple lenders.
• Think about buying mortgage points: These add to your costs but lower your interest rate, saving you money over the life of the loan.
• Think about choosing a shorter loan term to grab a lower rate. While this will typically increase your monthly payments, the overall interest you pay can drop dramatically.
More advice to heed: There are factors to consider when refinancing beyond simply snagging a lower interest rate:
• In terms of how soon you can refinance, you typically need 20% home equity before you can move ahead. If you bought a home a couple of years ago with, say, 5% down, you may have to bide your time.
• Make sure your calculations include mortgage refinancing costs. For instance, closing costs usually total about 2% to 5% of your loan amount. On a $300,000 mortgage, that means you’ll have $6,000 to $18,000 that you are responsible for paying or rolling into the loan.
Understand Trends in Kansas Mortgage Interest Rates
Mortgage rates aren’t static. As you’ve read, they rise and fall due to economic factors and the impact of your own financial profile. Here, take a closer look at how national and Kansas mortgage refinance rates can fluctuate. Staying attuned to these trends can empower you to make shrewd choices about when to pursue mortgage refinancing, potentially netting you more favorable terms.
Historical U.S. Mortgage Interest Rates
Mortgage refinance rates in the U.S. have seen some dramatic ups and downs in recent years. For example, the average 30-year fixed mortgage refinance rate was 3.15% in 2021, but it shot up to 7.00% in 2023. And it’s expected to stay in this higher range through at least 2025.
By knowing what has happened with rates in the past, you can better understand and anticipate what might happen in the future. That can help you make more informed decisions about refinancing, which can help you meet your financial goals. The graph below shows how fixed-rate mortgages have evolved over the last few decades.
Historical Interest Rates in Kansas
The mortgage refinance rates in Kansas have been on a rollercoaster ride in recent years, as have national rates. As noted above, rates soared between 2021 and 2023, and it looks like these higher rates are here to stay for 2025, despite early predictions that an interest rate drop was imminent.
If you’re thinking about refinancing your home, it’s crucial to understand these market trends. Armed with this knowledge, you can make a well-informed decision about when to refinance your mortgage. To help you do that, review the chart below. It chronicles almost two decades of rates in Kansas compared to the national rate, which can help you grasp trends at both levels. You’ll see that Kansas refinance rates have often been a bit under the U.S. rate. (The data points below stop at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
| Year | Kansas Rate | National Rate |
|---|---|---|
| 2000 | 7.90 | 8.14 |
| 2001 | 6.94 | 7.03 |
| 2002 | 6.54 | 6.62 |
| 2003 | 5.69 | 5.83 |
| 2004 | 5.72 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.27 | 6.60 |
| 2007 | 6.14 | 6.44 |
| 2008 | 5.83 | 6.09 |
| 2009 | 5.03 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.28 | 4.66 |
| 2012 | 3.58 | 3.74 |
| 2013 | 3.78 | 3.92 |
| 2014 | 4.11 | 4.24 |
| 2015 | 3.77 | 3.91 |
| 2016 | 3.68 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.64 | 4.57 |
Choose the Right Mortgage Refi Type
There are several different kinds of mortgage refinances available in Kansas, each with their own pros and cons and interest rates. Finding the one that suits you is important, so get set to dive into the details.
Worth noting: When shopping for a mortgage refi: Remember to look at annual percentage rates (APRs) vs. simple interest rates. APRs reflect the true cost of your loan with fees and mortgage points rolled in. Each option comes with its own set of features and benefits:
Conventional Refi
A conventional Kansas refinance, also known as a rate-and-term refinance, typically has higher mortgage refinance rates than government-backed loans. This type of refinance allows you to adjust your interest rate or loan term. It’s best for homeowners who want to lower their interest rate or change their repayment schedule. Keep in mind that conventional refinances require a minimum credit score (usually 620 or higher) and adequate equity in the property (20% or higher is the norm), which can vary by lender and borrower.
Cash-Out Refi
Cash-out refinances can be a smart way for you to leverage your home equity by borrowing more than your current mortgage balance. Say your home is valued at $500,000, and you still owe $300,000. With a cash-out refi, you could borrow up to 80% of your home’s equity, which is $200,000, or the difference between the property’s value and the outstanding amount of your mortgage.
15-Year Mortgage Refi
Refinancing from a 30-year to a 15-year mortgage in Kansas can be a game-changer, slashing your total interest payments. Here’s how it might work: Say you have a 30-year $1 million mortgage at a 7.50% interest rate. That’s a monthly payment of about $6,992 and a jaw-dropping total interest to be paid of $1,517,167.
If you refinanced to a 15-year mortgage at a 7.00% rate, the monthly payment jumps significantly, to roughly $8,988. However, the total interest paid is slashed to around $617,891, leaving you with savings of nearly $900,000. That could make a major difference to your financial profile and reaching long-term money goals.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower introductory mortgage refinance rate than fixed-rate loans. However, their rates have the potential to increase over time, as market conditions change. If you’re planning to move before the rate adjusts, refinancing with an ARM could be an affordable way to lower your monthly payments and get significant interest savings for the short term.
However, make sure you can handle a potential rate jump. What if life throws you a curveball and you can’t or don’t want to move as originally planned? It’s wise to be prepared for various scenarios relating to your mortgage refi in Kansas.
FHA Refi
FHA refis, backed by the United States Department of Housing and Urban Development, often offer lower mortgage refinance rates. These are sometimes a full percentage point lower than conventional loans, which can mean major savings. If you already have an FHA loan, you might qualify for an FHA Simple Refinance or an FHA Streamline Refinance.
If you don’t have an existing FHA loan, you could consider an FHA cash-out refinance or an FHA 203(k) refinance, which could be a great option if you’re planning home renovations. These FHA refinance options offer a range of benefits, including potentially lower interest rates, flexible credit requirements, and streamlined closing processes.
VA Refi
VA loans help active-duty members of the military, veterans, and some spouses achieve their dreams of homeownership. VA refinances, backed by the U.S. Department of Veterans Affairs, often have some of the most competitive mortgage refinance rates. To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can be a great way to lower your monthly payments and save significant interest over the life of the loan.
Compare Mortgage Refi Interest Rates
Snagging a competitive mortgage refinance rate can open up some room in your monthly budget and/or save you significant money over the life of your loan, among other benefits. As you do your research, here are some tips for comparing rates:
• Shop around with different lenders to find the best rate and terms.
• Get prequalified to see how much you can borrow and at what rate without dinging your credit score.
• Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points (aka mortgage points; an additional cost that can help you buy down your mortgage rate to lower costs over the life of the loan).
• Use a mortgage refinancing calculator to estimate your new monthly payments and potential savings when comparing offers.
• Evaluate the total cost of the new mortgage and your break-even point. What’s the break-even point? It’s when the cost of refinancing is outweighed by the savings of your new refi rate. If you’re planning on moving before you hit that break-even point, refinancing may not be the best option.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Use an Online Refinance Calculator
Online refinance calculators, mentioned above, can be a great way to get a rough idea of what your monthly payment will be and to compare different refinance options. In addition to being fast and convenient (no punching those calculator keys required), they can help you understand how different mortgage refinance rates and terms can impact your financial situation.
This knowledge can help you decide if refinancing makes sense for you and, if so, which option may suit your unique situation and long-term financial goals best.
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 a mortgage can be a smart financial move, but it does require some careful thought and preparation. By understanding your options and comparing mortgage refinance rates, you can potentially save a lot of money in interest payments. It’s important to weigh the benefits against the costs to make sure refinancing makes sense for your situation and your big-picture 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
Will refinancing hurt my credit score?
Refinancing might nudge your credit score down a bit, but it’s usually a small and temporary dip. It’s typically triggered by the hard credit inquiry involved in the approval of your refi application. This can lower your credit score by several points for a number of months.
Do you have to pay closing costs when you refinance?
Yes, you will need to cover closing costs once more when you refinance, which typically total between 2% and 5% of the loan amount. Covering the expenses of securing the new mortgage refinance loan, these costs vary depending on the lender and the type of refinance you choose. You might pay them upfront, or they could be rolled into your loan. Make sure you understand exactly how much they are and how you will pay for them as you move through the refi process.
How many times can you refinance a mortgage?
There isn’t a set number of times you can refinance your home, but it’s important to keep in mind that each refinance comes with closing costs and could affect your credit. It’s wise to consider the potential benefits of securing a new mortgage refinance rate against the costs, and to make sure you’re doing it for the right reasons and at the right time.
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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