LOUISIANA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Louisiana.
Current mortgage refinance rates in
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Compare mortgage refinance rates in Louisiana.
Key Points
• Mortgage refinance rates in Louisiana are influenced by a variety of economic factors, including the bond market, housing inventory, and inflation.
• Over recent years, Louisiana refinance rates have seen a significant shift, from as low as 3.00% in 2020 and to as high as 7.00% in 2023.
• Building a strong credit score, balancing your debt-to-income ratio, and shopping around among multiple lenders are key steps to snagging the most favorable mortgage refinance rates.
• A 1% drop in your mortgage rate in Louisiana could translate to substantial monthly savings — like, $2,000 a year on a $300,000 loan.
• Before you make the switch, it’s important to weigh the potential savings against the fees and closing costs, which typically range from 2% to 5% of the loan amount.
• Making the switch to a 15-year mortgage could be a smart move. This change can mean paying less interest over the loan’s lifetime, although it will likely mean adjusting to a higher monthly payment.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is a process that lets you replace your existing mortgage with a new one. Your new mortgage will have different terms, such as a revised interest rate, term length, and monthly payment amount. People may refinance mortgages to lower monthly payments, access home equity, or change loan type. Understanding how current mortgage refinance rates in Louisiana are set and how to get the best possible rate is key to a successful refinance.
This guide will help you to understand the important steps of the refinance process and to make informed decisions about mortgage refinancing costs.
💡 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 Mortgagee Refi Rates Come From?
Mortgage refinance interest rates rise and fall depending on economic factors, as well as your individual financial profile. The bond market — and particularly the performance of the 10-year U.S. Treasury Note — plays an important role in setting current mortgage rates. When the Treasury Note yield increases, mortgage interest rates tend to rise as well.
Housing market inventory in Louisiana is also significant. If the market slows down and more homes are available than there are buyers, lenders might lower their rates to attract customers. The overall economic environment is another factor: A robust job market and resulting economic growth can push interest rates higher, while a recession typically results in lower rates.
As a borrower or mortgage applicant, a strong credit score and a low debt-to-income ratio can help you secure the best possible rate.
How Interest Rates Affect Home Affordability
Interest rates are super important because they help determine your monthly refinance payment. (Of course, your payment is influenced by your loan amount and the term over which you’ll repay it, too.) Here’s an example of how much your interest rate impacts your payment:
A $200,000 loan with a 6.00% interest rate and a 30-year term translates to a monthly payment of $1,199. If that interest rate jumps to 8.00%, the monthly payment increases to $1,467. Over the life of the loan, you’d pay almost $100,000 less with the lower interest rate. Even a small change can make a big difference in your savings and your home loan’s ultimate affordability, as this chart illustrates.
| 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 Should You Refinance Your Mortgage in Louisiana
Refinancing your mortgage can offer a number of different benefits, depending on your financial goals. If current interest rates are lower than that on your existing mortgage, refinancing can reduce your monthly payments and save you money over the life of the loan. Refinancing can also help you switch from an adjustable-rate mortgage to a fixed-rate loan for long-range savings.
Whatever your reason, you should have at least 20% equity in your home before you embark on a refinance, especially if you want to cash out some equity in the process.
Common Reasons to Refinance a Mortgage
These are common reasons for homeowners to refinance mortgages:
• You qualify for a lower interest rate due to improved credit or market conditions.
• You’re considering adjusting your repayment term so you can lower your monthly payments or pay off the loan more swiftly.
• You want to tap into your home equity to fund a significant expense, like a home remodel.
• Your adjustable-rate mortgage is going to reset soon, and you want to switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you want to get mortgage insurance out of your life.
• You’re considering a debt consolidation, or releasing a cosigner.
Recommended: How Soon Can You Refinace a Mortgage?
How to Get the Best Available Refi Interest Rate
Your financial history has an impact on the interest rates that lenders offer you. Homeowners with strong credit and a low debt-to-income ratio may secure lower-than-average rates.
To secure a competitive mortgage refinance rate, here’s what to work on:
• Bolster your credit score by paying your bills on time, and steer clear of new debt.
• Maintain a debt-to-income ratio that is under 36%.
• Look at offers from multiple lenders, focusing on the APR rather than just the interest rate.
• Consider buying mortgage discount points, which can help you lower your interest rate.
• If you can manage the higher payments, go for a shorter mortgage term.
Once you’ve achieved an optimal credit history, it’s time for a deep dive into interest rate trends.
Trends in Louisiana Mortgage Interest Rates
As the national trend shows, the rise and fall of mortgage rates can feel like riding a rollercoaster. In 2021, the average 30-year fixed mortgage rate in Louisiana was 3.15%. Fast-forward to 2023, and rates had soared to 7.00%.
Last year brought an expectation of a dip in mortgage refi rates. But for 2025’s first half, experts predict that rates will remain elevated longer. You don’t need to let those forecasts deter you, though. A mortgage refinance might still be a smart move for you.
Historical U.S. Mortgage Interest Rates
In the chart below, you’ll see that rates were around 6.00% in the early 2000s. They dropped to under 3.00% in 2020 — and cemented the idea that low rates were “normal.” In 2023, they rose again to around 7.00%. While many people today complain about high interest rates, current mortgage refinance rates are below the 50-year average.
Historical Interest Rates in Louisiana
Refinance rates in Louisiana typically follow national trends, but they may be slightly higher or lower, especially in certain regions. In the past, Louisiana has seen some of the country’s lowest refinance rates. Understanding the historical trends in the state’s refinance rates can help you anticipate future rate movements and make more informed refinancing decisions.
| Year | Louisiana Rate | National Rate |
|---|---|---|
| 2000 | 7.89 | 8.14 |
| 2001 | 6.86 | 7.03 |
| 2002 | 6.20 | 6.62 |
| 2003 | 6.43 | 5.83 |
| 2004 | 5.65 | 5.95 |
| 2005 | 5.91 | 6.00 |
| 2006 | 6.54 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 6.10 | 6.09 |
| 2009 | 4.99 | 5.06 |
| 2010 | 4.81 | 4.84 |
| 2011 | 4.46 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 3.84 | 3.92 |
| 2014 | 4.13 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.12 | 4.03 |
| 2018 | 4.55 | 4.57 |
💡 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.
Choose the Right Mortgage Refinance Type
It’s no secret that refinance rates can be higher than purchase mortgage rates. But the actual rate you’ll get may vary a lot depending on the type of refinance you choose. How to refinance your mortgage? Several different refi options are available to consider, each with its own features and potential benefits.
By understanding their differences, you can make an informed decision about which type of refinance is the best fit for your situation, and get the best rate and terms to meet your needs.
Conventional Refi
Referred to as a rate-and-term refi as well as a conventional refi, this option generally has a higher rate than a government-backed loan, including an FHA, VA, or USDA mortgage. This refinance choice can empower you to adjust your interest rate or loan term so you can potentially reduce your monthly payment or the time it takes to pay off the loan.
A conventional refi is a great pick for a homeowner with solid equity and a strong credit history. By securing a lower mortgage refinance rate, you can save money over the term of your loan and reach your financial goals more swiftly. That’s a win-win.
15-Year Mortgage Refi
A type of conventional refi, this choice typically shortens the length of your loan repayment. A 15-year mortgage refinance can lead to significant savings in the long run, even though your monthly payments will go up. For example, if you are carrying a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you’re looking at a monthly payment of $6,992 and can expect to pay a total interest amount of $1,517,167.
Refinance to a 15-year mortgage at a 7.00% rate, and your monthly payment will increase to approximately $8,988. But your total interest paid by the time the loan is finished would drop to $617,891. You would save nearly $900,000 in the end. That’s a lot of cash — and it’s a very nice feeling to be out from under your loan in a mere 15 years. Obviously, your cash flow will play a critical role in whether you can go for something like this.
Adjustable-Rate Mortgage Refi
Another kind of conventional refi, adjustable-rate mortgages (ARMs) start with lower mortgage refinance rates than fixed-rate loans do, but the rates can change over time. If you plan to sell your home before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM will help lower your monthly payment and save you money in the short term. Key words, short term. If your plans may change, think hard on this.
An adjustable-rate mortgage refi can be a good strategy if you have definite plans to move or if you are confident that you will increase your income in the next few years.
Cash-Out Refi
A cash-out refinance is a powerful tool that lets homeowners unlock their property’s value by taking out a new mortgage for more than they owe. It’s like turning your home equity into cash, and you can use it for whatever you need — paying off high-interest debt or making long-desired home improvements.
The amount you can borrow will be based on the equity you have in your home. If your home is worth $500,000 and your mortgage balance is $300,000, for example, you have $200,000 in equity in your property. With a cash-out refi, a lender may approve you to borrow up to 80% of your equity. That would leave you with a chunk of available cash after you pay off your existing mortgage. The lump sum could help you pay off a nagging debt or finance a major expense.
FHA Refi
FHA refinances are backed by the Federal Housing Administration. They often come with more favorable mortgage refinance rates — sometimes a full percentage point lower than conventional loans. The different types of FHA refinance options include FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners with existing FHA loans, and the latter two you can qualify for whether you have an FHA loan or not.
The cash-out refinance can be used to pay off debt or to make a home upgrade. The 203(k) refinance is specifically for home improvements. These FHA refinance options can help you change your current mortgage terms and get a more affordable interest rate, plus lower your monthly payment or access your home’s equity for other financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, offer some of the most competitive mortgage refinance rates available. That said, to be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This type of refinance may significantly reduce your monthly payments and let you accumulate substantial interest savings over your loan’s life.
Compare Mortgage Refi Interest Rates
To ensure you get the best deal, always compare rates from multiple lenders in your state. Look at more than the interest rate and consider the annual percentage rate (APR) — it incorporates fees and any discount points. Calculate the total loan cost and the point where you’ll break even (that is, when the amount you save cancels out the cost of the refinance). Watch your credit score and your home’s value. The higher they are, the more favorable rates you’ll be eligible for.
Online Refinance Calculators
An online mortgage calculator can be helpful in figuring out your new monthly payment or comparing different refinance options in Louisiana. It can help you understand the potential savings you’ll get from refinancing — you’ll need to plug in your current loan balance, your interest rate, and the terms of the new loan. Using a refinance calculator will help you make an informed decision about whether or not refinancing is the right plan. /p>
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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.
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The Takeaway
Refinancing your mortgage in Louisiana can be a smart financial move. It does require thinking about your goals, though, along with research on the costs involved. To make the best decision, be sure to explore different types of refinancing options, including a cash-out, FHA, VA, and adjustable-rate mortgage options.
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 mortgage refinancing a smart idea?
If you can lock in a lower interest rate, consolidate your debt, or meet other important financial goals, a mortgage refi might be a smart financial decision. Do the math to figure out at what point the cash you’ll save by refinancing will exceed the money you’ll spend on the refi. How long will you stay in the home? If you’ll move before you’ve recouped the cost of your refi, it won’t make sense to do it.
Can I get cash out of my house without refinancing?
You can tap into your home’s equity to get money without a refinance by requesting a home equity line of credit (HELOC) or taking out a home equity loan. These options can be great ways to pay for home improvements, consolidate debt, or cover other expenses that come up. Technically, a HELOC or home equity loan is a second mortgage (assuming you still have your first one).
How much are refinancing closing costs?
If you’re just thinking on a mortgage refinance, it’s easiest to look at average closing costs. They tend to fall between 2% and 5% of the loan amount. Different lenders, refinance types, and locations can make these costs fluctuate. A no-closing-cost refinance sounds like an amazing find, but know that those costs don’t disappear — they will get folded into the new mortgage, or exchanged for a higher interest rate.
Can I just request a lower interest rate from my lender?
Any borrower can reach out to a lender and request a lower interest rate on their mortgage. But it’s entirely possible that the lender will decline your request, especially if you don’t have a spotless payment history or top-notch credit. If you’re having trouble making your payment, ask your lender for a mortgage loan modification or loan forbearance, in which payments are temporarily paused. In either case, you may need to demonstrate financial hardship.
SoFi Mortgages
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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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