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Compare mortgage refinance rates in Maine.
Key Points
• Mortgage refinance rates can fluctuate due to shifts in inflation, the Federal Reserve’s economic policy, the bond market, and housing inventory.
• Lowering an interest rate by, say, 1% when refinancing can yield major savings every month and over the life of the loan.
• Refinancing a 30-year mortgage to a 15-year one could raise your monthly payments but mean you pay less interest in total, benefiting your financial status.
• Options for refinancing can include FHA refinances, backed by the Federal Housing Administration, which can have more favorable rates and easier qualifying standards than conventional loans.
• VA refinances, backed by the U.S. Department of Veterans Affairs, are known for offering highly competitive mortgage refinance rates and looser eligibility guidelines for qualifying individuals.
• Carefully compare mortgage refinance rates and fees from a few different lenders before making a move, and also consider the potential impact of your credit score on offers.
Introduction to Mortgage Refinance Rates
If you’re looking to save money on your mortgage, you might consider refinancing. A mortgage refinance, or refi, replaces your current home loan with an updated interest rate and terms. Qualifying for a lower rate can offer considerable savings over the life of a loan.
There are, however, various reasons to refinance specific to your situation and needs. Those will impact the type of refi you choose and the rate you are offered. Here’s the information you need to help you make the right decision for your scenario.
💡 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.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance rates vary over time and person to person, based on a number of economic and personal financial factors.
• The Federal Reserve‘s monetary policy can play a role in influencing rates. While changes to the federal funds rate don’t directly set mortgage interest rates, they can definitely impact what lenders offer.
• The bond market, which is affected by economic indicators and investor sentiment, indirectly impacts mortgage rates as well.
• Housing inventory can play a role in mortgage rates. When there’s low inventory and high demand, prices typically rise. That can trigger an uptick in interest rates as borrowers seek higher loan amounts, which can be risky for lenders.
• Inflation usually has a direct impact on rates, with higher inflation causing mortgage rates to rise.
Monitoring interest rate news can help you know when a mortgage refinance could be advantageous.
How Interest Rates Affect Home Affordability
Interest rates are a key factor in determining home affordability. It directly impacts what your monthly payment will be and is therefore an important part of your budgeting.
Different mortgage interest rates can significantly impact your refinance payment. Consider this example of a 30-year $200,000 home loan:
• With a 6.00% refinance rate, your monthly payment would be $1,199.
• With an 8.00% refinance rate, that monthly payment would be $1,467.
Over the course of a year, that means you would pay an additional $3,216. Multiply that by 30 years, and you’re doling out an extra $96,480 at that higher rate. That sum can have a real impact on your financial status.
Why Refinance in Maine?
Refinancing can be done for a variety of reasons such as lowering your monthly payment or leveraging equity to free up cash. Worth noting: In terms of how soon can you refinance a mortgage, it’s wise to have at least 20% equity in your home, especially if you’re looking to cash out some of that equity.
Common Reasons to Refinance a Mortgage
Here’s a more in-depth look at some common reasons why homeowners refinance mortgages:
• Lower interest rates: If you have built your credit score or market conditions have shifted, you could qualify for a lower rate.
• Term change: A longer term means lower monthly payments, while a shorter term can help you save on interest by paying off the loan faster.
• Home equity cash-out: You might tap into your home’s equity to finance one or more needs.
• Adjustable rate change: If your rate is adjusting upwards and a fixed-rate loan can provide a favorable rate that won’t fluctuate, you might refinance.
• Reaching 20% equity with an FHA loan: Hitting this milestone can allow you to ditch the permanent mortgage insurance.
How to Get the Best Available Mortgage Refi Interest Rate
If you are planning on refinancing, here are some smart steps to help you secure a competitive mortgage refinance rate:
• Work to build your credit score and qualify for a favorable rate. Key moves include always making debt payments on time (setting up autopay can help), and avoiding taking on new debt, which can help you lower your credit utilization and debt-to-income ratios.
• Aim for a credit utilization rate of no more than 30% (10% or less is considered ideal) and a debt-to-income ratio below 36%.
• Compare rates and fees from multiple lenders; don’t opt for a “one and done” approach when shopping.
• Think about purchasing mortgage points. While this can raise your upfront mortgage refinancing costs, it can reduce your interest rate and save you money over the loan’s term.
• Choose a shorter loan term for a potentially lower rate. Though your monthly payment may be higher vs. a longer term, you can save money overall.
Understand Trends in Maine Mortgage Interest Rates
Mortgage rates ebb and flow like the tide. Before delving into specifics, here’s something to consider: The lowest average rate for a fixed-rate 30-year mortgage was 2.65% in January 2021; the highest average for the same kind of loan was 18.63% in October 1981! Maine’s mortgage refinance rates have largely mirrored these national trends, so understanding these patterns can help you decide when to refinance your mortgage.
Historical U.S. Mortgage Interest Rates
Mortgage refinance rates have seen a lot of movement over the past few decades. At the start of the 2000s, they were around 7.00%, and by 2020, they’d fallen to about 3.00% — some of the lowest rates we’ve ever seen.
Since then, rates have been rising, reflecting changes in the economy and the Federal Reserve’s policies. Understanding how refinance rates have changed over time can give you a better sense of where today’s rates stand and help you make more informed decisions about where they’ll be tomorrow and whether to refinance.
Historical Interest Rates in Maine
In the world of real estate financing, mortgage refinance rates in Maine have followed national trends. Looking at historical mortgage refinance rates in Maine can help you anticipate what might happen in the future and make an informed decision about refinancing. This analysis does not include current mortgage rate quotes, but helps you see where rates have been vs. the national numbers (note that the Federal Housing Finance Agency stopped tracking these numbers in 2018).
| Year | Maine Rate | National Rate |
|---|---|---|
| 2000 | 8.23 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.58 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.80 | 5.95 |
| 2005 | 5.95 | 6.00 |
| 2006 | 6.53 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 5.95 | 6.09 |
| 2009 | 5.00 | 5.06 |
| 2010 | 4.80 | 4.84 |
| 2011 | 4.51 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.76 | 3.92 |
| 2014 | 4.17 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.06 | 4.03 |
| 2018 | 4.65 | 4.57 |
💡 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.
Choose the Right Mortgage Refi Type
You’re probably aware that refinance rates are often a tad higher than those for new home purchases. What’s more, the type of mortgage refi you opt for can also influence the interest rate you’ll secure.
Here, you can learn about the various types of mortgage refinance options. For instance, rate and term refinances can either reduce your monthly payments or help you pay off your loan faster. Cash-out refinances, on the other hand, allow you to borrow more than your current mortgage to cover significant expenses.
Conventional Refi
Also known as a rate and term refi, these loans are ideal for homeowners who want to lower their interest rate or change their loan term without the additional requirements of government-backed loans (which likely have lower rates). Conventional refinances typically require a minimum credit score of 620 (higher scores can mean lower interest rates) and sufficient equity in the home, typically at least 20%. Understanding the differences in mortgage refinance rates can help you choose the best option for your financial situation.
15-Year Mortgage Refi
Opting for a 15-year mortgage can be a financial game-changer, slashing the total interest you’ll pay over the life of the loan.
Here’s an example: If you have a 30-year, $1 million loan at 7.50%, you’re looking at a monthly payment of about $6,992 and a staggering $1,517,167 in total interest.
But, if you refinance to a 15-year term at 7.00%, you could save big over the long term. Yes, your monthly payment will jump to around $8,988. However, the total interest plummets to approximately $617,891, which means you’d save close to $900,000 (almost a cool million) in interest alone.
Adjustable-Rate Mortgage Refi
With an adjustable-rate mortgage (ARM), you start with a lower initial refinance mortgage rate than a fixed-rate loan, but your rate can rise after the initial fixed period. If you’re planning to move before the rate adjusts, an ARM could be an affordable refinancing option. Just be sure you understand how much your monthly payments can increase so you can decide whether you’ll be able to handle them if you wind up staying put.
Cash-Out Refi
A cash-out refinance is a way to tap into your home’s equity by borrowing more than what you currently owe. For example, if your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. A lender usually allows you to borrow up to 80% of your equity.
You could refinance and, after you pay off your original mortgage, have additional cash left over to put toward home renovations, debt consolidation, or other large expenses. Keep in mind that cash-out refis often have higher mortgage refinance rates than conventional refis.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer more favorable mortgage refinance rates than conventional loans. There are two main types: FHA Simple Refinances and FHA Streamline Refinances, both of which are only available to homeowners with existing FHA loans.
If you don’t have an FHA loan, you can consider qualifying for an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovation and rehabilitation projects.
VA Refi
VA refinances, supported by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must already have an existing VA loan. These are available to qualifying active-duty service members, veterans, and certain military spouses.
This specific type of refinance can be particularly beneficial as it can reduce your monthly payments or even allow you to switch from an adjustable-rate to a fixed-rate mortgage, potentially saving you a considerable amount of money over the entire duration of the loan.
Compare Mortgage Refi Interest Rates
Now that you understand the different types of mortgage refinances available, here’s advice on how to pick the right home loan for your needs. Comparing mortgage refi interest rates can help you make the right decision for your situation and save you money.
• Get prequalified by multiple lenders to compare rates and terms. You may be surprised to see the variation in offers that you qualify for.
• Compare APRs, or annual percentage rates. Unlike interest rates alone, these include interest, fees, and discount points, giving you a more accurate picture of what you will pay when you secure your loan.
• Only consider refinancing if the new rate is lower than your current one or if you have an ARM and have reason to worry that the rate will be rising in the years ahead.
One last note: Lower rates sometimes mean higher costs. Do the math to see which offer is really the best over the long haul.
Online Refinance Calculators
Online refinance calculators are a great way to get a rough idea of what your new monthly payment might be and to compare different refinance options. They can help you understand the impact of different mortgage refinance rates, loan terms, and closing costs, and decide whether refinancing makes sense for you.
It can be wise to use these calculators to look at a number of different scenarios and see the potential financial impact of each. Equipped with this intel, you can make a more informed decision based on your own financial situation and goals.
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 is a big financial decision, but it could be a smart one if you plan carefully and do your homework. By learning about the different types of refinance loans available and taking steps to build your credit score, you may be able to get the best mortgage refinance rates and save money over the life of your loan.
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
Are refinance rates expected to go down?
As of early 2025, interest rates are holding steady. There had been talk in 2024 that rates would be cut, but so far, that has not been the case. However, since interest rates fluctuate, it’s wise to check the current figures when contemplating a mortgage refinance.
How much does 1 percent lower your monthly payment?
Even a 1% dip in your mortgage interest rate, thanks to a refinance, can translate to a heftier wallet each month. The exact amount you’ll save depends on how much you still owe and the remaining term of your loan. But here’s an example: If you have a $200,000 30-year fixed-rate mortgage at 6.00%, your monthly payment will be $1,199. If you have the same loan at a 7.00% interest rate, your monthly payment will be $1,330. Over the life of the loan, the latter loan holder would pay almost $25,000 more in interest than the person with the 6.00% loan.
Can I get equity out of my house without refinancing?
Yes, you can tap into your home’s equity through a home equity line of credit (HELOC) or a home equity loan. With these options, you can access the funds you need without adjusting your current mortgage refinance rates. Just be sure to review the terms and conditions carefully, as they can vary by lender and 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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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