NORTH DAKOTA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
North Dakota.
Current mortgage refinance rates in
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Compare mortgage refinance rates in North Dakota.
Key Points
• Mortgage refinance rates are influenced by economic factors, including bond market trends and housing inventory.
• Even a 1% drop in your mortgage refinance rate can mean substantial savings, lightening your monthly load and saving thousands of dollars over time.
• Switching to a 15-year mortgage could mean big savings in the long run, even if monthly payments are a bit steeper.
• FHA and VA loans often come with more attractive refinance rates than conventional loans, so they are a smart choice for some homeowners.
• Closing costs for refinancing can range from 2% to 5% of the loan amount.
Introduction to Mortgage Refinance Rates
A mortgage refinance is like a makeover for your home loan — one that leaves you with a more attractive financial profile. You swap your existing mortgage for a new one, complete with fresh terms and an updated interest rate. The reason behind your refinance will dictate the type you choose, and the type will play a role in the interest rate you secure. This guide is your ticket to understanding how mortgage refinance rates are determined, and how you can land the most favorable one. For starters, it helps to understand where mortgage rates come from.
💡 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 Originate?
Current mortgage rates are influenced by both economic and personal financial factors. The big economic factors that come into play include bond market conditions, housing inventory, and the job market. The strongest indicator of the direction mortgage interest rates are headed lies in the performance of the 10-year U.S. Treasury Note. When the rates on the note rise, mortgage interest tends to head in the same direction. Another factor is the housing market. When the market cools, lenders may lower rates to keep customers flowing. Then there is the overall economy: A strong jobs market and economic growth can cause interest rates to rise, while a recession is usually accompanied by lower interest rates.
How Interest Rates Affect Home Affordability
As with your current mortgage, the interest rate you obtain in a refinance is key to its affordability. Your monthly payment is calculated based on your loan amount, the term of repayment, and the interest rate. For instance, a $200,000 loan with a 6.00% refinance rate and a 30-year repayment term would mean a $1,199 monthly payment. The same loan with an 8.00% refinance rate would require a $1,467 monthly payment. The lower interest rate could also save you nearly $100,000 over the life of the loan. While a fraction of a percentage point might seem small, it can mean substantial savings over the loan’s duration.
Why Refinance in North Dakota?
The “why” behind your decision to refinance is crucial and can lead you down different paths, each with its own set of benefits. Wondering about the “when” and how soon can you refinance a mortgage? It’s generally a good idea to have at least 20% equity in your home before you swap out your loan. Here are the more popular reasons owners undertake a refi.
Common Reasons to Refinance a Mortgage
• Lower interest rate: If rates have dropped or your credit has improved so that you qualify for a lower rate than you currently have, you might be able to snag a better deal.
• Change repayment term: Lengthen your term for lower payments (though more interest), or shorten it to pay less overall.
• Cash out home equity: Tap into your increased home value for funds that you can use for a renovation or other big expense.
• Switch to a fixed-rate loan: Protect yourself from potential rate hikes, and plan your budget with consistent monthly payments.
• Refinance an FHA loan: Once you have 20% equity, you can eliminate the FHA mortgage insurance premium by refinancing.
• Consolidate debt or remove a cosigner from a loan.
How to Get the Best Available Mortgage Refi Rate
If one or more of the above reasons applies to you and you’re figuring out how to refinance a mortgage, it will help to prepare by taking these steps:
• Maintain a healthy credit score by being punctual with all debt payments.
• Keep your debt-to-income (DTI) ratio under 36%. To determine your DTI ratio, add up all your monthly debts, divide by your gross monthly income, then multiply by 100.
• Think about whether you have cash on hand that you could use to buy mortgage points (also known as discount points) to lower your interest rate.
• Consider whether your monthly budget would allow you to opt for a shorter-term loan, which will have a higher monthly payment but which will help you build equity and pay off your loan faster, with less interest paid.
Understand Trends in North Dakota Mortgage Interest Rates
If you are waiting for an interest rate drop, and you have a certain magical number in mind, it’s a good idea to check in with prevailing interest rates to make sure your figure is realistic. North Dakota interest rates follow national patterns, as you will see below.
Historical U.S. Mortgage Interest Rates
Looking at national average mortgage rates over a long time period will help you understand how unusual it is to see very low rates of less than, say, 4.00%. The graphic shows more than a half-century of rates. They dropped to historic lows of around 3.00% in 2020. But rates that low are rare, as the graphic shows.
| Year | North Dakota Rate | National Rate |
|---|---|---|
| 2000 | 8.04 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.44 | 6.62 |
| 2003 | 5.58 | 5.83 |
| 2004 | 5.58 | 5.95 |
| 2005 | 5.55 | 6.00 |
| 2006 | 6.12 | 6.60 |
| 2007 | 5.97 | 6.44 |
| 2008 | 5.63 | 6.09 |
| 2009 | 4.79 | 5.06 |
| 2010 | 4.58 | 4.84 |
| 2011 | 4.29 | 4.66 |
| 2012 | 3.63 | 3.74 |
| 2013 | 3.87 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.70 | 3.72 |
| 2017 | 3.91 | 4.03 |
| 2018 | 4.32 | 4.57 |
Choose the Right Mortgage Refi Type
Your next step in the refinance process is to determine what type of loan you might want to choose. Generally, conventional loan refinances come with slightly higher rates, while government-backed options like an FHA loan offer lower rates and more lenient credit-score requirements. But there’s more to it than that. Here are the most common refi types so you can determine which direction you’re inclined to go.
Conventional Refi
Also known as a rate-and-term refi, conventional refinances are popular with homeowners who want to adjust their interest rate, loan term, or both. Conventional refis are straightforward and do not require the same level of documentation as government-backed loans. However, they may have stricter credit requirements and higher closing costs. Despite these drawbacks, a conventional refi can still be a cost-effective option if you qualify for a lower mortgage refinance rate.
15-Year Mortgage Refi
As noted above, a 15-year mortgage could be a smart move. Yes, monthly payments may be higher than your current payment, but the savings on interest in the long run could be substantial. Some borrowers opt for the shorter term because they are in their peak earning years and want to pay off their mortgage before a child heads to college, or before they retire. (Of course, it’s also true that some borrowers refinance to a longer term, such as a 30-year loan, so they can reduce their monthly loan payments.)
Adjustable-Rate Mortgage Refi
Borrowers move into or out of adjustable-rate mortgages (ARMs) during the refinance process. Homeowners who plan to move in a few years might choose an ARM because these loans tend to have a low introductory interest rate, followed by adjustments that can go up or down depending on the market. They are banking on the idea that they will move before they face a rate increase. Other refinancers are aiming to get out of an ARM and into a fixed-rate loan to ensure more predictable monthly payments.
Cash-Out Refi
A cash-out refinance lets you unlock your home’s equity, providing you with a lump sum that can be used for home improvements, debt consolidation, or other needs. These refinances often come with slightly higher mortgage rates than traditional ones, but a cash-out refinance is one of the more cost-efficient ways to borrow a large sum. For instance, if your home is valued at $500,000 and you owe $300,000, you could have $200,000 in equity. A lender may allow you to borrow up to 80% of this equity.
FHA Refi
FHA loans, insured by the Federal Housing Administration, often come with lower mortgage refinance rates than conventional loans. But as noted above, many FHA loan holders pay a monthly mortgage insurance charge. Refinancing once you hit 20% equity can help you shake off this expense. The FHA Simple Refinance and FHA Streamline Refinance are for homeowners who already have an FHA loan. If you don’t have an FHA loan, you may want to consider applying for an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically designed for home renovations and improvements.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, are known for offering some of the most competitive mortgage refinance rates. To be eligible for the VA’s Interest Rate Reduction Refinance Loan (IRRRL), you must already have an existing VA loan. This type of refinance can potentially lower your monthly payments and save you a significant amount of money on interest over the life of the loan. If you’re eligible, this could be a great way to improve your financial situation.
Compare Mortgage Refi Interest Rates
After you’ve settled on the type of refinance you’re going to pursue, you want to do everything possible to secure the most competitive mortgage rate. Here are your next steps:
• Obtain rates from multiple lenders; many have an online prequalification process that will give you a rate in minutes.
• Look at the total mortgage refinancing costs of each loan, including fees. This means looking at the annual perccentage rate (APR), not just the interest rate on the loan.
• If your current rate is lower, refinancing might not be the best move unless you have other compelling reasons to refinance, such as the need for a cash-out refi.
• Remember that a lower rate doesn’t always equal savings.
An online calculator can be a helpful tool during this process.
Use an Online Refinance Calculator
An online refinance calculator is a great way to get an estimate of how much you could save by refinancing your mortgage. Armed with this knowledge, you can make an informed decision about whether refinancing is the right financial move for you. 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 smart financial move, but it takes some careful thought (and a bit of math). By working to nurture your credit score and lower your DTI, and by comparing the total cost of mortgage refinance rate offers, you could land a better deal and save big 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
Can you refinance when rates go down?
Seeing interest rates go down is one signal that it may be 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 monthly savings outweigh the fees from the refi.
How much does one-percent lower interest reduce your monthly payment?
A one percent reduction in your mortgage rate during a refinance can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see a $197 drop in your monthly payment. Over time, that seemingly small change can add up to big savings. The larger your mortgage, the more you save.
Can I lower my interest rate without refinancing?
If you’re in the fortunate position of having some extra funds, a mortgage recast might be just the thing for you. With a recast, you make a lump sum payment toward your principal, and your lender recalculates your remaining payments. Though it won’t affect your mortgage refinance rate, it could lead to a reduction in your monthly payments and save you a significant sum in interest over the loan’s lifetime.
Is there a fee to recast your mortgage?
There is a fee to recast your mortgage. It’s not as expensive as refinancing, but it can still cost you. The fee is typically between $100 and $500, and is charged by the lender. This fee covers the cost of the lender re-amortizing the loan and preparing new loan documents.
Do you have to pay closing costs when you refinance?
Yes, you will likely have to pay closing costs when you refinance. These costs can range from 2% to 5% of your loan amount, and they can add up — so it’s important to factor in these costs when you’re thinking about refinancing. You should also compare mortgage refinance rates to make sure you’re getting the best deal. Take the time to evaluate all of the costs and benefits of refinancing to see if it makes sense for you and your financial situation.
How many times can you refinance your home loan?
There’s no rule that limits the number of times you refinance a home loan, but each time you change your loan there will be closing costs. So it’s important to weigh any savings from refinancing against these costs. If you have the urge to refinance again and again, you might want to consider how much you’ve spent on interest on your home loan thus far and how you might refocus your budget to pay that loan off.
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