SOUTH CAROLINA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
South Carolina.
Current mortgage refinance rates in
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Compare mortgage refinance rates in South Carolina.
Key Points
• Before refinancing your mortgage in South Carolina, check your credit score, home equity, and debt-to-income ratio to determine your refinancing eligibility and the potential rates you may qualify for.
• South Carolina refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory.
• Consider a 15-year mortgage refinance. While the monthly payments might be higher, you could save a significant amount in interest over time.
• It’s important to weigh the costs and benefits of refinancing, including closing costs and the impact on your credit score. This is to make sure it’s in line with your financial goals.
• Compare refinance rates from banks, credit unions, and online lenders to find the best terms and options for your financial goals.
Introduction to Mortgage Refinance Rates
When you refinance a mortgage, you replace your current home loan with a new one. This can come with new terms and a different interest rate. The type of refinance you choose and the reason you’re refinancing will determine your interest rate.
This guide will help you understand what determines current mortgage refinance rates in South Carolina and how you can get the best rate on your refinance.
💡 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 Interest Rates Come From?
Mortgage refinance rates are a product of both the economic landscape and your personal financial standing. They are influenced by Federal Reserve actions, inflation, the bond market, and housing market trends. In times of high inflation, rates tend to rise, while low inflation can lead to lower rates. The Fed’s monetary policy and the bond market also play a role in shaping mortgage rates.
A borrower’s credit score plays a crucial role in determining refinance rates, with higher scores typically leading to more favorable terms. Lenders also consider the debt-to-income (DTI) ratio and loan-to-value (LTV) ratio. The lower the ratio for both, the better your chances are at securing a more favorable rate.
How Interest Rates Affect Home Affordability
You’re probably well aware that interest rates are a big deal when it comes to your South Carolina home loan. But let’s talk about how they can make a refinance more affordable. Your monthly payment depends on your loan amount, the term over which you’re paying it back, and the interest rate.
For instance, a $200,000 loan with a 6.00% refinance rate and a 30-year term would have a payment of $1,199 a month. If you bump that interest rate to 8.00%, you’ll be paying $1,467 a month. What’s more, that lower interest rate could save you close to $100,000 over the life of the loan. So while a fraction of a percentage point might not seem like much, it can really add up over time.
Here’s a closer look at how different interest rates and loan terms affect payments and 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 |
Trends in South Carolina Mortgage Interest Rates
If you’re a homeowner in South Carolina, you’re probably keeping an eye on the latest mortgage rate changes. In 2021, the average 30-year fixed mortgage rate was an attractive 2.96%. Fast forward to 2023, and rates were up to 7.03%. Currently (March 2025), rates are 6.65% on average.
Despite some predictions of a decrease in mortgage rates last year, Freddie Mac’s early 2025 forecast suggests that rates will stay higher for a while. Understanding these trends is key for South Carolina homeowners who want to make savvy decisions about refinancing their mortgages.
Historical U.S. Mortgage Interest Rates
The mortgage refinance market has seen its fair share of ups and downs over the years, reflecting the broader economic environment. In the early 2000s, interest rates were around 6.00-7.00%, before dropping to historic lows of around 3.00% in 2020. By 2023, they had rebounded to about 7.00%. By looking at the past, you can get a better sense of what’s happening with current interest rates and make a more informed decision about whether to refinance your mortgage.
Historical Interest Rates in South Carolina
South Carolina’s mortgage refinance rates generally follow national trends. In the past few years, South Carolina has seen similar patterns, with rates dropping to historic lows in the early 2020s and then increasing. These changes can affect the cost of refinancing, so it’s important to stay up to date on rate movements and consider how they might affect your financial situation.
Here’s a look at how South Carolina mortgage rates compare to the national rate from years 2000 to 2018. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | South Carolina Rate | National Rate |
|---|---|---|
| 2000 | 7.98 | 8.14 |
| 2001 | 6.84 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.67 | 5.83 |
| 2004 | 5.71 | 5.95 |
| 2005 | 5.95 | 6.00 |
| 2006 | 6.59 | 6.60 |
| 2007 | 6.42 | 6.44 |
| 2008 | 6.06 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.68 | 4.84 |
| 2011 | 4.48 | 4.66 |
| 2012 | 3.62 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.93 | 3.91 |
| 2016 | 3.74 | 3.72 |
| 2017 | 4.04 | 4.03 |
| 2018 | 4.59 | 4.57 |
Recommended: Show Homebuyers Wait for Interest Rates to Drop?
Why Refi in South Carolina?
Refinancing your mortgage can be a smart financial move, depending on mortgage refinance rates in South Carolina. If current interest rates are lower than your existing mortgage, you might want to consider refinancing.
The reason you refinance will help determine the type of refinance you choose, which will determine the interest rate you receive. You’ll want to have at least 20% equity in your home before you refinance. Refinancing your mortgage can help you secure a lower mortgage refinance rate, change your loan term, or access cash from your home’s equity.
💡 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.
Common Reasons to Refinance a Mortgage
Common reasons South Carolina homeowners may want to refinance their mortgage include:
• Lower the interest rate: If you’ve built your credit score or market conditions have shifted in your favor, you may be able to get a better interest rate.
• Change the repayment term: Adjust monthly payments by extending or shortening the loan duration.
• Cash out home equity: Tap into your home’s equity for a major purchase or expense.
• Adjustable rate change: Convert to a fixed-rate mortgage to guard against potential rate hikes down the road.
• Eliminate mortgage insurance: If you have an FHA loan with 20% equity, you can refinance to get rid of mortgage insurance premiums.
How to Compare Mortgage Refi Interest Rates
Securing a competitive South Carolina refinance rate is key to saving money. Even a fraction of a percentage point can translate to significant savings over the life of your loan. To make sure you’re getting the best refinance deal, you’ll want to:
• Compare rates from multiple lenders.
• Look at the annual percentage rate (APR), which includes interest, fees, and discount points.
• Compare your current rate to rates being offered.
Recommended: How Soon Can You Refinance a Mortgage?
Compare South Carolina Interest Rates by Mortgage Refi Type
There are many different types of mortgage refinancing loans, each with its own special features and benefits. By understanding the differences between the types of loans, you can make a more informed decision about the one that’s right for you and your family.
Conventional Refi
Also known as a rate-and-term refi, conventional refis come with slightly higher rates than government-backed loans (FHA, VA, USDA). This type of refinance is ideal for homeowners who want to change their interest rate or loan term without the additional requirements of government loans.
Conventional refis typically require a minimum credit score of 620 and a debt-to-income ratio of 36% or less. These loans offer flexibility and can be a good choice for those looking to secure a lower mortgage refinance rate.
Cash-Out Refi
Cash-out refinances are a smart way for homeowners to access their home equity by replacing their existing mortgage with a larger one. The difference in the two amounts is then given to the homeowner as a lump sum of cash.
For instance, if your home is valued at $500,000 and you owe $300,000, a refinance for $400,000 would pay off the original mortgage and leave you with $100,000. This money can then be used for home improvements, paying off debt, or other significant expenses. Though cash-out refis may come with slightly higher rates, they can be a valuable financial tool when used strategically.
Recommended: How to Calculate Home Equity
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts with a lower rate than a fixed-rate loan, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM could be an affordable refinance option. Before you choose this type of loan, it’s important to consider how much your monthly payments could change and whether you can afford them if you don’t move. (Even if you think your plans are definite, life can throw you some unexpected situations, after all.)
Your lender can help you evaluate your specific situation and determine whether or not an ARM is the right choice for you.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are tailored for veterans and active-duty military members and often boast some of the most competitive mortgage refinance rates. The most common type is the Interest Rate Reduction Refinance Loan (IRRRL), exclusively available to homeowners with an existing VA loan. This refinance option can be a game-changer, helping you lower monthly payments and save on interest over the loan’s lifetime.
15-Year Mortgage Refi
By refinancing from a 30-year mortgage to a 15-year mortgage, you could be making a savvy move to cut down on interest in the long run.
For example, if you have a 30-year $500,000 mortgage at a 6.50% interest rate, your monthly payment would be around $3,160, with total interest paid reaching approximately $637,365. However, by refinancing to a 15-year mortgage at a 6.00% interest rate, your monthly payment would rise to about $4,219, but you’d significantly reduce your overall interest costs ($259,471 in total).
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) kick off with a lower mortgage refinance rate than fixed-rate loans, which can be a draw for homeowners with plans to move before the rate adjusts.
If you’re currently on a 30-year fixed-rate mortgage but foresee a move within a few years, an ARM switch could translate to lower monthly payments and short-term savings. However, it’s important to understand the possibility of rate hikes and how they might impact your budget.
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate in South Carolina:
• Build your credit score by being punctual with payments and avoiding new debt.
• Keep your DTI under 36% for smoother sailing.
• Compare interest rates and fees from multiple mortgage lenders.
• Think about buying discount points to lower your rate.
• Choose a shorter loan term for reduced interest costs.
Online Refinance Calculators
Online refinance calculators are a must-have tool for anyone considering refinancing their home. These calculators can help you figure out how much you could save by refinancing, and what your new monthly payments might be. They can also help you see how different loan terms, interest rates, and loan amounts could affect your finances.
By entering your current mortgage details and playing around with different refinance scenarios, you can get a better sense of whether refinancing makes sense for you.
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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 in South Carolina can potentially save you money through a lower mortgage refinance rate, reduced monthly payments, or by tapping into your home equity.
However, it’s important to weigh the costs and benefits, and consider your long-term financial goals. Whether you’re looking to save on interest, consolidate debt, or finance home improvements, understanding your mortgage refinance options can help you make the right decision for your situation.
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
How much does it cost to refinance?
The cost to refinance a mortgage typically ranges from 2% to 5% of the loan amount. Common expenses include application fees, loan origination fees, appraisal costs, title insurance, and closing costs. Some lenders offer no-closing-cost refinancing, but these often come with higher interest rates.
How can I get a low interest rate when I refinance?
To get a low interest rate when refinancing, maintain a high credit score, lower your debt-to-income ratio, and build home equity. Shopping around with multiple lenders, choosing a shorter loan term, and refinancing when market rates are low can also help secure a better rate.
Can I get equity out of my house without refinancing?
Absolutely. You can tap into your home’s equity through a home equity line of credit (HELOC) or a home equity loan. A HELOC is a revolving line of credit that you can draw on as needed, while a home equity loan is a lump sum of money you receive all at once.
Does refinancing have an impact on your credit?
Yes, refinancing your mortgage can impact your credit score. Lenders perform a hard inquiry, which may cause a temporary dip in your score. Additionally, closing an old loan and opening a new one can affect your credit age and mix. However, responsible payments on the new loan can help rebuild your score.
How many times can you refinance your home loan?
You can refinance your home as many times as you want, but it’s important to weigh the benefits against the costs and potential drawbacks. Each time you refinance, you’ll have to pay closing costs and you may also hurt your credit score. Refinancing can be a good financial move if you get the right mortgage for your needs, but it’s not something to rush into. Take your time to get it right.
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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