SOUTH DAKOTA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
South Dakota.
Current mortgage refinance rates in
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Compare mortgage refinance rates in South Dakota.
Key Points
• Mortgage refinance rates in South Dakota are influenced by the 10-year U.S. Treasury Note and housing inventory levels, among other factors.
• An interest rate drop of two percentage points on a $200,000 mortgage could put almost $100,000 back in a borrower’s pocket over the life of a 30-year loan.
• In South Dakota, homeowners have a variety of mortgage refi options to choose from: conventional, cash-out, 15-year, and adjustable-rate mortgages (ARMs), and FHA and VA loans, each with its own set of perks and things to consider.
• To lock in the best South Dakota mortgage refinance rates, take good care of your credit score, trim your debt-to-income ratio, and be sure to compare offers from different lenders.
• Compare each loan’s annual percentage rate (APR), as this includes the interest rate and other loan costs.
Intro to Mortgage Refi Interest Rates
Some people dream of a new home. Others would be happy just to have a new home loan. A mortgage refinance could be the solution, offering you the chance to replace your original loan with a new one with different terms. Whether you want to lower your monthly payments, pay off your loan faster, or get cash from the equity you have in your home, the type of refinance you choose can affect your financial future. This guide is designed to give you a comprehensive understanding of how mortgage refinance rates work and to provide you with the tools you need to secure the best rate available for your refinance.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refi Interest Rates Come From?
Historically, the strongest indicator of where mortgage interest rates are going lies in the bond market, in the performance of the 10-year U.S. Treasury Note. When the rates on the note rise, mortgage interest tends to head north as well.
Another factor is the housing market. When the market cools and more homes are available than there are buyers, mortgage lenders may lower rates to keep attracting customers. Then there is the overall economy: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the feasibility of your mortgage refinance. Your monthly payment hinges on your loan amount, the term of repayment, and the mortgage refinance rate. For instance, if you refinanced to a $200,000 loan with a 6.00% interest rate over 30 years, you would have a monthly payment of $1,199. But if the interest rate were 8.00%, that monthly payment would leap to $1,467. Over the life of the loan, a lower interest rate could translate to nearly $100,000 in total interest savings. So even the slightest dip in the mortgage refinance rate could lead to substantial financial gains.
Why Refinance in South Dakota?
Refinancing your mortgage can be a savvy financial maneuver, but it’s not a decision to take lightly. Whether a refinance makes sense for you will depend in large part on why you are refinancing.
Common Reasons to Refinance a Mortgage
Common reasons you, as a South Dakota homeowner, may want to refinance your mortgage include:
• You qualify for a lower interest rate, thanks to having built your credit score or the market conditions becoming more favorable.
• You’re considering revising your repayment term to either lighten your monthly load or settle the loan quicker.
• You want to tap into your home equity for a big expense, such as college or home improvements, or to free up cash to pay off high-interest debt.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed rate.
• You have an FHA loan (backed by the Federal Housing Administration), and you’ve reached 20% equity in your home and are eager to bid farewell to the FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Rate
When you’re studying how to refinance a mortgage, these are the first steps to take. Before you even apply for a refi, following this path can help you get the best possible rate:
• Pay your bills on time to take good care of your credit score.
• Check your equity level. Search online for your property’s estimated current value. Subtract whatever you owe on your mortgage from that number. Divide the result by your home’s estimated value to arrive at a percentage of equity.
• Know your debt-to-income (DTI) ratio. If it’s above 36%, try to reduce it. (To determine your DTI, add up your monthly debts, divide by your gross monthly income, and multiply by 100.)
• Determine whether you have some cash available to purchase discount points to lower your new mortgage rate. Each point typically costs about 1% of your principal.
• Figure out whether your monthly budget could accommodate a larger mortgage payment than you currently have. In that case, you might opt for a shorter mortgage term which will allow you to pay less interest over the life of the loan.
Understand Trends in South Dakota Mortgage Interest Rates
As you’re looking at current mortgage rates in South Dakota, it’s good to have a sense of context. South Dakota’s rates generally stay close to the U.S. average, so understanding national trends could help you spot the optimum time for you to refinance.
Historical U.S. Mortgage Interest Rates
You might have an ideal interest rate in mind, a point at which you’ll feel secure in your decision to refinance. But as you’re waiting for an interest rate drop, study the history of rates in the U.S. to make sure your expectations are realistic. Take a look at more than a half-century of rates below. Those who remember the low, low rates of early 2021 may be awaiting a drop below 4.00% or 5.00%. But as you can see from the graph, those rates don’t come around very often.
Choose the Right Mortgage Refi Type
Mortgage refinance rates in South Dakota vary by the type of refi you choose. Each option has different features and advantages, as you’ll see from the list below.
Conventional Refi
A conventional home loan refinance, also known as a rate-and-term refinance, is a smart choice for homeowners looking to lower their interest rate, change the length of their loan term, or both. A conventional refinance often has a higher rate than a government-backed refinance but offers more flexibility. This is a good option if you have built up equity and have a good credit score. Two common types of conventional refi are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
Choosing a loan term that’s on the shorter side (15 or even 10 years) can lead to substantial interest savings over the loan’s lifetime, though it does mean making higher monthly payments. Borrowers who have the financial resources to make those larger payments might choose a 15-year mortgage refi to close out their loan before children go to college or before they reach their retirement years.
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts with a lower mortgage refinance rate than a fixed-rate loan, so some people choose an adjustable-rate loan when they refinance to take advantage of that benefit. Of course, this isn’t for everyone, as interest rates on this type of loan can adjust up or down as market conditions change. (Other borrowers refinance to get out of an adjustable-rate loan and into a fixed-rate one because they want more predictable monthly payments.)
Cash-Out Refi
A cash-out refinance is a smart way to leverage your home equity, allowing you to borrow whatever you owe on your first mortgage plus a lump sum that can be used for a variety of financial needs, from home improvements to consolidating high-interest debt. Although cash-out refis tend to have a higher mortgage refinance rate, the rate still tends to be lower than the rate on a personal loan or credit card. Some borrowers pursue a cash-in refinance, paying down a chunk of the principal they owe and refinancing into a smaller loan.
FHA Refi
An FHA refinance, backed by the Federal Housing Administration, can be a game changer due to the potential for lower mortgage refinance rates. Refinancing an FHA loan once you have 20% equity in your home also helps you get rid of the FHA mortgage insurance premium, as noted above. The FHA Simple Refinance and Streamline Refinance are for those with an existing FHA loan. Cash-out and 203(k) refinances — the latter is used for home renovations — are available for everyone.
VA Refi
The VA loan refinance, for loans backed by the U.S. Department of Veterans Affairs, is known for its competitive interest rates. Also known as an Interest Rate Reduction Refinance Loan (IRRRL), this option is for those with an existing VA loan. If interest rates have dropped since you took out your first VA loan, this type of refinance could help you lower your monthly payments and save a significant amount of money on interest over the life of the loan, making it a great option for veterans who qualify.
Compare Mortgage Refi Interest Rates
Securing a competitive mortgage refinance rate could save you money. Once you’ve determined what type of refinance you’re looking for, here are some steps to take:
• Shop around and compare offers from multiple lenders. Many lenders have a prequalification process online that you can use to get a quick look at what your mortgage refinance rate might be.
• Compare each loan’s annual percentage rate (APR), which includes the interest rate and other loan costs.
• Note that if a lender is offering a no-closing-cost refinance, you might see costs added to the principal or reflected in a higher interest rate on your loan.
• Calculate the break-even point (the point at which your monthly savings on mortgage payments equals the amount you would spend to get the new loan) to see if the savings make the costs worthwhile.
• Consider whether the new payoff date aligns with your long-term goals.
Use an Online Refinance Calculator
Online calculators are useful tools for homebuyers and homeowners generally. A South Dakota online refinance calculator will be helpful as you’re comparing offers from various lenders and getting a handle on mortgage refinancing costs. 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’s important to evaluate the pros and cons for your personal situation. Whether you want to lower your mortgage refinance rate, access the equity in your home, or switch to a different loan type for other reasons, it’s important to understand the benefits and trade-offs of each option. By carefully considering your goals and financial situation, you could increase your chances of getting the most favorable terms and saving money in the long run.
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?
No one can definitively predict future mortgage rates, but you can look at key indicators to try to get a sense of where rates might be headed. If the 10-year Treasury Note rate is rising, the housing market is hot, or the economy is vigorous, it’s unlikely that you will see rates fall in the near future. Watch current refinance rates so you’ll know when it’s time to shop for a new loan.
How much would a 1% rate drop affect my monthly payment?
You’d be surprised at how much a one percentage point reduction in your mortgage refinance rate 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 more principal you owe, the greater the impact of the rate drop.
Can I lower my interest rate without refinancing?
If you’re sitting on some extra cash and mulling over your mortgage options, a mortgage recast might be a good alternative to refinancing. This involves making a lump-sum payment toward your principal balance, and your lender then “recasts” your monthly payment amount to reflect the lower principal. If you’re facing financial hardship, you could also explore a loan modification. If you have a solid credit score and stellar payment history, you can ask your lender to modify your rate, but the lender is likely to suggest a refi or recast instead.
Can I take equity out of my house without refinancing?
You can tap into the equity in your home without increasing your mortgage rate by taking out a home equity line of credit (HELOC) or a home equity loan. These options give you access to the equity you’ve built in your home without having to refinance your first mortgage. They also offer the flexibility to borrow against your equity without changing your existing mortgage terms.
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.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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.
‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
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More refinance resources.
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