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.
• A mere 1% drop in the interest rate on a $200,000 mortgage can 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, FHA, VA, 15-year, and adjustable-rate mortgages, 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.
• Don’t just study the interest rate on a loan offer; review the annual percentage rate (APR) as well.
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 is the solution. It’s like hitting reset on your mortgage. 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, 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 into 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 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 South Dakota homeowners may want to refinance their mortgage include:
• You qualify for a lower interest rate, thanks to improved credit or better market conditions.
• 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 like 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). 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. Following this path before you even apply for a refi 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. The chart below shows how closely South Dakota’s rates have stayed to the national average over a span of almost 20 years. (The Federal Housing Finance Agency stopped tracking states after 2018.)
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. See 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 below, those rates don’t come around very often.
Historical Interest Rates in South Dakota
As the chart below shows, it’s unusual for rates to vary by more than one percentage point from year to year.
| Year | South Dakota Rate | National Rate |
|---|---|---|
| 2000 | 8.11 | 8.14 |
| 2001 | 6.91 | 7.03 |
| 2002 | 6.51 | 6.62 |
| 2003 | 5.56 | 5.83 |
| 2004 | 5.66 | 5.95 |
| 2005 | 5.72 | 6.00 |
| 2006 | 6.40 | 6.60 |
| 2007 | 6.30 | 6.44 |
| 2008 | 5.91 | 6.09 |
| 2009 | 4.94 | 5.06 |
| 2010 | 4.68 | 4.84 |
| 2011 | 4.41 | 4.66 |
| 2012 | 3.56 | 3.74 |
| 2013 | 3.79 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 3.93 | 3.91 |
| 2016 | 3.69 | 3.72 |
| 2017 | 3.99 | 4.03 |
| 2018 | 4.68 | 4.57 |
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 can 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 can 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, but also includes 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 if 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. An 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 south 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 can increase your chances of getting the best 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 1% 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. A mortgage recast involves making a lump-sum payment toward your principal balance. Your lender can then “recast” your monthly payment amount to reflect the lower principal. If you’re facing financial hardship, you could also explore a loan modification. Of course, if you have a solid credit score and stellar payment history, you can always 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.
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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.
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.
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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