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Compare mortgage refinance rates in Utah.
Key Points
• Mortgage refinance rates are influenced by a variety of economic factors, including Federal Reserve policy, inflation, the bond market, housing inventory, and individual credit scores.
• Even a 1% dip in your mortgage refinance rate can work wonders, reducing your monthly payment and the total interest you’ll pay over the loan’s life.
• In Utah, refinance rates rose considerably from 2021 to 2025, which could affect your refinancing opportunities.
• Refinancing can reflect many goals: lowering monthly costs, changing the loan term, or drawing upon home equity to access cash.
• Swapping a 30-year home loan for a 15-year mortgage through refinancing can dramatically slash the total interest you’ll pay, even if the monthly payments are steeper.
Intro to Mortgage Refi Interest Rates
Mortgage refinancing is like hitting the reset button on your home loan, giving you the chance to snag a lower interest rate or better terms to suit your needs. The type of refinance you choose in Utah depends on your financial goals, whether it’s to reduce your monthly payment or tap into your home equity. This guide is your roadmap to understanding how mortgage refinance rates are set and how you can lock in the best rate out there. Whether you’re looking to save money, consolidate debt, or change your loan term, knowing what impacts mortgage refinance rates is key to making a smart move.
💡 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 Rates Come From?
Mortgage refinance rates are the result of a complex interplay of economic factors and your personal financial situation. Key economic factors include Federal Reserve policy, inflation, the bond market, and housing inventory levels. In general, high inflation and rising federal funds rates push mortgage refinance rates up. A strong bond market and cold housing market can push them down.
In terms of your own finances, know that your credit score will likely impact the rate you are offered. Those with higher scores are viewed by lenders as more creditworthy and can access lower interest rates. Those with lower scores (indicating less-than-perfect management of debt in the past) will typically have to pay higher interest rates.
By understanding these factors, you can better anticipate rate movements and time your mortgage refinance to save the most money.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of refinancing your home loan. Your monthly payment hinges on your loan amount, the term of repayment, and the mortgage refinance rate.
Here’s a closer look at how your interest rate can influence your Utah refinance loan:
• A $200,000 loan with a 6.00% interest rate over a 30-year term results in a monthly payment of $1,199.
• Now, that same loan with an 8.00% interest rate balloons the monthly payment to $1,467. With the higher interest rate, you have $268 less in your budget for other purposes every month.
Over the life of the loan, a lower interest rate can translate to tens of thousands of dollars (or more) in savings. Even a fractional difference in the mortgage refinance rate can lead to substantial savings.
Why Refinance in Utah?
Refinancing your Utah mortgage can be a strategic financial move for several reasons. Take a closer look at some of the most common reasons here.
Common Reasons to Refinance a Mortgage
You might decide to refinance your home loan for the following reasons:
• You’re eligible for a lower mortgage refinance rate because you’ve built your credit or market conditions have improved.
• You’re considering adjusting your repayment term to better fit your financial goals. A longer term could lower your monthlies and lead to more interest over the loan’s term, while a shorter term would offer the reverse.
• You might want to tap into your home equity to cover costs like education or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan for a greater sense of security.
• You have an FHA loan and 20% equity, and you’re eager to say goodbye to your FHA mortgage insurance premiums.
Worth noting: In terms of how soon you can refinance, you’ll typically need to have at least 20% home equity.
How to Get the Best Available Mortgage Refi Rate
Securing a competitive mortgage refinance rate is key to optimizing your savings. Here are some steps to guide you in obtaining the best rate:
• Build your credit score: Always making timely bill payments and avoiding new debt can positively impact your score.
• Lower your DTI: A DTI, or debt-to-income ratio, below 36% is usually the sweet spot for securing a more favorable rate.
• Compare lenders: It’s a bit like shopping for the perfect property. Check out different lenders and their mortgage refinance rates and fees to snag the best fit.
• Focus on fees: Keep mortgage refinancing costs in mind in addition to interest rates.
• Consider purchasing mortgage points: Also known as buying discount points, this tactic involves paying more upfront to lower your interest rate.
• Opt for a shorter term: Consider a 10- or 15-year mortgage for potentially lower rates, though it means higher monthly payments.
💡 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.
Understand Trends in Utah Mortgage Interest Rates
The mortgage refinance rates in Utah have seen their fair share of ups and downs in recent years. That’s true of national mortgage interest rates, too. Take a closer look at how these numbers fluctuate.
Historical U.S. Mortgage Interest Rates
In 2021, the average 30-year fixed mortgage rate was 3.15%. Fast forward to 2023, and that number had skyrocketed to 7.00%. If you were hoping for a future decrease, you might be disappointed to hear that the predictions for early 2025 suggest that current mortgage rates will stay higher for the time being.
These changes are often due to larger economic factors, such as Federal Reserve policies and inflation rates. By understanding these trends, you can better understand today’s rates and make an informed decision about refinancing your mortgage. Here’s an overview of the past several decades’ worth of interest rates in graph form, so you can see how these variations have played out.
Historical Interest Rates in Utah
Mortgage refinance rates in Utah tend to mirror national trends, with some local variation. In the recent past, rates have typically been a bit below the national numbers. The chart below chronicles almost 20 years of mortgage rates in Utah vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling specific state numbers at that time.)
Keeping an eye on rates can help you decide when to refinance to get the most out of your new loan.
| Year | Utah Rate | National Rate |
|---|---|---|
| 2000 | 7.27 | 8.14 |
| 2001 | 6.77 | 7.03 |
| 2002 | 6.29 | 6.62 |
| 2003 | 5.44 | 5.83 |
| 2004 | 5.59 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.60 | 6.60 |
| 2007 | 6.51 | 6.44 |
| 2008 | 6.01 | 6.09 |
| 2009 | 4.99 | 5.06 |
| 2010 | 4.82 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.81 | 3.92 |
| 2014 | 4.11 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.65 | 3.72 |
| 2017 | 3.97 | 4.03 |
| 2018 | 4.55 | 4.57 |
Choose the Right Mortgage Refi Type
Mortgage refinance rates in Utah can vary depending on not just market conditions and your credit score but also on the type of refinance you’re considering. Each option has its unique features and benefits. Learn more here.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, typically comes with higher rates compared to government-backed loans like FHA and VA (which have specific qualification requirements). This type of refinance is ideal for homeowners who want to lower their mortgage refinance rate or adjust their loan term. Conventional refis require a minimum credit score (typically 620) and sufficient equity in the home, usually at least 20%. While the rates may be higher, the flexibility and lack of government insurance can make this option attractive for many homeowners.
Cash-Out Refi
Cash-out refinances can be a smart way to leverage your home equity by refinancing your mortgage for more than you currently owe. This type of mortgage refinance is often used to free up a lump sum of cash for large expenses like home renovations or debt consolidation.
For example, if your home is valued at $500,000 and you currently owe $300,000, your equity is the value minus the debt, or $200,000. You might be able to borrow up to 80% of your home equity, which would leave you with well over $100,000 after paying off the existing mortgage. Although cash-out refis typically have higher rates, they can provide a valuable financial resource.
Recommended: Calculating Home Equity
15-Year Mortgage Refi
Shortening your loan term from 30 to 15 years can suit some homeowners’ needs. Here’s a scenario to illustrate this:
• Say you have a 30-year mortgage of $1 million at a 7.50% rate. If you refinance to a 15-year term at 7.00%, your monthly payment would go from around $6,992 up to $8,988, which is a considerable increase.
• However, the total interest you’d pay would drop from $1,517,167 to about $617,891. That’s a whopping $900,000 in savings!
If you’re able to swing the steeper monthly payment, this interest savings could make a tremendous difference in your personal finances and wealth.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower mortgage refinance rate than fixed-rate loans, but the rate can change over time. If you plan to move before the rate adjusts, an ARM might be a smart choice. It could mean a lower monthly payment and big savings in the short term.
That said, make sure you understand the risks. There’s a chance that your plans to move in the near future might not come to fruition, and then your rate might go up. Make sure you could still be financially stable if this were to occur before you decide to take out an ARM.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often come with lower mortgage refinance rates, sometimes a full percentage point lower than conventional loans. These specialized types of refinances are typically available to homeowners who already have an FHA loan, with options like the FHA Simple Refinance and FHA Streamline Refinance.
Homeowners with non-FHA loans can also consider FHA cash-out refinances or FHA 203(k) refinances, which are designed to help with home renovations and improvements.
VA Refi
VA refinances, backed 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 have an existing VA loan (meaning you are an activity-duty member of the military, a veteran, or perhaps a qualifying spouse). This type of refinance can be a great option, as it often results in lower monthly payments and reduced total interest costs.
Compare Mortgage Refi Interest Rates
If you’ve decided which type of Utah mortgage refinance suits you best, then it’s time to take a closer look at specific options. Here are tips to help you out:
• Compare multiple lenders for best rates and terms.
• Get prequalified to know your borrowing power and rate without dinging your credit score.
• Consider a loan’s annual percentage rate (APR) vs. just the interest rate. The APR includes interest rate, fees, and discount points, thereby giving you a more accurate picture of the cost of your loan.
• Weigh rate vs. fees, as lower rates may have higher costs.
• Use a calculator to estimate savings on monthly payments.
Use an Online Refinance Calculator
About that last point: There’s no need to spend your precious free time tapping away at a calculator’s buttons. Online refinance calculators can be a great way to get an idea of what your new monthly payment might be and how much you could save. They take a lot of factors into account, including your current loan balance, the new mortgage refinance rate, and the closing costs.
This can help you decide whether refinancing is a good option for you. By using a refinance calculator, you can see what the potential financial impact of refinancing might be and decide whether it makes sense for your financial goals and situation.
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 in Utah can be a savvy financial move, offering you the potential to lower your monthly payments, change your loan term, or pull some cash from your home equity. However, it’s important to weigh the costs, including closing fees, against the savings. You’ll also want to consider your long-term financial goals and how a refinance could help you meet them. By carefully considering these factors, you can make a smart decision that’s in line with your situation and aspirations.
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 I lower my interest rate without going through the entire refinance process?
Yes, you can get a lower interest rate on your mortgage without refinancing — but you’ll need to qualify for your lender’s recast or modification program. A mortgage recast is the process of making a large, lump-sum payment toward the principal balance of your loan, which reduces your monthly payments and your total interest costs. A modification may be accessed if you are struggling to make your mortgage payments and need an accommodation.
Can I ask my lender to lower my mortgage interest rate?
You can always ask your lender if they can lower your mortgage rate. While there’s no guarantee they’ll say yes, you can improve your chances by having a strong credit score and a history of making on-time payments. Doing so could help you get a lower mortgage rate and save you money on your monthly payments without refinancing.
How much are closing costs on a refinance?
The average closing cost for a refinance can be anywhere from 2% to 5% of the loan amount. So for a $300,000 mortgage, you might be looking at $6,000 to $15,000 in closing costs. It’s a significant chunk of change, and you’ll want to factor it into your decision-making and budgeting process. These costs can affect the overall price of your loan, so it’s important to weigh them against the potential savings of a lower interest rate.
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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.
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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7 Signs It’s Time for a Mortgage Refinance