If so, you are in the right place! Get started by entering your personal confirmation number below.
Received an offer from us?
If so, you are in the right place! Get started by entering your personal confirmation number below.
Leaving SoFi Website
You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
By Lora Shinn |
|
Comments Off on What to Do as the Cost of Home Insurance Climbs
This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.
Editor’s Note: This is part one of a three-part series exploring the rising cost of home insurance. Coming over the next two weeks: What to consider if you’re shopping around and how to avoid leaving yourself underinsured.
One of the advantages of buying a house with a fixed-rate mortgage is being able to budget for the same payment amount every month.
But if you bundle your insurance premium in with your monthly principal and interest, chances are what felt like a relatively fixed monthly housing payment has started to feel anything but fixed.
Since 2018, the average annual homeowners’ premium nationally has increased 62% to $1,761, or about $147 a month, according to Freddie Mac’s latest 2024 calculations. And costs vary widely, so premiums in some states are four or five times as high as others.
In fact, insurance has become a primary contributor to the country’s housing affordability crisis, in addition to the pandemic surge in real estate prices and a steep increase in mortgage rates.
The average premium climbed 24% between 2020 and 2024 after inching up just 1% over the previous four years, data from Harvard University’s Joint Center for Housing Studies show. And that’s after adjusting for the rapid inflation of recent years.
So is this trajectory the new norm? And if you own a home, do you have any recourse? Here’s what we know and how you may be able to reduce your costs.
The Impact of Climate Change
At a very basic level, insurers set their premiums according to their anticipated risks. When the likelihood they’ll have to pay a claim rises, so do their premiums.
As climate change has made the weather more volatile, the severity and frequency of extreme events like hurricanes and wildfires has increased, increasing the scope of insured damage. Disasters in 2022 and 2024 caused over $180 billion in total damage each year, making them two of the four costliest years on record, according to the National Oceanic and Atmospheric Administration.
This is one reason why insurance premiums vary so much by state. Between 2017 and 2023, Texas, Colorado, Arizona and other states west of the Mississippi — areas prone to tornadoes, hail, and wildfires — saw the fastest premium increases, according to the Federal Reserve Bank of Minneapolis, citing S&P Global data.
In fact, homeowners in tornado- and hurricane-prone states like Nebraska, Louisiana, and Oklahoma pay over $500 a month, more than five times as much as residents of Hawaii, Oregon and Delaware, according to a November analysis by Marketwatch Guides that put the national average at $227.
And a major study released by the U.S. Treasury Department’s Federal Insurance Office in January showed residents in the riskiest 20% of U.S. ZIP codes (those with the highest expected losses) pay 82% more in premiums than those in the least risky ZIP codes.
Plus, these pricier policies may provide less coverage than they used to. Many homeowners in hail-prone areas of the Upper Midwest, for example, are now responsible for a bigger share of roof repair costs, according to the Minneapolis Fed.
And then there are states like California and Florida, where insurers are abandoning disaster-prone markets altogether, forcing many homeowners to get more limited but often more expensive policies from their state’s “insurer of last resort.”
Other Drivers of Price Increases
But climate change is by no means the only factor in the sharp premium increases. In fact, some insurance industry groups have suggested that the link to climate change is sometimes overstated.
Other macroeconomic forces include:
• The pandemic spike in inflation, which increased the cost of materials and labor needed to repair and rebuild homes
• An increase in litigation and insurance fraud
• More people moving into disaster-prone areas
• A surge in the cost of reinsurance (insurance purchased by insurers) that’s at least partly related to the damage from extreme weather
And there are more typical reasons prices go up, like a change in your circumstances. Maybe you recently added on to your house, filed a claim, or installed what insurers deem an “attractive nuisance” such as a trampoline or swimming pool.
An Uncertain Outlook
While premiums may continue to go up, overall increases are expected to be less dramatic this year, some forecasts suggest. As an industry, insurers are adjusting to the new norms and profits have stabilized, according to the reinsurance giant Swiss Re.
Still, there is a lot of uncertainty. The impact of extreme weather is hard to predict. And new tariffs on U.S. imports could drive up rebuilding costs, Swiss Re said.
What You Can Do
Ok, that’s probably not what you wanted to hear. But as a homeowner, you do have options. Here are some things you can do to potentially lower your costs:
• Shop around. Premiums can vary significantly by insurer, so it pays to explore all your options. You can do this by calling around on your own, going to an independent broker, or accessing an online marketplace like SoFi’s. (We let you compare quotes from up to 30 top insurers through our partner Experian Insurance Services.) Just make sure you’re comparing apples-and-apples coverage. Lower quotes aren’t necessarily less expensive if they come with reduced protection.
• Ask your current insurer about discounts. These could be discounts you missed initially or ones you’re newly eligible for (because you’ve gotten married, for instance). Your insurer may reward you for your loyalty, for bundling your coverage with an auto or umbrella policy, or being claim-free for a certain number of years.
• Increase your deductible. Your deductible is the portion of a claim you pay. Agreeing to shoulder more of it can help reduce your premium, but make sure you could actually afford the additional cost if you needed to make a claim. It’s important to weigh any potential coverage changes like this very carefully. You don’t want to leave yourself underinsured and in a financial bind.
• Make your home safer. Upgrades cost money, so this is not a money-saver in the short run. But if you’re considering a new roof or installing a security system anyway, you may find that lower insurance premiums are an added benefit.
Next week in our series: What to consider if you’re shopping around for better rates.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
• Current mortgage refinance rates in Nebraska are influenced by a variety of factors, the bond market, housing inventory levels, and the strength of the general economy.
• Even a 1% drop in your mortgage rate can translate to substantial monthly savings — sometimes as much as hundreds of dollars.
• Homeowners refinance for a variety of reasons, such as securing a lower mortgage rate, changing the loan’s term, cashing out home equity, or moving from an adjustable-rate to a fixed-rate mortgage.
• FHA refinances often come with more attractive interest rates, which is good news for homeowners with existing FHA loans.
• When considering a refinance in Nebraska, remember to account for closing costs, which are typically between 2% and 5% of the loan amount.
• Opting for a 15-year mortgage to replace a 30-year loan can slash the total interest you pay over the loan’s life, even though your monthly payments will be higher.
Introduction to Mortgage Refinance Rates
Simply put, refinancing your mortgage means taking out a new mortgage to replace your existing one. Why do it? In many cases, refinancing could let you get a better interest rate and more favorable terms. But the specific type of refinance loan you choose will be a big factor in the rates you’re offered. Whether you’re looking to lower your monthly payments, pay off your loan sooner, or get cash out of the equity in your home, this guide will help you understand what goes into your mortgage refinance rate and what you can do to get the best rate for your financial situation.
The rates available on your mortgage refinance are influenced by a variety of economic factors as well as your personal financial situation.
The bond market has historically been the strongest indicator of where mortgage interest rates were headed -– specifically the performance of the 10-year U.S. Treasury Note. When the rates on the note go up, mortgage interest tends to rise as well.
Not surprisingly, housing market performance is also key. When there are more homes available than there are buyers, mortgage lenders may lower their rates to attract more customers. Last, the overall economy also plays a role: A healthy job market and economic growth can lead to rising interest rates, while recession is generally accompanied by lower interest rates.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
Interest rates are important in determining the affordability of a mortgage refinance, though they’re not the whole story. Your monthly payment is the product of your loan amount, the time you have to repay it, and the interest rate, in addition to mortgage refinancing costs.
For example, a $200,000 home loan with a 6.00% mortgage refinance rate and a 30-year term results in a monthly payment of $1,199. But if the mortgage refinance rate rises to 8.00%, the monthly payment would jump to $1,468. Over the life of the loan, getting a lower rate could save you a significant amount of money, often tens of thousands of dollars. The lower rate would also mean you’d pay close to $100,000 less in interest over the lifetime of the 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
💡 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.
Why Refinance in Nebraska?
There are many different reasons you could be interested in refinancing your home. If your current mortgage interest rate is high, you might want to try to secure a lower one to save money. You might switch to a shorter loan term or change an adjustable rate to a fixed rate. Or you could be looking to tap into your home equity in order to finance a large purchase or consolidate debt.
Common Reasons to Refinance a Mortgage
Here are some reasons why homeowners refinance their mortgages:
• To lower their interest rate: If their credit has improved or market conditions have changed since they got their existing mortgage, they might be eligible for a better mortgage refinance rate.
• To adjust their repayment term: A refi can let homeowners tailor their loan term to their needs, whether they want to lower monthly payments or pay off the loan sooner.
• To cash out equity: Homeowners who need some extra funds for a big project like a home renovation or to consolidate debt can draw on their home if they’ve built up home equity with their first mortgage.
• To switch to a fixed rate: Those with adjustable-rate mortgages may want to convert them to fixed-rate loans to stabilize their finances.
How to Get the Best Available Mortgage Refi Interest Rate
Here are some tips that may help you secure a competitive mortgage refinance rate:
• Work to strengthen your credit score by staying on top of payments and steering clear of new debt.
• Lower your debt-to-income ratio (DTI) to no more than 36%.
• Compare the interest rates and fees available from multiple lenders.
• Think about buying mortgage points (also called discount points) to lower your rate.
• If you can afford the monthly payment, select a shorter loan term, which typically comes with better rates and lets you pay less total interest over the duration of the loan.
💡 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.
Mortgage Interest Rates in Nebraska
The past few years have seen Nebraska mortgage rates change significantly, in line with the national average dropping during the pandemic and jumping up again by 2023. As of April 2025, the average Nebraska mortgage rate for a 30-year fixed-rate loan was 6.94%, just slightly higher than the national average of 6.81%.
By keeping an eye on the trends, you can make the best decision about when to refinance your mortgage and get the best mortgage refinance rates for you.
Historical U.S. Mortgage Interest Rates
In the early 2000s, mortgage refinance rates hovered in the 6.00-7.00% range. Fast forward to 2020 and 2021, and the rates bottomed out around 3.00%. But by 2023, those rates had bounced back up to about 7.00% and current mortgage rates remain in this general range.
Historical Interest Rates in Nebraska
Nebraska mortgage rates have tended to stay close to the national trends, following their significant fluctuations in recent years. Rates hit historic lows in early 2020 but have since increased.
Year
Nebraska Rate
National Rate
2000
8.17
8.14
2001
7.05
7.03
2002
6.68
6.62
2003
5.90
5.83
2004
5.93
5.95
2005
5.99
6.00
2006
6.55
6.60
2007
6.42
6.44
2008
6.19
6.09
2009
5.27
5.06
2010
5.08
4.84
2011
4.81
4.66
2012
3.88
3.74
2013
4.02
3.92
2014
4.44
4.24
2015
4.09
3.91
2016
3.97
3.72
2017
4.10
4.03
2018
4.70
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
Different mortgage types have different eligibility criteria, suit different needs, and may offer different loan rates. Here’s what to bear in mind as you look at refinance mortgage loans in Nebraska:
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, involves swapping your current mortgage for a new one, ideally one with terms that are more favorable for you. These loans typically have higher rates than government-backed loans such as FHA, VA, or USDA loans. Conventional refinances are generally best-suited for you if you’re looking to lower your interest rate, change your loan term, or decrease your monthly payments. Be aware that they usually require that you have a strong credit profile and at least 20% equity in the property.
15-Year Mortgage Refi
If you have a 30-year mortgage, a 15-year mortgage refi can let you cut down the total interest you pay over the loan’s life, though your monthly payments will be higher. For example, with a 30-year $1 million mortgage at a 7.50% interest rate, you’d be looking at a monthly payment of about $6,992 and total interest of around $1,517,172. If you refinanced to a 15-year mortgage at a 7.00% rate, your monthly payment would jump to around $8,988. However, the total interest you’d pay would be approximately $617,891, saving you nearly $900,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower initial mortgage refinance rate than fixed-rate loans. However, after a defined period, your rate and payment can rise. If you’re planning to move before that initial rate is scheduled to adjust, refinancing to an ARM could help you save on your monthly payments. But before you decide, it’s wise to be absolutely sure that you’ll be selling the house before your initial interest rate goes up.
Cash-Out Refi
A cash-out refinance can be a strategic way to leverage your home’s equity by refinancing for more than you currently owe and pocketing the difference. This financial move is often used to fund home improvements, consolidate high-interest debt, or cover major expenses.
Consider this scenario: If your home is valued at $500,000 and your mortgage balance is $300,000, you could potentially refinance up to 80% of your home’s value, which is $400,000. After paying off your existing mortgage, you’d walk away with a cool $100,000. Just keep in mind that cash-out refis usually come with higher refinance rates than the standard options and that you’ll be paying off a higher amount again.
FHA Refi
FHA refinances, backed by the United States Department of Housing and Urban Development, often offer more attractive mortgage refinance rates than conventional loans to those who meet the eligibility criteria. These refinances are primarily available to homeowners who currently have an FHA loan, including the FHA Simple Refinance and FHA Streamline Refinance. However, even if you don’t have an FHA loan, you can still take advantage of FHA options such as the FHA cash-out refinance or the FHA 203(k) refinance, which is specifically designed for home renovation and rehabilitation projects.
VA Refi
VA refinances, a refinancing option backed by the U.S. Department of Veterans Affairs, generally offer highly competitive mortgage refinance rates. To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can help you get a more favorable interest rate on your original VA loan, potentially lowering your monthly payments. A VA refi can be a valuable option for service members and veterans who meet the eligibility criteria.
Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, you’ll want to compare rates from multiple lenders in Nebraska. In fact, it’s smart to look beyond interest rates to the annual percentage rate (APR).
APR is a handy equation that incorporates both fees and any discount points you’ve got. Calculate the total loan cost, as well as your break-even point (that is, how long it takes for the money you save to cancel out the out-of-pocket cost of the refinance). Keep an eye on your credit score and your home’s value — the higher they are, the more favorable rates you’ll receive offers for. Don’t forget to peruse local refinance rates for the best deal.
How to Compare Mortgage Refi Interest Rates
Getting a really good mortgage refinance rate can save you a bundle. Here’s how to maximize your chances:
• Compare multiple offers from different lenders to find the best rate.
• Go through the prequalification process to understand your borrowing capacity and the rates available to you.
• Look closely at the annual percentage rate (APR) for loans you’re interested in to get a comprehensive view of costs.
• Consider whether it might be a good move to purchase discount points to lower your mortgage refinance rate.
• Do your best to strengthen your credit score, debt-to-income ratio, and home value to secure the best rates.
Online Refinance Calculators
Using a good mortgage calculator can help you assess what your new monthly payment might be so you can compare different refinance options.
A calculator takes into account your current loan balance, the new interest rate, and the term of the loan to show you what your potential savings could be. This information can help you make a more informed decision about whether refinancing is right for you.
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 provide you with significant financial benefits, like the potential to reduce your monthly payment, or the ability to pay off your loan faster. But, it’s important to weigh the costs and long-term impact. To help you get the best deal, consider improving your credit score, lowering your debt-to-income ratio, and comparing multiple lenders’ current mortgage refinance rates in Nebraska. You can also use online calculators to estimate your potential savings and see if refinancing fits into your financial goals.
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.
How much does 1 percent lower your monthly payment?
A 1% reduction in your mortgage interest rate can lead to a significant decrease in your monthly payment. For example, on a 30-year $300,000 loan, a 1% drop from 7.00% to 6.00% could reduce your monthly payment by almost $200.
Can I lower my interest rate without refinancing?
One way to lower your interest rate without refinancing is through a mortgage recast, which involves paying a lump sum toward your loan principal. This can help lower your monthly payments and save you money on interest. If you’re facing financial hardship, you can also ask your lender for a loan modification to help avoid foreclosure.
Can I get equity out of my house without refinancing?
You may be able to pull some equity from your home without refinancing. Two ways to do this are through a home equity line of credit (HELOC) and a home equity loan. Both options allow you to access the equity in your home without changing your current mortgage. These may be good choices if you already have a low mortgage rate or don’t want to refinance.
Will refinancing impact your credit score?
Refinancing can cause a small, temporary dip in your credit score. That’s because when you apply for a new loan, the lender will do a hard inquiry into your credit history to determine your creditworthiness. Additionally, taking out your new loan will add a new account to your credit report. But the impact is usually minimal and may be offset by the benefits of your refi.
Will I have to pay closing costs when I refinance my mortgage?
You will have to pay closing costs when you refinance your mortgage. These costs cover the various fees and processing costs associated with your new loan. Closing costs usually run between 2% and 5% of the loan amount.
How many times can you refinance your home loan?
There are no set limits on how many times you can refinance your home. However, every time you do, you’ll need to pay closing costs and the new loan will affect your credit score. That’s why it’s important to make sure that refinancing makes sense for your long-term financial goals and that the savings you’ll get will more than make up for the cost of the new loan.
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.
‡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.
• Mortgage refinance rates in Wisconsin are influenced by economic factors like inflation and Federal Reserve policy, and personal factors like your credit score and debt-to-income ratio.
• Even a 1% drop in your mortgage refinance rate can make a big difference in your monthly payment and the amount you pay in interest over the life of the loan.
• In Wisconsin, you 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.
• Higher credit scores typically secure more favorable refinance rates. Maintaining good credit can lead to significant savings over the life of your Wisconsin home loan.
• When you’re thinking about a mortgage refinance, it’s important to weigh the potential savings against the costs, which can include closing fees and the interest you’ll pay over the life of the loan.
Introduction to Mortgage Refinance Rates
Current mortgage refinance rates in Wisconsin play a pivotal role in your decision to refinance. When you opt for a mortgage refinance, you’re essentially trading in your old mortgage for a new one, complete with updated terms and a fresh interest rate.
The reason behind your refinance will dictate the type of refi you choose, which in turn influences the interest rate you’ll secure. This guide will illuminate how Wisconsin refinance rates are established and how you can snag the most favorable one.
💡 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 Refinance Interest Rates Come From?
Current mortgage rates are a product of the economy and your unique financial landscape. On the economic side, rates fluctuate based on the Federal Reserve’s monetary policies, inflation trends, and overall market conditions. When inflation rises, lenders typically increase interest rates to maintain their profit margins.
On the personal side, a borrower’s credit score, debt-to-income (DTI) ratio, and loan-to-value (LTV) ratio all play a role in determining their refinance rate. A higher credit score generally leads to more favorable terms, while a lower DTI ratio reassures lenders that the borrower can manage their financial obligations.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
Just like when you took out your initial home loan, the interest rate on your mortgage is a key player in the game of affordability.
Your monthly payment is a mix of your loan amount, the term you’re paying it back over, and the mortgage interest rate. For instance, a $200,000 loan with a 6.00% mortgage rate and a 30-year repayment term will have you paying $1,199 monthly. If you bump that rate up to 8.00%, you’re looking at $1,467 each month. That’s a difference of almost $100,000 over the life of the loan. So while a fraction of a percentage point might seem small, it can add up to some serious savings over time.
Here’s a closer look at how different interest rates and loan terms affect monthly 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 Wisconsin Mortgage Interest Rates
Mortgage refinance rates have been on quite the rollercoaster in recent years. Currently, rates are higher than when they hit all-time lows back in 2021. Freddie Mac’s early 2025 prediction is that the current rate levels are here to stay, and they might even climb higher.
Historical U.S. Mortgage Interest Rates
The mortgage refinance rate landscape has seen some big changes over the years. In 2021, the average 30-year fixed mortgage rate was a low 2.96%. By 2023, rates were up to 7.03%. In March 2025, rates are 6.65% on average. These fluctuations highlight the importance of timing when you’re thinking about refinancing. By understanding historical trends, you can better predict where rates might go in the future — and make smart decisions about when to refinance.
Here’s a look at the average fixed mortgage rates in the U.S. over the past 50 years:
Historical Interest Rates in Wisconsin
Mortgage refinance rates in Wisconsin often mirror the national landscape, and over the past few years, homeowners in the Badger State have ridden the waves of some significant fluctuations.
Here’s a look at how Wisconsin mortgage rates compare to U.S. rates from years 2000 to 2018:
Year
Wisconsin Rate
National Rate
2000
8.06
8.14
2001
7.03
7.03
2002
6.47
6.62
2003
5.69
5.83
2004
5.75
5.95
2005
5.91
6.00
2006
6.56
6.60
2007
6.49
6.44
2008
6.13
6.09
2009
5.06
5.06
2010
4.74
4.84
2011
4.57
4.66
2012
3.64
3.74
2013
3.85
3.92
2014
4.18
4.24
2015
3.88
3.91
2016
3.76
3.72
2017
4.06
4.03
2018
4.66
4.57
Source: Federal House Finance Agency
Why Refinance in Wisconsin?
Refinancing your mortgage in Wisconsin can be a smart financial move, but it does require some careful thought. If current interest rates are lower than the rate on your existing mortgage, you may be able to save money by refinancing.
You’ll generally need to have at least 20% equity in your home to refinance, and if you’re looking to take cash out, you’ll want to have more than that. Refinancing can help you lower your interest rate, change your loan term, or tap into your home’s equity. Each type of refi has its own benefits and considerations, so it’s important to think about your financial goals and how a refinance might impact your budget.
Common Reasons to Refinance a Mortgage
Homeowners refinance for various reasons, including:
• Lower interest rates due to market changes or a change in your credit.
• Adjust the repayment term to manage monthly payments or to clear the loan faster.
• Cash out home equity to fund needs like education expenses.
• Consider a fixed-rate loan to safeguard against potential rate hikes.
Secure a competitive mortgage refinance rate to keep more money in your pocket. Even a fraction of a point can add up to significant savings. To make sure you’re getting the best rate, you’ll want to:
Compare Wisconsin Interest Rates by Mortgage Refi Type
Mortgage interest rates in Wisconsin can vary depending on the type of refinance you choose. By understanding these different options, you can make an informed decision about which Wisconsin refinance rate is going to be the best fit for your financial needs.
Conventional Refi
Conventional refinance loans often come with slightly higher interest rates compared to government-backed loans such as FHA, VA, and USDA loans. They are a good option for homeowners who are looking to lower their interest rate or change their loan term. Conventional refis typically require a minimum credit score and a certain level of equity in the property. While the interest rates may be slightly higher, the flexibility and lack of mortgage insurance can make them a good option for many homeowners.
Cash-Out Refi
Cash-out refinances are a savvy way to leverage your home equity by refinancing for more than you currently owe and pocketing the difference. These types of refinances typically come with higher rates than your standard refi, but the added flexibility can be worth it. For example, if your home is valued at $500,000 and you owe $300,000, you could potentially borrow up to 80% of your equity, leaving you with $100,000 after paying off your existing mortgage. This could be a game-changer for paying off high-interest debt or funding a major expense like home renovations.
FHA Refi
FHA refinances often come with lower mortgage refinance rates than conventional loans. These refinancing options are available to homeowners with an existing FHA loan, and include the FHA Simple Refinance and FHA Streamline Refinance programs. For those who don’t have an FHA loan, an FHA cash-out refinance and an FHA 203(k) refinance are two options to consider. The 203(k) loan is specifically for home renovations and improvements, which can add value to your home.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are known to offer some of the most competitive mortgage refinance rates available. To qualify for a VA refi, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance is particularly suitable for veterans seeking to secure a lower interest rate or transition from an adjustable-rate to a fixed-rate mortgage.
15-Year Mortgage Refi
Switching to a 15-year mortgage refinance can lower your total interest payments, even though your monthly costs may rise. For instance, imagine you have a 30-year, $500,000 mortgage at a 6.75% interest rate with a monthly payment of around $3,243. If you refinance to a 15-year loan at 6.25%, your payment would rise to approximately $4,288. However, the long-term savings are substantial — you’d pay nearly $340,000 less in interest over the life of the loan. That’s a significant chunk of change that could be better spent elsewhere.
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans, making them a popular choice for homeowners who plan to sell or refinance before the introductory rate ends. If you think you might move or refinance in the next five to 10 years, an ARM could be a cost-effective way to keep your payments low.
Keep in mind, though, that your interest rate could go up after the initial fixed period, which might mean higher monthly payments down the road. It’s important to think about your future plans and make sure you’re comfortable with the possibility of your rate and payment changing.
How to Get the Best Available Mortgage Refi Interest Rate
Securing a competitive mortgage refinance rate in Wisconsin is crucial for maximizing your savings. Here are some steps to help you achieve the best rate:
• Build your credit score: Timely bill payments and avoiding new debt can build your score.
• Lower your DTI: Keep your debt-to-income ratio under 36% to enhance your eligibility for a more favorable rate.
• Compare lenders: Don’t settle for the first offer. Shop around and compare rates and fees from different lenders.
• Consider mortgage points: Paying for discount points can lower your mortgage refinance rate up to 0.25% per point.
• Consider a shorter term: A 10- or 15-year mortgage could mean a lower interest rate, even if it results in higher monthly payments.
Online Refinance Calculators
Online refinance calculators are a great way to get an estimate of what your new monthly payment could be and to compare different refinance options. They can help you understand the impact of different mortgage refinance rate scenarios on your long-term financial goals.
By using these calculators, you can get a better sense of what might happen if you choose one refinance option over another, and make a more informed decision about what’s best for you.
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
When you’re considering refinancing your mortgage in Wisconsin, it’s important to carefully evaluate the potential benefits against the costs. Refinancing can offer a number of advantages, such as securing a lower interest rate, accessing home equity, and adjusting loan terms. However, it’s essential to weigh these advantages against the expenses you’ll incur, such as closing fees and potential additional interest payments over the life of the 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.
You should consider refinancing your mortgage when interest rates drop, you build your credit score, or you want to switch loan terms. It’s also beneficial if you need to tap into home equity, reduce monthly payments, or eliminate private mortgage insurance (PMI) for long-term savings.
Can I lower my interest rate without refinancing?
Yes, you can lower your interest rate without refinancing by negotiating with your lender, making extra payments to reduce principal faster, or enrolling in automatic payments for a discount. Some lenders also offer loan modification programs that may lower your rate based on financial hardship or improved creditworthiness.
Can I get equity out of my house without refinancing?
Yes, you can access your home’s equity without refinancing through options like a home equity loan or home equity line of credit (HELOC). These allow you to borrow against your home’s value while keeping your existing mortgage terms intact.
How much are closing costs on a refinance?
On average, closing costs are 2% to 5% of your loan amount. On a $300,000 mortgage, that could be from $6,000 to $15,000. The amount will vary depending on your mortgage refinance rate and lender fees. Be sure to consider these costs when you’re thinking about refinancing.
Does refinancing affect your credit score?
Yes, refinancing can impact your credit score. A lender’s hard inquiry may cause a temporary dip, and closing an old loan can affect your credit history length. However, timely payments on the new loan can help rebuild your score over time, making the impact generally short-term.
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.
‡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.
• Mortgage refinance rates in Vermont fluctuate based on economic conditions, Federal Reserve policies, and market demand, influencing homeowners’ refinancing decisions.
• Refinance rates vary depending on loan types, such as conventional, FHA, VA, or jumbo loans, with government-backed loans often offering lower interest rates.
• Borrowers with higher credit scores typically secure better refinance rates, while lower scores may lead to higher interest rates or stricter loan terms.
• A higher loan-to-value (LTV) ratio can affect rates; homeowners with more equity may qualify for lower refinance rates and better terms.
• Before you decide to refinance, make sure the potential savings will outweigh the costs. Generally, you can expect to pay between 2% and 5% of your loan amount in fees and closing costs.
Intro to Mortgage Refi Interest Rates
Vermont mortgage refinancing is like hitting the reset button on your home loan, but this time you have the chance to snag a better deal. The type of mortgage refinance you choose depends on your financial goals, whether it’s to lower your monthly payment or tap into your home’s equity.
Keep reading to learn how Vermont refinance rates are set and how to lock in the best one for you. Whether you’re looking to save money, consolidate debt, or change your loan term, knowing what affects mortgage refinance rates is essential for 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 Refinance Interest Rates Come From?
Current mortgage rates are the result of economic conditions and your personal financial standing. Economic factors, such as Federal Reserve policy, inflation, the bond market, and housing inventory, all play a part. Typically, high inflation and federal funds rate increases lead to higher mortgage refinance rates, while low inflation and bond prices can lower them. By keeping an eye on these factors, you can better anticipate rate movements and choose the optimal time to refinance.
Your personal finances also come into play when it comes to mortgage refinance rates. Those with high credit scores and low debt-to-income ratios are typically able to secure the best rates and terms on lending products.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
Interest rates play a big role in the affordability of your home loan. Your monthly payment is determined by the loan amount, the repayment term, and the interest rate.
For example, a $200,000 loan with a 6.00% interest rate and a 30-year term results in a monthly payment of $1,199. The same loan with an 8.00% interest rate results in a monthly payment of $1,467. Over the life of the loan, a lower mortgage refinance rate can save you tens of thousands of dollars. Even a small difference in rates can add up to significant savings.
Here’s a closer look at how different interest rates and loan terms affect monthly 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 Vermont Mortgage Interest Rates
Over the last few years, Vermont has seen some big swings in mortgage interest rates, especially for 30-year fixed-rate mortgages. While early forecasts for 2025 suggest that mortgage refinance rates will remain higher, many Vermont homeowners have built up significant equity in their homes. If you’re a homeowner in Vermont, you might be in a good position to refinance your mortgage and tap into your home’s equity to get cash or lower your monthly mortgage payment.
Historical U.S. Mortgage Interest Rates
Historical mortgage refinance rates in the United States have seen significant changes over the years. In the early 2000s, rates were around 7.00%. By 2021, they had dropped to a low 2.96%, but by 2023, they had risen back up to 7.03%. These fluctuations highlight the importance of timing when it comes to refinancing. By being aware of these trends, you can make a well-informed decision about when to refinance, potentially saving a significant amount of money and optimizing your mortgage terms.
Historical Interest Rates in Vermont
Historically, mortgage refinance rates in Vermont have generally followed national trends. During periods characterized by low national rates, Vermont rates have also been low, and vice versa. Homeowners residing in Vermont are advised to closely monitor these trends in order to ascertain the optimal time to refinance. For instance, in the event that national rates are anticipated to rise, it could be prudent to undertake refinancing sooner rather than later, thereby potentially securing a more favorable interest rate.
Here’s a look at how Vermont mortgage rates compare to U.S. rates from years 2000 to 2018:
Year
Vermont Rate
National Rate
2000
8.03
8.14
2001
7.07
7.03
2002
6.54
6.62
2003
5.66
5.83
2004
5.66
5.95
2005
5.84
6.00
2006
6.44
6.60
2007
6.38
6.44
2008
6.15
6.09
2009
5.13
5.06
2010
4.67
4.84
2011
4.57
4.66
2012
3.63
3.74
2013
3.65
3.92
2014
3.97
4.24
2015
3.72
3.91
2016
3.65
3.72
2017
4.14
4.03
2018
4.69
4.57
Source: Federal House Finance Agency
Why Refinance in Vermont?
Refinancing your mortgage can be a strategic financial move for several reasons. If current mortgage refinance rates in Vermont are lower than your existing rate, refinancing can reduce your monthly payment and save you money over the life of the loan.
You should have at least 20% equity in your home to qualify for the best rates, especially if you plan to cash out some equity. Refinancing can also help you switch from an adjustable-rate to a fixed-rate loan, providing more financial stability.
💡 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
Homeowners refinance mortgages for various reasons:
• Lower interest rates can mean smaller monthly payments and more savings.
• Adjusting repayment terms can either ease your monthly load or speed up your payoff.
• Cash out home equity, which can cover significant expenses like education or home improvements.
• Opting for a fixed rate gives you peace of mind and shields you from potential future rate hikes.
• Consolidate high-interest debt with a cash-out refinance.
How to Compare Mortgage Refi Interest Rates
To secure a competitive mortgage refinance rate:
• Shop around for the best deal.
• Get prequalified to know your borrowing power.
• Evaluate annual percentage rates (APRs), including interest, fees, and discount points.
• Make sure the total cost fits your budget.
• Stay informed about market trends for the best timing.
• Use an online refinance calculator to estimate your savings and monthly payments.
Compare Vermont Interest Rates by Mortgage Refi Type
In Vermont, you have a variety of mortgage refinance options to consider. You can:
• Adjust interest rate or loan term (conventional refi)
• Access home equity for expenses (cash-out refi)
• Lower rates for borrowers with less than 20% equity (FHA refi)
• Get the lowest rates for eligible veterans (VA refi)
• Shorten your loan term (15-year refi)
• Switch from fixed to variable rate (adjustable-rate refi)
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, changes your current mortgage’s interest rate or loan term. Conventional refinance rates are typically higher than refinance rates for government-backed loans, such as FHA or VA loans. However, they offer more flexibility and are a good option for borrowers with excellent credit and more equity in their home. You might consider a conventional refinance if you’re looking to lower your interest rate, change your loan term, or remove a co-borrower from the loan.
Cash-Out Refi
A cash-out refinance allows homeowners to tap into their home equity by refinancing their mortgage for a higher amount than they owe and receiving the difference in cash. This can be beneficial for consolidating high-interest debt, funding home improvements, or covering major expenses. Additionally, since mortgage rates are typically lower than credit card or personal loan rates, a cash-out refinance can provide cost-effective borrowing. However, it increases the loan balance, so careful financial planning is essential.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer more attractive mortgage refinance rates than conventional loans. These are tailored for homeowners with an existing FHA loan, with options such as FHA Simple Refinances and FHA Streamline Refinances. However, if you don’t have an FHA loan, you can still benefit from FHA cash-out refinances or FHA 203(k) refinances, which are specifically designed for home renovation and rehabilitation projects.
VA Refi
VA refinances, which are backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in today’s market. To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can help you lower your monthly payments and potentially eliminate private mortgage insurance, making it a great option for eligible veterans.
15-Year Mortgage Refi
A 15-year mortgage refinance offers several benefits, including lower interest rates compared to 30-year loans, which can save borrowers thousands in interest over time. It also allows homeowners to build equity faster by paying off the loan in half the time. While monthly payments are higher, the overall cost of the loan is significantly reduced. This option is ideal for those who can afford the increased payments and want to become mortgage-free sooner.
An adjustable-rate mortgage (ARM) refinance replaces your existing mortgage with a new loan that has an interest rate that adjusts periodically based on market conditions. Typically, an ARM refinance starts with a lower fixed rate for an initial period (e.g., five, seven, or 10 years) before transitioning to variable rates. This option can be beneficial for borrowers seeking lower initial payments or planning to sell or refinance again before the adjustable period begins.
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate in Vermont, you should:
• Choose a shorter mortgage term for a lower rate, even if it means higher monthly payments.
Online Refinance Calculators
Online mortgage refinance calculators help you estimate potential savings, new monthly payments, and overall loan costs based on factors like interest rates, loan terms, and closing costs. They allow you to compare different scenarios, determine break-even points, and assess whether refinancing aligns with your financial goals before committing to a lender.
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 not something to jump into without careful consideration. By learning about the different types of Vermont refinancing options, including cash-out, FHA, VA, and adjustable-rate refinances, and by taking the time to research and compare mortgage refinance rates in Vermont, you can make an informed decision that will help you achieve your long-term financial goals.
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.
The more important question is whether the potential savings from refinancing your mortgage outweigh the associated fees and closing costs, irrespective of any potential decrease in mortgage refinance rates. A thorough analysis of your financial situation, including a detailed comparison of the current and prospective interest rates, loan terms, and any applicable fees, is crucial in making an informed decision.
Can you refinance when rates go down?
Yes, but before you jump into refinancing, it’s important to weigh the potential savings against the costs involved. Take your time to research and compare different refinance offers from trustworthy lenders to find the best terms and rates. And if you need a helping hand, consider reaching out to a financial advisor or mortgage expert.
When might it be a good idea to refinance?
Refinancing may be a good idea when you can secure a lower interest rate, reduce your monthly payments, shorten your loan term, or switch from an adjustable-rate to a fixed-rate mortgage. It can also be beneficial for accessing home equity or consolidating high-interest debt into a lower-rate loan.
Can I ask my lender to lower my rate?
Yes, you have every right to approach your lender and inquire about potentially securing a lower mortgage refinance rate. If you have consistently demonstrated responsible financial behavior by making timely payments and have a credit score that reflects your reliability, your lender may be receptive to adjusting your rate as an incentive to retain your business.
How much are closing costs on a refinance?
Closing costs can be a bit of a moving target, but they generally fall somewhere between 2% and 5% of your loan amount. So for a $300,000 refinance, you might be looking at anywhere from $6,000 to $15,000 in closing costs, depending on the rates and fees your lender offers.
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.
‡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.
• Refinancing your mortgage can reduce your monthly payments or save you money on interest in the long run, especially if the current rates are in your favor.
• You can choose from a fixed-rate mortgage to an adjustable-rate mortgage (ARM). ARMs can offer lower initial rates, making them a good choice if you plan to move before the rate adjusts, potentially providing short-term financial relief.
• Refinancing to a 15-year mortgage in Tennessee can significantly reduce the total interest paid over the life of the loan, despite higher monthly payments.
• Higher credit scores typically secure more favorable refinance rates. Maintaining good credit can lead to significant savings over the life of the loan.
• To get the best available mortgage refinance rate in Tennessee, build your good credit score, maintain a low debt-to-income ratio, and compare offers from different lenders.
Introduction to Mortgage Refinance Rates
Mortgage refinance rates play a crucial role in your decision to refinance your home. By swapping out your current mortgage for a new one, you might snag more favorable terms or a lower interest rate.
The refinance path you pick should align with your financial aspirations, whether that’s reducing your monthly payments, cutting down your loan term, or tapping into your home’s equity. This guide is your go-to for unraveling how mortgage refinance rates in Tennessee are set and how to lock in the best one for you.
💡 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 Refinance Interest Rates Come From?
Mortgage refinance rates are influenced by both economic factors and your personal financial situation. Economic factors that can impact your Tennessee refinance rate include Federal Reserve policy, inflation, the bond market, and housing inventory levels. Generally speaking, high inflation and rising federal funds rates can lead to higher mortgage refinance rates, while rising bond prices can lead to lower rates.
On the personal side, a borrower’s credit score significantly affects refinance rates, as higher scores often lead to better terms. Debt-to-income (DTI) ratio also matters, with lower DTI ratios signaling to lenders that the borrower can manage their financial obligations. Loan-to-value (LTV) ratio plays a role as well, with more home equity reducing lender risk and potentially lowering interest rates.
By understanding these factors, you can better anticipate rate movements and make an informed decision about when to refinance your mortgage.
Get matched with a local
real estate agent and earn up to
$9,500‡ cash back when you close.
Pair up with a local real estate agent through HomeStory and unlock up to $9,500 cash back at closing.‡ Average cash back received is $1,700.
Your mortgage refinance rate is a key player in the financial game, impacting both your monthly
payment and the overall cost of your loan. Let’s look at an example:
With a $200,000 loan at a 6.00% interest rate over 30 years, you’d be looking at a monthly payment of $1,199. But if the interest rate were to jump to 8.00%, that monthly payment would swell to $1,467. Over time, that seemingly small 2% difference in interest could add up to nearly $100,000 in savings. It’s a big deal, and it’s why we’re here to help you get the best rate possible.
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 Mortgage Interest Rates
The past few years have seen significant movement in mortgage refinance rates in Tennessee and in the U.S. The average 30-year fixed mortgage rate in the U.S. was 2.96% in 2021, and by 2023, it was up to 7.03%. As of March 2025, average rates were 6.65%.
Historical U.S. Mortgage Interest Rates
According to Freddie Mac, rates are expected to remain around current levels for the foreseeable future. With these trends in mind, it’s important to keep an eye on the market and consider refinancing if you think you could get a better rate or terms on your loan.
Historical Interest Rates in Tennessee
Tennessee has seen significant movement in mortgage refinance rates over the years, following the national trends. Below, you can compare Tennessee and U.S. rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
Year
Tennessee Rate
National Rate
2000
7.99
8.14
2001
6.95
7.03
2002
6.55
6.62
2003
5.80
5.83
2004
5.85
5.95
2005
5.96
6.00
2006
6.58
6.60
2007
6.34
6.44
2008
6.03
6.09
2009
4.95
5.06
2010
4.70
4.84
2011
4.50
4.66
2012
3.63
3.74
2013
3.82
3.92
2014
4.11
4.24
2015
3.83
3.91
2016
3.65
3.72
2017
4.01
4.03
2018
4.56
4.57
Source: Federal House Finance Agency
💡 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.
Why Refinance in Tennessee?
Refinancing your mortgage is a smart financial move, but it’s not one to be taken lightly. If the current mortgage refinance rates in Tennessee are lower than the rate you’re locked into, it’s a prime opportunity to refinance your home. This could mean a reduced monthly payment and significant savings over the loan’s lifetime.
Refinancing also gives you a chance to switch from an adjustable-rate to a fixed-rate mortgage, which can provide a more secure financial foundation. Worth noting: The rule of thumb is to have at least 20% equity in your home, especially if you’re considering a cash-out refinance.
Common Reasons to Refinance a Mortgage
Common reasons homeowners in Tennessee may want to refinance their mortgage include:
• You may be eligible for a lower mortgage refinance rate because of better credit or market conditions.
• You’re considering adjusting your repayment term to better suit your financial goals.
• You’re looking to tap into your home’s equity to cover expenses such as college tuition or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you’re eager to eliminate mortgage insurance.
• You’re looking to remove a cosigner or untangle finances from a past relationship.
How to Compare Mortgage Refi Interest Rates
Homeowners with strong credit and a low debt-to-income ratio may secure much lower rates than average.
To secure a competitive mortgage refinance rate, here’s what you need to do:
• Shop around for the best mortgage refinance rates. Compare offers from multiple lenders.
• Get prequalified to see what you’re offered in terms of loan amount, rate, and fees.
The rates for mortgage refinance in Tennessee are as diverse as the options themselves. Conventional refis, often referred to as rate-and-term refis, may have different rates than those backed by the government, such as FHA, VA, and USDA loans. Below are the different types of mortgage refinance options available.
Conventional Refi
A conventional mortgage refinance involves replacing your existing mortgage with a new loan that isn’t insured or guaranteed by the government (such as FHA, VA, or USDA loans). Typically, conventional refinancing offers competitive rates and terms for borrowers with good credit and a stable financial history.
For a conventional mortgage refinance, you typically need at least 20% equity in your home. This means your current loan balance should be no more than 80% of your home’s appraised value. However, some lenders may allow refinancing with less equity, depending on your creditworthiness and other factors.
Cash-Out Refi
A cash-out refinance is a way for homeowners to access a portion of their home equity by borrowing more than the current mortgage balance. For example, if your home is worth $500,000 and you owe $300,000, you can borrow up to 80% of your home’s value, which would give you $100,000 after you pay off the existing mortgage.
You can use the lump sum from your equity to pay off high-interest debt, make home improvements, or cover other large expenses. Keep in mind that cash-out refis often come with higher refinance rates than traditional refis.
FHA refinances, insured by the Federal Housing Administration, offer the potential for lower mortgage refinance rates, sometimes as much as a full percentage point lower than conventional loans.
FHA Simple Refinances and FHA Streamline Refinances are available to homeowners with existing FHA loans. For those without an existing FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations and improvements.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, consistently provide some of the most competitive mortgage refinance rates available in the market.
To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This specific type of refinance can be particularly advantageous as it often results in reduced monthly payments and substantial interest savings accumulated over the duration of the loan.
15-Year Mortgage Refi
Shifting to a 15-year mortgage could be a game-changer, slashing the total interest you pay over the loan’s lifetime.
Here’s an example: Let’s say you have a 30-year, $1 million mortgage at a 7.50% interest rate. You’d be looking at a monthly payment of around $6,992 and a staggering $1,517,167 in total interest. Now, imagine refinancing to a 15-year mortgage at a 7.00% rate. Yes, the monthly payment would jump to about $8,988, but the total interest paid would plummet to roughly $617,891, freeing up nearly $900,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower introductory mortgage refinance rate than fixed-rate loans. However, the rate can increase after the initial fixed-rate period, which can make your monthly payments increase.
If you plan on selling the home before the rate can adjust, an ARM can be a good option for you. But it’s important to understand the risks and benefits of an ARM before you decide to refinance your home loan.
How to Get the Best Available Mortgage Refi Interest Rate
Getting a competitive mortgage refinance rate in Tennessee is key to saving money over the life of your loan. Here are some steps to help you get the best rate:
• Boost your credit score: Timely bill payments and avoiding new debt can help you here.
• Lower your DTI: A debt-to-income ratio under 36% is the sweet spot for nabbing a favorable rate.
• Compare lenders: Don’t settle for the first offer. Shop around and compare interest rates and fees from multiple lenders.
• Purchase mortgage points: Consider paying for discount points to lower your interest rate.
• Opt for a shorter term: Consider a 10- or 15-year mortgage for potentially lower rates, even though monthly payments will be higher.
Online Refinance Calculators
Online refinance calculators are a great way to get a rough estimate of your potential monthly savings. They take into account your current loan balance, current mortgage refinance rate, and closing costs to help you decide if refinancing makes sense for you.
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 Tennessee can be a smart financial move, but it’s not something to jump into without doing your homework. Think about what you want to get out of a refinance, compare Tennessee refinance rates from multiple lenders, and consider your loan term and the potential impact of fees on 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.
Refinance rates fluctuate based on economic conditions, Federal Reserve policies, and inflation trends. While predictions vary, rates may drop if inflation slows and the Fed eases monetary policy. However, market conditions are unpredictable, so homeowners should monitor trends and consult financial experts before making refinancing decisions.
When is it a good idea to refinance your home?
Refinancing your home is a good idea when interest rates drop, you’ve built your credit score, or you want to lower monthly payments. It also makes sense if you need to switch loan types, shorten your loan term, or tap into home equity for major expenses like renovations or debt consolidation.
Does refinancing affect your credit score?
Yes, refinancing your mortgage can affect your credit score. The lender’s hard inquiry may cause a temporary dip, and closing an old loan can impact your credit history. However, consistent, on-time payments on the new loan can help rebuild and improve your score over time.
Do I have to pay closing costs again when I refinance?
Yes, you should expect to pay closing costs when you refinance your mortgage. These costs typically run from 2% to 5% of the loan amount. It’s important to weigh these costs against the potential savings from a lower refinance mortgage rate. By doing so, you can make an informed decision about whether refinancing is the right move for you.
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.
‡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.
