Current Mortgage Refinance Rates in Wisconsin Today
WISCONSIN MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Wisconsin.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Wisconsin.
Key Points
• 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.
How Interest Rates Affect Home Affordability
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 |
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.
• Eliminate mortgage insurance premiums for FHA loans with small down payments.
How to Compare Mortgage Refi Interest Rates
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 rates from multiple lenders.
• Look at the annual percentage rate (APR), which includes fees and discount points.
• Compare the rates being offered to your current rate.
Recommended: How Much Does It Cost to Refinance a Mortgage?
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.
Recommended: 15-Year vs 30-Year Mortgage: Which Should You Choose?
Adjustable-Rate Mortgage Refi
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.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
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
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.
FAQ
When should I consider refinancing?
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.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Vermont Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Vermont.
Key Points
• 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.
How Interest Rates Affect Home Affordability
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 |
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.
• Eliminate the need for mortgage insurance for those with FHA loans.
• 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.
Recommended: 15-Year vs 30-Year Mortgage: which Should You Choose?
Adjustable-Rate Mortgage Refi
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:
• Pay your bills on time and steer clear of new debt to build your crdit score.
• Aim for a debt-to-income ratio of 36% or lower.
• Compare loan estimates from multiple lenders to get the best rate.
• Think about discount points to reduce your interest rate.
• 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.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it’s 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.
FAQ
Are refinance rates on the decline?
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.
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.
SOHL-Q125-200
More refinance resources.
-
How Much Does It Cost to Refinance a Mortgage?
-
How to Refinance a Home Mortgage Loan
-
7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Tennessee Today
TENNESSEE MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Tennessee.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Tennessee.
Key Points
• 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.
How Interest Rates Affect Home Affordability
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 |
💡 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.
• Compare annual percentage rates (APRs), which include the interest rate and other costs.
• Crunch the numbers on the total cost and break-even point.
• Make sure the mortgage refinance costs and new payment work for you.
Choose the Right Mortgage Refi Type
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.
Recommended: How to Calculae Home Equity
FHA Refi
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.
Recommended: How Soon Can You Refinance a Mortgage?
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.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
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 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.
FAQ
Are refinance rates going to drop?
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.
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.
SOHL-Q125-197
More refinance resources.
-
How Much Does It Cost to Refinance a Mortgage?
-
How to Refinance a Home Mortgage Loan
-
7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Iowa Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Iowa.
Key Points
• The current mortgage refinance rates in Iowa are influenced by economic factors such as the bond market, housing inventory, and the overall economy.
• A mere 1% drop in your mortgage refinance rate for a $300,000, 30-year, fixed-rate loan can translate to savings of almost $200 a month.
• To lock in the best Iowa refinance rates, work on building your credit score, lower your debt-to-income ratio, and review multiple options from a variety of lenders.
• Switching from a 30-year mortgage to a 15-year term may slash the total interest you pay, though your monthly bills may be higher.
• FHA loans, backed by the Department of Housing and Urban Development, frequently come with more attractive mortgage refinance rates and may be available to people with credit ratings lower than other lenders accept.
• There are no strict limits on how often you can refinance, but it’s a good idea to weigh the costs and potential impact on your credit score before making a decision.
Intro to Mortgage Refi Interest Rates
Getting a mortgage refinance is like hitting the reset button. You replace your current home loan with a new one, letting you change the conditions of your loan, including the interest rate.
The specific type of refinance that makes sense for you will depend on why you want to refinance and will affect the interest rate available to you. This guide will help you understand how mortgage refinance rates are set and how you can get the best rate for your situation.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where do mortgage refi interest rates come from?
The mortgage refinance rates available to you are the product of economic conditions and your personal financial situation.
The strongest indicator of the direction mortgage interest rates are going has historically been the bond market — specifically the performance of the 10-year U.S. Treasury Note. When the note’s rates go up, mortgage interest rates also tend to rise.
The housing market also plays a key role. When it cools and available homes outnumber potential buyers, lenders may lower rates. The state of the overall economy is also significant: A strong job market and healthy economic growth may result in rising rates, while a recession is usually accompanied by lower interest rates.
Keeping an eye on these moving parts and maintaining a good credit rating can help you time your refinance for the most favorable terms.
How Interest Rates Affect Home Affordability
Remember how important your interest rate was when you got your original mortgage? It’s just as important for your refi loan. Your new interest rate will be a big factor in determining how much you’ll pay each month, so it’s critical to be aware of current mortgage rates.
Your payment is based on your loan amount, the interest rate, and the length of your loan. For example, a $200,000 loan with a 6.00% rate and a 30-year term would have a monthly payment of $1,199. That same loan with an 8.00% rate would have a monthly payment of $1,468. But the lower rate would also save you almost $100,000 in interest over the life of the loan. It’s important to weigh short-term and long-term savings as you make your decision — and to pay attention to how much difference even a small change in your interest rate can mean over time.
| 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 |
Bear in mind, too, that in addition to your monthly payments, you’ll need to budget for mortgage refinancing costs, which are generally similar to the closing costs you paid on your existing mortgage.
💡 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 Iowa?
There are several financially strategic reasons you might want to refinance your mortgage. For instance, if current interest rates dip lower than your existing mortgage, it might be a good time to refinance. Refinancing can help you secure a lower mortgage refinance rate, change your repayment term, or access cash from your home equity. It can also help you switch from an adjustable-rate to a fixed-rate loan, providing more financial stability.
Your motivation for the refi determines in part what kind of refi it makes sense to choose, and that, in turn, influences the rates available to you. Ideally, you’ll want to have at least 20% equity in your home before you refinance, especially if you’re cashing out some equity.
Common Reasons to Refinance a Mortgage
Here are some of the key reasons why homeowners decide to get a mortgage refinance:
• To get a lower interest rate or better terms than their original home loan came with.
• To adjust their repayment term: A longer term means paying lower monthly payments but more interest over time. A shorter term gets the homeowner debt-free more quickly and reduces the amount of interest they’ll pay over the life of the loan.
• To cash out home equity: Homeowners can borrow against the amount of money they’ve already invested in their home.
• To protect the homeowner from the potential rate hikes of an adjustable rate mortgage by switching to a fixed-rate loan.
How to Get the Best Available Mortgage Refi Interest Rate
Follow these steps to improve your chances of securing the best current mortgage refinance rates in Iowa.
• Pay your bills on time to help build a strong credit rating.
• Lower your debt-to-income ratio.
• Know what’s standard in your area by comparing rates and fees from multiple lenders.
• Consider purchasing mortgage points, also known as discount points.
• Select a shorter loan term, which typically comes with better rates.
💡 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.
Trends in Iowa Mortgage Interest Rates
The landscape of mortgage rates has seen its share of shifts. Take the 30-year fixed mortgage. In 2021, the national average dropped as low as 2.67%. Fast forward to 2023, and it had climbed to a hefty 6.95%. The good news? A rise in home values across Iowa has bolstered homeowners’ equity, opening the door to cash-out refinance opportunities for a variety of needs.
Historical U.S. Mortgage Interest Rates
Here’s a longer view of national mortgage rates. You can see that rates in the early 2000s were at around 6.00%. In 2020, they dropped lower, to under 3.00%. This decrease planted the idea in people’s minds that low rates were “normal.” In 2023, however, they rose again. Soon they were hitting around 7.00%.
A lot of people today complain about high interest rates. Current mortgage refinance rates, however, remain below the 50-year average.
Historical Interest Rates in Iowa
Reviewing long-term trends in U.S. mortgage rates can help give you perspective on current rates. As you can see from the chart below, it’s unusual for rates to drop below 5.00% or rise above 10.00%.
| Year | Iowa Rate | National Rate |
|---|---|---|
| 2000 | 8.20 | 8.14 |
| 2001 | 7.03 | 7.03 |
| 2002 | 6.65 | 6.62 |
| 2003 | 5.80 | 5.83 |
| 2004 | 5.85 | 5.95 |
| 2005 | 5.91 | 6.00 |
| 2006 | 6.57 | 6.60 |
| 2007 | 6.52 | 6.44 |
| 2008 | 6.19 | 6.09 |
| 2009 | 5.15 | 5.06 |
| 2010 | 4.92 | 4.84 |
| 2011 | 4.81 | 4.66 |
| 2012 | 3.70 | 3.74 |
| 2013 | 3.99 | 3.92 |
| 2014 | 4.36 | 4.24 |
| 2015 | 4.15 | 3.91 |
| 2016 | 4.03 | 3.72 |
| 2017 | 4.34 | 4.03 |
| 2018 | 4.92 | 4.57 |
Compare Iowa Interest Rates by Mortgage Refi Type
You probably know that refinance rates can be a bit higher than original mortgage rates. But did you know that interest rates can vary depending on the type of mortgage refinance you choose? There are a number of mortgage refinance options available, each with its own unique features and benefits. Understanding your options lets you select the mortgage refinance that will best fit your needs. For example, while conventional refis often have higher rates than government-backed loans, they may offer more flexibility in terms of loan amount and repayment term.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, can be a useful option for homeowners looking to lower their mortgage refinance rate. While the rates are typically higher than government-backed loans like FHA, VA, and USDA loans, a conventional refinance can be a good choice for homeowners who want to change their interest rate or loan term but who can’t or don’t want to meet the extra requirements of government-backed loans.
15-Year Mortgage Refi
A 15-year mortgage refinance can be an effective way to reduce the total interest you pay over the loan’s lifetime, although your monthly payments will be higher. A 30-year, $1 million loan at a 7.50% rate has you paying about $6,992 a month and $1,517,172 in interest overall. But refinance to a 15-year plan at 7.00%, and your monthly payment jumps to around $8,988. The good news? You’ll only pay about $617,891 in interest, saving you close to $900,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) typically start with a lower mortgage refinance rate than fixed-rate loans, but that rate can change over time. If you’re planning to move before the rate is scheduled to adjust, refinancing from your fixed mortgage to an ARM can help you save money with lower initial monthly payments.
Cash-Out Refi
A cash-out refinance allows you to leverage the home equity you’ve built by taking out a new mortgage for more than you currently owe. The difference is paid to you in cash, and you can use the money for home improvements, debt consolidation, or other financial needs. For example, if your home is worth $500,000 and you still owe $300,000 on your mortgage, you have $200,000 in equity. Lenders generally allow you to borrow up to 80% of your home value: $500,000 x 80% = $400,000. After paying off your mortgage, you’re left with $100,000 to use however you like.
FHA Refi
FHA loans, backed by the United States Department of Housing and Urban Development, often come with more favorable mortgage refinance rates than conventional loans. These FHA Simple Refinances and FHA Streamline Refinances are available to homeowners who already have an FHA loan. If you don’t have an FHA loan, you can still explore two other options: an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically for renovation or rehabilitation projects.
VA Refi
VA loans, guaranteed by the United States Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. In order to qualify for a VA refinance, formally known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. The IRRRL is designed to help you lower your monthly payments or transition from an adjustable-rate to a fixed-rate mortgage.
How to Compare Mortgage Refi Interest Rates
Getting a competitive mortgage refinance rate can save you money over the life of the loan. Even a small difference can add up to thousands in extra interest you’ll end up paying. These tips can help you secure a competitive rate:
• Compare rates from multiple lenders to find the best deal.
• In addition to interest rates, look at the annual percentage rate (APR), which includes interest, fees, and discount points.
• Compare current rates to your existing one, and watch the trends to assess whether refinancing is a good move and when.
• Consider both your monthly budget and the long-term financial impact of your refi to assess how it fits into your financial goals.
Online Refinance Calculators
Using a reliable mortgage calculator lets you get a rough idea of what you might be able to save with a refi. It can help you get an estimate for your new monthly payment and compare different refinance options. You can also see how changing the refinance rate, loan term, and loan amount can impact your finances. By plugging in your current mortgage details and the terms of any new mortgage you’re considering, you can get a better idea of whether refinancing makes sense for you.
You can also use a calculator to estimate how much equity is in your home.
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The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires careful thought. Whether you want to get a lower rate with your mortgage refinance, tap into your home’s equity, or switch to a different type of mortgage, you’ll need to understand the different refinance options available to you and the specific requirements for each. By working to improve your credit score, lowering your debt-to-income ratio, and shopping around with multiple lenders, you can find the right refinance option for 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.
FAQ
How much does 1% lower your monthly payment?
You’d be surprised at how much a small reduction in your mortgage rate can affect your monthly payment. Let’s say you have a $300,000 mortgage at an interest rate of 7.00%. If you’re able to secure a 1% reduction, bringing the rate down to 6.00%, you could see your monthly payment drop by close to $200.
Can I ask my lender to lower my mortgage interest rate?
You can always talk to your lender about lowering your rate. They might not say yes, but if you have a good credit score and a history of on-time payments, they may be more likely to agree.
Can I get a home equity loan without refinancing?
There are two ways to tap into your home’s equity without affecting your current mortgage rate. A home equity line of credit (HELOC) or a home equity loan can help you access the equity you’ve built in your home without having to refinance your entire mortgage.
Does refinancing affect your credit score?
The process of refinancing can cause a temporary decrease in your credit score because it involves a hard credit check and the opening of a new account. However, the impact is generally minimal and should be short-lived.
Do you have to pay closing costs when you refinance?
When you refinance your mortgage, you’ll have to pay closing costs again. These costs cover the various fees and expenses associated with processing your new mortgage loan. Typically, refi closing costs can range from 2% to 5% of the total loan amount.
How often can you refinance your home?
There are no set limits on how many times you can refinance your home, but it’s important to consider refinancing costs and potential impacts on your credit. Even if you’re eager to take advantage of current mortgage refinance rates in Iowa, keep in mind that refinancing isn’t always the best option, and review all the pros and cons carefully before moving forward.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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SOHL-Q125-170
More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
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Current Mortgage Refinance Rates in Delaware Today
DELAWARE MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Delaware.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Delaware.
Key Points
• The current mortgage refinance rates in Delaware are influenced by multiple economic factors, including Federal Reserve policy, the bond market, housing demand, and the overall economy.
• A mortgage refi can be a smart financial move, whether you want to pay less interest, consolidate debt, or pay for a major home improvement project.
• Even a 1% dip in your mortgage interest rate can lower your monthly payment and create significant savings in the total amount of interest you pay over the loan’s lifetime.
• In Delaware, you can explore a variety of refinance options, from conventional to cash-out, FHA, VA, 15-year, and adjustable-rate refinances, each with its own set of factors to consider.
• When you refinance, your credit score may take a hit, but it’s typically a small, temporary dip.
• To lock in the best Delaware mortgage refinance rates, build your credit score, trim your debt-to-income ratio, and be sure to compare offers from different lenders.
Introduction to Mortgage Refinance Rates
When you refinance your mortgage, you replace your current mortgage with a new one that potentially offers you more favorable terms or a lower interest rate. Whether you’re looking to lower your monthly payments, reduce your loan term, or tap into your home equity, you must be well-informed about Delaware mortgage refinance rates.
This comprehensive guide will help you navigate the entire process, from understanding how rates are determined to securing the most suitable option for your financial situation. To make the best decision, consider checking the current mortgage refinance rates in Delaware regularly, as they can fluctuate.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Refi Interest Rates Come From?
Historically, the bond market is the strongest indicator of where mortgage interest rates are going. The performance of the 10-year U.S. Treasury Note is particularly important here. When the rates on the note go up, typically mortgage interest rates are likely to rise, too.
The performance of the housing market is another factor to be aware of. When the market slows and there are more homes available than there are people who want to buy them, lenders may lower their rates in hopes of attracting more customers. Finally, the overall economy also plays a role in refinance rates: A strong jobs market and economic growth may be accompanied by a rise in interest rates, while a recession is typically associated with lower interest rates.
How Interest Rates Affect Home Affordability
Interest rates play a significant role in the affordability of your mortgage refinance. They’re not the only factor – there are also mortgage refinancing costs, which can include closing costs, fees, and more. But the rate you secure will directly impact your monthly payments, which are calculated based on your loan amount, repayment term, and the interest rate.
For instance, a $200,000 home loan with a 6.00% interest rate over a 30-year term would mean a monthly payment of $1,199. However, the same loan with an 8.00% interest rate would increase your monthly payment to $1,468. Over the life of the loan, that adds up to nearly $100,000 in savings if you have the lower interest rate.
Even a small change in rates can make a big difference in your overall savings. Be sure to keep an eye on mortgage refinance rates in Delaware to ensure you’re getting the best deal.
| 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 |
Why Refinance in Delaware?
A mortgage refinance can be a smart strategic move, depending on your financial situation. If the current mortgage interest rates in Delaware are lower than you’re paying on your existing mortgage, refinancing can reduce your monthly payments and the total amount you pay over the life of the loan.
Before refinancing, it’s a good idea to have at least 20% equity in your home, especially if you plan to cash out some equity. Accessing home equity, securing a lower rate, and changing your loan term are all ways that a refinance may be able to improve your finances.
Common Reasons to Refinance a Mortgage
Here are some typical reasons you might choose to refinance your mortgage.
• If current mortgage rates are lower than when you got your mortgage or your credit profile has improved, you may be able to secure a better rate.
• You might want to change to a longer term to ease monthly payments, or to a shorter one to pay off your loan sooner.
• If you need funds, you can cash out home equity for your expenses.
• For stability and predictability, you may want to switch from an adjustable rate to a fixed rate.
• Refinancing can let you eliminate your mortgage insurance premium if you have an FHA loan and 20% equity.
How to Get the Best Available Mortgage Refi Interest Rate
To secure the best mortgage refinance rate, follow these steps:
• Be punctual with payments and avoid new debt to help build your credit rating.
• Keep your debt-to-income ratio below 36%.
• Understand what’s available: Compare rates and fees from multiple lenders.
• Consider buying mortgage points (also called discount points) to reduce your mortgage rate if you plan to stay put for the long term.
• Opt for a shorter loan term: 15 years rather than 30. Generally, shorter terms come with lower interest rates. Your monthly payment will be higher, but your overall mortgage cost will be lower. Opting for a shorter loan term can also help you secure a better refinance rate.
Trends in Delaware Mortgage Interest Rates
Over the years, mortgage rates in Delaware, like national rates, have seen their fair share of ups and downs. For homeowners, staying abreast of current mortgage refinance rates in Delaware is key to making well-informed choices. By keeping an eye on these trends, you can position yourself to refinance at an optimal time and potentially trim down your interest expenses.
Historical U.S. Mortgage Interest Rates
Mortgage rates are influenced by a variety of economic factors, which can include:
• The Federal Reserve’s monetary policies
• Inflation
• The bond market
If you’re a homeowner, it’s important to keep an eye on these trends, especially if you’re thinking about refinancing. Staying informed about the current mortgage refinance rates in Delaware can help you make the best financial decisions for you and your family.
Historical Interest Rates in Delaware
The story of Delaware’s refinance rates tends to echo the national narrative, with significant shifts over the years. Of late, inflation has driven rates up.
It’s normal for interest rates to fluctuate. However, it means if you’re a homeowner in Delaware looking into how to refinance a mortgage, you need to keep a close eye on them. By understanding the patterns, you can plan your refinance strategically to ensure that you get as much out of it as possible.
| Year | Delaware Rate | National Rate |
|---|---|---|
| 2000 | 8.16 | 8.14 |
| 2001 | 7.03 | 7.03 |
| 2002 | 6.62 | 6.62 |
| 2003 | 5.94 | 5.83 |
| 2004 | 5.84 | 5.95 |
| 2005 | 6.18 | 6.00 |
| 2006 | 6.69 | 6.60 |
| 2007 | 6.43 | 6.44 |
| 2008 | 6.04 | 6.09 |
| 2009 | 5.10 | 5.06 |
| 2010 | 4.84 | 4.84 |
| 2011 | 4.66 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 4.03 | 3.92 |
| 2014 | 4.28 | 4.24 |
| 2015 | 4.09 | 3.91 |
| 2016 | 3.82 | 3.72 |
| 2017 | 3.94 | 4.03 |
| 2018 | 4.57 | 4.57 |
Compare Delaware Interest Rates by Mortgage Refi Type
Mortgage refi rates are not one-size-fits-all. Here’s a quick rundown of the most common types and their features, including a sense of the current Delaware refinance rates.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a popular choice for homeowners who would like to adjust their interest rate or loan term. While these loans often come with slightly higher rates than government-backed options, such as FHA, VA, or USDA loans, they offer greater flexibility. If you have a robust credit profile and ample equity in your home, a conventional refi could be a good fit for you.
15-Year Mortgage Refi
A 15-year mortgage refinance can be a game-changer, slashing the total interest you’ll pay over your mortgage’s lifetime, though your monthly payments will be higher. Consider this: A 30-year, $1 million loan at a 7.50% interest rate would have you paying about $6,992 each month, and a whopping $1,517,167 in total interest. Refinance to a 15-year mortgage at a 7.00% rate, and your monthly payment jumps to around $8,988. The good news? You’d only be looking at shelling out $617,891 in total interest, saving you close to $900,000. Delaware’s 15-year refinance rates are generally more affordable than 30-year rates, making this a savvy move for those who can manage the heftier monthly payments.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start off at a lower interest rate than fixed-rate mortgages, but here’s the catch — the rate can increase over time based on market conditions. If you’re thinking of moving before the rate is due to adjust, an ARM might be a smart move. Say you’ve got a 30-year fixed-rate mortgage, but you’re eyeing a move in the next few years — an ARM could mean lower monthly payments in the short term.
Cash-Out Refi
A cash-out refinance can be a practical option when you need to tap into your home’s equity for projects like home improvements or debt consolidation. Here’s a quick example: If your home is valued at $500,000 and you still owe $300,000 on your mortgage, you’ve got $200,000 in equity. Many lenders will let you borrow up to 80% of your home’s value, which would mean $100,000 for you after paying off your original mortgage. It can be a way to tackle high-interest debt, but remember to take into account the potential for higher interest rates and monthly payments.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often have lower interest rates than other loans. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which typically have fewer requirements and can be processed more quickly than a conventional refi.
For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations. Open to people with lower credit scores, these options can provide flexibility and potentially reduce your monthly payments. Delaware refinance rates for FHA loans can be particularly beneficial for homeowners looking to improve their financial standing.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, offer some of the lowest interest rates available. To qualify for a VA refinance, known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can help you secure a lower interest rate, reduce your monthly payments, or switch from an adjustable-rate to a fixed-rate mortgage. For veterans, active-duty service members, and other eligible borrowers, VA refinances can be a cost-effective way to improve your financial situation.
How to Compare Mortgage Refi Interest Rates
Now that you know what kinds of rates, terms, and loans may be available, take these steps to help you secure a refinance loan that will work for you.
• Use a mortgage calculator to understand how much you can probably afford to pay.
• Compare terms and rates from different lenders and consider the tradeoffs..
• Dig deeper by looking at each loan’s annual percentage rate (APR), which include closing costs, fees and discount points, if any. This gives you a more accurate way to compare loans than just using the interest rate for each loan.
• Be aware of not only your monthly payments with each loan, but also your total costs over the life of the loan.
• Review and do what you can to improve your credit score, debt-to-income ratio, and home value to secure the best rates.
💡 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.
Online Refinance Calculators
A good online mortgage calculator can be invaluable for estimating your new monthly payment and comparing different refinance options. You can typically personalize them, taking into account your current loan balance, the new interest rate, and the term of the loan to provide a clear picture of your potential savings. By inputting your specific financial details, you can determine whether refinancing is a viable option for you.
A calculator can also help you estimate how much equity is in your home, which can be useful if you’re interested in a cash-out refi.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
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
Mortgage refinancing is a powerful financial tool that can work in your favor. Whether you’re after a lower interest rate, a change in your loan term, or access to home equity, there are options like cash-out refinances, FHA refinances, VA refinances, and more to consider. By getting your financial ducks in a row, comparing rates from various lenders, and using online tools, you can find the best Delaware refinance rates and make a smart, informed decision. Be sure to weigh the costs against the benefits to ensure that refinancing is the right move for 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.
FAQ
When is it a good time to refinance your home?
It’s a smart financial move to consider refinancing when you can get a much lower interest rate, which can reduce your monthly mortgage payment or help you reach other financial goals. But it’s important to weigh the costs against the savings carefully to be sure refinancing makes sense for your situation.
Can I get a lower interest rate without refinancing?
There are ways to get a lower interest rate without refinancing. If you have some extra money from a windfall, you might want to consider a mortgage recast. This means making a large, lump-sum payment toward your principal, and it can reduce your monthly payments. Another option is to reach out to your lender and ask for a loan modification. This could involve adjusting your interest rate and other loan terms to help you avoid foreclosure.
Can I get cash out of my house without refinancing?
You can get cash out of your house without refinancing if you tap into your home’s equity with a home equity line of credit (HELOC) or a home equity loan. Both options allow you to access the equity in your home. With a HELOC, you’re given a revolving credit line secured by your home’s equity, letting you borrow what you need, up to a set limit. A home equity loan gives you a lump sum of cash, also secured by your home’s equity, that you pay back over a defined period with a fixed interest rate.
Does refinancing impact your credit score?
The process of refinancing may cause a slight and temporary dip in your credit score. That’s caused by the hard inquiry and the new account on your credit report. In many cases, the benefits of refinancing, such as lower interest rates and improved loan terms, outweigh this hiccup. Speaking with a financial advisor or lender may provide the clarity you need to make an informed decision.
Do you have to pay closing costs again when you refinance?
Yes, for a refi you pay closing costs, which can range from about 2% to 5% of the loan amount. Closing costs for a refinance include an appraisal fee, title insurance, loan origination fee, and other administrative charges.
How many times can you refinance your home?
Technically, there is no limit to the number of times you can refinance. However, each new transaction incurs closing costs and may impact your credit score. Therefore, it’s a good idea to weigh the advantages and disadvantages carefully to ensure that refinancing is the right choice for your financial situation. Consulting with a financial advisor or mortgage expert can help you assess and navigate the complexities of the refinancing process.
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.
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.
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Apply online or call for a complimentary mortgage consultation.
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