Current Mortgage Refinance Rates in Wyoming Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Wyoming.
Key Points
• Mortgage refinance rates are influenced by economic factors such as bond market dynamics and the strength of the housing market.
• Reducing a loan’s interest rate by 1% can mean noticeable monthly savings and a significant amount saved over the life of the loan.
• Refinancing to a shorter-term 15-year mortgage could save a homeowner a hefty sum long-term, although it often means slightly higher monthly payments.
• FHA and VA loan refinances often boast more attractive mortgage refinance rates than those of conventional loans.
• Refinancing often causes a slight dip in credit score but it is typically temporary.
Introduction to Mortgage Refinance Rates
A mortgage refinance at an attractive rate can be a nice boost to your finances. Whether you want to achieve lower monthly payments, secure a shorter loan term (and associated cost savings), or put some extra cash in your pocket, the type of refi you opt for will play a role in the interest rate you’ll receive.
This guide will walk you through how home loan refinance rates are determined and how you can obtain the most favorable rate. Understanding the process and your options can lead to significant savings over the life of your loan.
💡 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 economic factors and your own financial situation — especially your credit score and debt levels. Rates tend to track along with the ups and downs of the 10-year Treasury Bond, although the health of the housing market and of the overall economy also play a role when lenders set their rates. When the housing market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. A strong jobs market and economic growth, however, can lead interest rates to rise.
How Interest Rates Affect Home Affordability
If it seems as if a lot of attention is paid to mortgage interest rates, it may be helpful to understand how very important these numbers are. Your monthly mortgage payment amount is driven by your loan amount, the term over which you repay what you owe, and the rate at which you refinance. The chart below shows what happens when you refinance into a $200,000, 30-year loan at different interest rates. As you can see, the difference of a single percentage point, from 7.00% to 6.00%, means an almost $50,000 decrease in the total amount of interest a homeowner will pay.
| 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 Wyoming?
The key to a successful mortgage refinance is aligning your motivation for refinancing with a new loan that achieves your goals. Take a look at this list of some of the more popular reasons to refinance:
Common Reasons to Refinance a Mortgage
• You qualify for a lower mortgage refinance rate due to improved credit or lower interest rates.
• You’re considering adjusting your repayment term to better fit your financial goals, be it lower monthly payments or a faster loan payoff.
• You’d like to cash out some home equity to cover expenses like college tuition.
• Your adjustable-rate home loan is about to reset, and you’re considering a switch to a fixed-rate loan.
• You have an FHA loan and have reached 20% equity in your home. You’re refinancing to eliminate the FHA mortgage insurance premium.
• You need to remove a cosigner from your loan (it is sometimes possible to do this without a refi).
If you’re wondering how soon can you refinance a mortgage in Wyoming, here’s a guideline: It’s generally a good idea to have 20% home equity.
How to Get the Best Available Mortgage Refi Rate
To secure your best possible rate from the current mortgage refinance rates in Wyoming, take these steps:
• Cultivate a good credit score by paying your bills on time.
• Lower your debt-to-income (DTI) ratio below 36%. (To figure out what your DTI ratio is now, add up your monthly debts, divide by your gross monthly income, then multiply by 100.)
• Think about whether you have funds available to purchase mortgage points, also known as discount points, to lower your rate.
• Examine your monthly budget to see how large a mortgage payment you can afford. If you can opt for a shorter-term loan (which means a higher monthly bill) you could save a lot on interest payments over the course of your loan.
Understand Trends in Wyoming Mortgage Interest Rates
In the past few years, Wyoming refinance rates have seen significant changes. By understanding the history of rates in your state, you can get a sense of what might be a realistic change in rates in the near future.
Historical U.S. Mortgage Interest Rates
If you’re waiting for an interest rate drop to undertake a refinance and you have your eye on a certain magic number, looking at the graphic below might help you determine whether your expectations are realistic. In more than a half-century of interest rates in the United States, mortgage rates below 4.00% have been relatively unusual.
Historical Interest Rates in Wyoming
When it comes to Wyoming refinance rates, it’s helpful to know that the state’s interest rates typically follow the national trend. As you can see from the chart below, it’s pretty unusual for rates to rise or fall by more than a percentage point from year to year.
| Year | Wyoming Rate | National Rate |
|---|---|---|
| 2000 | 8.19 | 8.14 |
| 2001 | 6.98 | 7.03 |
| 2002 | 6.56 | 6.62 |
| 2003 | 5.67 | 5.83 |
| 2004 | 5.74 | 5.95 |
| 2005 | 5.88 | 6.00 |
| 2006 | 6.55 | 6.60 |
| 2007 | 6.40 | 6.44 |
| 2008 | 6.11 | 6.09 |
| 2009 | 4.97 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.63 | 4.66 |
| 2012 | 3.45 | 3.74 |
| 2013 | 3.90 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 3.94 | 3.91 |
| 2016 | 3.69 | 3.72 |
| 2017 | 4.12 | 4.03 |
| 2018 | 4.63 | 4.57 |
Choose the Right Mortgage Refi Type
Wyoming mortgage refinance rates can fluctuate depending on the type of refinance you opt for. Here are a few common options to consider:
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, typically has higher interest rates than government-backed loans such as FHA loans (backed by the Federal Housing Administration). With this type of refi, you can adjust your interest rate and loan term. This is a good option if you’re looking to lower your monthly payments or pay off your loan faster. But it may not be the best option if you need to take cash out or have a lower credit score.
15-Year Mortgage Refi
Refinancing to a 15-year mortgage can be a game-changer, even with the prospect of higher monthly payments. Many people refinance to a shorter loan term when they are in their peak earning years and want to pay off their mortgage before heading into retirement. Others want to get their home loan paid off before they start paying for college for kids.
Adjustable-Rate Mortgage Refi
With an adjustable-rate mortgage (ARM), you might start out with a lower refinance mortgage rate than with a fixed-rate loan, making it a tempting option for short-term financial goals. For example, if you have a 30-year fixed mortgage but plan to move before the loan is paid off, you might be able to save money with an ARM if you only keep the loan for a few years before selling. Just keep in mind that the rate will adjust based on market conditions and could be higher in the future, which would mean a higher monthly payment.
Cash-Out Refi
With a cash-out refinance, you can unlock the equity in your home, receiving a lump sum that can be used for a variety of purposes, from home improvements to debt consolidation. Here’s an example: If your home is valued at $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender might let you borrow up to 80% of that equity. Keep in mind that cash-out refis generally come with higher refinance rates, but they can be a smart financial move when used for the right reasons.
FHA Refi
FHA refinances, which are insured by the Federal Housing Administration, often come with lower mortgage refinance rates than conventional loans. An FHA Simple Refinance or FHA Streamline Refinance are for those who already have an FHA loan. But even if you don’t have an existing FHA loan, you might still be able to benefit from an FHA cash-out refinance or an FHA 203(k) refinance. These loans are designed to help you make home improvements and fund rehabilitation projects that can improve the value and functionality of your home.
VA Refi
VA refinances, which are government-backed loans facilitated by the U.S. Department of Veterans Affairs, are known for their competitive mortgage refinance rates. To be eligible for a VA refinance, which is called an interest rate reduction refinance loan (IRRRL), you need to have an existing VA loan.
Compare Mortgage Refi Interest Rates
Once you’ve zeroed in on which type of mortgage refinance might be right for you, take these steps to help ensure you get the best available rate.
• Shop around and obtain rate and fee information from multiple lenders to compare mortgage refinancing costs.
• Don’t just compare interest rates. Look at each loan’s annual percentage rate (APR), which includes the interest rate and fees.
• Weigh the cost of buying discount points to lower your interest rate.
• Keep in mind, lower rates can sometimes mean higher fees. Some lenders offer a no-closing-cost refinance, but you may see that their rates are higher to compensate.
Using a refinance calculator can help you estimate potential savings and determine if refinancing is worth it.
Use an Online Refinance Calculator
An online refinance calculator can help you get an initial look at what your new monthly payment might be and compare different refinance options. This can help you make a decision that’s right for your financial situation and goals. Here are a few of our favorite calculators.
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, giving you the opportunity to secure a lower mortgage refinance rate, reduce your monthly payments, or tap into equity in your home. But it’s important to carefully consider the costs and benefits, including closing costs and the potential for long-term interest savings, to make sure refinancing makes sense for your financial situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can you lower your interest rate without refinancing?
If you have the means, a mortgage recast might be a good option. With a mortgage recast, you make a large payment toward your principal balance. You then ask your lender to recalculate your monthly payments, which could lower them. A mortgage recast won’t change your mortgage rate, but it can reduce your monthly payments and save you money on interest over the life of the loan.
Can I get cash out of my house without a refinance?
You can tap into your home equity without adjusting your current mortgage by obtaining a home equity line of credit (HELOC) or a home equity loan. These financial tools allow you to access the equity you’ve built up in your home without the hassle of a full refinance — technically, either of these would be a second mortgage.
How much are closing costs for a refinance?
The average closing costs for a refinance fall between 2% and 5% of the loan amount. So if you’re refinancing a $300,000 mortgage, you could be looking at a cost range of $6,000 to $15,000. Keep in mind, these numbers are ballpark figures. The actual costs can vary based on your lender, loan type, and your unique situation.
Will refinancing hurt my credit score?
Refinancing can cause a temporary dip in your credit score because it involves a hard inquiry into your credit history. But don’t worry, the impact is usually quite minimal and short-lived. The long-term benefits of securing a lower mortgage refinance rate likely outweigh this temporary dip.
How many times can you refinance your home loan?
There are no rules on how many times you can refinance your home, but it’s important to be mindful of the costs and potential impact on your credit score. Each time you refinance, you’ll need to pay closing costs. Plus, the hard credit inquiry required for a refinance may cause a temporary dip in your credit score. Weigh the benefits and drawbacks of each mortgage refinance before making a decision.
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.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
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-Q125-205
Browse other Wyoming home guides.
-
-
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 Utah Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Utah.
Key Points
• Mortgage refinance rates are influenced by a variety of economic factors, including Federal Reserve policy, inflation, the bond market, housing inventory, and individual credit scores.
• Even a 1% dip in your mortgage refinance rate can work wonders, reducing your monthly payment and the total interest you’ll pay over the loan’s life.
• In Utah, refinance rates rose considerably from 2021 to 2025, which could affect your refinancing opportunities.
• Refinancing can reflect many goals: lowering monthly costs, changing the loan term, or drawing upon home equity to access cash.
• Swapping a 30-year home loan for a 15-year mortgage through refinancing can dramatically slash the total interest you’ll pay, even if the monthly payments are steeper.
Intro to Mortgage Refi Interest Rates
Mortgage refinancing is like hitting the reset button on your home loan, giving you the chance to snag a lower interest rate or better terms to suit your needs. The type of refinance you choose in Utah depends on your financial goals, whether it’s to reduce your monthly payment or tap into your home equity. This guide is your roadmap to understanding how mortgage refinance rates are set and how you can lock in the best rate out there. Whether you’re looking to save money, consolidate debt, or change your loan term, knowing what impacts mortgage refinance rates is key to making a smart move.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Rates Come From?
Mortgage refinance rates are the result of a complex interplay of economic factors and your personal financial situation. Key economic factors include Federal Reserve policy, inflation, the bond market, and housing inventory levels. In general, high inflation and rising federal funds rates push mortgage refinance rates up. A strong bond market and cold housing market can push them down.
In terms of your own finances, know that your credit score will likely impact the rate you are offered. Those with higher scores are viewed by lenders as more creditworthy and can access lower interest rates. Those with lower scores (indicating less-than-perfect management of debt in the past) will typically have to pay higher interest rates.
By understanding these factors, you can better anticipate rate movements and time your mortgage refinance to save the most money.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of refinancing your home loan. Your monthly payment hinges on your loan amount, the term of repayment, and the mortgage refinance rate.
Here’s a closer look at how your interest rate can influence your Utah refinance loan:
• A $200,000 loan with a 6.00% interest rate over a 30-year term results in a monthly payment of $1,199.
• Now, that same loan with an 8.00% interest rate balloons the monthly payment to $1,467. With the higher interest rate, you have $268 less in your budget for other purposes every month.
Over the life of the loan, a lower interest rate can translate to tens of thousands of dollars (or more) in savings. Even a fractional difference in the mortgage refinance rate can lead to substantial savings.
Why Refinance in Utah?
Refinancing your Utah mortgage can be a strategic financial move for several reasons. Take a closer look at some of the most common reasons here.
Common Reasons to Refinance a Mortgage
You might decide to refinance your home loan for the following reasons:
• You’re eligible for a lower mortgage refinance rate because you’ve built your credit or market conditions have improved.
• You’re considering adjusting your repayment term to better fit your financial goals. A longer term could lower your monthlies and lead to more interest over the loan’s term, while a shorter term would offer the reverse.
• You might want to tap into your home equity to cover costs like education or home improvements.
• Your adjustable-rate mortgage is about to reset, and you want to switch to a fixed-rate loan for a greater sense of security.
• You have an FHA loan and 20% equity, and you’re eager to say goodbye to your FHA mortgage insurance premiums.
Worth noting: In terms of how soon you can refinance, you’ll typically need to have at least 20% home equity.
How to Get the Best Available Mortgage Refi Rate
Securing a competitive mortgage refinance rate is key to optimizing your savings. Here are some steps to guide you in obtaining the best rate:
• Build your credit score: Always making timely bill payments and avoiding new debt can positively impact your score.
• Lower your DTI: A DTI, or debt-to-income ratio, below 36% is usually the sweet spot for securing a more favorable rate.
• Compare lenders: It’s a bit like shopping for the perfect property. Check out different lenders and their mortgage refinance rates and fees to snag the best fit.
• Focus on fees: Keep mortgage refinancing costs in mind in addition to interest rates.
• Consider purchasing mortgage points: Also known as buying discount points, this tactic involves paying more upfront to lower your interest rate.
• Opt for a shorter term: Consider a 10- or 15-year mortgage for potentially lower rates, though it means higher monthly payments.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Understand Trends in Utah Mortgage Interest Rates
The mortgage refinance rates in Utah have seen their fair share of ups and downs in recent years. That’s true of national mortgage interest rates, too. Take a closer look at how these numbers fluctuate.
Historical U.S. Mortgage Interest Rates
In 2021, the average 30-year fixed mortgage rate was 3.15%. Fast forward to 2023, and that number had skyrocketed to 7.00%. If you were hoping for a future decrease, you might be disappointed to hear that the predictions for early 2025 suggest that current mortgage rates will stay higher for the time being.
These changes are often due to larger economic factors, such as Federal Reserve policies and inflation rates. By understanding these trends, you can better understand today’s rates and make an informed decision about refinancing your mortgage. Here’s an overview of the past several decades’ worth of interest rates in graph form, so you can see how these variations have played out.
Historical Interest Rates in Utah
Mortgage refinance rates in Utah tend to mirror national trends, with some local variation. In the recent past, rates have typically been a bit below the national numbers. The chart below chronicles almost 20 years of mortgage rates in Utah vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling specific state numbers at that time.)
Keeping an eye on rates can help you decide when to refinance to get the most out of your new loan.
| Year | Utah Rate | National Rate |
|---|---|---|
| 2000 | 7.27 | 8.14 |
| 2001 | 6.77 | 7.03 |
| 2002 | 6.29 | 6.62 |
| 2003 | 5.44 | 5.83 |
| 2004 | 5.59 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.60 | 6.60 |
| 2007 | 6.51 | 6.44 |
| 2008 | 6.01 | 6.09 |
| 2009 | 4.99 | 5.06 |
| 2010 | 4.82 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.81 | 3.92 |
| 2014 | 4.11 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.65 | 3.72 |
| 2017 | 3.97 | 4.03 |
| 2018 | 4.55 | 4.57 |
Choose the Right Mortgage Refi Type
Mortgage refinance rates in Utah can vary depending on not just market conditions and your credit score but also on the type of refinance you’re considering. Each option has its unique features and benefits. Learn more here.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, typically comes with higher rates compared to government-backed loans like FHA and VA (which have specific qualification requirements). This type of refinance is ideal for homeowners who want to lower their mortgage refinance rate or adjust their loan term. Conventional refis require a minimum credit score (typically 620) and sufficient equity in the home, usually at least 20%. While the rates may be higher, the flexibility and lack of government insurance can make this option attractive for many homeowners.
Cash-Out Refi
Cash-out refinances can be a smart way to leverage your home equity by refinancing your mortgage for more than you currently owe. This type of mortgage refinance is often used to free up a lump sum of cash for large expenses like home renovations or debt consolidation.
For example, if your home is valued at $500,000 and you currently owe $300,000, your equity is the value minus the debt, or $200,000. You might be able to borrow up to 80% of your home equity, which would leave you with well over $100,000 after paying off the existing mortgage. Although cash-out refis typically have higher rates, they can provide a valuable financial resource.
Recommended: Calculating Home Equity
15-Year Mortgage Refi
Shortening your loan term from 30 to 15 years can suit some homeowners’ needs. Here’s a scenario to illustrate this:
• Say you have a 30-year mortgage of $1 million at a 7.50% rate. If you refinance to a 15-year term at 7.00%, your monthly payment would go from around $6,992 up to $8,988, which is a considerable increase.
• However, the total interest you’d pay would drop from $1,517,167 to about $617,891. That’s a whopping $900,000 in savings!
If you’re able to swing the steeper monthly payment, this interest savings could make a tremendous difference in your personal finances and wealth.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower mortgage refinance rate than fixed-rate loans, but the rate can change over time. If you plan to move before the rate adjusts, an ARM might be a smart choice. It could mean a lower monthly payment and big savings in the short term.
That said, make sure you understand the risks. There’s a chance that your plans to move in the near future might not come to fruition, and then your rate might go up. Make sure you could still be financially stable if this were to occur before you decide to take out an ARM.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often come with lower mortgage refinance rates, sometimes a full percentage point lower than conventional loans. These specialized types of refinances are typically available to homeowners who already have an FHA loan, with options like the FHA Simple Refinance and FHA Streamline Refinance.
Homeowners with non-FHA loans can also consider FHA cash-out refinances or FHA 203(k) refinances, which are designed to help with home renovations and improvements.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan (meaning you are an activity-duty member of the military, a veteran, or perhaps a qualifying spouse). This type of refinance can be a great option, as it often results in lower monthly payments and reduced total interest costs.
Compare Mortgage Refi Interest Rates
If you’ve decided which type of Utah mortgage refinance suits you best, then it’s time to take a closer look at specific options. Here are tips to help you out:
• Compare multiple lenders for best rates and terms.
• Get prequalified to know your borrowing power and rate without dinging your credit score.
• Consider a loan’s annual percentage rate (APR) vs. just the interest rate. The APR includes interest rate, fees, and discount points, thereby giving you a more accurate picture of the cost of your loan.
• Weigh rate vs. fees, as lower rates may have higher costs.
• Use a calculator to estimate savings on monthly payments.
Use an Online Refinance Calculator
About that last point: There’s no need to spend your precious free time tapping away at a calculator’s buttons. Online refinance calculators can be a great way to get an idea of what your new monthly payment might be and how much you could save. They take a lot of factors into account, including your current loan balance, the new mortgage refinance rate, and the closing costs.
This can help you decide whether refinancing is a good option for you. By using a refinance calculator, you can see what the potential financial impact of refinancing might be and decide whether it makes sense for your financial goals and situation.
Run the numbers on your home loan.
-
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 Utah can be a savvy financial move, offering you the potential to lower your monthly payments, change your loan term, or pull some cash from your home equity. However, it’s important to weigh the costs, including closing fees, against the savings. You’ll also want to consider your long-term financial goals and how a refinance could help you meet them. By carefully considering these factors, you can make a smart decision that’s in line with your situation and aspirations.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can I lower my interest rate without going through the entire refinance process?
Yes, you can get a lower interest rate on your mortgage without refinancing — but you’ll need to qualify for your lender’s recast or modification program. A mortgage recast is the process of making a large, lump-sum payment toward the principal balance of your loan, which reduces your monthly payments and your total interest costs. A modification may be accessed if you are struggling to make your mortgage payments and need an accommodation.
Can I ask my lender to lower my mortgage interest rate?
You can always ask your lender if they can lower your mortgage rate. While there’s no guarantee they’ll say yes, you can improve your chances by having a strong credit score and a history of making on-time payments. Doing so could help you get a lower mortgage rate and save you money on your monthly payments without refinancing.
How much are closing costs on a refinance?
The average closing cost for a refinance can be anywhere from 2% to 5% of the loan amount. So for a $300,000 mortgage, you might be looking at $6,000 to $15,000 in closing costs. It’s a significant chunk of change, and you’ll want to factor it into your decision-making and budgeting process. These costs can affect the overall price of your loan, so it’s important to weigh them against the potential savings of a lower interest rate.
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-Q125-199
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 Texas Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Texas.
Key Points
• Mortgage refinance rates are influenced by economic factors such as inflation and bond market dynamics.
• A mere 1% drop in the mortgage refinance rate can translate to hefty savings on interest.
• Opting for a 15-year mortgage could be a smart move, helping you save on interest in the long run, even if the monthly payments are a bit steeper.
• Some borrowers refinance out of or into adjustable-rate mortgages. These typically have lower initial refinance rates and could be a good option for those who plan to move or refinance in the near future.
• Homeowners can request a mortgage recast to lower monthly payments without changing the mortgage refinance rate. The typical cost is $100 to $500.
Introduction to Mortgage Refinance Rates
A mortgage refinance is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different, but the most common goal is to secure a lower interest rate and reduced monthly mortgage payments. The type of refinance you choose will determine your interest rate. This guide will help you understand how current mortgage rates are set and how you can get the best available rate. By the end, you’ll have a better understanding of what to expect and how to make an informed decision about refinancing your home.
💡 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.
Where Do Mortgage Refinance Interest Rates Come From?
The first step to mastering the mortgage refinance is understanding what economic forces drive interest rates. Like the weather, rates are influenced by a lot of different factors, some of which are out of your control. Insiders look to the bond market, and specifically the performance of the 10-year U.S. Treasury Note, for a hint at where interest rates are headed. When the rate on the 10-year T note rises, mortgage interest tends to rise also.
Another factor is the housing market. When the market is hot, lenders have little incentive to lower rates because they don’t need to do so to attract customers. Then there is the overall economy: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. Your personal qualifications also play a large role in the rate you’ll be offered. We’ll get into that below.
How Interest Rates Affect Home Affordability
It’s worth keeping an eye on the rise and fall of interest rates, because the rate you get will play a key role in the affordability of your mortgage refinance. As you can see from the chart below, on a $200,000 loan, each half-percentage-point increase in interest results in a corresponding bump in monthly payment. Play that out over the life of a 30-year loan and you can see a significant difference in interest paid. The more you borrow, the greater the savings at a lower rate.
| 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 Texas?
Refinancing your mortgage is a smart financial play, but it’s not one to be taken lightly. You’re probably wondering how soon can you refinance a mortgage. If the current interest rates are more favorable than what you have, it’s a golden opportunity. With at least 20% equity in your home, you’re in a good position, especially if you’re eyeing a cash-out refi. Here are some reasons refinancing might be attractive:
Common Reasons to Refinance a Mortgage
• You might be eligible for a lower mortgage refinance rate because your credit score has improved since you bought your home, or market conditions have led to a rate drop.
• You want to adjust your repayment term to better fit your financial goals. Maybe you need a lower payment right now due to other bills. If so, a longer term might provide that.
• You’re looking to tap into your home equity to cover expenses like college tuition.
• You have an adjustable-rate loan, and you want to lock in a fixed rate for peace of mind.
• You have an FHA loan backed by the Federal Housing Administration, and now that you have 20% equity, you want to ditch the FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Interest Rate
There are a few things you should do from Day One to secure a competitive mortgage refinance rate, should you decide to refi:
• Care for your credit score by staying on top of payments of all bills.
• Examine your debt-to-income (DTI) ratio. Lenders like a ratio below 36% for a refinance. To learn your number, add up your monthly debts and divide by your gross monthly income; multiply by 100.
• Evaluate whether you have cash on hand that you can use to purchase discount points to lower your rate.
• Determine how large a monthly payment your budget can handle. This will help you decide if you can choose a shorter loan term, which will save you interest.
Understand Trends in Texas Mortgage Interest Rates
Once you’ve decided to refinance, an important step is determining the timing. And that might depend on current mortgage refinance rates in Texas. If you’re looking to lock in a lower rate, it’s important to keep an eye on the market. It also helps to have a sense of the history, to help ensure that your expectations are realistic.
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, a half-century, can give you perspective on the rates that are now available. As you can see from the graphic below, it’s pretty rare for rates to dip as low as they did in 2020 and 2021. By keeping an eye on these trends, you can make an informed decision about whether to pursue your mortgage refinance, and when.
Historical Interest Rates in Texas
Texas mortgage refinance rates have seen their share of ups and downs, for the most part trailing the national average just slightly. The chart below shows Texas rates from 2000 to 2018, when the Federal Housing Finance Agency stopped tracking state-specific averages.
| Year | Texas Rate | National Rate |
|---|---|---|
| 2000 | 8.03 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.61 | 6.62 |
| 2003 | 5.81 | 5.83 |
| 2004 | 5.94 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.71 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 5.04 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.52 | 4.66 |
| 2012 | 3.59 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.79 | 3.91 |
| 2016 | 3.66 | 3.72 |
| 2017 | 3.98 | 4.03 |
| 2018 | 4.57 | 4.57 |
Choose the Right Mortgage Refi Type
An important step in deciding how to refinance your mortgage is selecting the type of loan you will refinance into. These are some of the most common types.
Conventional Refi
A conventional refinance, also known as a rate-and-term refinance, allows you to change your interest rate, loan term, or both. These loans typically offer higher rates than government-backed loans from the FHA or VA, for example. But a conventional refinance could be a good option if you’re looking to lower your interest rate, change your loan term, or both.
15-Year Mortgage Refi
Some people refinance into a loan with a shorter term than their original mortgage. It’s common to go from a 30-year term to a 15-year one. This means higher monthly payments in the short term, but it’s a savvy move that can slash the total interest you pay over the loan’s lifetime. And if you combine a shorter term with a lower interest rate, you might not even feel such a burden from the larger monthly payments. Some people like the fact that shortening the term helps them get rid of mortgage debt before retirement. (Of course other people might refi from a 15-year loan into a 30-year one. Choosing a term is based on your personal financial circumstances.)
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) offer a low initial interest rate and so might be attractive to some borrowers — especially those who know they plan to sell the home before the rate on their new loan begins to adjust. Some borrowers prefer to adjust out of an ARM and into a fixed-rate loan because they want their monthly payments to be steady and predictable.
Cash-Out Refi
This type of refinance is a powerful financial tool that allows you to leverage your home equity. By refinancing your mortgage for more than you currently owe, you can access a lump sum of cash that can be used for home improvements or debt consolidation, for example. Although a cash-out refinance typically carries a higher mortgage refinance rate than a traditional refinance, it’s one of the more cost-effective ways to borrow a large sum of money.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often offer attractive mortgage refinance rates, making them a popular choice for homeowners. For those with existing FHA loans, the FHA Simple Refinance and FHA Streamline Refinance are designed to simplify the process and potentially reduce your rate. If you don’t have an FHA loan, you may still benefit from an FHA cash-out refinance or FHA 203(k) refinance. The latter is designed for home renovations.
VA Refi
VA loans, guaranteed by the United States Department of Veterans Affairs, are known for offering some of the best mortgage refinance rates. To refinance with a VA interest rate reduction refinance loan (IRRRL), you’ll need to have a VA loan in the first place. There is also a VA cash-out refinance, and anyone who qualifies for a VA loan can use this to take advantage of their home equity in a refinance.
Compare Mortgage Refi Interest Rates
Once you know what type of refinance you’re going to pursue, it’s time to secure a competitive mortgage refinance rate. Here’s what to do:
• Compare rates and fees from multiple lenders.
• Look at the loan’s annual percentage rate (APR), which includes interest and fees. These and other closing costs are part of the total picture of your mortgage refinancing costs.
• Weigh the cost of discount points against long-term savings, and decide whether or not you will purchase points.
A refinance calculator can help you estimate your savings and make an informed decision.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get an estimate of what your new monthly payment may be and to compare different refinance options. You probably used a similar calculator during your home purchase process. Many online refinance calculators will also show you how much you could save by refinancing, which can help you decide if refinancing is the right choice 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 can be a smart financial move, but it requires some careful consideration and planning. Whether you’re looking to get a lower mortgage refinance rate, tap into your home’s equity, or consolidate debt, it’s important to understand the different types of refinances and the requirements for each. By taking steps to strengthen your credit score and lower your debt-to-income ratio, and by comparing offers from multiple lenders, you can help ensure that you get the best rate and terms for your situation.
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 would a 1% drop in interest rate affect your monthly payment?
You may be surprised at how much a 1% reduction in your mortgage refinance rate can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see your monthly payment amount drop by $197. Over time, that seemingly small change can add up to big savings. And of course the larger your loan amount, the larger your savings as well.
Can I lower my interest rate without refinancing?
It might be difficult to lower your mortgage interest rate without refinancing, but you can reduce your monthly payments by undertaking a mortgage recast. A mortgage recast involves making a lump-sum payment toward your principal balance. (Make sure you tell your lender the money is to be credited to the principal you owe.) You can request that your lender then “recast” your monthly payment amount to reflect the reduced principal. Of course, this only works if you have a lump sum on hand. If you’re facing financial hardship, you could also ask your lender about a loan modification. Your lender will have a formal request process for this type of adjustment.
Is there a fee to recast your mortgage?
The fee to recast your mortgage ranges from $150 to $500, which is far less than the cost of a refinance. To determine if recasting your mortgage is worth it, look at how the interest saved over the remaining life of your loan compares to the earnings or savings you might enjoy if you used that lump sum in another way — for example, to pay off some other form of debt, or to make investments.
How many times can you refinance your home loan?
There’s no official rule on how many times you can refinance your home. But, each time you do, there are closing costs to consider and a potential impact on your credit score. Take a step back and weigh the benefits of a lower mortgage refinance rate against these costs and impacts. Before you make a decision, consider the current interest rate climate, your financial situation, and your long-term goals. Refinancing can be a savvy financial move, but it’s important to make sure it’s 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.
SOHL-Q125-198
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 South Carolina Today
SOUTH CAROLINA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
South Carolina.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in South Carolina.
Key Points
• Before refinancing your mortgage in South Carolina, check your credit score, home equity, and debt-to-income ratio to determine your refinancing eligibility and the potential rates you may qualify for.
• South Carolina refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory.
• Consider a 15-year mortgage refinance. While the monthly payments might be higher, you could save a significant amount in interest over time.
• It’s important to weigh the costs and benefits of refinancing, including closing costs and the impact on your credit score. This is to make sure it’s in line with your financial goals.
• Compare refinance rates from banks, credit unions, and online lenders to find the best terms and options for your financial goals.
Introduction to Mortgage Refinance Rates
When you refinance a mortgage, you replace your current home loan with a new one. This can come with new terms and a different interest rate. The type of refinance you choose and the reason you’re refinancing will determine your interest rate.
This guide will help you understand what determines current mortgage refinance rates in South Carolina and how you can get the best rate on your refinance.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance rates are a product of both the economic landscape and your personal financial standing. They are influenced by Federal Reserve actions, inflation, the bond market, and housing market trends. In times of high inflation, rates tend to rise, while low inflation can lead to lower rates. The Fed’s monetary policy and the bond market also play a role in shaping mortgage rates.
A borrower’s credit score plays a crucial role in determining refinance rates, with higher scores typically leading to more favorable terms. Lenders also consider the debt-to-income (DTI) ratio and loan-to-value (LTV) ratio. The lower the ratio for both, the better your chances are at securing a more favorable rate.
How Interest Rates Affect Home Affordability
You’re probably well aware that interest rates are a big deal when it comes to your South Carolina home loan. But let’s talk about how they can make a refinance more affordable. Your monthly payment depends on your loan amount, the term over which you’re paying it back, and the interest rate.
For instance, a $200,000 loan with a 6.00% refinance rate and a 30-year term would have a payment of $1,199 a month. If you bump that interest rate to 8.00%, you’ll be paying $1,467 a month. What’s more, that lower interest rate could save you close to $100,000 over the life of the loan. So while a fraction of a percentage point might not seem like much, it can really add up over time.
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 South Carolina Mortgage Interest Rates
If you’re a homeowner in South Carolina, you’re probably keeping an eye on the latest mortgage rate changes. In 2021, the average 30-year fixed mortgage rate was an attractive 2.96%. Fast forward to 2023, and rates were up to 7.03%. Currently (March 2025), rates are 6.65% on average.
Despite some predictions of a decrease in mortgage rates last year, Freddie Mac’s early 2025 forecast suggests that rates will stay higher for a while. Understanding these trends is key for South Carolina homeowners who want to make savvy decisions about refinancing their mortgages.
Historical U.S. Mortgage Interest Rates
The mortgage refinance market has seen its fair share of ups and downs over the years, reflecting the broader economic environment. In the early 2000s, interest rates were around 6.00-7.00%, before dropping to historic lows of around 3.00% in 2020. By 2023, they had rebounded to about 7.00%. By looking at the past, you can get a better sense of what’s happening with current interest rates and make a more informed decision about whether to refinance your mortgage.
Historical Interest Rates in South Carolina
South Carolina’s mortgage refinance rates generally follow national trends. In the past few years, South Carolina has seen similar patterns, with rates dropping to historic lows in the early 2020s and then increasing. These changes can affect the cost of refinancing, so it’s important to stay up to date on rate movements and consider how they might affect your financial situation.
Here’s a look at how South Carolina mortgage rates compare to the national rate from years 2000 to 2018. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | South Carolina Rate | National Rate |
|---|---|---|
| 2000 | 7.98 | 8.14 |
| 2001 | 6.84 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.67 | 5.83 |
| 2004 | 5.71 | 5.95 |
| 2005 | 5.95 | 6.00 |
| 2006 | 6.59 | 6.60 |
| 2007 | 6.42 | 6.44 |
| 2008 | 6.06 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.68 | 4.84 |
| 2011 | 4.48 | 4.66 |
| 2012 | 3.62 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.93 | 3.91 |
| 2016 | 3.74 | 3.72 |
| 2017 | 4.04 | 4.03 |
| 2018 | 4.59 | 4.57 |
Recommended: Show Homebuyers Wait for Interest Rates to Drop?
Why Refi in South Carolina?
Refinancing your mortgage can be a smart financial move, depending on mortgage refinance rates in South Carolina. If current interest rates are lower than your existing mortgage, you might want to consider refinancing.
The reason you refinance will help determine the type of refinance you choose, which will determine the interest rate you receive. You’ll want to have at least 20% equity in your home before you refinance. Refinancing your mortgage can help you secure a lower mortgage refinance rate, change your loan term, or access cash from your home’s equity.
💡 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
Common reasons South Carolina homeowners may want to refinance their mortgage include:
• Lower the interest rate: If you’ve built your credit score or market conditions have shifted in your favor, you may be able to get a better interest rate.
• Change the repayment term: Adjust monthly payments by extending or shortening the loan duration.
• Cash out home equity: Tap into your home’s equity for a major purchase or expense.
• Adjustable rate change: Convert to a fixed-rate mortgage to guard against potential rate hikes down the road.
• Eliminate mortgage insurance: If you have an FHA loan with 20% equity, you can refinance to get rid of mortgage insurance premiums.
How to Compare Mortgage Refi Interest Rates
Securing a competitive South Carolina refinance rate is key to saving money. Even a fraction of a percentage point can translate to significant savings over the life of your loan. To make sure you’re getting the best refinance deal, you’ll want to:
• Compare rates from multiple lenders.
• Look at the annual percentage rate (APR), which includes interest, fees, and discount points.
• Compare your current rate to rates being offered.
Recommended: How Soon Can You Refinance a Mortgage?
Compare South Carolina Interest Rates by Mortgage Refi Type
There are many different types of mortgage refinancing loans, each with its own special features and benefits. By understanding the differences between the types of loans, you can make a more informed decision about the one that’s right for you and your family.
Conventional Refi
Also known as a rate-and-term refi, conventional refis come with slightly higher rates than government-backed loans (FHA, VA, USDA). This type of refinance is ideal for homeowners who want to change their interest rate or loan term without the additional requirements of government loans.
Conventional refis typically require a minimum credit score of 620 and a debt-to-income ratio of 36% or less. These loans offer flexibility and can be a good choice for those looking to secure a lower mortgage refinance rate.
Cash-Out Refi
Cash-out refinances are a smart way for homeowners to access their home equity by replacing their existing mortgage with a larger one. The difference in the two amounts is then given to the homeowner as a lump sum of cash.
For instance, if your home is valued at $500,000 and you owe $300,000, a refinance for $400,000 would pay off the original mortgage and leave you with $100,000. This money can then be used for home improvements, paying off debt, or other significant expenses. Though cash-out refis may come with slightly higher rates, they can be a valuable financial tool when used strategically.
Recommended: How to Calculate Home Equity
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts with a lower rate than a fixed-rate loan, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM could be an affordable refinance option. Before you choose this type of loan, it’s important to consider how much your monthly payments could change and whether you can afford them if you don’t move. (Even if you think your plans are definite, life can throw you some unexpected situations, after all.)
Your lender can help you evaluate your specific situation and determine whether or not an ARM is the right choice for you.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are tailored for veterans and active-duty military members and often boast some of the most competitive mortgage refinance rates. The most common type is the Interest Rate Reduction Refinance Loan (IRRRL), exclusively available to homeowners with an existing VA loan. This refinance option can be a game-changer, helping you lower monthly payments and save on interest over the loan’s lifetime.
15-Year Mortgage Refi
By refinancing from a 30-year mortgage to a 15-year mortgage, you could be making a savvy move to cut down on interest in the long run.
For example, if you have a 30-year $500,000 mortgage at a 6.50% interest rate, your monthly payment would be around $3,160, with total interest paid reaching approximately $637,365. However, by refinancing to a 15-year mortgage at a 6.00% interest rate, your monthly payment would rise to about $4,219, but you’d significantly reduce your overall interest costs ($259,471 in total).
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) kick off with a lower mortgage refinance rate than fixed-rate loans, which can be a draw for homeowners with plans to move before the rate adjusts.
If you’re currently on a 30-year fixed-rate mortgage but foresee a move within a few years, an ARM switch could translate to lower monthly payments and short-term savings. However, it’s important to understand the possibility of rate hikes and how they might impact your budget.
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate in South Carolina:
• Build your credit score by being punctual with payments and avoiding new debt.
• Keep your DTI under 36% for smoother sailing.
• Compare interest rates and fees from multiple mortgage lenders.
• Think about buying discount points to lower your rate.
• Choose a shorter loan term for reduced interest costs.
Online Refinance Calculators
Online refinance calculators are a must-have tool for anyone considering refinancing their home. These calculators can help you figure out how much you could save by refinancing, and what your new monthly payments might be. They can also help you see how different loan terms, interest rates, and loan amounts could affect your finances.
By entering your current mortgage details and playing around with different refinance scenarios, you can get a better sense of whether refinancing makes sense for you.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a south 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 South Carolina can potentially save you money through a lower mortgage refinance rate, reduced monthly payments, or by tapping into your home equity.
However, it’s important to weigh the costs and benefits, and consider your long-term financial goals. Whether you’re looking to save on interest, consolidate debt, or finance home improvements, understanding your mortgage refinance options can help you make the right decision for your situation.
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 it cost to refinance?
The cost to refinance a mortgage typically ranges from 2% to 5% of the loan amount. Common expenses include application fees, loan origination fees, appraisal costs, title insurance, and closing costs. Some lenders offer no-closing-cost refinancing, but these often come with higher interest rates.
How can I get a low interest rate when I refinance?
To get a low interest rate when refinancing, maintain a high credit score, lower your debt-to-income ratio, and build home equity. Shopping around with multiple lenders, choosing a shorter loan term, and refinancing when market rates are low can also help secure a better rate.
Can I get equity out of my house without refinancing?
Absolutely. You can tap into your home’s equity through a home equity line of credit (HELOC) or a home equity loan. A HELOC is a revolving line of credit that you can draw on as needed, while a home equity loan is a lump sum of money you receive all at once.
Does refinancing have an impact on your credit?
Yes, refinancing your mortgage can impact your credit score. Lenders perform a hard inquiry, which may cause a temporary dip in your score. Additionally, closing an old loan and opening a new one can affect your credit age and mix. However, responsible payments on the new loan can help rebuild your score.
How many times can you refinance your home loan?
You can refinance your home as many times as you want, but it’s important to weigh the benefits against the costs and potential drawbacks. Each time you refinance, you’ll have to pay closing costs and you may also hurt your credit score. Refinancing can be a good financial move if you get the right mortgage for your needs, but it’s not something to rush into. Take your time to get it right.
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-Q125-195
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 Oregon Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Oregon.
Key Points
• Mortgage refinance rates are affected by a variety of economic factors, including the 10-year U.S. Treasury Note, housing inventory, and inflation.
• A mere 1% drop in the refinance rate could translate to substantial savings on a home loan.
• Cash-out refinancing is a way for homeowners to tap into their home equity, but it typically comes with higher mortgage refinance rates than other refinance options.
• Refinancing to a 15-year mortgage can be a smart move, as it typically means paying less interest over the life of the loan, despite higher monthly payments.
• Closing costs are an important factor to consider. They generally fall between 2% and 5% of the loan amount.
Intro to Mortgage Refi Interest Rates
Mortgage refinance is the process of replacing your existing home loan with a new one. The terms of the new mortgage can be different from the old mortgage. For example, the new mortgage may have a different interest rate, a different repayment term, or other features. The type of refinance you choose can affect your interest rate in Oregon. This guide will help you understand how refinance rates are set, and how you can get the best rate possible.
💡 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?
The strongest indicator of the direction mortgage interest rates are headed lies in the bond market, and specifically in the performance of the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest tends to rise too. Another factor is housing inventory. When there are more homes available than there are buyers, lenders may lower rates to keep attracting customers. Then there is the overall economy: A strong jobs market and economic growth can lead rates to rise, while a recession usually means lower interest rates.
How Interest Rates Affect Home Affordability
Your monthly payment hinges on your loan amount, the term over which you’ll repay it, and the mortgage refinance rate. If you took a $200,000 loan with a 6.00% interest rate and a 30-year term, your monthly payment would be $1,199. But if you could only get an interest rate of 8.00%, you’d be looking at a monthly payment of $1,467. Over the life of the loan, a lower interest rate would save you close to $100,000. Even a seemingly small rate change can lead to significant savings. The chart below shows additional payment amounts for that $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 |
Why Refinance in Oregon
Refinancing your mortgage is often a smart financial play, but it’s not a decision to be made lightly. If current mortgage rates are more attractive than what you’re currently locked into, it could be the perfect time to make a move. By refinancing, you could reduce your monthly payments and save a substantial sum over the life of your loan. With at least 20% equity in your home, you could even refinance to cash out some equity for a renovation project or other big expense — another reason that people refinance.
Refinancing also offers the opportunity to switch from an adjustable to a fixed rate, which could provide a more predictable monthly payment. And for some people, refinancing means trimming their repayment term so that they pay more each month, but repay the entire loan in less time (and with less interest overall).
For borrowers with an FHA loan (backed by the Federal Housing Administration) a refinance once they hit the 20% equity mark will help them eliminate an extra charge for the mortgage insurance premium.
How to Get the Best Available Mortgage Refi Rate
Here are some basic steps you can take to ready your finances for a mortgage refinance:
• Pay bills on time to maintain a solid credit score.
• Aim to keep your debt-to-income (DTI) under 36%. To determine your current DTI, add up your monthly debts (car payment, student loan payment, etc.) and divide by your gross monthly income. Then multiply by 100.
• Assess your monthly budget and think whether you can handle larger payments. If so, you might seek a shorter-term mortgage for a lower rate.
• Examine your savings to determine whether you might be able to purchase discount points to lower your interest rate.
You’ll want to compare interest rates and fees from a few different lenders when you explore refinancing, so it helps you have a sense of what interest rates look like in Oregon..
Understand Trends in Oregon Mortgage Interest Rates
The mortgage refinance rate environment in Oregon is similar to what you see across the country, with average interest rates in the state typically sitting just below the national average. Take a look at how they compare.
Historical U.S. Mortgage Interest Rates
As you think about whether the mortgage rate available to you now in Oregon is a good bet for a refinance, it helps to have a sense of what rates have looked like over a long span of time in the United States. While it might be tempting to wait for rates to drop significantly, as the chart below shows, a rate below 5.00% is a fairly uncommon occurrence.
Historical Interest Rates in Oregon
The mortgage refinance rate environment in Oregon is similar to what you see across the country, with average interest rates in the state typically sitting just below the national average. Take a look at how they compare.
| Year | Oregon Rate | National Rate |
|---|---|---|
| 2000 | 7.59 | 8.14 |
| 2001 | 6.86 | 7.03 |
| 2002 | 6.38 | 6.62 |
| 2003 | 5.55 | 5.83 |
| 2004 | 5.68 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.48 | 6.60 |
| 2007 | 6.41 | 6.44 |
| 2008 | 6.00 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.73 | 4.84 |
| 2011 | 4.54 | 4.66 |
| 2012 | 3.66 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.84 | 3.91 |
| 2016 | 3.65 | 3.72 |
| 2017 | 3.94 | 4.03 |
| 2018 | 4.56 | 4.57 |
Choose the Right Mortgage Refi Type
The type of mortgage refinance you opt for will have an impact on the rate you are offered and the overall cost of your loan. These are the more common types of refinance arrangements in Oregon.
Conventional Refi
A conventional home loan refinance, also known as a rate-and-term refinance, is a great option for homeowners looking to lower their interest rate, change the length of their loan term, or both. A conventional refinance has typically a higher rate than a government-backed refinance, but offers more flexibility. This is a good option if you have built up equity and have a good credit score. Two common types of conventional refi are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
Choosing a loan term that’s on the shorter side (15 or even 10 years) can lead to substantial interest savings over the loan’s lifetime, though it does mean making higher monthly payments. Borrowers who have the financial resources to make those larger payments might choose a 15-year mortgage refi to close out their loan before children go to college or before their own retirement years.
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts with a lower mortgage refinance rate than a fixed-rate loan, so some people choose an adjustable-rate loan when they refinance to take advantage of that benefit. Of course, this isn’t for everyone, as interest rates on this type of loan can adjust up or down as market conditions change. (Other borrowers refinance to get out of an adjustable-rate loan and into a fixed-rate one because they want more predictable monthly payments.)
Cash-Out Refi
A cash-out refinance is a smart way to leverage your home equity, allowing you to borrow whatever you owe on your first mortgage plus a lump sum that can be used for a variety of financial needs, from home improvements to consolidating high-interest debt. Although cash-out refis often come with higher mortgage refinance rates, they can be a valuable financial resource.
FHA Refi
An FHA refinance, backed by the Federal Housing Administration, can be a game-changer with the potential for lower mortgage refinance rates. Refinancing an FHA loan once you have 20% equity in your home also helps you get rid of the FHA mortgage insurance premium that is adding extra costs to your monthly payments. The FHA Simple Refinance and Streamline Refinance are for those with an existing FHA loan. Cash-out and 203(k) refinances — the latter is used for home renovations — are available for everyone.
VA Refi
The VA loan refinance, for loans backed by the U.S. Department of Veterans Affairs, is known for its competitive interest rates. Also known as an Interest Rate Reduction Refinance Loan (IRRRL), this option is for those with an existing VA loan. If interest rates have dropped since you took out your first VA loan, this type of refinance can help you lower your monthly payments and save a significant amount of money on interest over the life of the loan, making it a great option for veterans who qualify.
Compare Mortgage Refi Interest Rates
Once you have narrowed down your choices and have an idea of what loan type you are looking for, follow these tips to secure the best mortgage refinance rate:
• Compare multiple lenders’ offers. Many lenders will give you an idea of what interest rate you might qualify for after you answer a few simple questions online.
• Evaluate the annual percentage rate(APR) and all mortgage refinancing costs and fees for each loan option. (Some lenders offer a no-closing-cost refinance, but the costs are typically rolled into your loan amount or reflected in a higher interest rate.)
• Consider purchasing discount points for a lower interest rate.
• Make sure the new payoff date aligns with your goals.
An online refinance calculator can help you compare your options.
Use an Online Refinance Calculator
By entering your principal amount, loan rate, and loan term into a refinance calculator, you can see what your monthly payments might look like, and also get a handle on the total interest paid. Here are some useful mortgage calculators:
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 requires a strategic approach and careful consideration. Whether you want to lower your mortgage refinance rate, tap into your home’s equity, consolidate debt, or get your hands on a lump sum, it’s important to understand the different types of refinance options available and the potential consequences of your decision. By maintaining a good credit score, strategically lowering your debt-to-income ratio, and carefully comparing offers from multiple lenders, you can find the best refinance deal 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 can I lower my interest rate without refinancing?
If you find yourself with a windfall, a mortgage recast is one way to lower the amount you’ll pay for interest without refinancing. You would make a large payment toward your principal and request that your lender recalculate your remaining payments. While this won’t affect your interest rate, it could significantly reduce your monthly payments and the total interest you’ll pay over the life of the loan. There can be a fee of a few hundred dollars for a recast, but it’s a savvy way to use the cash if you have it on hand.
How much are closing costs on a refinance?
Closing costs usually land somewhere between 2% and 5% of your loan amount. So for a $400,000 refinance, you might be looking at anywhere from $8,000 to $20,000. Keep in mind, these numbers are ballpark figures. The actual amount you’ll pay can fluctuate based on a variety of factors, such as your lender, the type of loan you’re pursuing, and where you live. Understanding these potential costs can help you make informed financial decisions and plan your budget accordingly.
How many times can you refinance your home loan?
There isn’t a set number of times you can refinance your home, but each refinance is a new loan with closing costs — so if you find yourself looking at a second or even third refinance, you will want to carefully examine the total cost not just of the interest paid on your loan, but also of the closings.
Can I request a lower interest rate from my lender?
Any borrower could reach out to a lender and request a lower interest rate on their mortgage. But it’s entirely possible the lender will decline your request, especially if you don’t have stellar credit and a spotless payment history. If you are having difficulty making your payment, consider asking your lender for a mortgage loan modification or loan forbearance, in which payments are temporarily paused. In either case, you may need to demonstrate financial hardship.
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.
SOHL-Q125-192
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.
Stay up to date on the latest business news and stock market happenings.