Compare mortgage refinance rates in Oregon.

Intro to Mortgage Refi Interest Rates

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.

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.

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.

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:

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.

FAQ

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.

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

Compare mortgage refinance rates in Oklahoma.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Rates Come From?

Mortgage refinance rates are a product of various economic factors and your unique financial standing. Economic factors include Federal Reserve policy, inflation, the bond market, and housing inventory. Some points to consider:

•   High inflation and federal funds rate increases usually translate to higher mortgage refinance rates.

•   Conversely, low inflation and bond price increases can have a rate-lowering effect.

•   Fewer homes built or for sale (meaning there’s low inventory) can contribute to an increase in rates.

On the personal side, your credit score also plays a role in the rate you’ll snag. Those with higher scores have a record of handling debt responsibly, so they typically qualify for better rates. People with lower scores (meaning they may have been late with payments in the past or skipped payments entirely) usually are offered a higher rate, since the lender feels they are a riskier borrower.

Being mindful of these influences can help you predict rate changes and make an informed decision about when to refinance your home loan.

How Interest Rates Affect Home Affordability

Interest rates play a pivotal role in the financial equation of your mortgage refinance. Your monthly outlay hinges on the loan amount, the duration of repayment, and the prevailing mortgage refinance rate.

Say you have a $200,000 loan, with a 6.00% interest rate, and a 30-year term, which translates to a monthly payment of $1,199. If that same loan were to bear an 8.00% interest rate, your monthly commitment would leap to $1,467. That means, with the lower rate, you’re $268 “richer” every month. Over the loan’s lifetime, the lower interest rate could let you pocket nearly $100,000 in savings. Even the slightest drop in the mortgage refinance rate can accumulate into substantial benefits over time.

Why You Should Refinance Your Mortgage in Oklahoma

Refinancing can be a strategic move, but it’s not one to be taken lightly. If current rates are lower than your existing one, it might be a good time to refinance, but be prepared for the closing costs (usually 2% to 5% of the loan amount). Make sure that a home loan refi works for your current needs and bigger-picture financial situation.

Common Reasons to Refinance a Mortgage

Here are some common reasons homeowners refinance their mortgage:

•   You qualify for a lower interest rate because you’ve built your credit score or market conditions have shifted.

•   You’re considering adjusting your repayment term to manage your monthly payments or pay off your loan quicker.

•   You need to tap into your home’s equity to cover expenses like education or home improvements.

•   Your adjustable rate is about to reset, and you’re considering the security of a fixed-rate loan.

•   You have an FHA loan and at least 20% equity in your home, and you want to eliminate FHA mortgage insurance premiums.

How to Get the Best Refi Interest Rate

When you’re looking into a mortgage refinance, you’re probably curious about how low your rate can go. Here are some tactics to help you secure the best mortgage refinance rate:

•   Pay bills on time and steer clear of new debt to build your credit score.

•   Keep your debt-to-income ratio under 36%.

•   Compare rates and fees from multiple lenders to find the best deal.

•   Think about buying mortgage points, aka discount points, to lower your interest rate. This means paying more money upfront, but less interest month after month.

•   If you can manage it, go for a shorter mortgage term; it will often come with a lower interest rate, though your monthly payment will be higher.

Understand Trends in Oklahoma Mortgage Interest Rates

Nationally and in Oklahoma (or any state, for that matter), mortgage refinance rates tend to ebb and flow. Understanding these movements and the prevailing trends can help you decide when the best time to refinance in Oklahoma may be.

Choose the Right Mortgage Refi Type

Mortgage refinance rates in Oklahoma can fluctuate based on the type of refinance you’re considering. Here’s an overview of some of the most popular refi variations available, from those designed to cut your payments to ones engineered to pay off your loan faster, as well as ones that help you pull equity from your home.

Just remember this one point: In terms of how soon you can refinance, you typically need 20% home equity before you can pursue this path.

Compare Mortgage Refi Interest Rates

Securing a competitive mortgage refinance rate can save you money over the life of your loan. Here are some tips for comparing mortgage refinance rates:

•   Shop around with different lenders to see what rates and terms they offer.

•   Get prequalified to find out approximately how much a lender is willing to loan you and under what terms without a hard credit inquiry.

•   Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points.

•   Remember, there’s a trade-off between rates and fees; a lower rate might mean higher mortgage refinancing costs.

•   Crunch the numbers on your break-even point (when the savings from your new terms outweigh the expense of Oklahoma refinancing costs) to see if the savings make sense for you.

•   Use a refinance calculator to estimate new monthly payments and your potential savings.

💡 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.

Use an Online Refinance Calculator

Refinancing a mortgage in Oklahoma (or any state) involves a good amount of math, from tracking loan rates and overall interest to seeing how buying points might save you money. Don’t let that discourage you: Online refinance calculators can be a great way to get an estimate of what your monthly payments might be and compare different refinance options. They can also help you see how different financial strategies might help you achieve your financial goals.

The Takeaway

Refinancing your mortgage in Oklahoma can be a smart move to potentially lower your mortgage refinance rate, change your loan term, or get cash for a large purchase. But you need to weigh the costs and benefits, including any closing costs vs. the long-term interest savings you may get. Consider your financial goals and compare the options available to you.

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.

FAQ

Can I refinance when rates go down?

Absolutely! When interest rates for mortgage refinancing are on the decline, you have the opportunity to refinance your mortgage and realize some savings. But before you do, it’s important to make sure that the potential savings will be greater than the costs. This will depend on a number of factors, including the difference between the current interest rate and the new rate, any fees associated with the refinance, and how long you have left on your mortgage. By carefully considering these factors, you can make an informed decision about whether refinancing is the best choice.

Can I get cash out of my home without a refinance?

Yes, you can consider a home equity line of credit (HELOC), which is a form of revolving credit, or a home equity loan, which provides a lump sum payment. These options allow you to tap into your home’s equity without changing your current mortgage rate. It’s important to carefully consider the terms and conditions of these options, including interest rates and repayment schedules, to make sure they make sense for your financial situation.

Is there a fee to recast your mortgage?

Yes, there is a fee to recast your mortgage, but it is much less than the fees associated with refinancing. The fee is typically a few hundred dollars, compared with closing costs of 2% to 5% of the loan amount if you were to refinance. The fee to recast can vary by lender, loan amount, and credit history so it is important to compare rates from multiple lenders 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.

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-Q125-191

Compare mortgage refinance rates in Ohio.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refinance Interest Rates Come From?

Mortgage refinance rates are not arbitrary numbers; they are influenced by an array of economic factors and your unique financial standing. Economic indicators such as Federal Reserve policy, inflation, the bond market, and housing inventory all play a role. Inflation, for example, can lead to higher rates, as can a hot real estate market, where inventory is low and prices are climbing. The Federal Reserve’s monetary policy can also have a ripple effect, impacting the direction in which mortgage rates shift nationally and, more specifically, in Ohio.

Another facet that impacts mortgage refi rates is your personal credit profile. Those with higher scores appear more creditworthy to lenders and can therefore secure more favorable rates and terms. Those with lower scores, who were perhaps late with debt payments in the past or missed some bills altogether, are likely to be assessed higher refi mortgage rates.

By keeping an eye on these factors and staying informed, you can better choose the most opportune moment to refinance your home loan.

How Interest Rates Affect Home Affordability

Just like when you first got your mortgage, interest rates are a big factor in how much you’ll be paying each month. Your loan amount, the repayment term, and the interest rate all come together to determine your monthly payment. Here are some specific numbers to give you a better understanding of this important topic:

•   Say you have a $200,000 loan with a 6.00% mortgage refinance rate and a 30-year repayment term. That would mean a monthly payment of $1,199.

•   But if that same loan had an 8.00% mortgage refinance rate, you’d be looking at a $1,467 monthly payment.

•   What’s more, the lower 6.00% interest rate could save you nearly $100,000 over the life of the loan. Think about how that money could be put to good use!

While this example uses a major difference in interest rates to prove a point, smaller shifts can also be a very good thing for your financial health. Even though a less significant interest rate drop might not seem like much in terms of monthly savings, it can really add up over the years.

Why Refinance in Ohio?

Refinancing your mortgage could be a smart move if current interest rates are lower than when you took out your loan. Depending on your reasons for refinancing (such as reducing your monthly payments or taking cash out of your home equity), you can likely find a product to suit your needs.

Common Reasons to Refinance a Mortgage

Homeowners refinance in Ohio (and other states) for various reasons:

•   Qualifying for a lower interest rate thanks to improved credit or market conditions.

•   Lower interest rates: Perhaps the market has shifted in your favor, or you have built your credit score, making better rates and terms possible.

•   Repayment term change: A longer term can mean lower monthly payments, while a shorter term can help you pay off the loan faster and save on interest.

•   Cash out home equity: You might want to tap into your equity to cover major expenses, such as education costs.

•   Adjustable rate change: Refinancing can switch to a fixed-rate loan, protecting against future rate increases.

•   FHA loan with 20% equity: Once you hit that equity milestone, refinancing can help you avoid permanent FHA mortgage insurance premiums for FHA loans taken after 2013 with less than 10% down.

How to Get the Best Available Mortgage Refi Rate

Finding the most favorable rate can take some time and energy. To secure a competitive mortgage refinance rate, consider these moves:

•   Build your credit score: That means timely payments, every time, and avoiding new debt.

•   Lower debt-to-income ratio: Shoot for 36% or less.

•   Compare rates and fees: Be sure to shop around for the best deal.

•   Be smart about rates: Focus on annual percentage rates (APRs) vs. interest rates alone to get a truer picture of how much your loan will cost. APRs incorporate fees and other important features.

•   Weigh mortgage points: Each point you buy costs 1% of the loan amount and typically lowers your interest rate by 0.25%.

•   Opt for a shorter term: Doing so can mean lower rates and less interest in the long run, though your monthly payment will be higher.

Understand Trends in Ohio Mortgage Interest Rates

Mortgage rates have seen their share of ups and downs in recent years. If you’re a homeowner in Ohio who’s thinking of refinancing, here’s a deeper dive into where rates have been nationally and in your home state, as well as where they may be heading.

Choose the Right Mortgage Refi Type

You might be aware that refinance rates tend to be a tad higher than those for new home purchases. However, the interest rates themselves can vary based on the type of mortgage refinance you opt for. There’s a whole menu of choices out there, each with its own set of perks.

Just one caveat: In terms of how soon you can refinance your mortgage, you typically need at least 20% equity in your home before you can pursue replacing 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.

Compare Mortgage Refi Interest Rates

Now that you have a better picture of several key refinance options in Ohio, here’s advice on how to secure a competitive mortgage rate:

•   Compare lenders’ annual percentage rates (APR), which include interest, fees, and discount points (or mortgage points, which raise upfront costs but can lower the loan’s interest rate).

•   Be sure to consider the total cost of refinancing, including closing costs, to ensure your savings are worth it.

•   If your current rate is already a good deal lower than what’s out there, refinancing might not be the best move.

•   Lower rates can sometimes mean higher mortgage refinancing costs. Make sure you have the full financial picture of upfront costs and payments over the life of the loan before signing off on a refi in Ohio.

•   Crunch the numbers with a mortgage refinancing calculator to get a clearer picture of your monthly payments and potential savings.

Use an Online Refinance Calculator

When it’s time to compare refi rates, terms, and options, there’s no need to start tapping the buttons on an old-school calculator. Online refinance calculators can be a great way to get a rough estimate of what your new monthly payment might be and to see how different refinance options stack up against each other.

These calculators take into account your current loan balance, the new mortgage refinance rate, and the term of the new loan. By inputting your specific financial details, you can get a good idea of what your potential savings might be and whether or not refinancing makes sense for you. They can also help you see the long-term financial implications of refinancing, which can help you make a more informed decision.

The Takeaway

Refinancing your mortgage in Ohio can be a smart financial move, but it requires careful thought and planning. Whether you want to lower your mortgage refinance rate, access your home’s equity, or switch from an adjustable to a fixed interest rate, it’s important to understand the different types of refinances and the specific requirements for each. By comparing offers from multiple lenders, you can review your options and choose the best rate and terms 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.

FAQ

How much does 1 percent lower your monthly payment?

A 1% reduction in your mortgage interest rate can save you a significant amount of money. Exactly how much will depend on such factors as your loan amount and term. For example, if you have a 30-year, $300,000 loan at a 7.00% interest rate, your monthly payment will be $1,996. If you can reduce your interest rate to 6.00%, your monthly payment will drop to $1,799. That’s a savings of about $197 each month. A lower interest rate will give you more money in your pocket each month and can add up to big savings over the life of the loan.

Can I get a lower interest rate without refinancing?

If you have some extra cash on hand, you might consider a mortgage recast. With a recast, you make a lump sum payment toward your principal, and your lender then recalculates your payments. This won’t change your mortgage refinance rate, but it can lower your monthly payments and save you a significant amount of interest over the life of your loan. Another option is to request a loan modification if you are having difficulty paying what you owe each month or negotiate with your lender for a lower interest rate.

Can I negotiate a lower interest rate with my lender?

Absolutely! You can always reach out to your lender and see if they’re willing to work with you on a lower rate. If you have a history of on-time mortgage payments, a low debt-to-income ratio, and a good credit score, your lender may be willing to adjust your rate without going through the refinance process.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

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-Q125-190

Compare mortgage refinance rates in North Carolina.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refinance Interest Rates Come From?

As you look at current mortgage refinance rates in North Carolina, it’s important to understand why they might shift by as little as a fraction of a percentage point. The performance of the 10-year U.S. Treasury Note is the most important determinant of current mortgage rates. When rates on the note rise, mortgage interest tends to rise as well. Another factor is the housing market. When more homes are available than there are buyers, lenders may lower rates to keep attracting customers. The overall economy plays a role as well: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. Of course, there are factors that are personal to each borrower, such as credit score, that help determine what rate you will be offered.

How Interest Rates Affect Home Affordability

Why so much fuss about tiny percentage shifts? Imagine a $200,000 loan with a 6.00% interest rate and a 30-year term. That would mean a monthly payment of $1,199. But if that rate were 8.00%, your monthly payment would jump to $1,467. You can see more examples below. Look closely at total interest. Obtaining even a half-percentage-point lower rate in a mortgage refinance can save you tens of thousands of dollars.

Why Refinance in North Carolina?

Refinancing your mortgage can be a strategic financial move for several reasons, as the list below shows.

Common Reasons to Refinance a Mortgage

•   To take advantage of a lower mortgage rate due to improved credit or market conditions.

•   To change the repayment term on your loan for lower monthly payments (a longer repayment term) or quicker payoff (a shorter term).

•   To access home equity to meet financial goals like college funding.

•   To move from an adjustable-rate mortgage to a fixed-rate mortgage (or vice versa).

•   To remove the FHA mortgage insurance premium from a Federal Housing Administration loan.

How to Get the Best Available Mortgage Refi Rate

These are key steps to take as you think about how to refinance a mortgage that will help prepare you to get a good rate when the time comes:

•   Pay your bills on time and steer clear of new debt to nurture your credit score.

•   Assess the equity you have in your home. Ideally, you’ll have at least 20% equity before refinancing, especially if you’re cashing out some equity.

•   Keep your debt-to-income (DTI) ratio under 36%. To compute your DTI ratio, add all your monthly debts and divide by your gross monthly income. Then multiply by 100.

•   Compare rates and fees from multiple lenders.

•   Think about whether you have room in your budget to buy discount points (also called mortgage points) to lower your rate.

•   Also examine your budget to see if you can afford to choose a shorter loan term (which may mean a higher monthly payment). This can reduce the total amount of interest you’ll have to pay.

Understand Trends in North Carolina Mortgage Interest Rates

As you think about whether the time is right to refinance, it can help to see how today’s mortgage rates compare to your existing loan, as well as how they compare to historic averages.

Choose the Right Mortgage Refi Type

The interest rate and terms you get for your refinance can vary depending on the type of loan you choose. Here are some common refinance arrangements, so you can think about what you are looking for.

Compare Mortgage Refi Interest Rates

Refinancing can be a money-saver, but only if the North Carolina refinance rate you obtain is a good one. Here’s how to snag a competitive rate:

•   Compare rates from multiple lenders.

•   Look at the annual percentage rate (APR), which includes fees and discount points.

•   Make sure you factor in closing costs, which are part of your total mortgage refinancing costs. Some lenders offer a no-closing-cost refinance, but may have higher interest rates or may add closing costs to the principal.

•   Remember that if your current interest rate is lower than any rate you are offered, refinancing might not be the best move. A mortgage refinance calculator can help you determine whether you stand to save money.

Use an Online Refinance Calculator

Online calculators are valuable tools that can help you compute all kinds of housing-related expenses. As you think about whether it makes sense to refinance and how large a monthly payment you can afford, an online refinance calculator will be a helpful tool. Here are a few of our favorite calculators.

The Takeaway

Refinancing your mortgage can be a smart financial move, but it does require some planning and careful consideration. By taking good care of your credit score, reducing your debts, and carefully comparing mortgage refinance rates and total costs from multiple lenders, you can make an important decision and qualify for the best available rate in North Carolina.

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.

FAQ

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.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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