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.

SOHL-Q125-188

Compare mortgage refinance rates in New Mexico.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

The rates you’re offered for a mortgage refinance are the result of a complex interplay of economic factors and your personal financial situation.

•   On the economic side, the Federal Reserve’s policies, inflation, and the bond market all play a role. In general, periods of high inflation and rising federal funds rates lead to higher mortgage rates. When bond prices fall, interest rates tend to rise.

•   Housing demand can also have an impact. When there is a hot real estate market (meaning low inventory and high demand), with bidding wars and higher prices, interest rates may climb.

•   On the personal side, your credit score can impact your rate. Those with higher scores, who appear more creditworthy, tend to qualify for lower interest rates, and those with lower scores, indicating that they did not handle credit meticulously in the past, will be charged higher rates.

By understanding these factors, you can better understand current mortgage rates, predict how rates are likely to shift, and make a more informed decision about when to refinance your New Mexico mortgage.

How Interest Rates Affect Home Affordability

Interest rates have a big impact on how much your refinance will cost you each month. Your monthly home loan payment is like a recipe, with your loan amount, repayment term, and interest rate as the key ingredients.

For example, a $200,000 loan with a 6.00% interest rate and a 30-year term would have you paying $1,199 each month. But bump that interest rate to 8.00%, and suddenly you’re looking at $1,467 a month. That adds up to almost $100,000 more over the life of the loan. While this example reflects a shift of two percentage points, even a tiny rate difference has the potential to add up to major savings over the years.

Why Refinance in New Mexico?

Homeowners opt to refinance for a variety of reasons. If the current interest rates are more favorable than your existing mortgage, this could translate to significant savings. Refinancing can also present the opportunity to alter your repayment term, extract home equity, or transition from an adjustable-rate to a fixed-rate loan. Each rationale will influence the type of refi you select and the interest rate you secure. Refinancing your New Mexico mortgage could be a shrewd financial move.

Just remember as you make your plans: In terms of how soon you can refinance your loan, you typically need at least 20% equity to move forward.

Common Reasons to Refinance a Mortgage

Here are some typical motivations for refinancing a mortgage in New Mexico:

•   You might be eligible for a lower interest rate due to improved market conditions or thanks to building your credit score.

•   You want to adjust your repayment term to either reduce your monthly payments or clear your loan quicker.

•   You need to tap into your home’s equity to cover expenses such as college tuition or home improvements.

•   Your adjustable-rate mortgage (ARM) is about to reset, and you’re considering a switch to a fixed-rate loan. Or you want to snag a low interest rate offered by an ARM since you plan to sell your property in a couple of years.

•   You have an FHA loan and 20% equity, and you want to eliminate FHA mortgage insurance premiums by refinancing to a conventional loan.

How to Get the Best Available Mortgage Refi Interest Rate

To secure a competitive mortgage refinance rate, try these tactics:

•   Build your credit score by being punctual with payments (setting up autopay can help) and avoiding new debt.

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

•   Compare rates and fees from multiple lenders rather than assuming the first offer is as good as it gets.

•   Consider purchasing mortgage points to reduce your interest rate, which can offer lower monthlies and less interest paid over the life of the loan. Doing so will, however, raise your upfront costs..

•   Choose a shorter loan term for lower rates, even if it means higher monthly payments.

Research and preparation can be key, as rates vary when you’re thinking about refinancing in New Mexico.

Understand Trends in New Mexico Mortgage Interest Rates

In recent years, New Mexico has seen its mortgage rates ebb and flow, much like the rest of the nation. If you’re thinking about refinancing your mortgage in New Mexico, it’s important to keep a close eye on key economic indicators to help you get the best deal. By staying informed and being proactive, New Mexico residents can make smart choices about their mortgage refinance options. Here’s more detailed information on this important financial topic.

Choose the Right Mortgage Refi Type

Each homeowner has their own reason to consider a New Mexico mortgage refinance. One person may want to lower their interest rate and enjoy less costly monthly payments; another may have decided to accelerate their loan, swapping a longer term for a shorter one — and higher monthlies. And yet another may want to unlock some cash by tapping their home equity.

The kind of refi you choose impacts the interest rate you are assessed. Read on to learn more.

Compare Mortgage Refi Interest Rates

So you’ve just read about an array of mortgage refi options (and there are lots of them!). Once you’ve zeroed in on which one would suit your needs, here are tips to help you get a great rate:

•   Shop around. Request a rate from multiple lenders to compare rates and fees (often you can do this by answering a few simple questions online).

•   Shop around with multiple lenders to compare rates, terms, and fees. See which might make the most sense for your situation.

•   Go through the prequalifying process to see how much you might be able to borrow and at what rate. This won’t lower your credit score, since a hard inquiry is not required.

•   Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points (also known as mortgage points, these allow you to buy down your interest rate by paying more upfront). It’s often a balancing act between rates and fees. Lower rates can sometimes mean higher costs overall.

•   Use a mortgage refinancing calculator to compare new and existing terms (more on that in a moment) to figure out the best New Mexico refi offer for your needs.

💡 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

All this talk about comparing offers and crunching numbers can be intimidating, especially for those who don’t like doing math. But that’s where online refinance calculators can come in. They can be a great way to estimate your new monthly payments and compare different refinance options. These calculators take into account your current mortgage balance, the interest rate you are paying on your loan, and the terms of the new loan you are considering.

By entering your information, you can see how much you might save each month and over the life of the loan. They can also be helpful in understanding and comparing New Mexico mortgage refinance rates and can give you a sense of what the local mortgage market looks like.

The Takeaway

Mortgage refinancing can be a powerful tool for managing debt and improving your financial health. Whether you’re looking to lower your interest rate, access home equity, or switch to a different loan type, understanding your options and preparing your financial profile are key. New Mexico mortgage refinance programs can offer a range of solutions to meet different financial goals. Shop around so you can explore your refinancing options and find the right fit for your particular 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 do I know if refinancing in New Mexico is a good idea?

Knowing when to refinance your mortgage isn’t just about rates dropping. When you’re considering a mortgage refi in New Mexico, it’s important to weigh the potential savings against the fees and closing costs. This includes looking at such factors as how much you could save on interest, what your closing costs would look like, and whether you’ll have to pay a prepayment penalty. Then you can make an informed decision about whether refinancing is right for you.

Can I access my home equity without refinancing my mortgage?

Yes, you can tap into your home’s equity without going through the refinancing process. One popular option is a home equity line of credit, HELOC, which allows you to draw funds up to a certain limit. Or you might prefer a lump sum of funding via a home equity loan. Both of these options allow you to access the equity in your home without having to refinance your entire mortgage. This means you can keep your current loan’s terms and interest rate, while also taking advantage of the equity you’ve built up in your home and accessing cash.

Is there a cost to recast your mortgage?

Yes, there is a fee to recast your mortgage, but it’s typically much smaller than the fees you’d pay to refinance. Recasting a mortgage involves paying a significant lump sum toward the amount you borrowed and then having your lender recalculate the monthly payments based on the new, lower amount of the principal. The fee will typically be anywhere from $150 to $500, which is considerably less than the 2% to 5% of the loan amount assessed as closing costs for many refis.

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-Q125-186

Compare mortgage refinance rates in New Hampshire.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

Mortgage rates are a product of various economic factors, such as Federal Reserve policy, inflation, the bond market, and housing inventory. Some specifics:

•   If the Fed decides to raise its federal funds rate, mortgage refi rates are likely to climb as well.

•   When bond prices rise, interest rates usually fall.

•   In times of high inflation, rates typically rise, and vice versa.

•   When housing inventory is tight, prices usually go up (and those notorious bidding wars can become more common). That may make it more expensive to borrow.

Your particular financial profile also has an impact. People with higher credit scores typically impress lenders as less risky, so they enjoy more favorable rates. People with lower credit scores appear less likely to pay what they owe in a timely manner (a key factor in your score), so lenders protect themselves by raising the interest rate they assess. A number to know: For a conventional home loan, you usually need a credit score of at least 620.

Being in the know about how rates are determined can empower you to make the right move when refinancing your mortgage.

How Interest Rates Affect Home Affordability

Just as with your current mortgage, the mortgage refinance rate is a key metric in the affordability of your refinance payment. Your monthly payment is a product of the amount of your home loan, the term over which you’re repaying, and the interest rate.

For instance, a $200,000 loan with a 6.00% interest rate and a 30-year repayment term would mean a $1,199 monthly payment. That same loan with an 8.00% interest rate would have you paying $1,467 each month. But here’s the kicker: The lower interest rate could save you nearly $100,000 over the life of the loan.

As you review your refi options, an additional fraction of a percentage point might seem insignificant in your monthly payment. However, in truth, it could accumulate to tens of thousands of dollars over the loan term.

Why Refinance in New Hampshire?

Refinancing your mortgage can be a smart financial move, but it does require some thought. If current interest rates are lower than your existing mortgage, it might be a good time to refi. Your specific reason for refinancing can determine what kind of refi to choose, and that can play into your rate.

Common Reasons to Refinance a Mortgage

Homeowners may refinance for several reasons:

•   To take advantage of lower interest rates due to economic factors or after having built one’s credit.

•   To adjust repayment terms, which can be a game-changer. Opt for a longer term to ease monthly payments, or a shorter one to clear the loan faster and save on interest.

•   To cash out home equity. You can refinance to tap into your property’s rising value and then use the lump sum for a variety of reasons, from paying for a home renovation to financing a child’s education.

•   To refinance from an adjustable-rate mortgage to a fixed-rate loan, which can provide stability and predictability in monthly payments. Or to do the opposite in order to lower monthly costs, as long as you plan on selling before the rate adjusts upward.

•   To refinance an FHA loan once there’s 20% equity, thereby eliminating those permanent FHA mortgage insurance premiums.

How to Get the Best Available Mortgage Refi Interest Rate

Now that you know the reasons to refinance in New Hampshire, here’s some advice for securing a competitive mortgage refi rate:

•   Build your credit score by always making payments on time, keeping your credit utilization ratio low (below 30% or, if possible, lower than 10%), and avoiding new debt.

•   Be meticulous about paying your bills on time to help build your credit score.

•   Strive for a debt-to-income ratio below 36%.

•   Compare rates and fees from multiple lenders; shopping around can yield significant savings.

•   Think about purchasing mortgage points, or discount points, to reduce rates. While it means you put down more money upfront, it can lower your monthlies and how much interest you pay over the life of the loan.

•   Opt for a shorter-term loan for better rates. This will hike up your monthly payments but could yield significant interest savings over the loan’s term.

Understand Trends in New Hampshire Mortgage Interest Rates

Mortgage rates, as you’ve learned, are impacted by several factors, both big-picture economic ones and those more specific to your personal financial situation. It’s completely normal and expected for these rates to rise and fall. Here, you’ll learn more about how that happens at a national level and in New Hampshire. Understanding these trends can be key to making the right move for your finances. And if you’re considering refinancing, timing could be everything.

Choose the Right Mortgage Refi Type

There are myriad mortgage refinance options out there, each with its own set of perks. Knowing your options is key to making a savvy financial move. Before getting into the specifics, two notes:

•   Refinance rates are usually a tad higher than those for purchasing a home, though the actual interest rates can fluctuate based on the kind of mortgage refi you’re considering.

•   Don’t move too fast when considering a refi. In terms of how soon you can refinance, you typically need 20% home equity before you can secure this kind of financing.

💡 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.

Compare Mortgage Refi Interest Rates

Snagging a competitive rate can save you a bundle over the life of your loan. Even a small difference can add up to big interest savings. Here’s how to get a competitive rate in your area:

•   Compare prequalification offers from several lenders to find the best rate and terms.

•   Refinancing might not be the best move if your current rate is already a good deal. Do the math, and make sure a drop in interest rates is significant enough to be worth the effort and upfront costs.

•   Remember, lower rates often mean higher costs.

•   Pay attention to the annual percentage rate (APR), which factors in the interest rate, fees, and discount points.

•   As you budget, don’t overlook mortgage refinancing costs. They aren’t insignificant. Typically, closing costs alone will amount to 2% to 5% of the loan amount.

Work closely with your lender or a mortgage professional to get the full picture before selecting your refi loan.

Use an Online Refinance Calculator

All that talk of calculations and interest rates can be intimidating. Fear not: Online refinance calculators are powerful tools that can help you estimate your new monthly payment and compare different refinance options. By using these calculators, you can see how changes in your mortgage refinance rate, loan term, and loan amount could affect your financial situation. This can help you make more informed decisions about your refinancing strategy and choose the option that best aligns with your financial goals and objectives.

The Takeaway

Refinancing your mortgage can be a smart financial move to lower your home loan interest rate, reduce monthly payments, or tap into home equity. But it’s important to weigh the costs and benefits, including closing fees and how they fit into your long-term financial goals. To fully understand your options, shop around for the best rates and terms, and make a plan that’s right for 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

When is it a good time to refinance your home?

It can be a wise financial decision to refinance your home when you can lock in a significantly lower mortgage refinance rate. That rate reduction should fairly quickly compensate for the closing costs you have to dole out, as well as fit in with your long-term financial plans. Refinancing could help you save a substantial amount over the life of the loan, potentially freeing up more of your monthly budget and giving you added financial flexibility.

Can I lower my interest rate without refinancing?

If you have some extra cash on hand, consider a mortgage recast. This involves making a large lump-sum payment toward the principal of your mortgage. Your lender then re-amortizes the loan. While this won’t change your mortgage refinance rate, it can lower your monthly payments and save you money on interest over the life of the loan. Another option is to request a loan modification if you are struggling to make your debt payments and then work with your lender to negotiate a better rate.

Can I ask my lender to lower my rate?

You can have a conversation with your lender to see if they are willing to lower your mortgage refinance rate. They don’t, however, have to honor the request. That said, if you have a strong payment history and a good credit score, your lender may be willing to lower your rate without you having to refinance. This could save you a lot of money over the life of your loan.

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*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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