Current Mortgage Refinance Rates in Mississippi Today
MISSISSIPPI MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Mississippi.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Mississippi.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory.
• In Mississippi, refinance rates have experienced a swing from 3.15% in 2021 to 7.00% in 2023. Keeping an eye on rate trends can help you make the right move at the right time.
• FHA and VA loans typically come with lower mortgage refinance rates and more flexible terms than conventional loans, making them attractive options for eligible homeowners.
• Before you jump into refinancing, it’s important to consider if the potential savings are worth the fees and closing costs, which can range from 2% to 5% of your loan amount.
• A reduction of 1% in your interest rate can make a big difference in your monthly payment and the total interest you’ll pay over the life of the loan.
• Online refinance calculators are your friends. They can help you crunch the numbers and compare various mortgage refinance rate options.
Introduction to Mortgage Refinance Rates
First of all, what is a mortgage refinance? It’s what you do when you want to give your current home loan a makeover. You get a new loan with different terms, which are ideally more favorable than those of your existing mortgage. You also may be able to get a lower interest rate.
Homeowners thinking about refinancing have many different motivations for doing it, in Mississippi and elsewhere. Maybe you are looking to lower your monthly overhead, or to tap some of your home equity so you can put in those much-needed new windows. In addition to the question of why, there is also the consideration of when.
This guide can help you understand just how a mortgage refinance works and how to get the best rates in the market today, given factors that affect Mississippi homeowners.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
What Factors Influence Refi Rates?
Mortgage refinance rates are determined by a combination of outside economic factors and a borrower’s financial profile. When it comes to the economics part, the most important variables include Federal Reserve policy, inflation, and housing inventory.
The bond market — especially the performance of the 10-year U.S. Treasury Note — plays a key role in determining current mortgage rates. When the Treasury Note’s yield increases, mortgage interest rates generally rise, too. In times of rising inflation, mortgage rates often climb. When inflation is in check, you might see interest rates drop.
On top of all of this, don’t forget to consider your own financial situation. A strong credit score — determined by your history of on-time payments, your credit utilization ratio, and your responsible management of installment loans and credit lines — is an asset when you apply for a mortgage refi.
A refi can truly benefit your finances. Even a 1% drop in your mortgage interest rate after you refinance can slashing your monthly payments and the interest you will pay over the life of your mortgage loan.
How Interest Rates Affect Mortgage Refi Affordability
Interest rates are a huge deal, in Mississippi and everywhere. They help determine your monthly refinance payment, along with your loan amount and repayment term. A $200,000 loan carrying a 6.00% interest rate and a term of 30 years has a monthly payment of $1,199. But if that interest rate jumps to 8.00%, the monthly payment would be a less wallet-friendly $1,467. Over the life of the loan, the lower interest rate could amount to nearly $100,000 in savings.
Check out the chart below — a small change to your interest rate can have a substantial impact on your monthly budget and the overall affordability of your home 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 Should You Refinance in Mississippi?
Depending on your financial goals, refinancing your Mississippi mortgage may give you multiple benefits. If current interest rates are lower than on your existing mortgage, refinancing may reduce your monthly payment. It can also save you money over the life of your loan. Alternatively, you can use a refi to switch from an adjustable-rate mortgage to a fixed-rate loan, offering you increased stability and predictability.
Whatever your reason for wanting to refinance, you’ll need to have 20% equity or more in your home before moving on it, especially if you are planning to cash out some equity in the process. Now, why and how to refinance a mortgage? Keep reading.
Common Reasons to Refinance a Mortgage
These are popular reasons why you, as a Mississippi homeowner, might choose to do a refi:
• You know you will qualify for a lower interest rate, due to improved credit or market conditions.
• You’d like to extend your repayment term to lower your monthly payments, or shorten the term so you can pay off the loan faster.
• You’re wanting to tap into your home equity to fund a significant expense, like a child’s education or a home renovation.
• Your adjustable rate mortgage (ARM) will reset soon, and you’re hoping to switch to a fixed-rate loan to control your monthly payment.
• You have an FHA loan and 20% equity, and you want to stop paying the FHA mortgage insurance premium.
• You’d like to release a cosigner on your current mortgage.
How to Get an Optimal Mortgage Refi Interest Rate
As mentioned, your financial history will impact your mortgage refinancing costs, including the interest rates lenders offer you. Homeowners with strong credit and a favorable debt-to-income ratio are likely to secure lower rates on average. Here’s what you need to do:
• Work on building your credit score by paying bills and loan payments punctually every month.
• If possible, reduce your debt-to-income ratio to 36% or less.
• Shop around and look at multiple lenders, including brick-and-mortar banks, credit unions, and online institutions to compare offers.
• Think about buying mortgage discount points.
• Grab the shortest loan term you can afford. Switching to a 15-year mortgage could save you a lot in the long run, even if it means you’ll have higher monthly payments.
Mississippi Mortgage Interest Rate Trends
The rise and fall of mortgage rates can look like a rollercoaster. In 2021, the average 30-year fixed mortgage rate was just 3.15%. Fast-forward to 2023, and it had soared to 7.00%. In 2024, there was an expectation of a dip in rates, but in early 2025, experts are predicting that rates will stay elevated longer. If you’re considering a mortgage refi, it may still be a smart move.
Historical U.S. Mortgage Interest Rates
In the graph below, you can see a longer view of national mortgage rates. In the early 2000s, they were around 6.00%. In 2020, they dropped below 3.00%, and that decrease made Americans believe that low rates were “normal.” In 2023, they rose again, hitting around 7.00%.
Some people complain about high interest rates, but current mortgage refinance rates are still sitting below the 50-year average.
Historical Interest Rates in Mississippi
Mississippi refinance rates generally follow national trends, but they can be higher or lower depending on the region. In the past, Mississippi has seen some of the country’s lowest refinance rates, but also times when rates were higher than the national average. Understanding historical trends can help you make the most informed decisions about refinancing.
| Year | Mississippi Rate | National Rate |
|---|---|---|
| 2000 | 8.04 | 8.14 |
| 2001 | 6.89 | 7.03 |
| 2002 | 6.52 | 6.62 |
| 2003 | 5.66 | 5.83 |
| 2004 | 5.85 | 5.95 |
| 2005 | 5.89 | 6.00 |
| 2006 | 6.66 | 6.60 |
| 2007 | 6.62 | 6.44 |
| 2008 | 6.13 | 6.09 |
| 2009 | 6.29 | 5.06 |
| 2010 | 5.15 | 4.84 |
| 2011 | 4.57 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.99 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 4.02 | 3.91 |
| 2016 | 3.87 | 3.72 |
| 2017 | 4.22 | 4.03 |
| 2018 | 4.62 | 4.57 |
Recommended: How Soon Can You Refinance a Mortgage?
Why You Should Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, shop around. Look at multiple lenders and get prequalified to find out your borrowing power and what sort of rates you’re eligible for. MAke sure you focus on the annual percentage rate (APR), which will crunch the interest rate, fees, and discount points into one handy number for comparison. And remember that the lowest interest rate might not always mean the biggest savings.
Choose the Right Mortgage Refi Type
Mortgage refinance rates in Mississippi vary by loan type. Every loan option offers unique features, from fixed vs. variable rates to no closing costs. Knowing your options helps you select the refi with the features you need.
Conventional Refi
Conventional refis, which are also referred to as rate-and-term refis, tend to have higher rates than government-backed mortgages like FHA, VA, and USDA loans. Conventional refinances enable you to adjust your interest rate or loan term, letting you reduce your monthly payment or the amount of time it takes to pay off your loan.
A conventional refi is a great fit for homeowners who’ve got both solid equity and a strong credit history. When you secure a lower mortgage refinance rate, it can help you save money over the life of your loan and reach your financial goals more swiftly. That’s a win-win.
15-Year Mortgage Refi
A 15-year mortgage refinance typically shortens the length of your loan repayment. This can lead to significant savings over the repayment period, even though your monthly payments will end up being higher. For example, if you have a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you’ll have a monthly payment of around $6,992 — and total interest of $1,517,167 over the life of the loan.
Refinance to a 15-year mortgage at a 7.00% rate and your monthly payment would increase to $8,988. That sounds like bad news, but with that rate and term, your total interest would drop to $617,891. That means you’d save nearly $900,000 in the end. Big difference, right? Obviously, cash flow plays a critical role in this scenario.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with lower mortgage refinance rates than fixed-rate loans, but those rates change over time. If you intend to sell the house before the time when the rate would adjust, refinancing from a fixed-rate mortgage to an ARM can help lower your monthly payment initially. This may save you money in the short term.
An adjustable-rate mortgage refi can be a great idea if your short-term plans include a move or if you expect to increase your income in the coming years.
Cash-Out Refi
A cash-out refinance is a powerful tool. It lets homeowners take value out of their properties by initiating a new mortgage for more than they owe. And you can use the cash for whatever you need. It’s a go-to refi for people planning home improvements or paying off high-interest debts.
The amount you can borrow is based on the equity you have in your house. For example, if your home is worth $500,000 and your mortgage balance is $300,000, you would have $200,000 in equity. With a cash-out refi, a lender may approve you to borrow up to 80% of your equity. That would leave you with a chunk of available cash ($100,000) after you pay off your existing mortgage that could help you pay off debt or finance a major expense.
FHA Refi
FHA refinances, which are backed by the Federal Housing Administration, usually come with more favorable mortgage refinance rates that are sometimes even a full percentage point lower than those of conventional loans. Different types of FHA refinance options exist: FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners who carry existing FHA loans, while the latter two are available to those who do not have FHA loans.
You can pay off high-interest debt or home improvements with the cash-out refinance. The 203(k) refinance is only for home improvements. Any of these FHA options can help you refinance to get a more affordable interest rate, lower your monthly payment, or access your home’s equity for other financial needs.
VA Refi
VA refinances are backed by the U.S. Department of Veterans Affairs and consistently offer some of the most competitive mortgage refinance rates on the market. That said, to be eligible for a VA refi, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must be holding a VA loan. This type of refinance can significantly reduce your monthly payments and offer you substantial interest savings over the life of your loan.
Compare Mortgage Refi Interest Rates
These pointers and tips can help you find and qualify for the best refi interest rates in Mississippi.
• First, compare offers from multiple lenders. This takes time and energy, but pays off in terms of saving you money.
• Look at the annual percentage rate (APR) — it incorporates fees and discount points. You’ll want to figure out both the total loan cost and your break-even point (that is, the juncture at which your refi savings cancels out the out-of-pocket cost of the refinance).
• Keep an eye on your credit score and your home’s value — the higher they are, the more favorable the rates lenders will offer you.
• If you are working to build your score and you qualify for a lower interest rate, aim to keep your debt-to-income ratio under 36% and your credit utilization rate below 30% (some financial pros even advise keeping it under 10%).
• Be meticulous about paying debts on time. That is the single biggest contributing factor to your score. Automating payments is an easy way to avoid a slip-up.
Online Refinance Calculators
Online calculators are helpful tools that can assist you in computing all kinds of housing-related expenses. As you think about whether it makes good sense to refinance and how large a monthly payment you’ll be able to afford, an online refinance calculator will be a useful tool. Here are a few of our favorite calculators.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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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 Mississippi can be a smart financial move. It does require thinking about your goals, though, along with doing your research on the costs involved. To make the best decision, it’s wise to explore various types of refinancing to see which one best suits your needs and 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
Is it possible to lower my interest rate without refinancing?
It’s hard to lower a mortgage interest rate without doing a refi. You can reduce your monthly payment, though, with a mortgage recast. You do this by making a lump-sum payment toward your principal balance. The lender can then “recast” your monthly payment amount by re-amortizing the loan. If you face financial hardship, you can also ask your lender about a loan modification, but lenders most often suggest a refi or a recast first.
Will I pay closing costs when I refinance my mortgage?
Yes, you need to expect to pay closing costs. Typically, closing costs range from 2% to 5% of the loan amount. They include a variety of fees that are associated with processing and closing the refinance transaction, including appraisal fees, title insurance, lender fees, and other charges. You’ll need to consider these costs when thinking about refinancing. Make sure the potential savings are greater than the costs.
Will refinancing ding my credit score?
Yes, refinancing can cause a temporary dip in your credit score. This is due to the hard inquiry and the new account on your credit report — but this impact is usually minor and short-lived. If you have a high credit score, the refinancing ding might be barely noticeable.
Can refinance rates be expected to drop anytime soon?
There’s no crystal ball predicting future mortgage rates, but look at key indicators and you may get a sense of where rates are headed. If the 10-year Treasury Note rate goes up, the housing market is hot, or the economy is busting out and looking strong, it’s unlikely that you’ll see rates falling in the near future. Keep an eye on the current refinance rates in Mississippi so you’ll know when the time is right to refinance.
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-Q125-179
More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Minnesota Today
MINNESOTA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Minnesota.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Minnesota.
Key Points
• Mortgage refinance rates in Minnesota are influenced by a variety of economic factors, including the bond market, housing inventory, and inflation.
• Even a 1% rate drop achieved by refinancing your mortgage can translate to serious monthly and long-term savings. You may be able to lower your payments by hundreds of dollars each month.
• In recent years, Minnesota refinance rates have experienced significant shifts, climbing from 3.15% in 2021 to 7.00% in 2023, before leveling out.
• By refinancing your home mortgage from a 30-year term to one of 15 years, you slash the interest you pay over the loan’s lifetime. You could potentially save almost $900,000 on a $1 million loan — as long as you can take on higher monthly payments.
• A refi can potentially lower your monthly payment. It can also give you access to home equity or help you switch to a fixed-rate loan from one with a variable rate.
• Building a better credit score, balancing your debt-to-income ratio, and comparing offers from multiple lenders will help you snag the most favorable mortgage refinance rates in Minnesota.
Introduction to Mortgage Refinance Rates
To start: What exactly is a mortgage refinance? It is what you do to replace your current home loan with a new one. The new terms can be more favorable than those of your existing mortgage, and you may be able to lower your interest rate to boot.
Homeowners find a lot of different motivations for refinancing, in Minnesota and elsewhere. Perhaps you are looking to lower your monthly overhead, or maybe you want to tap some of your equity for a bathroom renovation.
This guide will help you understand how mortgage refinances work and how to get the best rates in today’s market, with a focus on factors that affect Minnesota homeowners.
💡 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 the Rates Come From?
Mortgage refinance rates are influenced by an array of economic factors, as well as your personal financial profile. When it comes to economic factors, the most important considerations include Federal Reserve policy, inflation, and housing inventory. For instance, the bond market, and especially the performance of the 10-year U.S. Treasury Note, plays a key role in determining current mortgage rates. When the yield on the Treasury Note rises, mortgage interest rates generally increase as well.
Don’t forget to consider your own personal financial profile. Having a strong credit score, which is determined by such factors as your history of on-time payments, your credit utilization ratio, and your credit mix (say, having responsibly managed installment loans and credit lines) is a definite asset when you apply for a mortgage refi.
How Interest Rates Affect Home Affordability
If you’re looking to refinance your mortgage, interest rates are sure to play a major role in what you can afford. Your monthly payment is based on the loan amount, the term of the loan, and the interest rate you are offered. For example:
A $200,000 loan with a 6.00% interest rate and a 30-year term will require a monthly payment of $1,199.
The same home loan with an 8.00% interest rate has a monthly payment of $1,467.
| 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 |
A lower interest rate can save you tens of thousands of dollars over the loan term, which could have a big impact on your financial state. It could also play an important role in achieving your long-term goals, by helping you have enough money to, say, start your own business or finance the tuition for your child’s dream college
Why Refinance in Minnesota?
Refinancing your mortgage in Minnesota can be a smart move financially, but it does require some careful consideration. If current interest rates are lower than that of your existing mortgage, it might be a good time to go for it. Worth noting: You’ll typically want to have at least 20% equity in your home before going into a refi, especially if you plan to cash out equity.
How soon can you refinance a mortgage? It depends on a number of factors, including economics and your future plans.
Common Reasons to Refinance a Mortgage
These are some of the more common goals of homeowners who refinance their mortgages:
• Lower interest rates due to market changes or credit you’ve worked to build.
• A change in repayment term — either to move to lower monthly payments or to increase them for faster loan payoff.
• Cashing out home equity to help cover expenses like education or home renovations.
• A switch from an adjustable to a fixed-rate loan for more control, especially if it seems like rates are on the verge of rising.
• To eliminate FHA mortgage insurance on loans when you hit 20% equity.
How to Get the Best Mortgage Refi Interest Rates
Your financial history will impact your mortgage refinancing costs, including the interest rates lenders offer you. Minnesota homeowners with strong credit and favorable debt-to-income ratios are likely to secure lower rates. Here’s what you need to do if you’re preparing to apply:
• Build your credit score. Always paying bills and loan payments punctually.
• Reduce your debt-to-income ratio. If you get it down to 36% or less, it will pay off.
• Shop around with multiple lenders. That includes brick-and-mortar banks, credit unions, and online institutions. Always compare offers, and focus on the APR (which includes fees and closing costs) rather than just the interest rate.
• Ponder buying mortgage discount points.
• Grab the shortest loan term you can afford — 15 years will save you money over a 30-year term.
It’s also important to follow interest rate trends and have a sense of when they will rise or fall. Let’s start with a few things you should know before you go for it.
Understand Trends in Minnesota Mortgage Interest Rates
No one can predict with certainty where rates are headed, but if you understand where they have been, you’ll be better equipped to make a decision that is right for your situation.
Historical U.S. Mortgage Interest Rates
Here you can see a longer view of national mortgage rates. Rates in the early 2000s were around 6.00%. In 2020, they dropped to below 3.00%. This decrease cemented the idea in American minds that low rates were “normal.” Then in 2023, they rose again, hitting around 7.00%.
Many people today complain about high interest rates, but current mortgage refinance rates remain below the 50-year average.
Historical Interest Rates in Minnesota
Below, you can compare Minnesota and U.S. rates from 2000 to 2018 — they are similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Minnesota Rate | National Rate |
|---|---|---|
| 2000 | 7.96 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.37 | 6.62 |
| 2003 | 5.46 | 5.83 |
| 2004 | 5.44 | 5.95 |
| 2005 | 5.62 | 6.00 |
| 2006 | 6.37 | 6.60 |
| 2007 | 6.29 | 6.44 |
| 2008 | 5.94 | 6.09 |
| 2009 | 4.95 | 5.06 |
| 2010 | 4.72 | 4.84 |
| 2011 | 4.45 | 4.66 |
| 2012 | 3.58 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.86 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.01 | 4.03 |
| 2018 | 4.63 | 4.57 |
Choose the Right Mortgage Refinance Type
It’s no secret that refinance rates are sometimes higher than mortgage rates on a home purchase. But the rate you get can vary a lot depending on the variety of refinance you choose.
How to refinance your mortgage? Start by understanding your refi options.
Conventional Refi
Referred to as a rate-and-term refi or a conventional refi, this option tends to have a higher rate than government-backed loans like an FHA, VA, or USDA mortgage. This choice can empower you to adjust your interest rate and loan term, and possibly reduce your monthly payment or the time it takes to pay off the loan.
A conventional refinance is a great pick for a homeowner with significant equity and a solid credit history. By securing a lower rate with a mortgage refinance, you’ll save money over the term of your loan and reach your financial goals more swiftly. That’s a win-win.
15-Year Refi
A 15-year mortgage refinance can lead to big savings in the long run, even though monthly payments will go up. For example, if you’re carrying a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you are responsible for a monthly payment of $6,992, and you can expect to pay a total interest amount of $1,517,167.
Say you refinance to a 15-year mortgage at a 7.00% rate. Your monthly payment will increase to approximately $8,988. But the total interest you’ll pay by the time the loan is finished will drop to $617,891. In the end, you would save nearly $900,000. That’s a lot of cash — and it’s a very nice feeling to be out from under a loan in a mere 15 years. Obviously, cash flow plays a critical role in whether you can go for something like this.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) tend to start with lower mortgage refinance rates than fixed-rate loans do, but the rates often change over time. If you have a plan to sell your home before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM will help lower your monthly payment and save you money in the near future. Key words, near future. If your plans may change, or even just stretch a little, think hard on this.
An adjustable-rate mortgage refi can be a good strategy if you have definite plans to sell your home or if you are confident that you will increase your income in the next few years.
Cash-Out Refi
A cash-out refinance lets homeowners unlock their property’s value by taking out a new mortgage for more than they owe. It’s like turning your home equity into cash — and you can use it for whatever you need, including paying off high-interest debt or making long-desired home improvements.
The amount you can borrow is generally based on the equity you have in your home. Perhaps your home is worth $500,000 and your mortgage balance is $300,000. In that case, you have $200,000 in equity in your property. With a cash-out refi, a lender may approve you to borrow up to 80% of that equity, which would leave you with a chunk of available cash ($100,000) after you pay off your existing mortgage. The lump sum could help you get rid of a weighty debt or finance major expenses.
FHA Refi
An FHA loan, which is backed by the Federal Housing Administration, can come with favorable rates — sometimes a full percentage point lower than that of a conventional loan. The different types of FHA mortgage refinance options include FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are only available to homeowners with existing FHA loans; the latter two are possible to qualify for whether you have an FHA loan or not.
VA Refi
VA loans are backed by the U.S. Department of Veterans Affairs. These refis offer some of the most competitive mortgage refinance rates available. To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must hold a current VA loan. This type of refinance may significantly reduce your monthly payments and let you accumulate substantial interest savings over your loan’s life if you qualify.
Compare Minnesota Mortgage Refinance Interest Rates
To get the best deal, it’s essential to compare rates from multiple lenders. Look beyond the interest rate to the annual percentage rate (APR). An APR incorporates fees and discount points, giving you a more complete picture of the cost and final figures of your mortgage loan refinance.
Take the time to calculate what your break-even point — when your refi savings cancel out the costs — will be, as well as your total loan cost. Take care of your credit score and your home’s current value. The higher they are, the more favorable rates you’re likely to be offered. And remember to monitor local refinance rates for favorable offers.
Online Mortgage Refi Calculators
Online refinance calculators are a helpful tool for figuring out what your new monthly payment will be, or to compare different refinance options. An online mortgage calculator can help you know exactly what you’ll need to pay each month, and understand the potential savings of refinancing. It will take into account your current loan balance, interest rate, and the terms of a new loan you qualify for. Using a refi calculator can help you weigh advantages and disadvantages, and make informed decisions about refinancing and if it’s right 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 wise financial move. It can save you money through a lower interest rate or monthly payments, or by letting you tap into your home equity. It’s important, though, to consider the costs and benefits, and to think about how they align with your long-term financial goals. Whether you want to refinance to a 15-year mortgage, an adjustable-rate mortgage, or a cash-out refinance, understanding your options and getting your financial house in order can help you get the best rate and terms.
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 are refi closing costs?
Closing costs on a mortgage refinance typically fall between 2% to 5% of the loan amount. That means, on a $300,000 refinance, you’re looking at a range of $6,000 to $15,000. The final figure may vary depending on your location, loan type, and the lender you work with. To ensure you get the best deal, compare closing costs from different lenders. It could save you hundreds, if not thousands, of dollars.
Will refinancing ding your credit score?
Refinancing has been known to cause a temporary dip in your credit score. It triggers what is known as a hard inquiry, and adds a new account to your credit report. But this impact is usually short-lived. If you have a high credit score, the impact of refinancing might be barely noticeable.
Can I pull equity out of my house without a refinance?
It’s possible to pull equity out of your home without refinancing. You can use a home equity line of credit (HELOC) or a home equity loan to access it. Shop around for home equity lending rates to get the best deal for your financial situation.
How many times is it possible to refinance a home loan?
You can refinance your primary residence an unlimited number of times. However, with each refi, you’ll be looking at closing costs and some impact on your credit score. Definitely consider the potential benefits and drawbacks, and weigh your options according to your financial goals and circumstances.
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-Q125-178
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 Michigan Today
MICHIGAN MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Michigan.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Michigan.
Key Points
• A variety of economic factors — including Federal Reserve policy, inflation, bond market performance, and housing inventory — all contribute to mortgage refinance rates.
• A reduction of 1% in your interest rate can make a big difference in your monthly payment and the total interest you’ll pay over the life of the loan.
• Online refinance calculators are your friends. They can help you crunch the numbers and compare various mortgage refinance rate options.
• In Michigan, there are many mortgage refinance options to choose from: conventional, cash-out, FHA, VA, 15-year, and adjustable-rate mortgages, each with advantages for certain situations.
• To lock in the best New Jersey mortgage refinance rate, take good care of your credit score and reduce your debt-to-income ratio.
• Borrowers may want to consider the benefits of a 15-year mortgage. Despite higher monthly payments, this option can mean paying significantly less interest over the life of the loan.
Introduction to Mortgage Refinance Rates
Refinancing your mortgage means swapping out your current home loan for a new one with a revised interest rate and terms. People refinance their mortgage for a variety of reasons, such as lowering their monthly payments, accessing home equity, or shortening the term to save money on interest.
Your financial goals will determine the type of mortgage refinance you choose. Understanding how current mortgage refinance rates in Michigan work is key. This guide will help you understand the process so you can make an informed decision and get the best available interest rate.
💡 Quick Tip: Wondering how to refinance a mortgage? The process takes around 30 to 45 days and the steps are similar to those you followed for your original home loan.
Where Do Mortgage Refinance Rates Come From?
The mortgage refinance rates you’re offered depend on both economic factors and your personal financial profile. The 10-year U.S. Treasury Note plays an important role in the setting of current mortgage rates. When the yield on the Treasury Note increases, mortgage interest rates often rise.
Housing market inventory is significant, too. If the market slows down and more homes become available than there are buyers to purchase them, lenders may lower rates to attract customers. A robust job market and economic growth are known to push interest rates higher, while a recession typically draws rates down.
By maintaining a strong credit score and a low debt-to-income ratio, you can increase your chances of securing the best rate.
How Interest Rates Affect Home Affordability
Interest rates are a big deal. They’ll help determine your monthly refinance payment, along with your loan amount and repayment term. A $200,000 loan that carries a 6.00% interest rate and a term of 30 years translates to a monthly payment of $1,199. If that interest rate jumps to 8.00%, however, the monthly payment would increase to $1,467. Over the life of the loan, the lower interest rate would give you nearly $100,000 in savings. As the chart below illustrates, even a small interest rate change can make a big difference in your monthly budget and the affordability of your home loan over time.
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Why Refinance in Michigan
Depending on your financial goals, refinancing your Michigan mortgage may offer multiple benefits. If current interest rates are lower than what you have on your existing mortgage, refinancing can reduce your monthly payment and save you money over the life of your loan. Refinancing can also allow you to switch from an adjustable-rate mortgage to a fixed-rate loan, offering increased stability and predictability.
Whatever your reason for a refi, you should have 20% equity or more in your home before refinancing, especially if you are planning to cash out some equity.
Common Reasons to Refinance a Mortgage
Here are some reasons you, as a Michigan homeowner, may opt for a refi:
• You qualify for a lower interest rate, due to improved credit or market conditions.
• You want to extend your repayment term to lower your monthly payments, or shorten the term so you can pay off the loan in less time.
• You want to tap into your home equity to fund a significant expense, such as a child’s education or major home improvement.
• Your adjustable-rate mortgage will reset soon, and you want to switch to a fixed-rate loan to control your monthly payment.
• You have an FHA loan and 20% equity, and you want to stop paying an FHA mortgage insurance premium.
• You want to release a cosigner on your current mortgage.
How to Get the Best Available Mortgage Refi Interest Rate
As already mentioned, your financial history will impact your mortgage refinancing costs, including the interest rates lenders offer you. Homeowners with strong credit and a favorable debt-to-income ratio are likely to secure lower rates on average. Here’s what you need to do:
• Build your credit score by always paying bills and loan payments punctually.
• Reduce your debt-to-income ratio to 36% or less if possible.
• Shop around with multiple lenders, including brick-and-mortar banks, credit unions, and online institutions, and compare offers.
• Ponder buying mortgage discount points.
• Grab the shortest loan term you can afford.
But it’s also important to follow interest rate trends and have a sense of when they’ll rise or fall. Here’s how.
Understand Trends in Michigan Mortgage Interest Rates
No one can predict with certainty where rates are headed, but by understanding where they have been, you’ll be better equipped to make a decision that’s right for your situation.
Historical U.S. Mortgage Interest Rates
Here’s a longer view of national mortgage rates. You can see that rates in the early 2000s were around 6.00%. In 2020, they dropped to under 3.00%. This decrease cemented the idea that low rates were “normal.” In 2023, they rose again, hitting around 7.00%.
Many people today complain about high interest rates, but current mortgage refinance rates remain below the 50-year average.
Historical Interest Rates in Michigan
Below, you can compare Michigan and U.S. rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Michigan Rate | National Rate |
|---|---|---|
| 2000 | 8.04 | 8.14 |
| 2001 | 6.99 | 7.03 |
| 2002 | 6.41 | 6.62 |
| 2003 | 5.54 | 5.83 |
| 2004 | 5.63 | 5.95 |
| 2005 | 5.84 | 6.00 |
| 2006 | 6.67 | 6.60 |
| 2007 | 6.66 | 6.44 |
| 2008 | 6.21 | 6.09 |
| 2009 | 5.19 | 5.06 |
| 2010 | 5.05 | 4.84 |
| 2011 | 4.51 | 4.66 |
| 2012 | 3.60 | 3.74 |
| 2013 | 3.74 | 3.92 |
| 2014 | 4.10 | 4.24 |
| 2015 | 3.86 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.09 | 4.03 |
| 2018 | 4.69 | 4.57 |
Choose the Right Mortgage Refi Type
Refinance rates in Michigan are often a little higher than purchase mortgage rates. But here’s something to consider: The actual rate you’ll get in the end depends on the type of refinance you pursue. Several different mortgage refinance options are available, each with unique features and potential benefits for your financial scenario.
By understanding the differences between the refi choices, you can make a more informed decision about which type of refinance would prove best for your situation, and get the best rate and terms to meet your needs. Keep in mind that refis almost always have closing costs. Although a no-closing-cost refinance sounds like a real find, they’re often too good to be true — those charges will probably get rolled into the new mortgage or you’ll pay a higher interest rate.
Conventional Refi
This is also referred to as a rate-and-term refi. A conventional refi generally has a higher rate than a government-backed loan like an FHA, VA, or USDA loan. This type of refinance lets you adjust your interest rate or loan term, and can help you reduce your monthly payment or the time it will take to pay off the loan.
Conventional refis are often the right fit for homeowners who have solid equity and a strong credit history. When you secure a lower mortgage refinance rate, you’ll save money over the life of your loan, and you may reach your financial goals more swiftly. Double bonus.
15-Year Mortgage Refi
A 15-year mortgage refinance shortens the time it will take to repay your loan, leading to significant interest savings, even though your monthly payments will go up. For example, if you chose a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you’d be looking at a monthly payment of around $6,992 and total interest of $1,517,167. Refinance to a 15-year mortgage at a 7.00% rate, and your monthly payment would increase to $8,988. Your total interest paid would be about $617,891 — that means you’d save nearly $900,000 by the time you pay it off. Quite the difference! Obviously, your cash flow can play a critical role in whether this choice works for you.
Adjustable-Rate Mortgage Refi
Starting with a lower mortgage refinance rate than a fixed-rate loan, an adjustable-rate mortgage (ARM) bears a rate that can change over time. If you think you’ll sell before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM can lower your monthly payment and save you money in the short term. An adjustable-rate mortgage refi can be a good strategy if you have plans to move or if you expect to increase your income in the next few years.
Cash-Out Refi
A cash-out refinance is a powerful tool. It lets homeowners unlock the value of their property when they take out a new mortgage for more than they owe. The amount you will be able to borrow is based on how much equity you hold in your home. Say, for example, your home is worth $500,000 and your mortgage balance is $300,000. That means you have $200,000 in equity. With a cash-out refi, a lender may approve you to borrow up to 80% of that equity. Taking that offer would leave you with a chunk of available cash after paying off your existing mortgage. With this lump sum, you could pay off debt or finance, say, a long-awaited kitchen renovation or college tuition.
FHA Refi
FHA refinances are backed by the Federal Housing Administration. They often come with more favorable mortgage refinance rates than other loans — sometimes a full percentage point lower than a conventional loan. Different types of FHA loan refinance options exist, such as FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are only on offer for homeowners with existing FHA loans, while the latter two may be available to those without FHA loans.
VA Refi
VA loan refinances are backed by the U.S. Department of Veterans Affairs. These refis consistently offer competitive mortgage refinance rates. That said, you’ll only be eligible for a VA refinance — also known as an Interest Rate Reduction Refinance Loan (IRRRL) — if you currently hold a VA loan.
Recommended: How Soon Can You Refinance a Mortgage?
Compare Mortgage Refi Interest Rates
To ensure you get the best deal, always compare rates from multiple lenders. Hot tip: The annual percentage rate (APR) incorporates fees and any discount points.
Then calculate the total loan cost and the point where you’ll break-even (that is, when the amount you save cancels out the cost of the refinance). Watch your credit score and your home’s value. The higher they are, the more favorable rates you’ll be eligible for.
Online Refinance Calculators
An online refi calculator can be helpful in figuring out your new monthly payment or comparing different refinance options in Michigan. Try one to help yourself understand the potential savings from refinancing — you’ll need to plug in your current loan balance, interest rate, and the terms of the new loan. Using a refinance calculator will help you make an informed decision about whether or not refinancing is the right plan right now.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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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 Michigan can be a smart financial move. It does require thinking about your goals, though, along with research on the costs involved. To make the best decision, it’s wise to explore different types of refinancing, including conventional, cash-out, FHA, and adjustable-rate mortgage options.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
When is refinancing your home a smart move?
When you can lock in a lower interest rate, cash out home equity, or adjust your payment term to meet financial goals, refinancing your home is a wise financial decision. First, do the math. Figure out at what point the money you’ll spend on a refi will be offset by the cash you save in the refinancing process. If you think you’ll move before you’ve recouped its cost, a refi won’t make sense.
How much will a one-percent interest reduction lower your monthly payment?
A one percentage point drop in your interest rate, from 7.00% to 6.00%, on a $300,000 mortgage makes a world of difference. It could reduce what you pay monthly by almost $200, and save you tens of thousands over the life of the loan.
Can I lower my interest rate without refinancing?
It’s hard to lower a mortgage interest rate without a refinance. But you can reduce your monthly payment by doing a mortgage recast, which involves making a lump-sum payment toward your principal balance. Your lender can then “recast” your monthly payment amount. Facing financial hardship? You could explore a loan modification. And if you have a solid credit score and stellar payment history, you can always ask your lender to modify your rate, but lenders tend to suggest refis or recasts first.
How much are refinancing closing costs?
The average closing costs usually fall between 2% and 5% of the loan amount. Different lenders, types of refinances, and locations can cause these costs to vary. A refi with no closing costs sounds like an amazing find, but know that those expenses will either get folded into the new mortgage or you’ll end up exchanging them for a higher interest rate.
How many times can you refinance a home loan?
There’s no set number of times you can refinance your home, but remember, each refinance is a new loan and will have closing costs. If you find yourself looking at a second or even third refinance, you’ll want to look at the total cost, not just of the interest you’re going to pay (or save) on your loan, but also how much you’re paying out of pocket for those closings.
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-Q125-177
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 Louisiana Today
LOUISIANA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Louisiana.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Louisiana.
Key Points
• Mortgage refinance rates in Louisiana are influenced by a variety of economic factors, including the bond market, housing inventory, and inflation.
• Over recent years, Louisiana refinance rates have seen a significant shift, from as low as 3.00% in 2020 and to as high as 7.00% in 2023.
• Building a strong credit score, balancing your debt-to-income ratio, and shopping around among multiple lenders are key steps to snagging the most favorable mortgage refinance rates.
• A 1% drop in your mortgage rate in Louisiana could translate to substantial monthly savings — like, $2,000 a year on a $300,000 loan.
• Before you make the switch, it’s important to weigh the potential savings against the fees and closing costs, which typically range from 2% to 5% of the loan amount.
• Making the switch to a 15-year mortgage could be a smart move. This change can mean paying less interest over the loan’s lifetime, although it will likely mean adjusting to a higher monthly payment.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is a process that lets you replace your existing mortgage with a new one. Your new mortgage will have different terms, such as a revised interest rate, term length, and monthly payment amount. People may refinance mortgages to lower monthly payments, access home equity, or change loan type. Understanding how current mortgage refinance rates in Louisiana are set and how to get the best possible rate is key to a successful refinance.
This guide will help you to understand the important steps of the refinance process and to make informed decisions about mortgage refinancing costs.
💡 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 Mortgagee Refi Rates Come From?
Mortgage refinance interest rates rise and fall depending on economic factors, as well as your individual financial profile. The bond market — and particularly the performance of the 10-year U.S. Treasury Note — plays an important role in setting current mortgage rates. When the Treasury Note yield increases, mortgage interest rates tend to rise as well.
Housing market inventory in Louisiana is also significant. If the market slows down and more homes are available than there are buyers, lenders might lower their rates to attract customers. The overall economic environment is another factor: A robust job market and resulting economic growth can push interest rates higher, while a recession typically results in lower rates.
As a borrower or mortgage applicant, a strong credit score and a low debt-to-income ratio can help you secure the best possible rate.
How Interest Rates Affect Home Affordability
Interest rates are super important because they help determine your monthly refinance payment. (Of course, your payment is influenced by your loan amount and the term over which you’ll repay it, too.) Here’s an example of how much your interest rate impacts your payment:
A $200,000 loan with a 6.00% interest rate and a 30-year term translates to a monthly payment of $1,199. If that interest rate jumps to 8.00%, the monthly payment increases to $1,467. Over the life of the loan, you’d pay almost $100,000 less with the lower interest rate. Even a small change can make a big difference in your savings and your home loan’s ultimate affordability, as this chart illustrates.
| 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 Should You Refinance Your Mortgage in Louisiana
Refinancing your mortgage can offer a number of different benefits, depending on your financial goals. If current interest rates are lower than that on your existing mortgage, refinancing can reduce your monthly payments and save you money over the life of the loan. Refinancing can also help you switch from an adjustable-rate mortgage to a fixed-rate loan for long-range savings.
Whatever your reason, you should have at least 20% equity in your home before you embark on a refinance, especially if you want to cash out some equity in the process.
Common Reasons to Refinance a Mortgage
These are common reasons for homeowners to refinance mortgages:
• You qualify for a lower interest rate due to improved credit or market conditions.
• You’re considering adjusting your repayment term so you can lower your monthly payments or pay off the loan more swiftly.
• You want to tap into your home equity to fund a significant expense, like a home remodel.
• Your adjustable-rate mortgage is going to reset soon, and you want to switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you want to get mortgage insurance out of your life.
• You’re considering a debt consolidation, or releasing a cosigner.
Recommended: How Soon Can You Refinace a Mortgage?
How to Get the Best Available Refi Interest Rate
Your financial history has an impact on the interest rates that lenders offer you. Homeowners with strong credit and a low debt-to-income ratio may secure lower-than-average rates.
To secure a competitive mortgage refinance rate, here’s what to work on:
• Bolster your credit score by paying your bills on time, and steer clear of new debt.
• Maintain a debt-to-income ratio that is under 36%.
• Look at offers from multiple lenders, focusing on the APR rather than just the interest rate.
• Consider buying mortgage discount points, which can help you lower your interest rate.
• If you can manage the higher payments, go for a shorter mortgage term.
Once you’ve achieved an optimal credit history, it’s time for a deep dive into interest rate trends.
Trends in Louisiana Mortgage Interest Rates
As the national trend shows, the rise and fall of mortgage rates can feel like riding a rollercoaster. In 2021, the average 30-year fixed mortgage rate in Louisiana was 3.15%. Fast-forward to 2023, and rates had soared to 7.00%.
Last year brought an expectation of a dip in mortgage refi rates. But for 2025’s first half, experts predict that rates will remain elevated longer. You don’t need to let those forecasts deter you, though. A mortgage refinance might still be a smart move for you.
Historical U.S. Mortgage Interest Rates
In the chart below, you’ll see that rates were around 6.00% in the early 2000s. They dropped to under 3.00% in 2020 — and cemented the idea that low rates were “normal.” In 2023, they rose again to around 7.00%. While many people today complain about high interest rates, current mortgage refinance rates are below the 50-year average.
Historical Interest Rates in Louisiana
Refinance rates in Louisiana typically follow national trends, but they may be slightly higher or lower, especially in certain regions. In the past, Louisiana has seen some of the country’s lowest refinance rates. Understanding the historical trends in the state’s refinance rates can help you anticipate future rate movements and make more informed refinancing decisions.
| Year | Louisiana Rate | National Rate |
|---|---|---|
| 2000 | 7.89 | 8.14 |
| 2001 | 6.86 | 7.03 |
| 2002 | 6.20 | 6.62 |
| 2003 | 6.43 | 5.83 |
| 2004 | 5.65 | 5.95 |
| 2005 | 5.91 | 6.00 |
| 2006 | 6.54 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 6.10 | 6.09 |
| 2009 | 4.99 | 5.06 |
| 2010 | 4.81 | 4.84 |
| 2011 | 4.46 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 3.84 | 3.92 |
| 2014 | 4.13 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 4.12 | 4.03 |
| 2018 | 4.55 | 4.57 |
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Choose the Right Mortgage Refinance Type
It’s no secret that refinance rates can be higher than purchase mortgage rates. But the actual rate you’ll get may vary a lot depending on the type of refinance you choose. How to refinance your mortgage? Several different refi options are available to consider, each with its own features and potential benefits.
By understanding their differences, you can make an informed decision about which type of refinance is the best fit for your situation, and get the best rate and terms to meet your needs.
Conventional Refi
Referred to as a rate-and-term refi as well as a conventional refi, this option generally has a higher rate than a government-backed loan, including an FHA, VA, or USDA mortgage. This refinance choice can empower you to adjust your interest rate or loan term so you can potentially reduce your monthly payment or the time it takes to pay off the loan.
A conventional refi is a great pick for a homeowner with solid equity and a strong credit history. By securing a lower mortgage refinance rate, you can save money over the term of your loan and reach your financial goals more swiftly. That’s a win-win.
15-Year Mortgage Refi
A type of conventional refi, this choice typically shortens the length of your loan repayment. A 15-year mortgage refinance can lead to significant savings in the long run, even though your monthly payments will go up. For example, if you are carrying a 30-year, $1 million loan at a 7.50% mortgage refinance rate, you’re looking at a monthly payment of $6,992 and can expect to pay a total interest amount of $1,517,167.
Refinance to a 15-year mortgage at a 7.00% rate, and your monthly payment will increase to approximately $8,988. But your total interest paid by the time the loan is finished would drop to $617,891. You would save nearly $900,000 in the end. That’s a lot of cash — and it’s a very nice feeling to be out from under your loan in a mere 15 years. Obviously, your cash flow will play a critical role in whether you can go for something like this.
Adjustable-Rate Mortgage Refi
Another kind of conventional refi, adjustable-rate mortgages (ARMs) start with lower mortgage refinance rates than fixed-rate loans do, but the rates can change over time. If you plan to sell your home before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM will help lower your monthly payment and save you money in the short term. Key words, short term. If your plans may change, think hard on this.
An adjustable-rate mortgage refi can be a good strategy if you have definite plans to move or if you are confident that you will increase your income in the next few years.
Cash-Out Refi
A cash-out refinance is a powerful tool that lets homeowners unlock their property’s value by taking out a new mortgage for more than they owe. It’s like turning your home equity into cash, and you can use it for whatever you need — paying off high-interest debt or making long-desired home improvements.
The amount you can borrow will be based on the equity you have in your home. If your home is worth $500,000 and your mortgage balance is $300,000, for example, you have $200,000 in equity in your property. With a cash-out refi, a lender may approve you to borrow up to 80% of your equity. That would leave you with a chunk of available cash after you pay off your existing mortgage. The lump sum could help you pay off a nagging debt or finance a major expense.
FHA Refi
FHA refinances are backed by the Federal Housing Administration. They often come with more favorable mortgage refinance rates — sometimes a full percentage point lower than conventional loans. The different types of FHA refinance options include FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners with existing FHA loans, and the latter two you can qualify for whether you have an FHA loan or not.
The cash-out refinance can be used to pay off debt or to make a home upgrade. The 203(k) refinance is specifically for home improvements. These FHA refinance options can help you change your current mortgage terms and get a more affordable interest rate, plus lower your monthly payment or access your home’s equity for other financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, offer some of the most competitive mortgage refinance rates available. That said, to be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This type of refinance may significantly reduce your monthly payments and let you accumulate substantial interest savings over your loan’s life.
Compare Mortgage Refi Interest Rates
To ensure you get the best deal, always compare rates from multiple lenders in your state. Look at more than the interest rate and consider the annual percentage rate (APR) — it incorporates fees and any discount points. Calculate the total loan cost and the point where you’ll break even (that is, when the amount you save cancels out the cost of the refinance). Watch your credit score and your home’s value. The higher they are, the more favorable rates you’ll be eligible for.
Online Refinance Calculators
An online mortgage calculator can be helpful in figuring out your new monthly payment or comparing different refinance options in Louisiana. It can help you understand the potential savings you’ll get from refinancing — you’ll need to plug in your current loan balance, your interest rate, and the terms of the new loan. Using a refinance calculator will help you make an informed decision about whether or not refinancing is the right plan. /p>
Run the numbers on your home loan.
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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 Louisiana can be a smart financial move. It does require thinking about your goals, though, along with research on the costs involved. To make the best decision, be sure to explore different types of refinancing options, including a cash-out, FHA, VA, and adjustable-rate mortgage options.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
When is mortgage refinancing a smart idea?
If you can lock in a lower interest rate, consolidate your debt, or meet other important financial goals, a mortgage refi might be a smart financial decision. Do the math to figure out at what point the cash you’ll save by refinancing will exceed the money you’ll spend on the refi. How long will you stay in the home? If you’ll move before you’ve recouped the cost of your refi, it won’t make sense to do it.
Can I get cash out of my house without refinancing?
You can tap into your home’s equity to get money without a refinance by requesting a home equity line of credit (HELOC) or taking out a home equity loan. These options can be great ways to pay for home improvements, consolidate debt, or cover other expenses that come up. Technically, a HELOC or home equity loan is a second mortgage (assuming you still have your first one).
How much are refinancing closing costs?
If you’re just thinking on a mortgage refinance, it’s easiest to look at average closing costs. They tend to fall between 2% and 5% of the loan amount. Different lenders, refinance types, and locations can make these costs fluctuate. A no-closing-cost refinance sounds like an amazing find, but know that those costs don’t disappear — they will get folded into the new mortgage, or exchanged for a higher interest rate.
Can I just request a lower interest rate from my lender?
Any borrower can reach out to a lender and request a lower interest rate on their mortgage. But it’s entirely possible that the lender will decline your request, especially if you don’t have a spotless payment history or top-notch credit. If you’re having trouble making your payment, ask 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.
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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.
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SOHL-Q125-173
More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Kansas Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Kansas.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, and housing inventory, as well as your credit profile.
• Even a 1% drop in the refinance rate can translate to major monthly savings, which could add up to quite the sum over the life of the loan.
• The average 30-year fixed mortgage refinance rate in Kansas has fluctuated from historic lows in 2021 to 7.00% recently. Higher rates may continue through at least 2025.
• There are many different kinds of refi options, such as conventional, government-backed, adjustable-rate, cash-out, and 15-year mortgages.
• FHA and VA refinances often offer more competitive mortgage refinance rates compared to conventional loans, with VA refinances typically providing the lowest rates.
Introduction to Mortgage Refinance Rates
When you’re considering a mortgage refinance in Kansas, the rates you’ll be offered are pivotal. A refinance essentially means trading your current mortgage for a new one, complete with updated terms and a fresh interest rate. This might lower your monthly payments on your home loan, or it could be a way to shift your mortgage term or translate home equity into cash.
The reason behind your refinance will dictate the type you opt for, and this, in turn, influences the interest rate you’ll secure. Here, you’ll delve into how these rates are determined and how you can position yourself to snag the most favorable one.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Rates Come From?
Refi rates for home loans are a product of a complex interplay of economic factors and your own financial situation. The big economic factors include Federal Reserve policy, inflation, the bond market, and housing inventory levels.
Generally, higher inflation and more frequent federal funds rate hikes lead to higher refi rates. Conversely, when bond prices are rising, interest rates tend to fall. And when there’s a slowdown in home sales, that can also lead to lower rates.
What’s more, your own credit profile — which lenders factor in when deciding whether to approve an applicant and at what rate — counts, too. Your credit score reflects how well you have managed debt in the past. With a higher score, you appear to be a borrower who is likely to repay debt on time, and therefore you qualify for a lower interest rate. With a lower score, which indicates poor handling of debt, you will probably be assessed a higher interest rate since the lender wants to protect itself.
By understanding these factors, you can make a more informed decision about when and how to refinance your mortgage.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of your refinance. Your monthly mortgage payment amount
hinges on the loan principal, repayment term, and the mortgage refinance rate. Here’s an example:
• If you take out a $200,000 home loan with a 6.00% interest rate and a 30-year repayment term, you would have a monthly payment of $1,199.
• Now, if the interest rate were 8.00%, that same loan would translate to a higher monthly payment of $1,467. That means almost $300 less per month in your bank account — and for three decades.
Qualifying and opting for a lower mortgage refinance rate can lead to significant savings over the life of your loan.
Why Refinance in Kansas
Refinancing your mortgage can be a savvy financial move. If current mortgage interest rates are lower than your existing home loan, it might be a good time to refi. The reason behind your refi will determine the type of refinance to choose, and that will impact your rate.
Common Reasons to Refinance a Mortgage
Each person’s financial path and refi motivations will be unique, but here are some common reasons homeowners refinance their mortgage:
• You qualify for a lower mortgage refinance rate because of market conditions or due to your building your credit profile.
• You’re considering adjusting your repayment term to better suit your financial goals.
• You may want to tap into your home’s equity to cover expenses like education or home improvements.
• Your adjustable rate is about to shift, and you’re considering a switch to a fixed-rate loan.
• You have an FHA loan and have reached 20% equity, and you want to eliminate your FHA mortgage insurance premium.
• You need to remove a cosigner from your loan.
How to Get the Best Available Mortgage Refi Interest Rate
On the topic of mortgage refinance rates, it’s wise to do your research and take steps to snag the best possible percentage for your situation. Here are some moves that can help you do that when thinking about a Kansas refi:
• Build your credit score by managing payments and debt wisely. The single most important facet: Pay your bills on time, every time.
• Strive for a debt-to-income ratio of 36% or less.
• Compare rates and fees from multiple lenders.
• Think about buying mortgage points: These add to your costs but lower your interest rate, saving you money over the life of the loan.
• Think about choosing a shorter loan term to grab a lower rate. While this will typically increase your monthly payments, the overall interest you pay can drop dramatically.
More advice to heed: There are factors to consider when refinancing beyond simply snagging a lower interest rate:
• In terms of how soon you can refinance, you typically need 20% home equity before you can move ahead. If you bought a home a couple of years ago with, say, 5% down, you may have to bide your time.
• Make sure your calculations include mortgage refinancing costs. For instance, closing costs usually total about 2% to 5% of your loan amount. On a $300,000 mortgage, that means you’ll have $6,000 to $18,000 that you are responsible for paying or rolling into the loan.
Understand Trends in Kansas Mortgage Interest Rates
Mortgage rates aren’t static. As you’ve read, they rise and fall due to economic factors and the impact of your own financial profile. Here, take a closer look at how national and Kansas mortgage refinance rates can fluctuate. Staying attuned to these trends can empower you to make shrewd choices about when to pursue mortgage refinancing, potentially netting you more favorable terms.
Historical U.S. Mortgage Interest Rates
Mortgage refinance rates in the U.S. have seen some dramatic ups and downs in recent years. For example, the average 30-year fixed mortgage refinance rate was 3.15% in 2021, but it shot up to 7.00% in 2023. And it’s expected to stay in this higher range through at least 2025.
By knowing what has happened with rates in the past, you can better understand and anticipate what might happen in the future. That can help you make more informed decisions about refinancing, which can help you meet your financial goals. The graph below shows how fixed-rate mortgages have evolved over the last few decades.
Historical Interest Rates in Kansas
The mortgage refinance rates in Kansas have been on a rollercoaster ride in recent years, as have national rates. As noted above, rates soared between 2021 and 2023, and it looks like these higher rates are here to stay for 2025, despite early predictions that an interest rate drop was imminent.
If you’re thinking about refinancing your home, it’s crucial to understand these market trends. Armed with this knowledge, you can make a well-informed decision about when to refinance your mortgage. To help you do that, review the chart below. It chronicles almost two decades of rates in Kansas compared to the national rate, which can help you grasp trends at both levels. You’ll see that Kansas refinance rates have often been a bit under the U.S. rate. (The data points below stop at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
| Year | Kansas Rate | National Rate |
|---|---|---|
| 2000 | 7.90 | 8.14 |
| 2001 | 6.94 | 7.03 |
| 2002 | 6.54 | 6.62 |
| 2003 | 5.69 | 5.83 |
| 2004 | 5.72 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.27 | 6.60 |
| 2007 | 6.14 | 6.44 |
| 2008 | 5.83 | 6.09 |
| 2009 | 5.03 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.28 | 4.66 |
| 2012 | 3.58 | 3.74 |
| 2013 | 3.78 | 3.92 |
| 2014 | 4.11 | 4.24 |
| 2015 | 3.77 | 3.91 |
| 2016 | 3.68 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.64 | 4.57 |
Choose the Right Mortgage Refi Type
There are several different kinds of mortgage refinances available in Kansas, each with their own pros and cons and interest rates. Finding the one that suits you is important, so get set to dive into the details.
Worth noting: When shopping for a mortgage refi: Remember to look at annual percentage rates (APRs) vs. simple interest rates. APRs reflect the true cost of your loan with fees and mortgage points rolled in. Each option comes with its own set of features and benefits:
Conventional Refi
A conventional Kansas refinance, also known as a rate-and-term refinance, typically has higher mortgage refinance rates than government-backed loans. This type of refinance allows you to adjust your interest rate or loan term. It’s best for homeowners who want to lower their interest rate or change their repayment schedule. Keep in mind that conventional refinances require a minimum credit score (usually 620 or higher) and adequate equity in the property (20% or higher is the norm), which can vary by lender and borrower.
Cash-Out Refi
Cash-out refinances can be a smart way for you to leverage your home equity by borrowing more than your current mortgage balance. Say your home is valued at $500,000, and you still owe $300,000. With a cash-out refi, you could borrow up to 80% of your home’s equity, which is $200,000, or the difference between the property’s value and the outstanding amount of your mortgage.
15-Year Mortgage Refi
Refinancing from a 30-year to a 15-year mortgage in Kansas can be a game-changer, slashing your total interest payments. Here’s how it might work: Say you have a 30-year $1 million mortgage at a 7.50% interest rate. That’s a monthly payment of about $6,992 and a jaw-dropping total interest to be paid of $1,517,167.
If you refinanced to a 15-year mortgage at a 7.00% rate, the monthly payment jumps significantly, to roughly $8,988. However, the total interest paid is slashed to around $617,891, leaving you with savings of nearly $900,000. That could make a major difference to your financial profile and reaching long-term money goals.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower introductory mortgage refinance rate than fixed-rate loans. However, their rates have the potential to increase over time, as market conditions change. If you’re planning to move before the rate adjusts, refinancing with an ARM could be an affordable way to lower your monthly payments and get significant interest savings for the short term.
However, make sure you can handle a potential rate jump. What if life throws you a curveball and you can’t or don’t want to move as originally planned? It’s wise to be prepared for various scenarios relating to your mortgage refi in Kansas.
FHA Refi
FHA refis, backed by the United States Department of Housing and Urban Development, often offer lower mortgage refinance rates. These are sometimes a full percentage point lower than conventional loans, which can mean major savings. If you already have an FHA loan, you might qualify for an FHA Simple Refinance or an FHA Streamline Refinance.
If you don’t have an existing FHA loan, you could consider an FHA cash-out refinance or an FHA 203(k) refinance, which could be a great option if you’re planning home renovations. These FHA refinance options offer a range of benefits, including potentially lower interest rates, flexible credit requirements, and streamlined closing processes.
VA Refi
VA loans help active-duty members of the military, veterans, and some spouses achieve their dreams of homeownership. VA refinances, backed by the U.S. Department of Veterans Affairs, often have some of the most competitive mortgage refinance rates. To be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can be a great way to lower your monthly payments and save significant interest over the life of the loan.
Compare Mortgage Refi Interest Rates
Snagging a competitive mortgage refinance rate can open up some room in your monthly budget and/or save you significant money over the life of your loan, among other benefits. As you do your research, here are some tips for comparing rates:
• Shop around with different lenders to find the best rate and terms.
• Get prequalified to see how much you can borrow and at what rate without dinging your credit score.
• Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points (aka mortgage points; an additional cost that can help you buy down your mortgage rate to lower costs over the life of the loan).
• Use a mortgage refinancing calculator to estimate your new monthly payments and potential savings when comparing offers.
• Evaluate the total cost of the new mortgage and your break-even point. What’s the break-even point? It’s when the cost of refinancing is outweighed by the savings of your new refi rate. If you’re planning on moving before you hit that break-even point, refinancing may not be the best option.
💡 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
Online refinance calculators, mentioned above, can be a great way to get a rough idea of what your monthly payment will be and to compare different refinance options. In addition to being fast and convenient (no punching those calculator keys required), they can help you understand how different mortgage refinance rates and terms can impact your financial situation.
This knowledge can help you decide if refinancing makes sense for you and, if so, which option may suit your unique situation and long-term financial goals best.
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 a mortgage can be a smart financial move, but it does require some careful thought and preparation. By understanding your options and comparing mortgage refinance rates, you can potentially save a lot of money in interest payments. It’s important to weigh the benefits against the costs to make sure refinancing makes sense for your situation and your big-picture 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
Will refinancing hurt my credit score?
Refinancing might nudge your credit score down a bit, but it’s usually a small and temporary dip. It’s typically triggered by the hard credit inquiry involved in the approval of your refi application. This can lower your credit score by several points for a number of months.
Do you have to pay closing costs when you refinance?
Yes, you will need to cover closing costs once more when you refinance, which typically total between 2% and 5% of the loan amount. Covering the expenses of securing the new mortgage refinance loan, these costs vary depending on the lender and the type of refinance you choose. You might pay them upfront, or they could be rolled into your loan. Make sure you understand exactly how much they are and how you will pay for them as you move through the refi process.
How many times can you refinance a mortgage?
There isn’t a set number of times you can refinance your home, but it’s important to keep in mind that each refinance comes with closing costs and could affect your credit. It’s wise to consider the potential benefits of securing a new mortgage refinance rate against the costs, and to make sure you’re doing it for the right reasons and at the right time.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
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