Compare mortgage refinance rates in New Mexico.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

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

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

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

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

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

How Interest Rates Affect Home Affordability

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

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

Why Refinance in New Mexico?

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

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

Common Reasons to Refinance a Mortgage

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

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

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

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

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

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

How to Get the Best Available Mortgage Refi Interest Rate

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

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

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

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

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

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

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

Understand Trends in New Mexico Mortgage Interest Rates

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

Choose the Right Mortgage Refi Type

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

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

Compare Mortgage Refi Interest Rates

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

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

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

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

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

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

💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.

Use an Online Refinance Calculator

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

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

The Takeaway

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

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.

FAQ

How do I know if refinancing in New Mexico is a good idea?

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

Can I access my home equity without refinancing my mortgage?

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

Is there a cost to recast your mortgage?

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

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

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

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

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

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

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

SOHL-Q125-186

Compare mortgage refinance rates in New Hampshire.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

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

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

•   When bond prices rise, interest rates usually fall.

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

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

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

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

How Interest Rates Affect Home Affordability

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

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

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

Why Refinance in New Hampshire?

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

Common Reasons to Refinance a Mortgage

Homeowners may refinance for several reasons:

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

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

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

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

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

How to Get the Best Available Mortgage Refi Interest Rate

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

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

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

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

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

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

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

Understand Trends in New Hampshire Mortgage Interest Rates

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

Choose the Right Mortgage Refi Type

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

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

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

💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.

Compare Mortgage Refi Interest Rates

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

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

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

•   Remember, lower rates often mean higher costs.

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

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

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

Use an Online Refinance Calculator

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

The Takeaway

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

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.

FAQ

When is it a good time to refinance your home?

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

Can I lower my interest rate without refinancing?

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

Can I ask my lender to lower my rate?

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

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

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

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

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

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

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

SOHL-Q125-184

Compare mortgage refinance rates in Montana.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refinance Interest Rates Come From?

When you refinance a home loan, the interest rates available are the result of a complex interplay of economic conditions and personal financial factors.

From the broader economic perspective, Federal Reserve policy, inflation, the bond market, and housing inventory levels all play a role. In general, higher inflation and federal funds rate hikes tend to push mortgage refinance rates up, while a strong bond market can pull them down. When housing inventory is tight and prices climb, you may also see rates tick up.

By keeping an eye on these factors, you can gain a better understanding of the potential direction of rates, which can help you decide when to refinance and what kind of rate you might be able to get.

How Interest Rates Affect Home Affordability

Interest rates play a huge role in the affordability of your mortgage refinance. The rate you secure will directly impact your monthly payments.

Here’s an example:

•   On a $200,000 loan, a 6.00% interest rate over a 30-year term would mean a monthly payment of $1,199.

•   If that rate were 8.00%, you’d be looking at a monthly payment of $1,467.

Here’s the important part: Over the life of the loan, that seemingly small percentage difference could add up to nearly $100,000 in savings. So even a fraction of a percentage point can make a big difference in your bottom line.

Why Refinance in Montana?

Refinancing your mortgage can be a smart move, depending on your financial goals. If current interest rates are lower than your existing mortgage, refinancing can reduce your monthly payments and save you money over the loan term.

A note in terms of how soon you can refinance: You’ll need at least 20% equity in your home, especially if you’re cashing out equity. And don’t forget that there will be closing costs, typically 2% to 6% of the loan amount, to contend with.

Common Reasons to Refinance a Mortgage

Here are some of the reasons why you may want to refinance a home loan in Montana:

•   You’ve found a better mortgage refinance rate, thanks to having built your credit or favorable market conditions.

•   You’re considering adjusting your repayment term to better suit your financial goals.

•   You may need to tap into your home equity for expenses like education or home improvements.

•   Your adjustable rate is about to change, and you want to switch to a fixed-rate loan for peace of mind.

•   You have an FHA loan and 20% equity, and you want to eliminate your FHA mortgage insurance premium.

💡 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.

How to Get the Best Available Mortgage Refi Interest Rate

To snag a competitive mortgage refinance rate, there are a few key steps.

•   First, work to build your credit score by being diligent with paying your bills on time, every time, and steering clear of new debt.

•   Keep that debt-to-income ratio (a key metric that lenders look at when you seek approval) under 36%.

•   Shop around like a pro, comparing interest rates and fees from a handful of lenders. This isn’t a moment for “one and done” thinking.

•   Consider discount points, also referred to as mortgage points. This involves paying more upfront to “buy down” your rate. That lower rate, in turn, can translate into a lower monthly payment and less interest paid over the life of the loan.

Understand Trends in Montana Mortgage Interest Rates

Changes in mortgage rates are driven by a variety of factors, including Federal Reserve policy, inflation, and the bond market, as mentioned above (and your financial credentials, too). If you’re thinking of refinancing, it can be a smart move to keep an eye on the broader trends in the U.S. mortgage market, so you can make the best decision about when to refinance your mortgage.

Choose the Right Mortgage Refi Type

Now that you have a good understanding of what determines rates and how they have fluctuated over time, take a look at the different types of mortgage refinances available, so you can determine which is best for your situation and your goals.

Compare Mortgage Refi Interest Rates

Comparing mortgage refinance rates can help you secure a competitive rate and save money. Here are some tips:

•   Shop around with multiple lenders to see what rates and fees they offer.

•   When you’re comparing, look at the annual percentage rate (APR), which factors in interest, fees, and discount points, vs. just the interest rate.

•   Look at the big picture, including closing costs. Crunch the numbers and make sure you’re coming out ahead with the break-even point. That’s defined as how long it takes for the savings delivered by the new loan to equal the cost of refinancing, including closing costs and fees.

Use an Online Refinance Calculator

Did the phrase “crunch the numbers” above make you cringe? Don’t worry; tech tools can help. Online refinance calculators are a great way to get an estimate of what your monthly payments might be and to compare different refinance options. These calculators take a number of factors into account, including your current loan balance, the new mortgage refinance rate, and any closing costs. This can give you vital intel and help you decide if refinancing makes financial sense for you.

The Takeaway

Refinancing your mortgage can be a savvy financial move, but it can require a bit of education and research. Whether you’re looking to lower your monthly home loan payments, change your mortgage term, or tap into your home’s equity, it’s important to understand the different types of refinances and what each requires. It can also be a good move to shop around with multiple lenders so you find the best mortgage refi type and rate to help you achieve your financial goals.

SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.

FAQ

Are refinance rates falling?

As of March 2025, mortgage refi rates were holding steady. Many had hoped they would drop in late 2024 or at the start of the new year, but so far, the Fed has not cut rates, and so lenders are not lowering their interest numbers. It’s wise, though, to check online for fluctuations; mortgage rates do ebb and flow.

Can I refinance when rates are low?

You absolutely can refinance your mortgage when interest rates are on the decline. That can help you save money on your monthly costs and the overall interest you pay. It’s a good idea to weigh the financial implications to ensure the potential savings are worth the costs. Refinancing comes with fees and closing costs, so you’ll want to calculate your break-even point to see if the long-term benefits are worth the upfront investment.

How much does 1 percent lower your monthly mortgage payment?

Even a 1% decrease in your mortgage refinance rate can make a big difference in your monthly payment. For example, a $300,000, 30-year loan at a 7.00% interest rate has a monthly payment of $1,996. If you could refinance at 6.00%, your monthly payment would drop to $1,827. That’s a savings of $170 per month. This could free up cash for other expenses or investments.

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

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

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

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

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

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

SOHL-Q125-181

Compare mortgage refinance rates in Mississippi.

Introduction to Mortgage Refinance Rates

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.

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.

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.

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.

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.

FAQ

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

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

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

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

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

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

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