Current Mortgage Refinance Rates in Ohio Today
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Compare mortgage refinance rates in Ohio.
Key Points
• Mortgage refinance rates in Ohio are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, housing inventory, and your credit score.
• Even a 1% dip in your mortgage refinance rate can make a world of difference, slashing your monthly payments and saving you a bundle in the long run.
• Cash-out refinancing can help you access a lump sum of cash borrowed against your home equity, which can then be put toward a variety of financial needs.
• FHA refinances, backed by the Federal Housing Administration, can often secure you lower mortgage refinance rates and more flexible terms than conventional loans.
• By switching to a 15-year mortgage in Ohio, you could pocket significant interest savings in the long run, even if it means slightly higher monthly payments.
Introduction to Mortgage Refinance Rates
A home loan refinance is essentially a do-over for your mortgage, with a new set of terms and a fresh interest rate. When mortgage rates fall, it can be a money-wise moment to refi your loan.
The motivation for your mortgage refinance can dictate the type of refi you choose, and the type of refi will play a role in determining your interest rate. This guide is here to help you navigate the landscape of mortgage refinance rates and to empower you to secure the most favorable rate available. Understanding the factors at play and taking the right steps can make a substantial difference in your financial well-being.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refinance Interest Rates Come From?
Mortgage refinance rates are not arbitrary numbers; they are influenced by an array of economic factors and your unique financial standing. Economic indicators such as Federal Reserve policy, inflation, the bond market, and housing inventory all play a role. Inflation, for example, can lead to higher rates, as can a hot real estate market, where inventory is low and prices are climbing. The Federal Reserve’s monetary policy can also have a ripple effect, impacting the direction in which mortgage rates shift nationally and, more specifically, in Ohio.
Another facet that impacts mortgage refi rates is your personal credit profile. Those with higher scores appear more creditworthy to lenders and can therefore secure more favorable rates and terms. Those with lower scores, who were perhaps late with debt payments in the past or missed some bills altogether, are likely to be assessed higher refi mortgage rates.
By keeping an eye on these factors and staying informed, you can better choose the most opportune moment to refinance your home loan.
How Interest Rates Affect Home Affordability
Just like when you first got your mortgage, interest rates are a big factor in how much you’ll be paying each month. Your loan amount, the repayment term, and the interest rate all come together to determine your monthly payment. Here are some specific numbers to give you a better understanding of this important topic:
• Say you have a $200,000 loan with a 6.00% mortgage refinance rate and a 30-year repayment term. That would mean a monthly payment of $1,199.
• But if that same loan had an 8.00% mortgage refinance rate, you’d be looking at a $1,467 monthly payment.
• What’s more, the lower 6.00% interest rate could save you nearly $100,000 over the life of the loan. Think about how that money could be put to good use!
While this example uses a major difference in interest rates to prove a point, smaller shifts can also be a very good thing for your financial health. Even though a less significant interest rate drop might not seem like much in terms of monthly savings, it can really add up over the years.
Why Refinance in Ohio?
Refinancing your mortgage could be a smart move if current interest rates are lower than when you took out your loan. Depending on your reasons for refinancing (such as reducing your monthly payments or taking cash out of your home equity), you can likely find a product to suit your needs.
Common Reasons to Refinance a Mortgage
Homeowners refinance in Ohio (and other states) for various reasons:
• Qualifying for a lower interest rate thanks to improved credit or market conditions.
• Lower interest rates: Perhaps the market has shifted in your favor, or you have built your credit score, making better rates and terms possible.
• Repayment term change: A longer term can mean lower monthly payments, while a shorter term can help you pay off the loan faster and save on interest.
• Cash out home equity: You might want to tap into your equity to cover major expenses, such as education costs.
• Adjustable rate change: Refinancing can switch to a fixed-rate loan, protecting against future rate increases.
• FHA loan with 20% equity: Once you hit that equity milestone, refinancing can help you avoid permanent FHA mortgage insurance premiums for FHA loans taken after 2013 with less than 10% down.
How to Get the Best Available Mortgage Refi Rate
Finding the most favorable rate can take some time and energy. To secure a competitive mortgage refinance rate, consider these moves:
• Build your credit score: That means timely payments, every time, and avoiding new debt.
• Lower debt-to-income ratio: Shoot for 36% or less.
• Compare rates and fees: Be sure to shop around for the best deal.
• Be smart about rates: Focus on annual percentage rates (APRs) vs. interest rates alone to get a truer picture of how much your loan will cost. APRs incorporate fees and other important features.
• Weigh mortgage points: Each point you buy costs 1% of the loan amount and typically lowers your interest rate by 0.25%.
• Opt for a shorter term: Doing so can mean lower rates and less interest in the long run, though your monthly payment will be higher.
Understand Trends in Ohio Mortgage Interest Rates
Mortgage rates have seen their share of ups and downs in recent years. If you’re a homeowner in Ohio who’s thinking of refinancing, here’s a deeper dive into where rates have been nationally and in your home state, as well as where they may be heading.
Historical U.S. Mortgage Interest Rates
Over the past 10 years, mortgage refinance rates have seen some big changes. In 2012, the typical 30-year fixed mortgage rate was around 3.15%. The lowest it got was 2.65% in 2020. By 2023, rates had climbed to around 7.00%. And while many expected a decline in 2025, Freddie Mac’s prediction is that current mortgage rates will remain on the higher side for a bit longer.
But don’t let that discourage you. These changes reflect the broader economic environment, and when you consider that rates peaked at almost 20% in 1981, perhaps 7.00% isn’t so bad.
Historical Interest Rates in Ohio
Ohio’s mortgage refi rates often shadow the national scene. If you’re a homeowner in Ohio, keeping an eye on these trends could lead you to the perfect moment to refinance. Imagine snagging a lower rate during a dip and watching the savings add up over the years. It’s not just a possibility — it could be your reality.
The chart below chronicles almost two decades of rates in Ohio vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
| Year | Ohio Rate | National Rate |
|---|---|---|
| 2000 | 8.02 | 8.14 |
| 2001 | 7.03 | 7.03 |
| 2002 | 6.53 | 6.62 |
| 2003 | 5.66 | 5.83 |
| 2004 | 5.67 | 5.95 |
| 2005 | 5.90 | 6.00 |
| 2006 | 6.48 | 6.60 |
| 2007 | 6.37 | 6.44 |
| 2008 | 5.97 | 6.09 |
| 2009 | 5.07 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.53 | 4.66 |
| 2012 | 3.70 | 3.74 |
| 2013 | 3.97 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 4.01 | 3.91 |
| 2016 | 3.79 | 3.72 |
| 2017 | 4.15 | 4.03 |
| 2018 | 4.59 | 4.57 |
Choose the Right Mortgage Refi Type
You might be aware that refinance rates tend to be a tad higher than those for new home purchases. However, the interest rates themselves can vary based on the type of mortgage refinance you opt for. There’s a whole menu of choices out there, each with its own set of perks.
Just one caveat: In terms of how soon you can refinance your mortgage, you typically need at least 20% equity in your home before you can pursue replacing your loan.
Conventional Refi
Conventional refinancing, also known as a rate-and-term refi, typically comes with slightly higher rates than government-backed loans (FHA, VA, and USDA, each of which has its own specialized qualification criteria). This option is best for homeowners who have a strong credit profile (meaning a score of 620 or higher) and ample equity (20% or higher) in their home.
The beauty of a conventional refi is the flexibility it offers. You can adjust your interest rate and loan term to better align with your financial goals. Looking to lower your monthly payments? Consider extending your loan term. Want to be mortgage-free sooner? Shorten the term.
Cash-Out Refi
Cash-out refinances can be a smart way to leverage the equity you’ve built in your home by replacing your existing mortgage with a larger one. The difference is yours to use as you see fit. Whether it’s consolidating debt, embarking on home improvements, or tackling other financial goals, a cash-out refinance could be the solution.
For instance, if your home is valued at $500,000 and your mortgage balance is $300,000, you have $200,000 in equity. Most cash-out refinance loans allow you to access up to 80% of your equity. So in this instance, you could get a sum over $100,000 to use as you like.
15-Year Mortgage Refi
Opting to swap a 30-year mortgage for a 15-year home loan refinance in Ohio can be a savvy financial move. Though the monthly payments may seem heftier, the lower refinance rate and shorter term can work wonders in reducing your overall interest payments.
To put it in perspective, here’s an example:
• If you have a 30-year, $1 million loan at a 7.50% interest rate, this would typically translate to a monthly payment of around $6,992 and total interest paid of about $1,517,167. (You read that correctly: The overall interest is more than the loan’s principal.)
• If you were to refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would increase to approximately $8,988. That may or may not work for your budget. However, if you could swing it, the total interest paid would be slashed to around $617,891, saving you nearly $900,000 over the life of the loan. That could make a big difference in the state of your personal finances and your net worth.
With numbers that significant, it might be worthwhile to contemplate whether a shorter loan term could be right for you.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) can be a savvy choice for those who foresee a move or refinance before the rate adjusts. If you’re in a 30-year fixed-rate mortgage but have plans to relocate in a few years, an ARM could trim your monthly payments for the time that you are still owning your property.
Just one caveat: It’s important to understand that the rate may climb, which could mean heftier payments down the line. This could be a significant financial burden if you wind up staying put vs. selling your property and moving on. Weigh your financial goals and the risks before taking the leap.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often offer lower mortgage refinance rates compared to conventional loans. These refinances are particularly beneficial for homeowners who already have an FHA loan. FHA Simple Refinances and FHA Streamline Refinances are designed for those with existing FHA loans, and they can reduce required documentation.
For homeowners without an FHA loan, you may still be able to benefit. Options include the FHA cash-out refinance and the FHA 203(k) refinance, which is ideal for those planning home renovations. These alternatives can provide lower rates and more flexible terms, making them a good option for a variety of financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are known for their low mortgage refinance rates. To qualify for a VA refinance, you must have an existing VA loan. That means you are either an active-duty member of the military, a veteran, or perhaps a spouse.
The most common type of VA refi you’ll find in Ohio is the Interest Rate Reduction Refinance Loan (IRRRL), which is designed to lower your interest rate and reduce monthly payments. This can be a cost-effective way to improve your financial standing, especially if you plan to stay in your home for the long term. VA refinances can be a valuable option for securing better loan terms without the need for a full appraisal or credit check.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Compare Mortgage Refi Interest Rates
Now that you have a better picture of several key refinance options in Ohio, here’s advice on how to secure a competitive mortgage rate:
• Compare lenders’ annual percentage rates (APR), which include interest, fees, and discount points (or mortgage points, which raise upfront costs but can lower the loan’s interest rate).
• Be sure to consider the total cost of refinancing, including closing costs, to ensure your savings are worth it.
• If your current rate is already a good deal lower than what’s out there, refinancing might not be the best move.
• Lower rates can sometimes mean higher mortgage refinancing costs. Make sure you have the full financial picture of upfront costs and payments over the life of the loan before signing off on a refi in Ohio.
• Crunch the numbers with a mortgage refinancing calculator to get a clearer picture of your monthly payments and potential savings.
Use an Online Refinance Calculator
When it’s time to compare refi rates, terms, and options, there’s no need to start tapping the buttons on an old-school calculator. Online refinance calculators can be a great way to get a rough estimate of what your new monthly payment might be and to see how different refinance options stack up against each other.
These calculators take into account your current loan balance, the new mortgage refinance rate, and the term of the new loan. By inputting your specific financial details, you can get a good idea of what your potential savings might be and whether or not refinancing makes sense for you. They can also help you see the long-term financial implications of refinancing, which can help you make a more informed decision.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Ohio can be a smart financial move, but it requires careful thought and planning. Whether you want to lower your mortgage refinance rate, access your home’s equity, or switch from an adjustable to a fixed interest rate, it’s important to understand the different types of refinances and the specific requirements for each. By comparing offers from multiple lenders, you can review your options and choose the best rate and terms for your financial situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does 1 percent lower your monthly payment?
A 1% reduction in your mortgage interest rate can save you a significant amount of money. Exactly how much will depend on such factors as your loan amount and term. For example, if you have a 30-year, $300,000 loan at a 7.00% interest rate, your monthly payment will be $1,996. If you can reduce your interest rate to 6.00%, your monthly payment will drop to $1,799. That’s a savings of about $197 each month. A lower interest rate will give you more money in your pocket each month and can add up to big savings over the life of the loan.
Can I get a lower interest rate without refinancing?
If you have some extra cash on hand, you might consider a mortgage recast. With a recast, you make a lump sum payment toward your principal, and your lender then recalculates your payments. This won’t change your mortgage refinance rate, but it can lower your monthly payments and save you a significant amount of interest over the life of your loan. Another option is to request a loan modification if you are having difficulty paying what you owe each month or negotiate with your lender for a lower interest rate.
Can I negotiate a lower interest rate with my lender?
Absolutely! You can always reach out to your lender and see if they’re willing to work with you on a lower rate. If you have a history of on-time mortgage payments, a low debt-to-income ratio, and a good credit score, your lender may be willing to adjust your rate without going through the refinance process.
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SOHL-Q125-190
More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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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 North Carolina Today
NORTH CAROLINA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
North Carolina.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in North Carolina.
Key Points
• Mortgage refinance rates are influenced by economic factors such as the bond market and housing inventory.
• Even a 1% drop in the refinance rate can make a world of difference in your monthly payments. Over the long haul, this can add up to some serious savings.
• In North Carolina, mortgage refinance rates often follow national trends.
• A 15-year mortgage can lead to substantial savings in interest over the loan’s lifetime, even though it comes with higher monthly payments.
• FHA refinances, backed by the Federal Housing Administration, often come with lower mortgage refinance rates, making them a flexible and attractive option for many homeowners.
Introduction to Mortgage Refinance Rates
Mortgage rates are an important consideration, as your monthly loan payment is likely a significant part of your budget. When you opt for a mortgage refinance, you’re essentially trading in your current home loan for a new one, with updated terms and — ideally — a more favorable interest rate. The reason behind your refinance will dictate the type of refi you pursue, which, in turn, can influence the interest rate you’re offered. This guide will illuminate the process and help you secure the most competitive rate available. Step one? Understand how rates are determined in the first place.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refinance Interest Rates Come From?
As you look at current mortgage refinance rates in North Carolina, it’s important to understand why they might shift by as little as a fraction of a percentage point. The performance of the 10-year U.S. Treasury Note is the most important determinant of current mortgage rates. When rates on the note rise, mortgage interest tends to rise as well. Another factor is the housing market. When more homes are available than there are buyers, lenders may lower rates to keep attracting customers. The overall economy plays a role as well: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. Of course, there are factors that are personal to each borrower, such as credit score, that help determine what rate you will be offered.
How Interest Rates Affect Home Affordability
Why so much fuss about tiny percentage shifts? Imagine a $200,000 loan with a 6.00% interest rate and a 30-year term. That would mean a monthly payment of $1,199. But if that rate were 8.00%, your monthly payment would jump to $1,467. You can see more examples below. Look closely at total interest. Obtaining even a half-percentage-point lower rate in a mortgage refinance can save you tens of thousands of dollars.
| 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 North Carolina?
Refinancing your mortgage can be a strategic financial move for several reasons, as the list below shows.
Common Reasons to Refinance a Mortgage
• To take advantage of a lower mortgage rate due to improved credit or market conditions.
• To change the repayment term on your loan for lower monthly payments (a longer repayment term) or quicker payoff (a shorter term).
• To access home equity to meet financial goals like college funding.
• To move from an adjustable-rate mortgage to a fixed-rate mortgage (or vice versa).
• To remove the FHA mortgage insurance premium from a Federal Housing Administration loan.
How to Get the Best Available Mortgage Refi Rate
These are key steps to take as you think about how to refinance a mortgage that will help prepare you to get a good rate when the time comes:
• Pay your bills on time and steer clear of new debt to nurture your credit score.
• Assess the equity you have in your home. Ideally, you’ll have at least 20% equity before refinancing, especially if you’re cashing out some equity.
• Keep your debt-to-income (DTI) ratio under 36%. To compute your DTI ratio, add all your monthly debts and divide by your gross monthly income. Then multiply by 100.
• Compare rates and fees from multiple lenders.
• Think about whether you have room in your budget to buy discount points (also called mortgage points) to lower your rate.
• Also examine your budget to see if you can afford to choose a shorter loan term (which may mean a higher monthly payment). This can reduce the total amount of interest you’ll have to pay.
Understand Trends in North Carolina Mortgage Interest Rates
As you think about whether the time is right to refinance, it can help to see how today’s mortgage rates compare to your existing loan, as well as how they compare to historic averages.
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, more than a half-century, can help you see that if you are waiting for an interest rate drop to the historic low of around 3.00% that borrowers saw in 2021, you might be waiting a long time. Understanding these historical trends can give you a better sense of the current market and help you make more informed decisions about refinancing.
Historical Interest Rates in North Carolina
North Carolina refinance rates tend to move in line with national trends, often sitting slightly below the U.S. average, as shown in the chart below.
| Year | North Carolina Rate | National Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.87 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.76 | 5.95 |
| 2005 | 5.93 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.32 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.74 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.58 | 4.57 |
Choose the Right Mortgage Refi Type
The interest rate and terms you get for your refinance can vary depending on the type of loan you choose. Here are some common refinance arrangements, so you can think about what you are looking for.
Conventional Refi
Also known as a rate-and-term refinance, a conventional mortgage refinance will typically have a slightly higher interest rate than a government-backed loan refinance. But it is a common choice for borrowers as it is a very flexible loan option. Two common types of conventional refi are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
Refinancing a mortgage to switch from a 30-year term to a 15-year term can be a smart move that can significantly slash the total interest paid over the loan’s life, although it often does mean a bump in your monthly payment amount. Some borrowers, however, prefer to refinance out of a 15-year mortgage and into a 30-year one (if the higher monthly payments on the shorter-term loan have become untenable).
Adjustable-Rate Mortgage Refi
If your first mortgage is an adjustable-rate mortgage (ARM), you might be looking to refinance into a fixed-rate loan to protect against interest-rate increases and to obtain a predictable monthly payment amount. However, some borrowers choose to refi into an adjustable-rate loan. ARMs often have a low introductory interest rate that is appealing to borrowers who plan to sell their property before the rate begins to adjust. If you choose an ARM, just be sure you understand when the rate may increase and how high it could go.
Cash-Out Refi
A cash-out refinance is a smart way to make your home’s equity work for you. Imagine this: Your home is valued at $500,000, and you still owe $300,000 on your mortgage. That means you’ve got $200,000 in equity. A lender might let you borrow up to 80% of that in a cash-out refi. Your new loan would pay off your old one and leave you with $100,000 to use as you wish. Cash-out refis might come with slightly higher mortgage refinance rates, but they can be a powerful tool for your financial goals.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer very attractive mortgage refinance interest rates, sometimes up to a full percentage point lower than conventional loans. An FHA Simple Refinance and FHA Streamline Refinance caters to homeowners with an existing FHA loan, while an FHA cash-out refinance and FHA 203(k) refinance are available to qualified borrowers more generally.
VA Refi
VA refinances, guaranteed by the U.S. Department of Veterans Affairs, are known for offering some of the most competitive mortgage refinance rates. To qualify for a VA loan refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA mortgage. This type of refinance can help you lower your monthly payments and save a significant amount of money in interest over the life of your loan. This makes it a great option for those who meet the requirements.
Compare Mortgage Refi Interest Rates
Refinancing can be a money-saver, but only if the North Carolina refinance rate you obtain is a good one. Here’s how to snag a competitive rate:
• Compare rates from multiple lenders.
• Look at the annual percentage rate (APR), which includes fees and discount points.
• Make sure you factor in closing costs, which are part of your total mortgage refinancing costs. Some lenders offer a no-closing-cost refinance, but may have higher interest rates or may add closing costs to the principal.
• Remember that if your current interest rate is lower than any rate you are offered, refinancing might not be the best move. A mortgage refinance calculator can help you determine whether you stand to save money.
Use an Online Refinance Calculator
Online calculators are valuable tools that can help you compute all kinds of housing-related expenses. As you think about whether it makes sense to refinance and how large a monthly payment you can afford, an online refinance calculator will be a helpful tool. Here are a few of our favorite calculators.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it does require some planning and careful consideration. By taking good care of your credit score, reducing your debts, and carefully comparing mortgage refinance rates and total costs from multiple lenders, you can make an important decision and qualify for the best available rate in North Carolina.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
No one can definitively predict future mortgage rates, but you can look at key indicators to try to get a sense of where interest rates are headed. If the 10-year Treasury Note rate is rising, the housing market is hot, or the economy is generally strong, it’s unlikely that rates will fall in the near future. Keep close watch on the current refinance rates in North Carolina so you’ll know when the time to refinance is right for you.
Can you lower your mortgage interest rate without refinancing?
It’s hard to lower a mortgage interest rate without a refinance, but you can lower your monthly payments by requesting a mortgage recast from your lender. You’ll make a lump-sum payment toward your principal balance, and then your lender will “recast” your monthly payment amount to reflect the lower principal. There is sometimes a small charge of $500 or less for this service. If you’re facing financial hardship, you could also explore a loan modification. Of course, if you have a solid credit score and stellar payment history, you can always ask your lender to modify your rate, but the lender may suggest a refi or recast instead.
Can I take out a home equity loan without refinancing?
You have the power to tap into your home’s equity without altering your current mortgage rate. You can use a home equity line of credit (HELOC) or a home equity loan to access your equity. Shop around for home equity lending rates to make sure you’re getting the best deal for your financial situation, just as you would shop around for a home loan or a refinance rate.
How much are closing costs on a refinance?
On average, closing costs typically fall somewhere between 2% and 5% of the total loan amount. To illustrate, if you were to refinance a $250,000 mortgage, you could expect to pay anywhere from $5,000 to $12,500 in closing costs. It is important to note that these figures serve as a general guideline, and actual costs may vary depending on several factors, including the specific lender, type of loan, and location. Therefore, it is advisable to research and compare different lenders to obtain the most competitive rates and terms for your specific situation.
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.
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.
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-Q125-188
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 New Mexico Today
NEW MEXICO MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
New Mexico.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in New Mexico.
Key Points
• New Mexico mortgage refinance rates are influenced by a variety of economic factors, including Federal Reserve policy, inflation, and the bond market, and your credit rating.
• A mere 1% drop in your refinance rate could mean pocketing around $175 in monthly savings on a $300,000 mortgage. That could free up funds for other important uses.
• In New Mexico, you have a variety of mortgage refinance options to choose from, including conventional, cash-out, and adjustable-rate mortgages, each with its own benefits and considerations.
• Refinancing can be a smart move, helping you to achieve a range of financial goals, from lowering your monthly payments to accessing your home equity to changing the loan term.
• Closing costs for a New Mexico mortgage refinance usually range from 2% to 5% of the loan amount, so it’s a good idea to factor that into your plans.
Introduction to Mortgage Refinance Rates
A mortgage refinance is the process of replacing your current mortgage with a new one, which comes with new terms and a new interest rate. Whether you want to lower your monthly payments, pay off your loan faster, or take cash out of your home, the type of refinance you choose will play a big role in the interest rate you get. In this guide, we’ll explain how New Mexico mortgage refinance rates are set and give you some tips to help you get the best rate for your situation.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
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.
Historical U.S. Mortgage Interest Rates
In terms of national numbers, interest rates rise and fall regularly. The average 30-year fixed mortgage rate in the U.S. was 3.15% in 2021, before shooting up to 7.00% in 2023. As of early 2025, predictions suggest that these higher rates are here to stay for a while. And remember, within the context of recent years, these mortgage rates may be high, but rates hit almost 20% in the early 1980s, as the graph below reveals.
Knowing historical trends in interest rates can give you a better perspective on today’s market and help you make a more informed decision about refinancing.
Historical Interest Rates in New Mexico
New Mexico mortgage refinance rates have closely followed national trends, which have changed dramatically over the years. When national rates are low, New Mexico rates tend to be low, making refinancing an attractive proposition. When national rates are on the rise, New Mexico rates usually follow suit. Take a look at the chart below to see how this has played out since the year 2000. (The data points stop at 2018, since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
By keeping an eye on these trends, you can decide when the time is right to refinance your New Mexico mortgage and get the best rate and terms.
| Year | New Mexico Rate | National Rate |
|---|---|---|
| 2000 | 8.06 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.49 | 6.62 |
| 2003 | 5.83 | 5.83 |
| 2004 | 5.82 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.45 | 6.60 |
| 2007 | 6.48 | 6.44 |
| 2008 | 6.08 | 6.09 |
| 2009 | 5.19 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.59 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.81 | 3.92 |
| 2014 | 4.23 | 4.24 |
| 2015 | 3.98 | 3.91 |
| 2016 | 3.81 | 3.72 |
| 2017 | 4.17 | 4.03 |
| 2018 | 4.72 | 4.57 |
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.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a popular option for homeowners. These loans often have higher rates than government-backed loans such as FHA, VA, and USDA (which only certain borrowers will qualify for).
A conventional refi can lower your rate or change your term, which can help you manage your payments. To get approved for this kind of New Mexico mortgage refinance, you’ll usually need a minimum credit score of 620 and home equity of at least 20%.
Cash-Out Refi
Cash-out refinances can be an effective way to leverage your home equity, giving you a lump sum that can be used for a multitude of financial needs, from home improvements to consolidating debt.
Here’s a simple example: If your home is valued at $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender might offer you a loan for up to 80% of your equity, which could leave you with more than $100,000 after paying off your existing mortgage. Accessing this kind of New Mexico mortgage refinance could provide money to pay down to high-interest debt or finance a major expense.
15-Year Mortgage Refi
Here’s a potentially money-savvy move: Consider refinancing from a 30-year to a 15-year mortgage. Yes, the monthly payments are higher, but the long-term savings are substantial. Need proof? Here you go:
• Say you have a 30-year, $1 million loan at 7.50%. Your monthly payment would be around $6,992, with a total interest of $1,517,167.
• By refinancing to a 15-year mortgage at 7.00%, your monthly payment would increase to about $8,988. However, the total interest would drop to approximately $617,891, saving you nearly $900,000. That’s an amount that could make a major difference in your financial profile.
New Mexico mortgage refinance rates can vary, so it’s important to compare offers from multiple lenders to find the best deal for your needs and financial situation.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM could be a cost-effective option. However, it’s important to understand the potential for the rate to increase and the impact it could have on your monthly payments. Perhaps your plans to sell your home in a year or two fall through; would you be able to afford a higher mortgage amount every month?
Remember to look at the annual percentage rate (APR), which wraps in fees and other factors, vs. the basic interest rate. You’ll likely get a better picture of the true cost of your loan.
One last note: Keep in mind that mortgage refinancing costs can add up. For instance, closing costs usually range from 2% to 5% of the loan amount.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often come with lower interest rates, making them an attractive option for homeowners. FHA Simple Refinances and FHA Streamline Refinances are designed for those with existing FHA loans.
FHA cash-out refinances and FHA 203(k) refinances are available to others. The 203(k) refinance is particularly useful for homeowners planning renovations. These options can help reduce monthly payments and finance property upgrades.
VA Refi
The Department of Veterans Affairs backs VA refinances, which are known for their low interest rates and easy requirements. The Interest Rate Reduction Refinance Loan (IRRRL) is designed for those with existing VA loans, allowing them to get a lower interest rate or to convert from an adjustable rate to a fixed rate mortgage. (A bit more detail on who can hold a VA loan: active and prior members of the military and some spouses.)
This kind of home loan refi can dramatically reduce your monthly payments and the total interest you pay over the life of the loan. In this way, VA refinances in New Mexico can offer a number of benefits for veterans.
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.
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
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.
A mortgage refinance could be a game changer for your finances.
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.
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 .
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.
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
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 New Hampshire Today
NEW HAMPSHIRE MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
New Hampshire.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in New Hampshire.
Key Points
• Mortgage refinance rates are influenced by economic factors such as Federal Reserve policy, inflation, and the bond market, as well as a borrower’s financial credentials.
• Interest rates fluctuate considerably: In the early 2000s, they were around 7.00%. In 2021, they hit record lows of around 3.15%.
• Refinancing can offer such benefits as lower monthly payments, a different loan term, and cashing out home equity.
• FHA refinances, backed by the Federal Housing Administration, often come with more attractive rates, occasionally up to a full percentage point lower than conventional loans.
• Opting for a 15-year mortgage can be a game-changer, slashing the total interest you pay over time, even if it means steeper monthly payments.
• Before refinancing, you’ll want to consider the costs and benefits, including closing fees and how they might affect your long-term financial plan.
Introduction to Mortgage Refinance Rates
A mortgage refinance involves replacing your current home loan with a new one. The terms and interest rate on the new loan may be different, but the property securing the loan remains the same. Essentially, you use the new loan to pay off the old one and enjoy the benefits of your new mortgage, which might be lower monthlies or pulling some cash out of your home equity (more on that in a bit).
The reason for refinancing, and the type of refinance you want, will help determine the interest rate you get on your new loan. This guide will help you understand how mortgage refinance rates are set, and how you can get the best rate for you.
Also note that you want to focus on annual percentage rates (APRs) vs. interest rates alone when shopping around. With APRs, you get a more accurate picture of the cost of your loan, since they take into account fees and more.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage 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.
Historical U.S. Mortgage Interest Rates
Mortgage rates have been on a bit of a rollercoaster in recent years. In 2021, the average 30-year fixed mortgage rate in the U.S. was 3.15%. Fast forward to 2023, and it had soared to 7.00%. If you were hoping for a mortgage rate drop in 2024 and beyond (as many were), you were likely disappointed. Freddie Mac’s 2025 prediction suggests that these rates are here to stay for the time being.
These changes reflect broader economic conditions, such as Federal Reserve policies and market conditions. To give you more context, check out this graph showing how mortgage rates have varied over several decades. You may be surprised to see that they hit almost 20% in the early 1980s. In comparison, a 7.00% rate looks quite moderate.
Historical Interest Rates in New Hampshire
The chart below shows you how New Hampshire rates compare to the national average. As you’ll note, they are often a bit higher or lower than the norm. It’s likely worth your while to keep tabs on current mortgage rates when you are contemplating a refi; that way, you can be prepared to jump when rates hit a sweet spot. (Note: The data points below stop at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that juncture.)
| Year | New Hampshire Rate | National Rate |
|---|---|---|
| 2000 | 8.17 | 8.14 |
| 2001 | 7.07 | 7.03 |
| 2002 | 6.60 | 6.62 |
| 2003 | 5.74 | 5.83 |
| 2004 | 5.55 | 5.95 |
| 2005 | 5.75 | 6.00 |
| 2006 | 6.39 | 6.60 |
| 2007 | 6.44 | 6.44 |
| 2008 | 6.05 | 6.09 |
| 2009 | 4.87 | 5.06 |
| 2010 | 4.65 | 4.84 |
| 2011 | 3.96 | 4.66 |
| 2012 | 3.70 | 3.74 |
| 2013 | 3.79 | 3.92 |
| 2014 | 4.01 | 4.24 |
| 2015 | 3.83 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 3.97 | 4.03 |
| 2018 | 4.59 | 4.57 |
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.
Conventional Refi
Also known as a rate-and-term refi, conventional refis come with higher rates than government-backed loans (FHA, VA, and USDA loans, each of which has specific qualifying criteria). They also usually require a credit score of 620 or higher and a lower debt-to-income ratio compared to government-backed loans.
Conventional loans are ideal for borrowers with strong credit and sufficient equity in their home. They can potentially help you secure a lower mortgage refinance rate, reduce monthly payments, or alter the loan term to suit your needs.
Cash-Out Refi
A cash-out refinance is a powerful tool that allows homeowners to leverage their home equity by receiving a lump sum of cash that can be used for a variety of purposes, such as home improvements, debt consolidation, or other major expenses. While the interest rates for cash-out refinances are typically higher than for traditional refinances, the flexibility they offer can be well worth it.
For example, if your home is worth $500,000 and you owe $300,000 on your mortgage, you might be able to borrow up to 80% of your home’s value, which would give you more than $100,000 after paying off your existing loan.
15-Year Mortgage Refi
Thirty years is a common term for a home loan; you might even consider it the standard length of repayment. But if you refinance with a 15-year mortgage refinance, it can slash the total interest you pay over the loan’s life, even though the monthly payments are higher. Take a closer look:
• Say you have a 30-year, $1 million loan at a 7.50% mortgage refinance rate. Your monthly payment is about $6,992, and the total interest you’d pay is $1,517,167.
• If you refinanced to a 15-year mortgage at a 7.00% rate, your monthly payment would jump to around $8,988. But here’s the kicker: You’d save nearly $900,000 over the loan term, with the total interest dropping to about $617,891.
That could make a major difference in your financial profile.
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts with a lower rate than a fixed-rate loan, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM could be an affordable refinance option. Before you choose this type of loan, it’s important to consider how much your monthly payments could change and whether you can afford them if you don’t move. (Even if you think your plans are definite, life can throw you some unexpected situations, after all.)
Your lender can help you evaluate your specific situation and determine whether or not an ARM is the right choice for you.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, offer lower mortgage refinance rates, sometimes a full point lower than conventional loans. These options are particularly beneficial for homeowners with existing FHA loans, who can opt for an FHA Simple Refinance or an FHA Streamline Refinance.
For those without an FHA loan, an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for renovations, can be viable alternatives. Both options provide more accessible refinancing paths for a broader range of borrowers.
VA Refi
The VA offers some of the most competitive mortgage refinance rates around, and you could be eligible for a VA loan refinance, or IRRRL, if you have a VA loan. This refinance can help active and retired members of the U.S. military (and some spouses) save money on their loans, which is a great way to improve one’s financial standing.
💡 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.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move 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.
A mortgage refinance could be a game changer for your finances.
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.
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.
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SOHL-Q125-184
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 Montana Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Montana.
Key Points
• Mortgage refinance rates are influenced by a variety of economic factors, including Federal Reserve policy, inflation, the bond market, and housing inventory levels.
• Credit scores can also play a role, with higher scores earning lower interest rates.
• Did you know that a mere 1% dip in your mortgage refinance rate could translate to substantial monthly savings and add up to thousands of dollars over the loan’s lifetime?
• In Montana, mortgage refinance rates have historically been very close to the national average, so it’s worth keeping an eye on the market to time your refinance just right.
• If you qualify, FHA and VA loans can offer lower mortgage refinance rates than conventional loans, and can be a great option for many homeowners.
• The closing costs for a mortgage refinance usually fall between 2% to 6% of the loan amount, so be sure to consider this when making your decision.
Introduction to Mortgage Refinance Rates
A mortgage refinance is like hitting the reset button on your mortgage. It’s a chance to swap out your old terms for new ones, potentially scoring a lower rate in the process. You use the new loan to pay off the old one. Whether you’re after lower monthly payments, a shorter loan term, or cash in hand, the type of refi you opt for will play a big role in the rate you secure. This guide is your ticket to understanding how these rates are determined and how to snag the best one out there.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refinance Interest Rates Come From?
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.
Historical U.S. Mortgage Interest Rates
Refinance rates have changed significantly over the years. In 2021, the average 30-year fixed mortgage refinance rate was 3.15%. In 2023, that rate had jumped to 7.00%. While many hoped that rates would drop late in 2024 and into 2025, current mortgage rates have not fallen as yet.
It can help to consider both the big picture of mortgage rates over the years, as well as emerging trends. For example, while a 7.00% interest rate may sound high after those historic lows of 2020 and 2021, did you know that interest rates for home loans hit almost 20% early in the 1980s? That can help take the edge off frustration with the current climate, with an interest rate drop not yet happening. Here’s a graph showing you how rates have evolved over several decades.
Historical Interest Rates in Montana
Montana’s mortgage refinance rates tend to mirror national trends, but with some local variation. Take a look at how the rates have compared for almost two decades in the chart below. (Note that the Federal Housing Finance Agency stopped tracking these numbers in 2018, so the chart ends with that year.)
| Year | Montana Rate | National Rate |
|---|---|---|
| 2000 | 8.10 | 8.14 |
| 2001 | 6.92 | 7.03 |
| 2002 | 6.59 | 6.62 |
| 2003 | 5.74 | 5.83 |
| 2004 | 5.64 | 5.95 |
| 2005 | 5.76 | 6.00 |
| 2006 | 6.50 | 6.60 |
| 2007 | 6.40 | 6.44 |
| 2008 | 6.01 | 6.09 |
| 2009 | 4.97 | 5.06 |
| 2010 | 4.79 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.58 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.17 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.05 | 4.03 |
| 2018 | 4.66 | 4.57 |
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.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a popular choice for many homeowners. These loans typically feature higher mortgage refinance rates than government-backed loans such as FHA, VA, or USDA (but not everyone qualifies for those loans).
Opt for a conventional refi if you’re aiming to reduce your interest rate or adjust your loan term. You’ll need a certain credit score (usually 620 or higher) and a solid chunk of equity in your home, usually around 20%. The potential savings on monthly payments and overall interest over the loan’s life can be a financial boost.
Cash-Out Refi
With a cash-out refinance, you can leverage your home equity by borrowing a portion of it as a lump sum. In most cases, the interest rates for cash-out refis are slightly higher than those for traditional refinances, but the cash can be a game-changer for various financial needs, like home improvements or consolidating high-interest debt. For example, if your home is valued at $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender might let you borrow up to 80% of that equity, which would leave you with $100,000-plus after paying off your existing mortgage.
15-Year Mortgage Refi
If you’re considering refinancing from a 30-year to a 15-year mortgage, here’s a nugget of wisdom: The long-term savings are worth the higher monthly payments, if you can swing them. Here’s an example:
• On a $1 million home loan at a 7.50% rate, your 30-year term would have you paying around $6,992 monthly and a staggering $1,517,167 in total interest.
• If you refinance to a 15-year mortgage, the monthly payment jumps to about $8,988, but the total interest paid plummets to roughly $617,891, saving you close to $900,000 compared to the 30-year plan.
While a shorter term isn’t for everyone, it can be a great way to save on interest over the life of the loan if you can swing it.
Adjustable-Rate Mortgage Refi
With an adjustable-rate mortgage (ARM), you start with a lower initial mortgage refinance rate than a fixed-rate loan, but your rate can rise or fall with the market. If you don’t plan on staying in your home for the long haul, an ARM could be a cost-effective way to refinance. You’ll be gone before the rate can go up.
But it’s important to understand the potential for rate increases and how they could affect your monthly payments and overall financial plan. What if your plans to relocate fall through, and you wind up stuck with that higher payment? You may want to talk with a financial advisor to see if an ARM makes sense for your financial goals and risk tolerance.
FHA Refi
FHA loans are backed by the Federal Housing Administration. They often offer lower mortgage refinance rates, sometimes a full percentage point lower than conventional loans. While certain FHA refis are exclusive to those with an existing FHA loan, such as FHA Simple Refinances and FHA Streamline Refinances, there are other options for those without. You might consider an FHA cash-out refinance or an FHA 203(k) refinance, tailor-made for home renovation and rehabilitation projects. These options are designed to be flexible and meet a range of homeowner needs.
VA Refi
Backed by the United States Department of Veterans Affairs, VA loans 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 have an existing VA loan. This type of refinance can potentially lower your monthly payment and the total amount of interest paid over the life of the loan, making it a great option for qualified active-duty members of the military, veterans, and possibly their families.
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.
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 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.
A mortgage refinance could be a game changer for your finances.
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.
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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