Compare mortgage refinance rates in New York.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

Historically, the strongest indicator of the direction current mortgage rates are headed lies in the bond market, and specifically in the performance of the 10-year U.S. Treasury Note. When its rates rise, mortgage interest tends to head in the same direction. Another factor is the housing market. When the market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. Then there is the overall economy: A strong job market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. All of these factors work together like instruments in a symphony, and understanding this composition can help you tune into the best time to refinance your mortgage.

How Interest Rates Affect Home Affordability

Just as with your existing mortgage, interest rates will play a significant role in determining the affordability of a refinance. Your monthly payment is determined by your loan amount, repayment term, and interest rate. For example, a $375,000 loan with a 6.00% mortgage refinance rate and a 30-year repayment term will have a monthly payment of $2,248. The same loan with a 7.00% interest rate has a $2,495 monthly payment. More importantly, the lower interest rate will save you tens of thousands of dollars over the life of the loan. Although a fraction of a percentage point adds only a little to your monthly payment, it can add up to thousands or even tens of thousands of dollars over your loan term.

Why Refinance in New York?

Refinancing your mortgage can be a smart financial move, but it’s not something to jump into without doing your homework. You’ll want to have at least 20% equity in your home before refinancing, especially if you’re cashing out some equity (more on that below). Below are some of the reasons borrowers choose to change up their home loan.

Common Reasons to Refinance a Mortgage

•   Lower interest rates are now available, or your credit profile has improved and you now qualify for a better rate.

•   You want to adjust your repayment term: either extend it for lower monthly payments, or shorten it to save on interest (a shorter term means a higher monthly payment).

•   You need to cash out home equity to cover a significant expense, such as renovations, education expenses, or debt consolidation.

•   You have an adjustable-rate loan, and you want to lock in a fixed rate to protect against future interest increases.

•   You have an FHA mortgage (backed by the Federal Housing Administration), you’ve reached 20% equity in your home, and you want to rid yourself of the FHA mortgage insurance premium.

Think the time might be right to refinance? Our guide to how to refinance a mortgage will help you work through the process.

How to Get the Best Available Mortgage Refi Interest Rate

There are a few steps you should take early in the process that will help you to secure a competitive mortgage refinance rate:

•   Make sure you are taking good care of your credit score by paying bills on time and avoiding new debt.

•   Lower your debt-to-income ratio by settling outstanding debts to the extent possible.

•   Consider whether you have cash on hand that you could use to buy mortgage points (also known as discount points) to lower your interest rate.

•   Examine your monthly spending to determine whether you might be able to afford a larger monthly payment, so that you can pay your new mortgage off over a shorter term (and save on interest).

Next step? Take a close look at mortgage interest rates in New York.

Understand Trends in New York Mortgage Interest Rates

In 2021, the average 30-year fixed mortgage rate in the U.S. hovered just over 3.00%. By 2023, it had shot up to 7.00%. With such a variation — and with such tantalizingly low rates just a few years back — it can be hard to know whether the rates you’re currently seeing are a good value. Take a closer look at how New York rates stacked up between 2000 and 2018 (the last year the Federal Housing Finance Agency kept state-specific rates.)

Choose the Right Mortgage Refi Type

Refinance rates are usually a bit higher than the rates you might get for a purchase mortgage. But they can also vary depending on the type of refinance loan you choose. There are many different types of mortgage refinance loans with a variety of features. Here are some of the most common.

Compare Mortgage Refi Interest Rates

Once you’ve closed in on the type of refinance you are considering, seek out interest rate offers and terms from multiple lenders to determine who has the best rate and term combo for your financial situation. Make sure to check the annual percentage rate (APR) on loan offers. (You might see offers that mention a no-closing-cost refinance but this often means any costs are rolled into the amount of your loan.) During the comparison process, you’ll probably find a mortgage refinance calculator helpful.

Use an Online Refinance Calculator

Online refinance calculators are incredibly helpful tools for getting a handle on mortgage refinancing costs. You probably used a mortgage calculator when looking for your first home loan — a refinance calculator will be similar. Here are a few useful calculator tools:

The Takeaway

Refinancing your mortgage can be a smart financial move, but it’s not something you should rush into. By understanding the different types of refinances — including cash-out, FHA, VA, and 15-year mortgages, among others — you can make an informed decision. You can also take steps to strengthen your credit score and reduce other debts before you enter the mortgage refinance process. This will help you get the best rate and terms in New York.

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

FAQ

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

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

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

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

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

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

SOHL-Q125-187

Compare mortgage refinance rates in New Jersey.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

Mortgage refinance rates are influenced by a number of things, including the economy and your own financial profile. Economic factors that affect refinance rates include the bond market — and specifically the performance of the 10-year U.S. Treasury Note. When the 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. Then there is the economy in general: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates.

How Interest Rates Affect Home Affordability

Interest rates are a key factor in determining the affordability of your refinance payment. Your monthly payment will be directly affected by the loan amount, the term of the home loan, and the mortgage refinance rate. For example, a $200,000 loan with a 6.00% interest rate would have a monthly payment of $1,199. If the interest rate went up to 8.00%, the monthly payment would jump to $1,467. Over the life of the loan, securing a lower mortgage refinance rate could lead to significant savings, potentially tens of thousands of dollars.

Why Refinance in New Jersey?

Refinancing your mortgage can be a smart financial move. If you’re wondering how soon can you refinance a mortgage, know this: It’s helpful to have at least 20% equity in your home. You probably know that when current interest rates are lower than your existing mortgage rate, it might be time to explore a new loan. But that’s not the only reason to refinance, as the list below shows.

Common Reasons to Refinance a Mortgage

•   You think you may be eligible for a lower interest rate thanks to an uptick in your credit score.

•   You’re considering adjusting your repayment term to better fit your financial situation. Maybe you want a shorter term so you can pay off your loan before retirement. Or perhaps you need a longer term because your monthly payments are squeezing your budget.

•   You want to use home equity to cover expenses like college tuition by doing a cash-out refinance.

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

•   You have an FHA loan and 20% equity, and you want to stop paying the FHA mortgage insurance premium.

How to Get the Best Available Mortgage Refi Interest Rate

As you begin to explore a refinance, there are a few steps you can take to ensure you’re prepared when the time comes.

•   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.

•   Maintain a strong credit score by being prompt with payments and steering clear of new debt.

•   Keep your debt-to-income (DTI) ratio under 36%. (Your DTI ratio is your monthly debts divided by your gross monthly income, multiplied by 100.)

•   Consider whether you have any cash on hand that you could use to purchase mortgage points to lower your refinance interest rate.

•   Examine your monthly budget to assess how large a mortgage payment you can accommodate. This will eventually help you figure out whether you can choose a loan with a shorter term (which saves on interest).

Understand Trends in New Jersey Mortgage Interest Rates

If you’re waiting for an interest rate drop to consider refinancing, it can help to have some perspective on the history of loan rates in New Jersey. No one can predict with certainty where rates are headed, but by understanding where they have been, you’ll be equipped to make a decision that’s right for you.

Choose the Right Mortgage Refi Type

Once you’ve decided that the time is right to consider a refinance, you’ll want to explore what type of loan you will opt for. These are some common options. Each type has its own features and advantages.

Compare Mortgage Refi Interest Rates

Whatever type of mortgage refinance you choose, securing a competitive rate can save you money over the life of the loan. Here are some tips:

•   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).

•   Make sure you look at each loan’s annual percentage rate (APR), which includes the interest rate and fees, and factors in any discount points you have decided to purchase.

•   Remember that sometimes a lower rate means higher mortgage refinancing costs. If a lender says there are no closing costs, you’ll want to look closely at whether they are being rolled into the amount you are borrowing, or whether your fees are higher.

•   Spend time running the numbers in a mortgage refinancing calculator to get a clear picture of your new monthly payments and potential savings.

Use an Online Refinance Calculator

Online refinance calculators are a great way to get an estimate of what your new monthly payment will be and to compare different refinance options. They can help you see the impact of different mortgage refinance rates and terms, so you can make an informed decision about which one is right for you. Here are a few of our favorite calculators.

The Takeaway

Refinancing your mortgage can be a smart financial move, but it does require some careful thought. By taking the time to understand your financial goals and compare different refinance mortgage rates, you can determine whether or not a refinance makes sense for you. Whether you’re looking to lower your monthly payments, tap into your home’s equity, or switch to a different loan timeline, it’s important to understand the process and your options before you move forward.

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

FAQ

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

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

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

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

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

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

SOHL-Q125-185

Compare mortgage refinance rates in Missouri.

Introduction to Mortgage Refinance Rates

The Origins of Mortgage Refi Interest Rates

The rates you’re offered for a mortgage refinance are a product of both the economic landscape and your unique financial standing.

To look at economic factors first, know that mortgage rates are not set in a vacuum. They are influenced by myriad factors such as Federal Reserve policies, inflation, the bond market, and housing inventory.

•   When inflation rears its head, mortgage refi rates tend to rise, too. Conversely, in times of low inflation, you’ll typically see mortgage rates drop.

•   The Federal Reserve’s monetary policy also plays a significant role. If the Fed decides to raise its federal funds rate, mortgage refi rates are likely to climb as well.

•   The bond market, too, has an indirect impact. When bond prices rise, interest rates usually fall.

Understanding these dynamics can empower you to make informed decisions about when to refinance. It’s also wise to recognize that your own financial credentials will impact the mortgage refinance rate that you can secure. Those with higher scores will typically qualify for lower interest rates and more favorable terms.

How Interest Rates Affect Home Affordability

Interest rates play a significant role in the affordability of refinancing. Your monthly payments hinge on the loan amount, the term of repayment, and the refinance rate. Here is an example that shows you the impact of interest rates in action:

•   A $200,000 loan with a 6.00% annual percentage rate (APR) and a 30-year term would mean a monthly payment of $1,199.

•   With an 8.00% rate, that payment jumps to $1,467.

Why Refinance in Missouri?

Mortgage refinancing is a smart financial move, but it is a decision that should be made with care. If current interest rates are lower than your existing mortgage, it might be a good time to refi. Read on to understand some of the most common reasons for refinancing.

Just keep in mind that there are some guidelines about how soon you can refinance: You’ll want to have at least 20% equity in your home before refinancing, especially if you’re cashing out some equity.

Common Reasons to Refinance a Mortgage

To delve into the specifics of why you might refinance, here are some specifics:

•   Refinancing for a lower rate could lower your monthly payments and how much you pay in interest.

•   You might change the loan’s term, to have a longer or shorter timeframe to pay off your debt.

•   You might want to cash out equity and use the money for a major expense, such as your child’s tuition or a kitchen renovation.

•   Transition from an adjustable-rate mortgage to a fixed-rate loan or vice-versa.

•   Ditch your FHA mortgage insurance premium by refinancing.

How to Get the Best Available Mortgage Refi Interest Rate

To secure a competitive mortgage refinance rate, consider these steps:

•   Build your credit score by paying bills on time, all the time; steering clear of new debt; and lengthening your credit history (that can mean keeping an infrequently used credit card account open vs. closing it).

•   Keep your debt-to-income ratio under 36% to snag a more favorable rate.

•   Compare rates and fees from multiple lenders, remembering that it’s not just about interest rates but about mortgage refinance costs as well.

•   Choose a shorter-term loan for lower rates, even if monthly payments are higher, if you’d like to save on total interest and pay off your loan sooner.

•   Think about buying mortgage points, also called discount points, to lower your interest rate. While it will add to your upfront outlay of cash, over the life of the loan, you will save money.

💡 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.

Understand Trends in Missouri Mortgage Interest Rates

National mortgage refinance rates have seen their share of ups and downs in recent years. Missouri’s mortgage refinance rates have generally followed these national trends, with their own fluctuations tied to local economic conditions. Take a more in-depth look here.

Choose the Right Mortgage Refi Type

Mortgage refinance rates are generally a little higher than purchase mortgage rates, but they can vary quite a bit based on the type of mortgage refinance you’re seeking. Each mortgage refinance type comes with its own set of benefits and considerations. By understanding the different options available, you can find the best rate and terms for your financial goals. Whether you’re looking to lower your monthly payment, pay off your loan faster, or get cash out of your home, taking time to understand your refinance options can help you get the best deal for your needs.

Compare Mortgage Refi Interest Rates

Refinancing your mortgage can save you money, and even a small rate reduction can make a big difference. Here’s how to secure a competitive rate:

•   Shop around, and compare rates from multiple lenders. Your first offer isn’t always the best offer.

•   Get prequalified to see your potential borrowing power and costs without having your credit score dinged by a hard pull.

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

•   Keep in mind that lower rates often come with higher fees.

•   If a less than optimal credit score is preventing you from qualifying for a more favorable rate, consider delaying your refi plans until you can build your score.

Use an Online Refinance Calculator

Online refinance calculators are a great way to get a rough estimate of what your new monthly payment could be and to compare different refi options. They take into account your current loan balance, the current refinance mortgage rates, and the closing costs associated with the loan. By using an online refinance calculator, you can get a better idea of what to expect and make a more informed decision. You can also see how different scenarios might play out and choose the one that best fits your financial goals.

The Takeaway

Refinancing your mortgage can be a smart financial move, potentially lowering your monthly payments and reducing the amount of interest you’ll pay over the life of the loan. But it’s important to carefully weigh the current mortgage refinance rates and closing costs against the potential savings to make sure it makes financial sense for you. To do that, you’ll need to think about your personal financial goals and get advice from a knowledgeable lender or mortgage professional.

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

FAQ

Are refinance rates expected to drop?

As of early 2025, mortgage refinance rates were holding steady. There had been the expectation in 2024 that rates would be declining, but that hasn’t happened yet, nor is it forecast to be in the offing.

When is it a good idea to refinance your home?

It’s generally a good idea to refinance your mortgage when you can secure a lower mortgage refinance rate. Doing so can significantly reduce your monthly mortgage payment, which can lead to big savings over the life of your loan. Refinancing could also help you pay off your loan faster, by reducing your loan term and saving you money on interest in the long run. One important point: You usually need at least 20% equity in your home before you can refinance.

How much does 1% lower your monthly payment?

A mortgage rate drop of 1% in your refinance rate could mean big savings, but there are a number of factors to consider, such as the size and term of the loan. To offer an example, if you have a $300,000 mortgage, a 1% lower rate (from 7.00% to 6.00%) could mean a savings of $170 per month on a 30-year fixed home loan. That could free up your hard-earned money for other expenses or investments.

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

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

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

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

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

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

SOHL-Q125-180

Compare mortgage refinance rates in Massachusetts.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refi Interest Rates Come From?

Mortgage rates go up and down, and when they hit new highs or lows, they can even make news headlines. When you’re thinking about refinancing a home loan, it’s helpful to know that rates are a product of both the economic landscape and your personal financial picture.

•   In terms of economic factors, Federal Reserve strategies, inflation trends, the bond market, and housing inventory all play a role in impacting interest rates. For example, when inflation is high or the federal funds rate is on the rise, mortgage refinance rates tend to follow suit. On the other hand, a surge in bond prices often leads to falling interest rates.

•   If the market is slow and properties are sitting, lenders might lower their rates to attract more customers. But when housing inventory is low, bidding wars may occur, and lenders may raise their rates in what is known as a hot market.

•   In terms of your own financial profile, having a higher credit score can unlock lower rates. A solid score conveys that you’ve handled credit responsibly in the past, so you are less of a risk than someone with a lower score that indicates that they may have been late with payments in the past or missed them completely.

By staying up to speed on these factors, you can better time your refinance to your advantage.

How Interest Rates Affect Home Affordability

Interest rates play a significant role in the affordability of your mortgage refinance. Your monthly payment hinges on your loan amount, the term over which you repay, and the refinance rate you secure. It’s a critical aspect of your monthly budget, so securing as low a rate as possible is an important achievement.

Here’s an example of just how big a difference a point or two can make to an interest rate:

•   If you took out a $200,000 30-year loan at 8.00%, you’d be looking at $1,467 each month.

•   If you had the same loan at 6.00%, you would make a monthly payment of $1,199.

That difference of $268 more in your bank account every month is significant. What’s more, over the life of the loan, having refinanced to the lower rate could save you close to $100,000. Even a seemingly small rate reduction can translate to substantial savings over time.

Of course, there are likely to be closing costs and other fees associated with refinancing, even if a no-closing-cost loan is advertised. The charges can get rolled into your monthly payment or can result in a higher rate.

Why Refinance in Massachusetts?

There are several very good reasons to consider refinancing in Massachusetts, and they typically revolve around improving your financial situation. That, however, could mean lowering your monthlies, plain and simple, or it might mean freeing up a lump sum of cash from your home equity for another purpose, such as financing fertility treatments or paying for a child’s education.

Curious about how soon you can refinance your mortgage? Just remember, you should have at least 20% home equity before refinancing, especially if you plan to cash out some equity.

Common Reasons to Refinance a Mortgage

Here are some common reasons homeowners refinance their mortgage:

•   You qualify for a lower interest rate due to market conditions (meaning rates have fallen) or because you’ve built your credit and qualify for more favorable offers..

•   You’re considering altering your repayment term to either ease monthly payments or pay off the loan quicker.

•   You may want to cash out some of your home equity to achieve personal or financial goals.

•   Your adjustable rate is about to reset, and you’re interested in the stability that locking in a fixed-rate loan can provide.

•   You have a Federal Housing Administration (FHA) loan and 20% equity, and you want to ditch your FHA mortgage insurance premium.

How to Get the Best Available Mortgage Refi Interest Rate

When you’re ready to make your move and refinance, here are tips to help you secure a competitive mortgage refinance 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.

•   Lower your debt-to-income (DTI) ratio.

•   Compare rates and fees from multiple lenders, even if the first offer you get sounds good enough.

•   Think about buying mortgage points (aka discount points) to lower your interest rate. (While you do pay more upfront, this move can help you pay less in interest over the life of your mortgage.)

•   Choose a shorter loan term, even if it means higher monthly payments. This can significantly lower how much you pay in interest overall.

Understand Trends in Massachusetts Mortgage Interest Rates

The past few years have seen a lot of movement in national and Massachusetts mortgage refinance rates. Historic lows morphed into a 7.00% annual percentage rate (APR) in 2023. Although rates were expected to fall in 2024, early 2025 forecasts suggest that rates will remain high for the time being. Here’s a closer look at these fluctuations.

Choose the Right Mortgage Refi Type

Now, onto the important topic of selecting the right kind of refi loan. The specific choice you make will impact your mortgage refinance rate and the overall cost of the loan. Take a closer look at these options:

Recommended: How Much Does It Cost to Refinance a Mortgage?

Compare Mortgage Refi Interest Rates

To secure a competitive mortgage refinance rate and save money, follow this advice:

•  Compare rates from multiple lenders. Shopping around can help you unlock the best deal for your particular needs and situation.

•  Consider the annual percentage rate (APR), including interest, fees, and discount points, vs. focusing on the interest rate alone.

•  Keep in mind that balancing rate and fees can be an important step. Lower rates, for instance, may have higher costs.

•  Do the math, and estimate savings on offers you are considering and the break-even point (that’s the time at which the cumulative savings from your new home loan equals the total cost of refinancing). This can give you insight into what’s the right option.

•  Consult a lender or mortgage professional for more details and support to be sure you understand your alternatives and their implications.

Use an Online Refinance Calculator

You’ve heard the value of “doing the math” a couple of times now as you compare refi loans. Fortunately, that doesn’t necessarily mean breaking out pencil and paper (unless you want to, of course). There are a lot of great tools and calculators to help you understand the complexities of mortgage refinancing.

Online refi calculators can help you see how much you might save on your monthly payments and on the total amount of interest you’ll pay over the life of the loan. By entering your current loan details and the new mortgage refinance rate, you can quickly get a sense of the potential financial benefits of refinancing. It’s that easy!

The Takeaway

Refinancing your mortgage can be a smart financial move, but it’s not something to rush into. Whether you’re looking to lower your monthly payment, tap into your home’s equity, or pay off your mortgage sooner, it’s important to understand the different types of refinance loans and to carefully consider your eligibility. By comparing offers from multiple lenders, you can ensure that you get the best rate and terms for your financial situation and goals.

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

FAQ

Can you request a reduction in your interest rate from your lender?

You can indeed request a lower interest rate, especially if rates are falling. If you’ve got a solid credit score and a history of timely payments, your lender just might be open to the idea. But remember, lenders take into account a variety of factors when considering rates, such as market conditions and your financial profile. If you think you’re in a good position for a lower rate, it’s worth having a chat with your lender to see what’s possible.

What are the closing costs for a refinance?

Typically, closing costs hover between 2% and 5% of your loan amount. So for a $300,000 mortgage refinance, you might be looking at anywhere from $6,000 to $15,000. The final figure can vary based on your lender, the loan type, and where your property is located. It’s a good idea to keep these costs in mind as you budget for your refinance, as they can significantly impact the overall loan cost.

How many times can you refinance your home loan?

There are no restrictions on how many times you can refinance your home, but each time you do, you’ll need to pay closing costs, and the hard credit pulled involved could affect your credit. It’s important to weigh the benefits of a new mortgage refinance rate against these costs to make sure it’s a good decision for you.

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

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

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

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

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

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

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