Current Mortgage Refinance Rates in Maryland Today
MARYLAND MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Maryland.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Maryland.
Key Points
• Mortgage refinance rates shift due to economic factors such as Federal Reserve policies, inflation, bond market performance, and housing inventory levels, as well as a person’s credit score.
• Even a 1% reduction in your mortgage refinance rate can translate to substantial monthly savings, adding up to a considerable amount over the loan’s lifetime.
• Options for refinancing a mortgage include conventional, ARM, cash-out, FHA, and VA, among others.
• Those who qualify for VA or FHA loan refinancing in Maryland may qualify for some of the most competitive mortgage refinance rates around.
• Refinancing from a 30-year to a 15-year mortgage could slash your total interest payments, even with the higher monthly costs. On a $1 million loan, that could mean savings of nearly $900,000.
Introduction to Mortgage Refinance Rates
What exactly is mortgage refinance? Simply put, it’s the process of replacing your existing mortgage with a new one. The new loan comes with updated terms and a different interest rate.
Whether you want to lower your monthly payments, shorten your loan term, or take cash out of your home, the type of refinance you choose will play a big role in the interest rate you’re offered. This guide will help you understand how mortgage refinance rates work and how you can get the best rate for your refi in Maryland.
💡 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?
Up and down they go: Mortgage refinance interest rates are typically in motion, reflecting various economic factors and your unique financial profile.
Key economic considerations include Federal Reserve policies, inflation trends, the bond market’s performance, and current housing inventory levels. Typically, higher inflation rates and increases in federal funds rates tend to lead to higher mortgage refinance rates. A hot housing market, in which inventory is low and prices soar, can have a similar impact.
Conversely, when there is an upward trend in bond prices, interest rates generally experience a decline. By closely monitoring these factors, you can anticipate potential rate changes and make informed decisions about the optimal time to refinance a home loan, securing the best possible rates for your financial situation.
Don’t overlook the impact of your credit score on the rates you will be offered. If, say, you weren’t punctual about paying bills, that will likely lower your credit score. This tells lenders that you could be a risky borrower, so they may charge you a higher APR, or annual percentage rate, than someone with a loftier score.
If current mortgage rates are holding steady, you might work on building your credit score for a number of months to qualify for a lower interest rate vs. refinancing right away.
How Interest Rates Affect Home Affordability
Interest rates play a pivotal role in the affordability of your refinance payment. Your monthly payment hinges on the loan amount, repayment term, and the mortgage refinance rate.
Picture this: A $200,000 loan at 6.00% over 30 years results in a $1,199 monthly payment. Now, the same loan at 8.00%? That’s a $1,467 monthly payment. Over the life of the loan, a lower interest rate could potentially save you nearly $100,000. That’s a significant chunk of change.
Why Refinance in Maryland?
Refinancing your mortgage can be a strategic financial move for several reasons. Obviously, lowering your monthly payment (and putting the savings toward debt or other uses) is a key motivation. But there are plenty of other forces that could be at work. Here’s a closer look.
Common Reasons to Refinance a Mortgage
Here are some common reasons why Maryland homeowners may refi their home loan. Keep in mind, though, that in terms of how soon you can refinance your mortgage, you typically need at least 20% equity.
• You qualify for a lower mortgage refinance rate because of market conditions or having built your credit score. That can mean more money in your pocket.
• You’re looking to adjust your repayment term to better fit your budget or to become debt-free sooner.
• You want to cash out home equity to cover expenses like college tuition.
• Your adjustable rate is about to change, and you want to lock in a fixed rate.
• You have an FHA loan and have reached at least 20% equity in your home, so you’re ready to eliminate your FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Interest Rate
If you’re interested in securing the best mortgage refinance rate in Maryland, there are a few important steps to take:
• Check your credit score, and build it as much as possible prior to applying for a mortgage refi. Timely bill payments are the single largest factor contributing to your score.
• Maintain a debt-to-income ratio under 36%.
• Compare interest rates and fees from multiple lenders. Many prospective borrowers are surprised to see how big an impact fees can have on mortgage refinancing costs.
• Think about purchasing mortgage points for lower rates. While this will increase the amount of cash you need upfront, it can lower the overall price you pay to borrow.
• You might also consider a shorter-term loan for a lower rate. Due to the shorter term, your monthly payment may be higher, but over the life of the loan, you could pay significantly less. It’s worth doing the math to see what suits your situation best.
Understand Trends in Maryland Mortgage Interest Rates
Americans have seen a lot of movement in mortgage rates in the past few years, from historic lows to rates that have prospective homeowners and refinancers feeling the pinch. If you’re thinking of refinancing in Maryland, understanding historical precedents and current trends can help you decide when and how to refinance your mortgage.
Historical U.S. Mortgage Interest Rates
In the United States, mortgage refinance rates have seen some wild swings over the years. In 2021, interest rates dropped, and the average 30-year fixed rate was about 3.15%. But by 2023, it had shot up to 7.00%. While the forecast in 2024 was that rates might fall, as of early 2025, rates remain higher than some would like.
Mortgage rate changes are driven by a variety of factors, including Federal Reserve policies and market conditions. By keeping an eye on these trends, you can make an informed decision about when to refinance your mortgage and get the best deal for your financial situation. Here’s a snapshot of the last few decades’ mortgage rates to give you a bird’s-eye view.
Historical Interest Rates in Maryland
In Maryland, mortgage refinance rates generally follow national trends. By looking at these historical rates, you can get a sense of what future rates may look like and decide when to lock in your rate. (Why does the chart stop at 2018? That’s when the Federal Housing Finance Agency stopped compiling state by state data.)
| Year | Maryland Rate | National Rate |
|---|---|---|
| 2000 | 8.00 | 8.14 |
| 2001 | 7.05 | 7.03 |
| 2002 | 6.58 | 6.62 |
| 2003 | 5.91 | 5.83 |
| 2004 | 5.81 | 5.95 |
| 2005 | 6.05 | 6.00 |
| 2006 | 6.67 | 6.60 |
| 2007 | 6.49 | 6.44 |
| 2008 | 6.12 | 6.09 |
| 2009 | 5.03 | 5.06 |
| 2010 | 4.72 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.65 | 3.74 |
| 2013 | 3.91 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.98 | 3.91 |
| 2016 | 3.79 | 3.72 |
| 2017 | 4.15 | 4.03 |
| 2018 | 4.66 | 4.57 |
Choose the Right Mortgage Refi Type
Each person’s goals and needs will be unique when looking to refinance in Maryland. One person might want a shorter loan term so they can be done with payments sooner and retire early. Another might want to cash out to put funds toward a child’s college education.
You’ll want to review your situation and options to find the right features and advantages. Consulting with a mortgage professional could make sense, too. Here’s a closer look at some of the mortgage refi types to consider.
Conventional Refi
Conventional refinancing, or rate-and-term refinancing, can adjust your interest rate or loan term. These refinance options generally come with higher mortgage refinance rates than government-backed loans (which you may or may not qualify for).
Conventional refinances in Maryland may be a good fit if you’re looking to lower your monthly payment or shorten your loan term. To qualify for a conventional refinance, you’ll typically need a good credit score and at least 20% equity in your home.
15-Year Mortgage Refi
The decision to refinance from a 30-year to a 15-year mortgage can be a game-changer, slashing your total interest payments over the loan’s lifetime, even if it means higher monthly payments.
Here’s an example that shows the dramatic impact this move can have.
• If you have a 30-year, $1 million loan at a 7.50% rate, you would pay around $6,992 per month and total interest of $1,517,167.
• If you refinance to a 15-year term at 7.00%, the monthly payment jumps to about $8,988, which could put the squeeze on your cash flow. However, if you can afford it, know that the total interest paid plummets to roughly $617,891. That will save you close to $900,000, which you might even think of as a kind of financial windfall.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower initial mortgage refinance rate than fixed-rate loans. However, the rate can go up after the initial fixed period and may be higher than a fixed rate. If you plan to move before the rate adjusts, refinancing into an ARM may be a good choice because you could get a lower initial monthly payment and save money on interest. By considering your financial situation and future plans, you can make an informed decision about whether this type of refinance would suit you.
Cash-Out Refi
Cash-out refinances can be a great way for Maryland homeowners to access the equity in their homes. You can potentially refinance your mortgage for more than you currently owe by tapping into the equity you have already built up. You’ll receive a lump sum of cash that can be used for a variety of purposes. This could include home renovations, debt consolidation, or any other financial needs you might have.
Obviously, calculating your home equity is a key step in this process. Your equity is defined as your property’s value minus the amount you owe on your home loan (the outstanding balance on your mortgage). Worth noting: Cash-out refis typically come with higher mortgage refinance rates than traditional refinances.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often come with lower refinance rates, sometimes as much as a full percentage point lower than conventional loans. But (and it’s a major one) FHA Simple Refinances and FHA Streamline Refinances are available only to homeowners who currently have FHA loans.
However, if you don’t have an FHA loan, you may still be eligible for an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically designed for home renovations and repairs.
VA Refi
VA loans, backed by the United States Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in the financial market. To qualify for a VA refinance, officially known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently have an existing VA loan. This specific type of refinance can be particularly helpful as it can result in decreased monthly payments and substantial interest savings over the duration of the loan.
Compare Mortgage Refi Interest Rates
Now that you’re well-versed in the different refi options you’ll find in Maryland, turn your attention to snagging the most favorable rate possible. Doing so may take a bit of time and energy, but it can save you thousands of dollars over the life of your loan. Here are some tips:
• Do shop around and get preapproved with multiple lenders to compare rates and fees. The first offer you find may not be the best.
• Make sure to compare each loan’s annual percentage rate (APR), which includes the interest rate and fees, vs. just zeroing in on the interest rate.
• You might also want to look into buying discount points to lower your interest rate. You’ll fork over more money upfront, but doing so can pay off with big savings in interest over the loan’s term.
• Crunch the numbers on the break-even point (which is the moment when the cumulative savings from your new home loan equals the total cost of refinancing) to see if the savings are worth it.
• Keep an eye on rate changes to snag the best deal for your refinance.
• Make sure the refinance aligns with your financial goals and long-term plans.
Use an Online Refinance Calculator
You’ve heard about crunching and comparing numbers a couple of times now. Online refinance calculators can make this process so much easier. They can help you estimate your new monthly payment and compare different refinance options. By playing with the mortgage refinance rate, loan term, and loan amount, you can see how your choices will affect your finances.
This can help you make a more informed decision and choose the best option for your situation. Making smart financial decisions now can help you stay on track to meet your long-term financial goals.
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The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires some careful consideration. By learning about the different types of refinances available, including cash-out, FHA, VA, and 15-year mortgages, you can make an informed decision that will help you reach your long-term financial goals. Whether you want to refinance to lower your monthly costs or to pull some cash out of your home equity, it’s important to compare mortgage refinance offers from multiple lenders to find the best fit for your needs.
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
Should I refinance when rates drop?
Yes, that’s often why people refinance: to access a lower rate and reduce their mortgage payments. However, before you decide to refinance, it’s important to carefully assess the financial implications. You’ll need to compare the interest rate reduction, the closing costs, and any other fees associated with the refinance to the interest you would pay on your current loan over the remaining term. By taking the time to weigh the costs and benefits, you can make a well-informed decision that’s in your best interest.
When is the right time to refinance your home loan?
It’s a savvy financial move to refinance your mortgage when you have the chance to lock in a lower interest rate. This could potentially save you a significant sum over the long haul, making the initial costs of refinancing a sound investment. But it’s crucial to weigh all the variables, like closing costs, potential prepayment penalties, and the break-even point, to ensure that refinancing is the right call for your financial situation.
Will refinancing lower your credit score?
Refinancing might cause a small hit to your credit score, but the benefits of a lower mortgage refinance rate can outweigh that. Lenders typically conduct a hard credit inquiry, which can lower your credit score by several points for a few months, which is a minimal impact. If you’re able to get a lower interest rate, you could save a significant amount of money over the life of your loan, which may be worth dinging your score slightly for a brief period of time.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance
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Current Mortgage Refinance Rates in Maine Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Maine.
Key Points
• Mortgage refinance rates can fluctuate due to shifts in inflation, the Federal Reserve’s economic policy, the bond market, and housing inventory.
• Lowering an interest rate by, say, 1% when refinancing can yield major savings every month and over the life of the loan.
• Refinancing a 30-year mortgage to a 15-year one could raise your monthly payments but mean you pay less interest in total, benefiting your financial status.
• Options for refinancing can include FHA refinances, backed by the Federal Housing Administration, which can have more favorable rates and easier qualifying standards than conventional loans.
• VA refinances, backed by the U.S. Department of Veterans Affairs, are known for offering highly competitive mortgage refinance rates and looser eligibility guidelines for qualifying individuals.
• Carefully compare mortgage refinance rates and fees from a few different lenders before making a move, and also consider the potential impact of your credit score on offers.
Introduction to Mortgage Refinance Rates
If you’re looking to save money on your mortgage, you might consider refinancing. A mortgage refinance, or refi, replaces your current home loan with an updated interest rate and terms. Qualifying for a lower rate can offer considerable savings over the life of a loan.
There are, however, various reasons to refinance specific to your situation and needs. Those will impact the type of refi you choose and the rate you are offered. Here’s the information you need to help you make the right decision for your scenario.
💡 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 Refi Interest Rates Come From?
Mortgage refinance rates vary over time and person to person, based on a number of economic and personal financial factors.
• The Federal Reserve‘s monetary policy can play a role in influencing rates. While changes to the federal funds rate don’t directly set mortgage interest rates, they can definitely impact what lenders offer.
• The bond market, which is affected by economic indicators and investor sentiment, indirectly impacts mortgage rates as well.
• Housing inventory can play a role in mortgage rates. When there’s low inventory and high demand, prices typically rise. That can trigger an uptick in interest rates as borrowers seek higher loan amounts, which can be risky for lenders.
• Inflation usually has a direct impact on rates, with higher inflation causing mortgage rates to rise.
Monitoring interest rate news can help you know when a mortgage refinance could be advantageous.
How Interest Rates Affect Home Affordability
Interest rates are a key factor in determining home affordability. It directly impacts what your monthly payment will be and is therefore an important part of your budgeting.
Different mortgage interest rates can significantly impact your refinance payment. Consider this example of a 30-year $200,000 home loan:
• With a 6.00% refinance rate, your monthly payment would be $1,199.
• With an 8.00% refinance rate, that monthly payment would be $1,467.
Over the course of a year, that means you would pay an additional $3,216. Multiply that by 30 years, and you’re doling out an extra $96,480 at that higher rate. That sum can have a real impact on your financial status.
Why Refinance in Maine?
Refinancing can be done for a variety of reasons such as lowering your monthly payment or leveraging equity to free up cash. Worth noting: In terms of how soon can you refinance a mortgage, it’s wise to have at least 20% equity in your home, especially if you’re looking to cash out some of that equity.
Common Reasons to Refinance a Mortgage
Here’s a more in-depth look at some common reasons why homeowners refinance mortgages:
• Lower interest rates: If you have built your credit score or market conditions have shifted, you could qualify for a lower rate.
• Term change: A longer term means lower monthly payments, while a shorter term can help you save on interest by paying off the loan faster.
• Home equity cash-out: You might tap into your home’s equity to finance one or more needs.
• Adjustable rate change: If your rate is adjusting upwards and a fixed-rate loan can provide a favorable rate that won’t fluctuate, you might refinance.
• Reaching 20% equity with an FHA loan: Hitting this milestone can allow you to ditch the permanent mortgage insurance.
How to Get the Best Available Mortgage Refi Interest Rate
If you are planning on refinancing, here are some smart steps to help you secure a competitive mortgage refinance rate:
• Work to build your credit score and qualify for a favorable rate. Key moves include always making debt payments on time (setting up autopay can help), and avoiding taking on new debt, which can help you lower your credit utilization and debt-to-income ratios.
• Aim for a credit utilization rate of no more than 30% (10% or less is considered ideal) and a debt-to-income ratio below 36%.
• Compare rates and fees from multiple lenders; don’t opt for a “one and done” approach when shopping.
• Think about purchasing mortgage points. While this can raise your upfront mortgage refinancing costs, it can reduce your interest rate and save you money over the loan’s term.
• Choose a shorter loan term for a potentially lower rate. Though your monthly payment may be higher vs. a longer term, you can save money overall.
Understand Trends in Maine Mortgage Interest Rates
Mortgage rates ebb and flow like the tide. Before delving into specifics, here’s something to consider: The lowest average rate for a fixed-rate 30-year mortgage was 2.65% in January 2021; the highest average for the same kind of loan was 18.63% in October 1981! Maine’s mortgage refinance rates have largely mirrored these national trends, so understanding these patterns can help you decide when to refinance your mortgage.
Historical U.S. Mortgage Interest Rates
Mortgage refinance rates have seen a lot of movement over the past few decades. At the start of the 2000s, they were around 7.00%, and by 2020, they’d fallen to about 3.00% — some of the lowest rates we’ve ever seen.
Since then, rates have been rising, reflecting changes in the economy and the Federal Reserve’s policies. Understanding how refinance rates have changed over time can give you a better sense of where today’s rates stand and help you make more informed decisions about where they’ll be tomorrow and whether to refinance.
Historical Interest Rates in Maine
In the world of real estate financing, mortgage refinance rates in Maine have followed national trends. Looking at historical mortgage refinance rates in Maine can help you anticipate what might happen in the future and make an informed decision about refinancing. This analysis does not include current mortgage rate quotes, but helps you see where rates have been vs. the national numbers (note that the Federal Housing Finance Agency stopped tracking these numbers in 2018).
| Year | Maine Rate | National Rate |
|---|---|---|
| 2000 | 8.23 | 8.14 |
| 2001 | 7.01 | 7.03 |
| 2002 | 6.58 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.80 | 5.95 |
| 2005 | 5.95 | 6.00 |
| 2006 | 6.53 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 5.95 | 6.09 |
| 2009 | 5.00 | 5.06 |
| 2010 | 4.80 | 4.84 |
| 2011 | 4.51 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.76 | 3.92 |
| 2014 | 4.17 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.06 | 4.03 |
| 2018 | 4.65 | 4.57 |
💡 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.
Choose the Right Mortgage Refi Type
You’re probably aware that refinance rates are often a tad higher than those for new home purchases. What’s more, the type of mortgage refi you opt for can also influence the interest rate you’ll secure.
Here, you can learn about the various types of mortgage refinance options. For instance, rate and term refinances can either reduce your monthly payments or help you pay off your loan faster. Cash-out refinances, on the other hand, allow you to borrow more than your current mortgage to cover significant expenses.
Conventional Refi
Also known as a rate and term refi, these loans are ideal for homeowners who want to lower their interest rate or change their loan term without the additional requirements of government-backed loans (which likely have lower rates). Conventional refinances typically require a minimum credit score of 620 (higher scores can mean lower interest rates) and sufficient equity in the home, typically at least 20%. Understanding the differences in mortgage refinance rates can help you choose the best option for your financial situation.
15-Year Mortgage Refi
Opting for a 15-year mortgage can be a financial game-changer, slashing the total interest you’ll pay over the life of the loan.
Here’s an example: If you have a 30-year, $1 million loan at 7.50%, you’re looking at a monthly payment of about $6,992 and a staggering $1,517,167 in total interest.
But, if you refinance to a 15-year term at 7.00%, you could save big over the long term. Yes, your monthly payment will jump to around $8,988. However, the total interest plummets to approximately $617,891, which means you’d save close to $900,000 (almost a cool million) in interest alone.
Adjustable-Rate Mortgage Refi
With an adjustable-rate mortgage (ARM), you start with a lower initial refinance mortgage rate than a fixed-rate loan, but your rate can rise after the initial fixed period. If you’re planning to move before the rate adjusts, an ARM could be an affordable refinancing option. Just be sure you understand how much your monthly payments can increase so you can decide whether you’ll be able to handle them if you wind up staying put.
Cash-Out Refi
A cash-out refinance is a way to tap into your home’s equity by borrowing more than what you currently owe. For example, if your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. A lender usually allows you to borrow up to 80% of your equity.
You could refinance and, after you pay off your original mortgage, have additional cash left over to put toward home renovations, debt consolidation, or other large expenses. Keep in mind that cash-out refis often have higher mortgage refinance rates than conventional refis.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer more favorable mortgage refinance rates than conventional loans. There are two main types: FHA Simple Refinances and FHA Streamline Refinances, both of which are only available to homeowners with existing FHA loans.
If you don’t have an FHA loan, you can consider qualifying for an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovation and rehabilitation projects.
VA Refi
VA refinances, supported by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must already have an existing VA loan. These are available to qualifying active-duty service members, veterans, and certain military spouses.
This specific type of refinance can be particularly beneficial as it can reduce your monthly payments or even allow you to switch from an adjustable-rate to a fixed-rate mortgage, potentially saving you a considerable amount of money over the entire duration of the loan.
Compare Mortgage Refi Interest Rates
Now that you understand the different types of mortgage refinances available, here’s advice on how to pick the right home loan for your needs. Comparing mortgage refi interest rates can help you make the right decision for your situation and save you money.
• Get prequalified by multiple lenders to compare rates and terms. You may be surprised to see the variation in offers that you qualify for.
• Compare APRs, or annual percentage rates. Unlike interest rates alone, these include interest, fees, and discount points, giving you a more accurate picture of what you will pay when you secure your loan.
• Only consider refinancing if the new rate is lower than your current one or if you have an ARM and have reason to worry that the rate will be rising in the years ahead.
One last note: Lower rates sometimes mean higher costs. Do the math to see which offer is really the best over the long haul.
Online Refinance Calculators
Online refinance calculators are a great way to get a rough idea of what your new monthly payment might be and to compare different refinance options. They can help you understand the impact of different mortgage refinance rates, loan terms, and closing costs, and decide whether refinancing makes sense for you.
It can be wise to use these calculators to look at a number of different scenarios and see the potential financial impact of each. Equipped with this intel, you can make a more informed decision based on your own financial situation and goals.
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 is a big financial decision, but it could be a smart one if you plan carefully and do your homework. By learning about the different types of refinance loans available and taking steps to build your credit score, you may be able to get the best mortgage refinance rates and save money over the life of your loan.
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 expected to go down?
As of early 2025, interest rates are holding steady. There had been talk in 2024 that rates would be cut, but so far, that has not been the case. However, since interest rates fluctuate, it’s wise to check the current figures when contemplating a mortgage refinance.
How much does 1 percent lower your monthly payment?
Even a 1% dip in your mortgage interest rate, thanks to a refinance, can translate to a heftier wallet each month. The exact amount you’ll save depends on how much you still owe and the remaining term of your loan. But here’s an example: If you have a $200,000 30-year fixed-rate mortgage at 6.00%, your monthly payment will be $1,199. If you have the same loan at a 7.00% interest rate, your monthly payment will be $1,330. Over the life of the loan, the latter loan holder would pay almost $25,000 more in interest than the person with the 6.00% loan.
Can I get equity out of my house without refinancing?
Yes, you can tap into your home’s equity through a home equity line of credit (HELOC) or a home equity loan. With these options, you can access the funds you need without adjusting your current mortgage refinance rates. Just be sure to review the terms and conditions carefully, as they can vary by lender and financial 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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q125-174
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 Pennsylvania Today
PENNSYLVANIA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Pennsylvania.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Pennsylvania.
Key Points
• You could save money on your mortgage by refinancing when rates drop due to shifts in Fed policy, inflation, and the bond market.
• Even a 1% drop in your refinance rate could translate into significant monthly savings, potentially slashing hundreds off your payments.
• Mortgage refinance rates have seen quite the journey over the years, hitting record lows in 2020 and then gradually climbing back up.
• VA refinances, supported by the U.S. Department of Veterans Affairs, often boast some of the most competitive mortgage refinance rates, making them a valuable option for eligible homeowners.
• Refinancing to a 15-year mortgage can reduce the total interest paid over the loan’s life, even with higher monthly payments, potentially saving you hundreds of thousands of dollars.
• Before refinancing a mortgage in Pennsylvania, it’s important to weigh the potential savings from a lower interest rate against the costs, which can include lender fees, points, and closing costs (typically 2% to 5% of the loan amount).
Introduction to Mortgage Refinance Rates
To start, a quick definition: A mortgage refinance is when you replace your current home loan with a new one. The new terms can be more favorable than your existing ones, and you may be able to get a lower interest rate.
There are an array of motivations to refinance, whether you live in Pennsylvania or elsewhere. Perhaps you are looking to lower your monthlies, or maybe you want to tap some of your equity for a kitchen renovation.
This guide will help you understand how mortgage refinance rates work and how to get the best rate in today’s market, with a focus on those with properties in Pennsylvania.
💡 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 Refi Interest Rates Come From?
Mortgage refinance rates are influenced by a variety of economic factors and your personal financial profile.
In terms of economic factors, the most important considerations include Fed policy, inflation, and housing inventory. For instance, the bond market, especially how the 10-year U.S. Treasury Note performs, plays a key role in determining current mortgage rates. When the yield on the Treasury Note rises, mortgage interest rates tend to increase as well.
In times of high inflation, mortgage rates tend to climb, but when inflation is in check, you might see them dip. The Fed’s monetary policy and the bond market also play their parts in this financial symphony. Knowing more about these factors can empower you to make the best decision about when to refinance your mortgage.
Also take note of your own personal financial profile. Having a strong credit score is an asset, which is determined by such factors as your history of on-time payments, your credit utilization ratio, and your credit mix (say, having responsibly managed both installment loans and lines of credit).
How Interest Rates Affect Home Affordability
When you’re looking to refinance your mortgage, interest rates play a major role in what you can afford. Your monthly payment is based on the loan amount, the term of the loan, and the interest rate. For example:
• A $200,000 loan with a 6.00% interest rate and a 30-year term has a monthly payment of $1,199.
• The same home loan with an 8.00% interest rate has a monthly payment of $1,467.
A lower interest rate could end up saving you tens of thousands of dollars over the loan term, which could have a big impact on your financial health. It could play an important role in achieving your long-term goals as well, by helping you have enough money to, say, start your own business or finance your child’s college education.
Why Refinance in Pennsylvania?
Refinancing your mortgage in Pennsylvania can be a smart financial move, but it does require some careful consideration. If current interest rates are lower than your existing mortgage, it might be a good time to refi. Worth noting: You’ll typically 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
Homeowners refinance for various reasons. Your decision will reflect your unique situation and needs. Among common motivations are:
• Lower interest rates due to market changes or credit that has been built.
• A change in repayment term for lower monthly payments or faster payoff.
• Cashing out home equity for expenses like education.
• A switch from an adjustable to fixed-rate loan for peace of mind, especially when it seems rates are likely to rise.
• Elimination of FHA mortgage insurance for loans with less than 10% down.
How to Get the Best Available Mortgage Refi Interest Rate
Knowing refinance rates is crucial for homeowners in Pennsylvania looking to make smart financial moves. To secure a competitive mortgage rate, follow this advice:
• Compare rates from multiple lenders.
• Prequalification can be a smart move to see your borrowing power and rates without triggering a hard credit check.
• Compare APRs vs. interest rates, which include interest, fees and discount points.
• Evaluate if lower rates trigger higher costs.
• Use a calculator to estimate your savings.
💡 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.
Understand Trends in Pennsylvania Mortgage Interest Rates
In general, mortgage rates have certainly seen their share of ups and downs in recent years. National trends, of course, can have a direct impact on mortgage refinance rates in Pennsylvania. Here’s a closer look.
Historical U.S. Mortgage Interest Rates
To pull back and look at the big picture, it’s worth acknowledging that mortgage refinance rates have been quite the rollercoaster over the past few decades. In the early 2000s, 30-year fixed mortgage rates hovered around 7.00%, only to plummet to an unprecedented 3.15% in 2021. Fast forward to 2023, and rates were back at 7.00%. And although there were expectations of a decline in 2024, Freddie Mac’s early 2025 predictions hinted at a prolonged period of higher rates.
These fluctuations are the result of a complex interplay of economic factors, Federal Reserve strategies, and market behaviors.
For you, the homeowner, knowing this history can be a powerful tool when you’re wondering how soon to refinance a mortgage. A lower rate could mean substantial savings on your monthly payments and overall interest costs. Timing your refi right can be worth waiting for.
Historical Interest Rates in Pennsylvania
Pennsylvania’s mortgage refi rates often mirror the national landscape. In 2020, the state enjoyed record lows, and since then, rates have risen. It’s crucial for you, as a homeowner, to keep your finger on the pulse of these changes to make the best decisions about refinancing. Staying informed about mortgage refinance rates can be a game-changer, potentially saving you thousands over the years.
Here’s a look at the last quarter century. (Note: The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Pennsylvania Rate | National Rate |
|---|---|---|
| 2000 | 7.97 | 8.14 |
| 2001 | 7.00 | 7.03 |
| 2002 | 6.53 | 6.62 |
| 2003 | 5.78 | 5.83 |
| 2004 | 5.85 | 5.95 |
| 2005 | 6.02 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.31 | 6.44 |
| 2008 | 6.04 | 6.09 |
| 2009 | 5.16 | 5.06 |
| 2010 | 4.85 | 4.84 |
| 2011 | 4.59 | 4.66 |
| 2012 | 3.65 | 3.74 |
| 2013 | 3.90 | 3.92 |
| 2014 | 4.20 | 4.24 |
| 2015 | 3.96 | 3.91 |
| 2016 | 3.76 | 3.72 |
| 2017 | 4.07 | 4.03 |
| 2018 | 4.58 | 4.57 |
Choose the Right Mortgage Refi Type
It’s no secret that refinance rates can be a bit higher than purchase mortgage rates. But here’s the thing: The actual rate you’ll get can vary a lot depending on the type of refinance you choose. There are several different mortgage refinance options, each with its own unique features and potential benefits.
By understanding the differences between them, you can make a more informed decision about which type of refinance could be the best fit for your situation and get the best rate and terms to meet your needs.
Conventional Refi
Also referred to as a rate-and-term refi, conventional refis generally have higher rates than government-backed loans (FHA, VA, USDA). This type of refinance empowers you to adjust your interest rate or loan term, potentially reducing your monthly payment or the time it takes to pay off your loan.
Conventional refis are a great fit for homeowners with solid equity and a strong credit history. By securing a lower mortgage refinance rate, you can save money over the life of your loan and reach your financial goals more swiftly. That can be a win-win.
15-Year Mortgage Refi
A 15-year mortgage refinance typically shortens the length of your loan repayment. This can lead to significant savings in the long run, even though your monthly payments will be higher. For example, with a 30-year $1 million loan at a 7.50% mortgage refinance rate, you’d be looking at a monthly payment of around $6,992 and a total interest of $1,517,167.
If you refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would increase to approximately $8,988. However, your total interest would drop to about $617,891, which means you’d save nearly $900,000 in the end. Quite the difference, right? Obviously, your cash flow situation will play a critical role in whether this is the right choice for you.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower mortgage refinance rate than fixed-rate loans, but their rate can change over time. If you’re planning to sell before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM can help lower your monthly payment initially. This, in turn, may save you money in the short term.
An adjustable-rate mortgage refi can be a good strategy if you have plans to move or if you expect to increase your income in the next few years.
Cash-Out Refi
A cash-out refinance is a powerful tool that lets homeowners unlock the value of their property by taking out a new mortgage for more than they owe. It’s a bit like turning your home equity into cash you can use for whatever you need — home improvements perhaps or paying off high-interest debt.
The amount you can borrow is based on the equity you have in your home. For example, if your home is worth $500,000 and your mortgage balance is $300,000, you have $200,000 in equity. With cash-out refis, a lender may approve you to borrow up to 80% of your equity, which would leave you with a chunk of available cash after paying off your existing mortgage. This lump sum could help you pay off debt or finance, say, a major expense.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often come with more favorable mortgage refinance rates, sometimes a full percentage point lower than conventional loans. There are different types of FHA refinance options: FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners with existing FHA loans, while the latter two are available to those without an FHA loan.
The cash-out refinance can be used to pay off high-interest debt or for home improvements. The 203(k) refinance is specifically for home improvements. These FHA refinance options can help you change your current mortgage terms to get a more affordable interest rate, lower your monthly payment, or access your home’s equity for other financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in the market. That said, to be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This type of refinance has the potential to significantly reduce your monthly payments and accumulate substantial interest savings over the life of your loan.
Compare Mortgage Refi Interest Rates
Here are a few pointers for finding the best refi interest rates, plus tips on qualifying for the most favorable rate.
• First and foremost, getting the best available mortgage refi interest rate means comparing rates from multiple lenders. Granted, this takes a bit of time and energy, but it can really pay off in terms of saving you money.
• Look beyond the interest rate to the annual percentage rate (APR), which incorporates fees and any discount points. You’ll want to figure out both the total loan cost and your break-even point (that is, how long it takes for your savings to cancel out the cost of the refinance).
• Keep an eye on your credit score and home value — the higher they are, the more favorable rates you’ll be offered.
• If you are working to build your score and qualify for a lower interest rate, aim to keep your debt-to-income ratio under 36% and your credit utilization rate below 30% (some financial pros advise keeping it under 10%).
• Also be scrupulous about making debt payments on time, as that is the single biggest contributing fact
Online Refinance Calculators
Math can be intimidating at times. Online refinance calculators are an invaluable resource for homeowners. They can help you figure out how much your new monthly payment will be, what your mortgage refinancing costs will be, and how much you can save over the life of the loan.
By using a refinance calculator, you can compare different refinance options side-by-side, and see which one will save you the most money. You can also see how much changing your refinance rate, loan term, or loan amount will affect your monthly payment. This can help you make the best decision for your financial situation.
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 requires thinking and research about your goals and the costs involved. To help you make the best decision, it’s wise to explore the different types of refinancing, including cash-out, FHA, VA ,and adjustable-rate mortgage options.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can I refinance when rates go down?
Absolutely, you can refinance your mortgage when rates are low. But you’ll want to make sure the money you save on interest will be greater than the costs of refinancing. To help you decide, you should first understand your break-even point. This is the amount of time it will take to recoup the costs of refinancing. You should also consider the current market, your financial situation and any fees or charges associated with the refinance. It’s always a good idea to do your research and talk to a financial advisor to make sure you’re making the best decision for your situation.
When is it a good idea to refinance your home?
It’s financially savvy to refinance your primary residence when you can snag a significantly lower mortgage refinance rate. This can lighten the load of your monthly payments or help you achieve other key financial goals, such as debt consolidation or home improvements. Refinancing can be a gateway to reaching your financial aspirations and boosting your overall financial health, unlocking fresh opportunities that may not have been within reach before.
Can I ask my lender to lower my interest rate?
Absolutely. You can have a conversation with your current mortgage lender and ask them to lower your interest rate. They don’t have to, but having a good credit score and a history of on-time payments can help your case.
Can I get cash out of my house without a refinance?
You can pull equity from your primary residence without refinancing. This can be done through a home equity line of credit (HELOC) or a home equity loan. These options allow you to access the equity in your home without having to refinance your first mortgage. This allows you to tap your home’s equity without having to change the terms of your existing mortgage.
How much will it cost to refinance my mortgage?
Generally, you can expect to pay closing costs equal to 2% to 5% of your loan amount. Keep in mind that this is just an average. The actual amount can vary depending on your refinance mortgage rates and the terms of your loan. That’s why it’s so important to carefully consider all the costs associated with your loan so you can make the best financial decision for your 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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q125-193
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.
Busting Budgeting Myths
The word budget is kinda like the word diet — it conjures up all sorts of feelings, oftentimes negative. But a budget just means you’re keeping track of your money and being deliberate with your financial decisions.
Whether or not you plan to go on a diet, you want to be aware of the foods you put into your body, right? And setting financial parameters is the same idea. They may add limits to your life or give you permission to spend without worry. Either way, you’re in control.
So if you’re one of the many people who’s averse to having a budget (only 42% of Americans track their spending and keep a budget, according to a 2024 survey by the National Foundation for Credit Counseling,) ask yourself why and whether your reasons really hold water. They might be on our list of common myths and misconceptions about budgets.
Myth: “A budget means I can never have any fun.”
Bust: Not at all. A budget will tell you how you can have fun. Let’s say you want to take your girlfriend out for a fancy birthday dinner. Keeping track of spending is how you’ll know you can easily afford it if you pack your lunch instead of hitting the fast-food drive-through a few times in the month.
In fact, you may have even more fun with a budget. Once you have a rough dollar amount allocated for non-essentials, you won’t feel guilty about using that money. A budget simply means you’re deciding what’s important and making sure you get what you want without piling up debt.
Myth: “It’s annoying to track down every penny I spend.”
Bust: You don’t have to document every nickel and dime you spend to get a sense of where your money goes, and none of us has the time anyway. Thankfully, a budget with broad categories is really all you need. You can leave the tracking and math to one of several good budgeting apps, including SoFi’s Relay app.
Myth: “I make enough money. I don’t need a budget.”
Bust: If you don’t have debt and make a good living, you may feel you don’t need to worry where your money goes. But being comfortable financially is just as much of a reason to have a budget. If you want to protect what you’ve got and maximize the potential for your money, make sure you’re setting a clear and deliberate path for it.
Maybe by tracking, you discover that you’re somehow spending twice as much as you used to on Ubers and food out, but with nothing to show for it. Or you realize that after that last raise, you can put 40% of your income into your retirement account, rather than 30%.
Just like a report card tells a student how they’re doing academically, a budget tells you where you stand financially.
Myth: “Why bother? My finances are just a big mess.”
Bust: Plenty of people are struggling to make ends meet. In the latest Survey of Household Economics and Decisionmaking, fielded by the Federal Reserve each year, 17% of U.S. consumers reported they couldn’t pay all their bills, and 18% said their savings wouldn’t cover an emergency expense of more than $100.
No matter what your situation is, a budget isn’t a lost cause. In fact, not having one can make things even worse.
If your income isn’t covering your bills, you’re probably adding to your credit card debt, which can be a slippery slope of mounting finance charges. Building a budget can help you determine where to cut back, or show you when bigger life changes like moving may be needed. It can also help you establish an emergency fund so a job loss or other unexpected bill doesn’t derail you again.
Myth: “I’m young. Budgeting and saving for retirement can wait until I’m older.”
Bust: Budgeting so you can make regular contributions to a 401(k) or IRA is one of the best moves you can make when you’re young. Waiting even 10 years to start saving for retirement means you’ll need to invest much more to get even close to the same result.
Here’s an example: Let’s say you invest in an account that has a 7% annual return. If you contribute $50 a week for 40 years, you’d have $517,454 at the end of the 40 years. But, if you start 10 years later, you’d have to contribute twice that much — $100 a week — and you’d still only wind up with $490,818 at the end of 30 years.
Taking Control
Creating a budget may not be your idea of fun, but keeping track of your money — even in broad strokes — gives you the visibility to make more intentional choices and gauge your progress on your financial goals. And when it comes down to it, you may find taking control to be liberating and motivating. Plus, having a solid financial footing can give you confidence in other areas of your life.
Thinking you might want to try it? Here are five steps to get you started.
image credit: Bernie Pesko
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
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A Reckoning for Borrowers Behind on Federal Student Loans
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If you’re behind on your federal student loans, this year is pivotal.
It’s the first year since the pandemic began – including the three-plus years when all loan bills were suspended — that not paying counts against your credit score. And borrowers who are 90 days or more overdue on payments could see a significant hit, researchers from the New York Federal Reserve Bank said this week.
In some cases, delinquent borrowers risk a drop of more than 150 points once their missed payments appear on their credit reports, they estimated.
Why now? Because after an unprecedented 43-month reprieve triggered by the pandemic, the government resumed billing in October 2023, but gave borrowers a year’s notice before reporting missed payments to the major credit bureaus. Add to that 90 days for delinquencies to roll through to those credit reports, and here we are.
“We expect to see more than nine million student loan borrowers face substantial declines in credit standing over the first quarter of 2025,” the New York Fed’s Daniel Mangrum and Crystal Wang wrote on their Liberty Street Economics blog Wednesday, implying that some borrowers may have already seen the hit.
“Although some of these borrowers may be able to cure their delinquencies – either through making up missed payments or by entering an administrative forbearance with their loan servicers – the damage to their credit standing will have already been done and will remain on their credit reports for seven years,” they wrote.
The study estimated the potential for credit score damage using delinquency and credit score data from prior to the pandemic. Once a delinquency of 90 days or more is reported, those with higher credit scores could see a bigger average drop than those with lower scores, the researchers said.
Borrowers with a credit score of 760, for example, could see it decline to 589, while those with a score of 620 may see it fall to 477, according to their estimates.
(Worth noting: Borrowers who were already behind or had fully defaulted before the pandemic were granted a clean slate during the payment break, which lifted median credit scores significantly, according to the research. This means any declines that may be coming are relative to those inflated scores.)
So what? It’s been a strange and turbulent few years for people with government student loans, and the Trump administration is pursuing more changes. If you’re struggling financially — or your payment obligation has suddenly increased — you’re not alone. As of September 2024, 9.7 million borrowers were delinquent on more than $250 billion in loans, the researchers estimated.
But now is a critical moment to stay current with your payments. Having a lower credit score can increase the cost of borrowing and make it more difficult to even get a credit card, car loan or mortgage.
So give your next steps careful consideration by taking stock of all of your options and staying on top of any developments. The online application for income-driven repayment plans just became available again Wednesday. Or you may want to consolidate or refinance your loans, find ways to lower your other expenses, or even pursue forbearance.
Related Reading
• U.S. Department of Education Opens Revised Income-Driven Repayment Plan and Loan Consolidation Applications for Borrowers (U.S. Department of Education)
• Student Loan Balance and Repayment Trends Since the Pandemic Disruption (Liberty Street Economics)
• Moving Student Loans to the SBA Could Create Problems for Borrowers, Experts Say (Investopedia)
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
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