Mar

2025

Is 603 a Good Credit Score?

By Dana Paltao | 1_Web_CreditCard | Comments Off

Is 603 a Good Credit Score?

What Does a 603 Credit Score Mean?

It’s up to each lender to decide how it will assess your various credit scores. There are multiple scoring models to choose from, but lenders most often use FICO® Scores to determine a borrower’s risk.

FICO calculates your credit score based on such factors as payment history, amounts owed, length of credit history, credit mix, and new credit. Here’s a look at how FICO Scores are categorized:

• Poor: 300-579

• Fair: 580-669

• Good: 679-739

• Very Good: 740-799

• Excellent: 800-850

Some lenders might see a 603 credit score as a red flag — a sign that you may have had past credit problems or perhaps lack a credit history. As a result, they could look at you as a riskier borrower than someone with a higher score. But that doesn’t necessarily mean you won’t be eligible for a loan or credit card.

What Else Can You Get with a 603 Credit Score?

If you have other factors working for you — say, a low debt-to-income (DTI) ratio, stable employment, a good income, cash in the bank or other assets — you still may qualify for credit with a 603 credit score. Some credit cards and loans are designed for borrowers with fair or poor credit, though you may have to pay a higher interest rate or secure the loan with some type of collateral.

Can I Get a Credit Card with a 603 Credit Score?

If you’re trying to build or rebuild your credit, you may find that the best credit card offers you get are for secured credit cards vs. unsecured credit cards. And that isn’t necessarily a bad thing. Using a secured card can be a useful way to improve your credit reputation.

A secured card works a lot like a traditional credit card, except that you’ll be asked to provide a deposit that “secures” the card. (Your credit limit with a secured card is usually equal to your deposit.) The credit card company will hold onto your deposit just in case you default on your payments. You’ll get the deposit back if you close your account or if you transition to an unsecured card later on.

If you’re looking for an unsecured credit card, gas station and retail cards may be worth exploring. They often have lower credit limits and are easier to obtain. Plus, making your payments on time with this kind of card can also help you improve your credit score.

Whether you qualify for a secured or unsecured card, it’s likely your interest rate and other costs will be on the high end until you can prove or improve your creditworthiness. It can be a good idea to compare offers so you’ll know you have a good chance of getting the card before you apply.

Remember to look for cards that come with useful credit-building elements, such as free credit score monitoring and/or an app that makes tracking your spending quick and convenient. It’s also important to ensure the credit card you choose reports to all three of the major credit bureaus regularly.

Can I Get an Auto Loan with a 603 Credit Score?

The minimum credit score required to get a car loan can vary from one lender to the next. And some lenders may use an industry-specific scoring model for auto loans that can work a bit differently than a basic FICO® Score. Still, as with most types of borrowing, the higher your credit score, the more likely you are to qualify for financing — and better financing terms.

With a 603 credit score, you’ll likely have to settle for an average APR (annual percentage rate) that’s at least a few points higher than car buyers with scores in the next highest range.

Coming up with a higher down payment or getting a cosigner with a good credit score could help if you want to look less risky to lenders. It might also help you secure a loan with a better APR.

If you’re wondering if it’s smarter to buy a new or used car, there are pros and cons to financing either way. Though it may seem counterintuitive, it actually may be easier to get financing for a new car, because it can be more difficult for lenders to accurately value a used car. But a used car’s price may be easier on your budget, which could help you stay on track with your monthly payments.

“Before you start shopping for a car loan, it’s important to understand how you might look to a lender based. Reviewing your credit reports can provide you with some perspective on the loan terms you’re likely to qualify for.”

–Brian Walsh, CFP® and Head of Advice & Planning at SoFi

Can I Get a Mortgage with a 605 Credit Score?

Eligibility requirements can vary with different types of mortgages, and individual lenders also may have their own credit score criteria. Although some lenders may accept a 603 credit score, your borrowing options may be limited. Here is some basic mortgage information to consider:

• If you’re applying for a conventional mortgage, which is a loan from a private lender that isn’t backed by a government agency, you typically need a credit score of at least 620.

• Lenders generally like to see a minimum credit score of 620 for a VA loan, which is backed by the U.S. Department of Veterans Affairs. Some lenders may accept a lower score, though your application will likely undergo additional financial scrutiny.

• If you’re thinking about a government-insured FHA loan you’ll need a minimum 580 credit score to qualify for a down payment as low as 3.5%. Applicants with lower scores, down to 500, must put down at least 10%.

• There isn’t a firm credit score requirement for government-backed USDA loans. However, you are more likely to be approved if your score is in the 620 and higher range. (Borrowers without a credit history may be evaluated through other criteria.)

You may want to talk to a mortgage professional about the various types of loans available to you and which might be the right choice based on your overall financial picture. If you have stable employment, a low DTI ratio, and other positive information on your application, you may have a better chance of getting the type of loan you want. But you should be prepared to pay a higher interest rate than you would be offered if you had a higher credit score.

Can I Get a Personal Loan with a 603 Credit Score?

There are personal loans designed for borrowers with fair or poor credit, so you may be able to find a lender who would approve your application with a 603 credit score. This is especially true if the loan is in a lower amount and/or you’re willing to pay a higher interest rate.

If you’re able to put up an asset as collateral, you also may want to consider a secured personal loan. With this type of loan, the lender is taking less risk, which could make qualifying easier. And the interest rate may be lower than with an unsecured loan.

But even unsecured personal loans tend to have lower interest rates than credit cards, which can make them a better choice for larger expenses. Knowing you’ll have a fixed payment every month can also help you stay on track as you work to build your credit score.

Wondering how a personal loan might compare to other financing options? A personal loan calculator can help you determine how much your monthly payments might be.

You can also see if it makes sense to use a personal loan to pay off an existing loan or high-interest credit card balance. With a credit card consolidation loan, for example, you may be able to simplify your finances and save money.

The Takeaway

A 603 credit score may not be considered “good,” but it isn’t a bad score, either. In fact, it could be good enough to help you qualify for a limited number of credit cards and loans, though you may have to pay a higher interest rate than a borrower with a higher credit score. However, if you remain disciplined and keep paying your bills on time, you may be able to look forward to qualifying for better financing options in the future.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

View your rate

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.

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.

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 .

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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.

SOPL-Q125-028

Mar

2025

Current Mortgage Refinance Rates in Colorado Today

By Dana Paltao | mortgage | Comments Off

COLORADO MORTGAGE REFINANCE RATES TODAY

Current mortgage refinance rates in

Colorado.

View your rate

Apply online or call for a complimentary mortgage consultation.

Compare mortgage refinance rates in Colorado.

Key Points

• Mortgage refinancing can cut your monthly payments or save you money on interest in the long run, especially if the current rates are in your favor.

• Colorado refinance rates are influenced by a variety of economic factors, like the 10-year Treasure Note and housing inventory.

• Opting for a 15-year mortgage can be a smart financial move, as it often means paying less interest overall, even if the monthly payments are higher.

• Adjustable-rate mortgages (ARMs) can offer lower initial rates, making them a good choice if you plan to move before the rate adjusts, potentially providing short-term financial relief.

• A cash-out refinance allows you to tap into your home’s equity for big projects or to consolidate high-interest debt.

• By keeping an eye on Colorado refinance rates and weighing offers from multiple lenders, you’re in a good position to snag the best available deal, potentially saving a bundle over the loan’s lifetime.

Introduction to Mortgage Refinance Rates

What exactly is a mortgage refinance? It’s like a fresh start for your mortgage, with the potential for better terms or a lower interest rate. The kind of refinance you opt for will depend on what you’re aiming for, be it a lower rate or tapping into your home’s equity. This is your go-to guide for understanding how mortgage refi rates are set and how you can snag the best one out there. Whether you’re in Colorado or somewhere else, being in the know about the factors at play will help you make a savvy choice.

💡 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 interest rates are influenced by economic factors and your individual financial profile. The bond market, particularly the performance of the 10-year U.S. Treasury Note, plays an important role in setting current mortgage rates. When the yield on the Treasury Note increases, mortgage interest rates tend to rise as well.

Housing market inventory is also significant. If the market slows down and there are more homes available than buyers, lenders might lower their rates to attract more customers. The overall economic environment is another important factor. A robust job market and economic growth can push interest rates higher, while a recession typically results in lower rates.

On a personal level, a strong credit score and a low debt-to-income ratio can help you secure the best possible rate.

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

Pair up with a local real estate agent through HomeStory and unlock up to
$9,500 cash back at closing.^‡ Average cash back received is $1,700.

Connect with an agent

How Interest Rates Affect Home Affordability

Interest rates are a big deal because they help determine your monthly refinance payment. (Of course, your payment is also influenced by your loan amount and the term over which you’re repaying it.) Here’s an example of how much your interest rate impacts your payment:

A $200,000 loan with a 6.00% interest rate and a 30-year term would translate to a monthly payment of $1,199. But if that interest rate jumps to 8.00%, the monthly payment would increase to $1,467. Over the life of the loan, that’s nearly $100,000 in savings with the lower interest rate. Even a small change in the interest rate can make a big difference in your savings over time, and the affordability of your home loan.

Why Refinance in Colorado?

Refinancing your mortgage can offer several benefits, depending on your financial goals. If current interest rates are lower than your existing mortgage, refinancing can reduce your monthly payments and save you money over the life of the loan. Refinancing can also help you switch from an adjustable-rate mortgage to a fixed-rate loan, providing stability and predictability in your monthly payments.

Whatever your reason, you should have at least 20% equity in your home 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 improved credit or market conditions.

• You’re considering adjusting your repayment term to manage monthly payments or pay off the loan more swiftly.

• You want to tap into your home equity to fund significant expenses, like education or home improvements.

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

• You have an FHA loan and 20% equity, and you’re looking to bid farewell to mortgage insurance.

• You’re considering debt consolidation or releasing a cosigner.

Recommended: How Soon Can You Refinance a Mortgage?

How to Get the Best Available Mortgage Refi Interest Rate

As mentioned above, your financial history has an impact on the interest rates that lenders offer you. Homeowners with strong credit and a low debt-to-income ratio may secure much lower rates than average.

To secure a competitive mortgage refinance rate, here’s your To Do list:

• Pay your bills on time, and steer clear of new debt to bolster your credit score.

• Maintain a debt-to-income ratio under 36%.

• Compare offers from multiple lenders.

• Think about buying mortgage points to lower your interest rate.

• If you can swing it, go for a shorter mortgage term. Just remember that a shorter term means higher monthly payments.

Once you’ve achieved an optimal credit history, it’s time for a deep dive into interest rate trends.

Understand Trends in Colorado Mortgage Interest Rates

The rise and fall of mortgage rates in Colorado have put on quite a show in recent years. We saw the average 30-year fixed mortgage rate at or below 3.00% in 2021, but that number rose to approximately 7.00% in 2023. If you were hoping for a rate decrease this year, early 2025 predictions indicate that rates are likely to hold steady. By keeping an eye on interest rates, you can start to understand certain patterns.

Historical U.S. Mortgage Interest Rates

In the chart below, you’ll see that rates were around 6.00% in the early 2000s. They dropped to under 3.00% in 2020 — and cemented the idea that low rates were “normal.” In 2023, they rose again to around 7.00%. While many people today complain about high interest rates, current mortgage refinance rates are below the 50-year average. Understanding the factors that influence rates can help you anticipate rate movements and make more informed decisions about when to refinance.

Historical Interest Rates in Colorado

The state of Colorado has seen a lot of movement in mortgage refinance rates over the years, following the national trends. Below, you can compare Colorado and U.S. rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)

Year	Colorado Rate	National Rate
2000	7.81	8.14
2001	6.91	7.03
2002	6.28	6.62
2003	5.54	5.83
2004	5.56	5.95
2005	5.74	6.00
2006	6.52	6.60
2007	6.40	6.44
2008	6.00	6.09
2009	5.06	5.06
2010	4.88	4.84
2011	4.67	4.66
2012	3.67	3.74
2013	3.87	3.92
2014	4.13	4.24
2015	3.89	3.91
2016	3.65	3.72
2017	3.97	4.03
2018	4.56	4.57

Source: Federal House Finance Agency

💡 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

The type of mortgage refinance you choose influences the interest rate you’ll be offered. Some refi types trend higher or lower. Keep this in mind when you’re considering refinancing options.

Conventional Refi

A conventional refinance, also known as a rate-and-term refinance, is a popular choice for homeowners seeking to enhance their mortgage terms. While these refis often carry higher rates than government-backed loans such as FHA, VA, or USDA, they provide increased flexibility and the potential to waive private mortgage insurance if you have at least 20% equity in your home. This type of refinance is an excellent option for those aiming to reduce their interest rate or adjust their loan term.

Cash-Out Refi

Cash-out refinances are a popular way to leverage home equity, putting a lump sum in your hands for a range of financial needs, from home improvements to consolidating high-interest debt. Here’s an example: If your home is worth $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender may allow you to borrow up to 80% of your equity, which would leave you with $100,000 after paying off your existing mortgage. This can be a savvy way to tackle debt or finance big-ticket items.

FHA Refi

FHA loans, insured by the Federal Housing Administration, often come with lower interest rates, making them attractive for refinancing. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance to potentially lower your rate. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations and repairs. These alternatives can provide financial flexibility and lower monthly payments.

VA Refi

VA loans, backed by the Department of Veterans Affairs, are known for offering some of the most competitive interest rates in the mortgage market. To qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can be especially beneficial, potentially lowering your monthly payments and removing the need for private mortgage insurance. This can be a highly cost-effective option for eligible veterans and their families.

15-Year Mortgage Refi

Now, let’s talk about the 15-year mortgage refinance. This option can be a game-changer, cutting down the total interest you’ll pay over the loan’s life, even though your monthly payments will be higher. For instance, on a 30-year, $1 million loan at a 7.50% rate, you’d be looking at a monthly payment of around $6,992 and a whopping $1,517,167 in total interest. But refinance to a 15-year term at a 7.00% rate, and you’d see your monthly payments rise to about $8,988, but the total interest would drop to roughly $617,891, saving you close to $900,000 in interest.

Shorter terms save you money in two ways: by reducing the amount of time you’re paying interest on the loan, and by offering slightly lower interest rates than longer terms.

Adjustable-Rate Mortgage Refi

Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM may be the right option for you. In the short term, you can save on your monthly payments and get the financial breathing room to set your sights on your next home.

Compare Mortgage Refi Interest Rates

To ensure you’re getting the best deal, it’s crucial to compare rates from multiple lenders. Look beyond the interest rate to the annual percentage rate (APR), which incorporates fees and any discount points. Calculate 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. And don’t forget to monitor local refinance rates for the best deal.

Online Refinance Calculators

Online refinance calculators are a great way to figure out your new monthly payment or compare different refinance options. They can help you understand the potential savings from refinancing by taking into account your current loan balance, interest rate, and the terms of the new loan. Using a refinance calculator can help you see more clearly and make a more informed decision about whether or not refinancing is right for you.

Run the numbers on your home loan.

Mortgage calculator

Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.

Calculate
Down payment calculator

Enter a few details about your home loan and we’ll provide your monthly mortgage payment.

Calculate
Home affordability calculator

Provide us with a few details and see how much you can afford to spend on a home purchase.

Calculate

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, potentially saving you money through a lower interest rate, reduced monthly payments, or by tapping into your home equity. But it’s important to consider the costs and benefits and how they align with your long-term financial goals. Whether you’re looking to refinance to a 15-year mortgage, an adjustable-rate mortgage, or a cash-out refinance, understanding your options and getting your financial house in order can help you get the best rate and terms.

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

A new mortgage refinance could be a game changer for your finances.

View your rate

FAQ

How much are closing costs on a refinance?

Closing costs on a mortgage refinance typically fall between 2% to 5% of the total loan amount. On a $300,000 refinance, you’re looking at a range of $6,000 to $15,000. The final figure can vary based on location, loan type, and lender. To ensure you’re getting the best deal, take the time to compare closing costs from different lenders. This extra effort could save you hundreds, if not thousands, of dollars.

Will refinancing ding your credit score?

Refinancing can cause a temporary dip in your credit score due to the hard inquiry and the new account on your credit report, but this impact is usually minor and short-lived. If you have a high credit score, the impact of refinancing might be barely noticeable.

Will I have to pay closing costs when I refinance my mortgage?

Yes, you should expect to pay closing costs again when you refinance. Typically, these costs range from 2% to 5% of the loan amount. These costs include a variety of fees associated with processing and closing the refinance transaction, such as appraisal fees, title insurance, lender fees, and other miscellaneous charges. It’s important to consider these costs when you’re thinking about refinancing to make sure the potential savings are greater than the costs.

How many times can you refinance your home loan?

There are no set limits on how many times you can refinance your primary residence. However, each time you refinance, you’ll likely have to pay closing costs and your credit score may be affected. That’s why it’s important to consider the potential benefits and drawbacks of refinancing and weigh your options based on your financial goals and circumstances.

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

*SoFi 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.

†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 .

‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

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-Q125-161

Browse other Colorado home guides.

More refinance resources.

How Much Does It Cost to Refinance a Mortgage?

Learn more
How to Refinance a Home Mortgage Loan

Learn more
7 Signs It’s Time for a Mortgage Refinance

Learn more

Apply online or call for a complimentary mortgage consultation.

Mar

2025

Current Mortgage Refinance Rates in Arizona Today

By Dana Paltao | mortgage | Comments Off

ARIZONA MORTGAGE REFINANCE RATES TODAY

Current mortgage refinance rates in

Arizona.

View your rate

Apply online or call for a complimentary mortgage consultation.

Compare mortgage refinance rates in Arizona.

Key Points

• Mortgage refinancing can be a wise financial step, whether borrowers are looking to pay less interest, consolidate debt, or fund a home improvement project.

• A half-percentage-point interest rate reduction can save nearly $50,000 in interest on a $300,000 loan.

• To get the best available mortgage refinance rate in Arizona, cultivate a good credit score, maintain a low debt-to-income ratio, and compare offers from different lenders.

• Government loans such as VA and FHA refinances offer lower rates to those who meet specific eligibility criteria.

• Expect mortgage refinancing to cost 2% to 5% of the loan amount, and factor those costs into the overall cost of a refinance.

Introduction to Mortgage Refi Rates

Refinancing your home loan can be a smart money move. A refinance allows you to replace your existing mortgage with a new one under different terms. Whether you want to lower your monthly payment, shorten the years it takes to pay off your loan, or access some of your home equity, it pays to understand how refinance rates in Arizona are determined and how to get the best rate. This guide will help you through the process. By the end, you’ll have a better understanding of how to make the most of your mortgage refinance.

💡 Quick Tip: Lowering your monthly payments with a mortgage refinance from SoFi can help you find money to pay down other debt, build your rainy-day fund, or put more into your 401(k).

Where Do Mortgage Refinance Interest Rates Come From?

Current mortgage rates are the product of a complex interplay between the economic landscape and your personal financial standing (your equity level and credit score, for example). Historically, the strongest indicator of where mortgage interest rates are headed lies in the performance of the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest tends to rise too. Another factor is the housing market. When more homes are available than there are buyers, lenders may lower rates to keep customers engaged. Then there is the overall economy: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates.

Get matched with a local
real estate agent and earn up to
$9,500^‡ cash back when you close.

Pair up with a local real estate agent through HomeStory and unlock up to
$9,500 cash back at closing.^‡ Average cash back received is $1,700.

Connect with an agent

How Interest Rates Affect Home Affordability

Interest rates play a big role in the affordability of your mortgage refinance. Your monthly payment is a product of your loan amount, the term over which you’re repaying it, and the interest rate. For instance, a $300,000 loan with a 6.00% interest rate and a 30-year term would mean a monthly payment of $1,799. But if your interest rate was 7.00%, the monthly payment would jump to $1,996. Over the life of the loan, that lower interest rate could save you more than $71,000. So small changes in mortgage refinance rates in Arizona can lead to substantial savings over time. Here’s a closer look at how different rates and terms affect payments on a $300,000 loan.

Interest Rate	Loan Term	Monthly Payment	Total Interest
6.00%	30-year	$1,799	$347,515
6.00%	15-year	$2,532	$155,683
7.00%	30-year	$1,996	$418,527
7.00%	15-year	$2,697	$185,367

Why Refinance in Arizona?

Homeowners refinance their mortgages for different reasons. If current interest rates are lower than your existing mortgage, refinancing could save you money. But there are other reasons as well.