Current Mortgage Refinance Rates in California Today
CALIFORNIA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
California.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in California.
Key Points
• Mortgage refinance rates in California are influenced by a variety of economic factors, including the bond market and housing inventory.
• Over recent years, California refinance rates have seen a significant shift, climbing from 3.15% in 2021 to 7.00% in 2023, impacting homeowners’ budgets.
• Refinancing can potentially lower your monthly payments, give you access to home equity, or help you switch to a fixed-rate loan.
• Building your credit score, balancing your debt-to-income ratio, and shopping around for offers from multiple lenders are key to snagging the most favorable mortgage refinance rates in California.
• A 1% drop in your mortgage rate could translate to substantial monthly savings, to the tune of $2,000 a year on a $300,000 loan.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is the process of replacing your existing mortgage with a new one. The new mortgage will have different terms, such as a new interest rate, term length, and monthly payment amount. People refinance their mortgage for a variety of reasons, including to lower their monthly payments, access their home equity, or change their loan type. Understanding how current mortgage refinance rates in California are set and how to get the best rate possible is key to making the most of your refinance. This guide will help you understand the ins and outs of the refinance process and make informed decisions about your property.
💡 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?
In the past, the 10-year U.S. Treasury Note has served as the most dependable predictor of mortgage rates. When the yield on the Treasury Note increases, current mortgage rates generally rise as well. The housing market also influences rates; if there are too many homes available, lenders may reduce their rates to attract more buyers. The overall economic climate is another key factor. Strong economic performance and job growth usually result in higher interest rates, whereas a recession often leads to lower rates.
While none of this will be on the test, having a loose understanding of what influences interest rates can give you a sense of when rates might rise or fall, allowing you to time your mortgage refinance for maximum savings.
Recommended: How to Refinance a Mortgage
How Interest Rates Affect Home Affordability
Interest rates play an important role in the affordability of your refinance. Your monthly payment hinges on your loan amount, repayment term, and the interest rate you secure. For example, a $200,000 home loan with a 6.00% interest rate and a 30-year term translates to a monthly payment of $1,199. But the same loan with an 8.00% interest rate spikes the monthly payment to $1,467. Over the loan’s life, the lower interest rate could keep nearly $100,000 in your pocket. Even small shifts in current mortgage refinance rates in California can lead to significant long-term savings.
Trends in California Mortgage Interest Rates
The rise and fall of mortgage rates can be quite the rollercoaster. In 2021, the average 30-year fixed mortgage rate was just 3.15%. Fast-forward to 2023, and it had soared to 7.00%. Last year brought the expectation of a dip in rates. But in early 2025, experts are predicting we’ll see elevated rates for longer. But don’t let that deter you. If you’re considering a mortgage refinance, it might still be a smart move.
Historical U.S. Mortgage Interest Rates
The U.S. mortgage interest rate environment can have a huge impact on first-time homebuyers. In the early 2000s, rates were at a level that made homeownership more attainable. That is less true today, even though rates are near the historical average. Below you can see the average fixed mortgage rate from the 1970s to present.
Historical Interest Rates in California
California refinance rates typically follow national trends, but they can be slightly higher or lower depending on the region. In the past, California has seen some of the lowest refinance rates in the country. When national rates are low, California rates are even lower, which is great for homeowners. On the other hand, when national rates are high, California rates are even higher. Understanding the historical trends in California refinance rates can help you anticipate future rate movements and make a more informed refinancing decision.
| Year | California Rate | National Rate |
|---|---|---|
| 2000 | 7.18 | 8.14 |
| 2001 | 6.78 | 7.03 |
| 2002 | 6.20 | 6.62 |
| 2003 | 5.54 | 5.83 |
| 2004 | 5.48 | 5.95 |
| 2005 | 5.65 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.38 | 6.44 |
| 2008 | 6.13 | 6.09 |
| 2009 | 5.08 | 5.06 |
| 2010 | 4.83 | 4.84 |
| 2011 | 4.54 | 4.66 |
| 2012 | 3.69 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.04 | 4.24 |
| 2015 | 3.80 | 3.91 |
| 2016 | 3.63 | 3.72 |
| 2017 | 3.94 | 4.03 |
| 2018 | 4.38 | 4.57 |
Why Refinance Your Mortgage?
Refinancing your mortgage can be a smart move. If you can secure a lower interest rate than what you’re currently paying, it could translate to significant savings. Not only could your monthly payments decrease, but you might also pay less in total interest over the life of the loan.
Before you refinance, it’s wise to ensure you have at least 20% equity in your home, especially if you’re considering cashing out some equity. And if you’re currently on an adjustable-rate mortgage and crave the stability of a fixed-rate loan, refinancing can make that happen. California refinance rates are not one-size-fits-all, so shopping around is key to finding the best deal.
Common Reasons to Refinance a Mortgage
Here are common reasons homeowners refinance:
• Lower your interest rate. You may secure a lower rate due to market conditions or an improved credit score.
• Change the repayment term. Shorten it to pay less in interest, or lengthen it to lower your monthly payment
• Cash out home equity. You’ll want at least 20% home equity before considering refinancing.
• Switch to a fixed-rate loan.
• Eliminate mortgage insurance. With an FHA loan, refinancing is the only way to drop the required insurance.
• Consolidate debt.
Understanding these reasons can help you decide if refinancing is right for you. Current California refinance rates play a significant role in this decision.
Recommended: How Soon Can You Refinance a Mortgage?
How to Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, you’ll need to shop around. Reach out to multiple lenders and get prequalified to suss out your borrowing power and the rates you’re eligible for. Keep an eye out for the annual percentage rate (APR), which bundles up interest, fees, and discount points. And remember, the lowest rate might not always mean the biggest savings.
Compare California Interest Rates by Mortgage Refi Type
Mortgage refinance rates in California vary by type. Each offers unique features, from fixed vs. variable rates to no closing costs. Knowing your options can help you select the best refi for your needs.
Conventional Refi
A conventional refi, also known as a rate-and-term refi, is your ticket to adjusting your interest rate and loan term. While these refis might not come with the rock-bottom rates of government-backed loans, they do offer a level of flexibility that could be just what you need to lower your interest rate or change your repayment term. If you’re a homeowner with a solid credit history and a good chunk of equity in your home, this could be your golden opportunity.
Cash-Out Refi
You can tap into your home’s equity by refinancing for a larger mortgage and pocketing the difference. A cash-out refinance is a great option for those big-ticket items like home improvements or getting rid of high-interest debt. Let’s say your home is valued at $500,000 and you still owe $300,000 on your mortgage. That leaves you with $200,000 in equity. Many lenders will let you borrow up to 80% of your home’s value, which could mean an additional $100,000 in your pocket after you pay off your existing mortgage.
FHA Refi
FHA loans, insured by the Federal Housing Administration, often come with lower interest rates, making them an attractive option for refinancing. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which typically have fewer requirements and can be processed more quickly. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed to cover home renovations.
VA Refi
VA loans, backed by the Department of Veterans Affairs, are known for their low interest rates and favorable terms. To qualify for a VA refinance, known as an Interest Rate Reduction Refinance Loan (IRRRL), you must already have a VA loan. This type of refinance can help you secure a lower interest rate, reduce your monthly payments, and potentially eliminate private mortgage insurance.
15-Year Mortgage Refi
Opting for a 15-year mortgage can be a strategic financial move, helping you save money and own your home outright sooner. By refinancing a 30-year, $1 million loan at 7.50% to a 15-year term at 7.00%, you could slash your total interest payments by nearly $900,000. And with current California refinance rates for 15-year mortgages at attractive levels, this could be the perfect time to make the switch.
Adjustable-Rate Mortgage Refi
If you’re considering an adjustable-rate mortgage (ARM) refinance, you’re likely attracted to the initial lower interest rate compared to a fixed-rate mortgage. This can be a smart choice if you’re planning to relocate before the rate adjusts. For instance, if you currently have a 30-year fixed-rate mortgage but foresee a move within a few years, switching to an ARM could mean lower monthly payments. Just be aware that the rate has the potential to increase, which could lead to higher payments down the line.
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.
How to Get the Best Available Mortgage Refi Interest Rate
To secure the best mortgage refinance rates:
• Build your credit score by always being punctual with bill and loan payments.
• Lower your debt-to-income ratio to 36% or less.
• Compare offers from multiple lenders, including brick-and-mortar banks, credit unions, and online lenders.
• Think about buying mortgage discount points.
• Choose the shortest loan term you can afford.
Online Refinance Calculators
Online refinance calculators are a great way to get an idea of what your new monthly payment could be and to compare different refinance options. These calculators take into account your current loan balance, the new interest rate, and the repayment term to give you an estimate of how much you could save by refinancing. You can also see how long it would take to recoup your mortgage refinancing costs.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Mortgage refinancing is a powerful tool for managing your home loan and achieving financial goals. Whether you’re looking to lower your interest rate, access home equity, or shorten your loan term, understanding the different refinance options is key. By improving your credit score, lowering your debt-to-income ratio, and comparing offers from multiple lenders, you can secure the best available mortgage refinance rates in California. Just make sure to consider the long-term financial implications and that the savings justify the costs involved.
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.
FAQ
Can I lower my interest rate without refinancing?
If you have some extra cash on hand, you might want to consider a mortgage recast. With a recast, you make a large lump-sum payment toward your principal, and your lender “recasts” your remaining payments. This doesn’t change your interest rate, but it can lower your monthly payments and save you money on interest over the life of the loan. Plus, if interest rates go up in the future, you’ll be locked in at the lower rate.
Can you negotiate a lower interest rate?
You can always reach out to your lender and ask for a reduction in your interest rate. If you’ve been making on-time payments and have a good credit score, your lender may be willing to work with you. Lowering your interest rate could save you a lot of money over the life of your loan. Just be sure to carefully review any changes to your loan’s terms and conditions before you agree to them.
Can I get equity out of my house without refinancing?
You can access your home’s equity without going through the full refinancing process by using a home equity line of credit (HELOC). A HELOC gives you the flexibility to draw funds as needed, typically with lower closing costs than a cash-out refinance. You can use the equity in your home for things like home improvements, debt consolidation, or even paying for college.
Are there fees associated with mortgage recasting?
There are fees associated with a mortgage recast, although they tend to be considerably lower than refinancing fees. Typically, recasting fees can range from $100 to $300, depending on the lender. It’s wise to carefully research and compare fee structures offered by multiple lenders to ensure you secure the most favorable terms for your mortgage recast.
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.
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-Q125-160
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 Alabama Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Alabama.
Key Points
• Mortgage refinance rates in Alabama are influenced by the 10-year U.S. Treasury Note and housing inventory levels.
• In 2021, the average 30-year fixed refinance rate in Alabama was just over 3.00%. By 2023, it had climbed to 7.00%. In 2025, current mortgage refinance rates in Alabama are expected to remain elevated for longer.
• A mere 1% drop in the interest rate on a $300,000 mortgage can put almost $200 back in your pocket each month.
• In Alabama, you have a variety of mortgage refi options to choose from: conventional, cash-out, FHA, VA, 15-year, and adjustable-rate mortgages, each with its own set of perks and things to consider.
• To lock in the best Alabama refinance rates, build your credit score, trim your debt-to-income ratio, and be sure to compare offers from multiple lenders.
• Keep in mind, a refinance might cause a slight, temporary drop in your credit score due to the hard inquiry.
Introduction to Mortgage Refinance Rates
A mortgage refinance allows you to replace your current mortgage with a new one, potentially with better terms and a more favorable interest rate. Whether you’re looking to lower your monthly payments, shorten your loan term, or tap into your home’s equity, it’s important to understand the factors that determine Alabama mortgage refinance rates. This guide is designed to help you understand those factors and give you tips on how to get the best mortgage refinance rate you can.
Let’s take a closer look at the Alabama market.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Alabama Mortgage Refi Interest Rates Come From?
In the past, the 10-year U.S. Treasury Note has been the best predictor of where current mortgage rates are heading. If the rates on the Treasury Note increase, mortgage rates typically follow suit. The housing market also plays a role; if there are more homes on the market than buyers, lenders might reduce their rates to attract more customers. Additionally, the state of the overall economy influences interest rates. Strong job growth and a robust economy often lead to higher interest rates, whereas a recession usually results in lower rates.
How Interest Rates Affect Home Affordability
Interest rates play a significant role in the affordability of your home loan, of course, but also your mortgage refinance. Your monthly payments are determined by your loan amount, repayment term, and interest rate. For example, here’s how changes in the interest rate affect the affordability of a $200,000 loan over 30 years:
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Over the life of the loan, a lower interest rate could save you close to $100,000. But even a fraction of a percentage point can lead to substantial savings.
Trends in Alabama Mortgage Refinance Rates
As we look to 2025, early predictions suggest that mortgage refinance rates in Alabama may remain elevated for longer. For that reason, it’s important for homeowners to keep an eye on rates and consider their options.
Historical U.S. Mortgage Interest Rates
Mortgage interest rates in the United States have seen dramatic changes over the years. In 2021, the average 30-year fixed mortgage rate was 3.15%, a historic low. By 2023, that rate had risen to 7.00%. These swings mean timing is key when it comes to refinancing your mortgage. Understanding the trends can help you decide when it makes sense to refinance and lock in a lower rate.
Below is a broad look at national rates since 1971.
Historical Interest Rates in Alabama
Alabama’s mortgage refinance rates have been on a similar rollercoaster, mirroring the national scene. In 2021, we saw some of the lowest rates on record, but by 2023, they had shot up. In 2025, it seems they’re here to stay. If you’re a homeowner in Alabama, it’s more important than ever to keep your finger on the pulse of these rates. Staying informed will help you make the best financial decisions when it comes to refinancing and ensure you snag the most favorable rates in the current market.
Here’s a look at almost 20 years of mortgage rates. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Alabama Rate | National Rate |
|---|---|---|
| 2000 | 8.08 | 8.14 |
| 2001 | 6.93 | 7.03 |
| 2002 | 6.54 | 6.62 |
| 2003 | 5.75 | 5.83 |
| 2004 | 5.89 | 5.95 |
| 2005 | 5.98 | 6.00 |
| 2006 | 6.73 | 6.60 |
| 2007 | 6.54 | 6.44 |
| 2008 | 6.02 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.78 | 4.84 |
| 2011 | 4.51 | 4.66 |
| 2012 | 3.64 | 3.74 |
| 2013 | 3.89 | 3.92 |
| 2014 | 4.23 | 4.24 |
| 2015 | 3.96 | 3.91 |
| 2016 | 3.81 | 3.72 |
| 2017 | 4.19 | 4.03 |
| 2018 | 4.71 | 4.57 |
Why Refinance Your Mortgage?
Refinancing your mortgage can be a smart financial move. If interest rates have dropped since you took out your mortgage, refinancing can help you save money on interest. Or if you have an FHA loan, refinancing to a conventional loan with 20% equity can eliminate mortgage insurance. Whatever your goal, it’s important to make sure you have at least 20% equity in your home before you refinance.
Common Reasons to Refinance a Mortgage
• Lock in a lower interest rate due to improved credit or market conditions.
• Adjust your repayment term: Lengthen it for lower payments, or shorten it to pay off faster.
• Leverage your home equity for a variety of financial needs.
• Switch from an adjustable rate to a fixed rate for stability.
• For FHA loans, ditch mortgage insurance once you hit that magic 20% equity mark.
How to Compare Mortgage Refi Interest Rates
Get a great mortgage refinance rate to save money. Here’s how:
1. Shop around to compare offers from multiple lenders, including brick-and-mortar banks, credit unions, and online lenders.
2. Get prequalified to understand your borrowing power and the rates you’re offered.
3. Look at the APR, which includes interest, fees, and discount points.
4. Crunch the numbers to make sure your savings will outweigh your mortgage refinancing costs.
5. Keep an eye on Alabama refinance rates to seize the perfect moment.
Recommended: No Closing Cost Refinance
Compare Alabama Interest Rates by Mortgage Refi Type
One of the first steps in how to refinance a mortgage is to decide on your main financial goal. Alabama offers a diverse range of mortgage types to cater to the different goals of homebuyers. Choose the best option for your needs.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a great choice for homeowners who want to tweak their mortgage terms. While it might have slightly higher rates than government-backed loans such as FHA, VA, or USDA, it makes up for it with the freedom to adjust your interest rate and loan term.
You could opt for lower monthly payments by extending the loan term (but pay more in total interest) or pay off your loan quicker by shortening the term. This type of refinance is particularly suited for homeowners with solid credit and a good chunk of equity in their home.
Cash-Out Refi
A cash-out refinance is a smart way to leverage your home equity. Picture this: You own a $500,000 home, but you owe only $300,000 on it. That means you’ve got $200,000 in equity (assuming you have no home equity loan or HELOC).
A lender might allow you to borrow up to 80% of that equity, which would leave you with $100,000 after paying off your current mortgage. This could be a game-changer for paying off high-interest debt or tackling those big-ticket items on your wish list.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often offer lower interest rates, sometimes up to a full percentage point lower than conventional loans. These refis, such as the FHA Simple Refinance and FHA Streamline Refinance, are usually available to homeowners who already have an FHA loan.
If you don’t have an FHA loan, you can still explore an FHA cash-out refinance or an FHA 203(k) refinance, tailored for home improvements. These options can provide financial flexibility and potentially reduce your monthly payments.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, offer some of the lowest interest rates available. To qualify for a VA refi, known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan. This type of refinance can help you secure a lower interest rate, reduce monthly payments, and potentially eliminate private mortgage insurance. For veterans in Alabama, exploring VA refi options can be a strategic move to improve your financial standing and reduce the overall cost of your mortgage.
15-Year Mortgage Refi
Refinancing to a 15-year mortgage can be a game-changer, cutting the total interest you pay over the loan’s life, even though your monthly payments will be higher. Let’s say you have a 30-year $1 million loan at a 7.50% interest rate. Your monthly payment would be around $6,992, and the total interest paid would be about $1,517,167. Now, if you refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would jump to approximately $8,988.
But here’s the kicker: You’d slash your total interest paid to roughly $617,891, saving a whopping $900,000. If you can swing the higher monthly payments, this could be the perfect way to pay off your mortgage faster.
Adjustable-Rate Mortgage Refi
Now, let’s talk about adjustable-rate mortgages (ARMs). They typically start with a lower interest rate than fixed-rate loans, but that rate can change based on market conditions. If you’re planning to move before the ARM adjusts, refinancing to an ARM could be a smart move.
For instance, if you currently have a 30-year fixed-rate mortgage but know you’ll be relocating in a few years, switching to an ARM could lead to lower monthly payments and short-term savings. Just be sure to weigh the potential risks and ensure the savings make the switch worthwhile.
How to Get the Best Available Mortgage Refi Interest Rate
These steps can help you maximize savings over the life of your loan.
• Build your credit score by staying on top of payments and steering clear of new debt.
• Keep your debt-to-income ratio under 36% (the lower the better).
• Compare interest rates and fees from multiple lenders.
• Think about buying mortgage points to lower your interest rate.
• Choose a 10- or 15-year loan term for even lower interest rates.
Online Refinance Calculators
Online calculators are a great way to get a rough idea of what your monthly payments will be and to compare different refinance options. They can also help you understand the financial implications of refinancing, including how much you might save on interest and when you might break even. By entering your current loan details and playing around with different scenarios, you can get a better sense of whether refinancing makes sense for you. While a calculator can’t predict the future, it can help you make a more informed decision.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Mortgage refinancing is a powerful tool at your disposal, one that can reduce your monthly payments, minimize the interest you pay over time, and unlock your home’s equity. Whether you’re considering a cash-out refi, an FHA refi, a VA refi, or a 15-year mortgage refi, it’s important to weigh your financial goals and the long-term implications. By building your credit score, managing your debt-to-income ratio, and comparing Alabama refinance rates from various lenders, you can secure the best terms and save a significant sum 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 new mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
It is difficult to predict if mortgage rates will drop specifically, as they are affected by national and local economic factors. A better question is whether the money you’ll save by refinancing your mortgage will outweigh the costs of refinancing. This is true no matter what the current refinance rates are. You’ll need to carefully consider the financial implications of refinancing and make sure the decision aligns with your long-term financial goals.
Can I refinance when rates are low?
Absolutely, when rates are on the decline, it’s a prime time to consider refinancing your loan. But before you get started, it’s crucial to weigh the potential savings against the cost of refinancing, which can include a variety of fees and closing costs. You’ll want to make sure that the money you save in the long run will more than cover the expenses you’ll incur in the short term. Be sure to consider the current interest rate environment, the terms of your existing loan, and the costs of refinancing when you’re making your decision.
When is it a good idea to refinance your home?
It’s a smart financial move to refinance your home when you can secure a lower interest rate, reduce monthly payments, or pay off the loan faster. Before proceeding with a mortgage refinance, however, carefully consider the long-term financial benefits and ensure they outweigh the associated costs. Take the time to thoroughly evaluate your options and make an informed decision that aligns with your financial goals and circumstances. Additionally, consider consulting with a qualified financial advisor to gain insights and guidance tailored to your specific situation.
How much does 1 percent lower my monthly payment?
Let’s break it down. A 1% drop in your mortgage interest rate can translate to significant monthly savings. For instance, on a $300,000 mortgage, a 1% reduction from a 7.00% to a 6.00% interest rate could mean a $197 cut in your monthly payment. Use a mortgage refinance calculator to plug in your own numbers and see what the savings are.
Can I lower my interest rate without refinancing?
If you have a chunk of cash on hand, you might consider a mortgage recast. This involves making a large, lump-sum payment toward your principal. Your lender will then recalculate your monthly payments based on the new, lower balance. While this won’t change your interest rate, it can lower your monthly payments and save you a bundle in interest over the life of your loan.
Can I ask my lender to lower my rate?
Absolutely, you can ask your lender to lower your rate. If you have a good credit score and a good payment history, you may be able to get a lower rate. However, the decision to lower the rate is up to your lender, and there are a number of factors that they may take into consideration.
Can I get equity out of my house without refinancing?
Yes, you can pull equity out of your home without having to refinance. You can do this by taking out a home equity line of credit (HELOC). A HELOC allows you to borrow a large portion of the home’s value, up to 85%, and you will have a variable interest rate credit line to use. This can be a great way to access funds without having to go through the traditional refinance process.
What are the costs of mortgage recasting?
There is a fee to recast your mortgage. However, it’s typically much less than the fees you’d pay to refinance. Lenders may charge a few hundred dollars or so to recast your mortgage, but the exact amount can vary. Be sure to compare the cost of recasting your mortgage to the potential savings to make sure it’s a good move for you.
How much are closing costs on a refinance?
On average, closing costs for a refinance are typically 2% to 5% of the loan amount. That means if you’re refinancing a $300,000 mortgage, your closing costs could run anywhere from $6,000 to $15,000. That’s a significant amount of money, and it’s important to keep it in mind when you’re budgeting for a refinance. It’s also a good idea to shop around and compare closing costs from a few different lenders. By doing your homework, you could save hundreds or even thousands of dollars on your closing costs.
Does refinancing have an impact on your credit score?
Pursuing a refinance can cause a temporary dip in your credit score, but the impact is usually minor and short-lived. In fact, a refinance can have a positive effect on your credit in the long run by lowering your credit utilization ratio and diversifying your credit mix.
Do you have to pay closing costs again when you refinance?
Yes, you will need to pay closing costs again. These costs can include an appraisal fee, title insurance, and other miscellaneous expenses. Be sure to factor these costs into your decision, as they can add up quickly and potentially negate any savings you may be expecting to achieve through refinancing. Additionally, compare the interest rates and terms of your current mortgage with the new loan to make sure that refinancing makes financial sense for you.
How many times can you refinance your home loan?
Refinancing your home is a big decision and one that should be carefully considered. You may refinance your home as many times as you’d like, but there are associated costs with each loan. Also, refinancing your home could impact your credit. You’ll need to weigh the pros and cons and consider your short-term and long-term goals.
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.
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-Q125-156
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.
Is 609 a Good Credit Score?
Is 609 a Good Credit Score?
By Rebecca Lake
A credit score of 609 is not considered good. It falls into the fair category, which is below the good tier, but above the poor one, according to the FICO® credit scoring model.
With a 609 credit score, you may be able to access forms of credit, but you will likely pay higher interest rates and enjoy less favorable terms than those with a higher score. Here’s how this score can affect your ability to borrow.
Key Points
• A 609 credit score is categorized as fair (the range from 580 to 669), which is below the good tier.
• Credit card options with a 609 score may include higher interest rates and annual fees.
• Auto loans for a 609 score typically come with higher interest rates, increasing total interest paid.
• A 609 score can limit conventional mortgage options, though USDA, VA, and FHA options may be available.
• Personal loans are possible with a 609 score, but evaluate interest rates carefully before signing up, especially if consolidating credit card debt.
What Does a 609 Credit Score Mean?
FICO credit scores, which are used by 90% of top lenders to qualify borrowers, range from 300 to 850, with 850 being the highest score you can attain.
Here are the ranges:
• Exceptional (or excellent) credit: 800-850
• Very good credit: 740-799
• Good credit: 670-739
• Fair credit: 580-669
• Poor credit: 300-579
These scores are composed of five factors:
• Payment history: 35%
• Credit utilization: 30%
• Credit history: 15%
• Credit inquiries: 10%
• Credit mix: 10%
According to FICO, a 609 credit score translates to a fair credit rating, as noted above. Fair credit means your score is lower than the average American’s, but some lenders will still extend credit to you. For perspective, the average FICO score was 715 in 2024, according to Experian.
Fair credit won’t make borrowing impossible, but it can make it more expensive. A 609 credit score typically means you won’t qualify for the lowest interest rates. Those are usually reserved for people with very good or exceptional credit, which means a FICO score of 740 or higher.
What Else Can You Get With a 609 Credit Score?
Is 609 a bad credit score? Technically, no; FICO rates a score below 580 as poor credit. With a score in that range, you might find it difficult to get approved for loans or credit cards, and if you do, you may face significantly higher interest rates.
So, what can a 609 credit score get you? You can likely qualify for a credit card, a car loan, and some mortgages and personal loans, though they may be expensive. Here’s a closer look.
Can I Get a Credit Card With a 609 Credit Score?
Credit cards are convenient when you need to pay for things on the go, and it’s possible to get a credit card with a 609 credit score. For an unsecured card, you may be able to obtain a card, but it will likely involve a higher interest rate than those with good or better credit, and it will probably lack any kind of credit card rewards. (You will probably have to pay an annual fee, too.)
Another option: You might apply for a secured credit card, which can help build credit. Here’s the difference:
• Secured credit cards usually require a cash deposit to open, which doubles as your credit limit.
• Unsecured credit cards don’t require a deposit.
Either type of card could help you build good credit if you practice good habits. That includes paying your bill on time each month and keeping the balance low relative to your credit limit (this is known as your credit utilization ratio). Payment history and credit utilization carry the most weight in FICO credit scoring.
It can be difficult to know which credit cards you can get with a 609 credit score, since credit card companies usually don’t publish minimum credit score requirements online. They may, however, market certain cards as being designed for people with fair credit, which can help you decide which ones to apply for.
Worth noting: Hard inquiries (meaning applications for new credit) can temporarily lower your credit score by several points, so it’s better to just pick one credit card to apply for at a time.
Can I Get an Auto Loan With a 609 Credit Score?
A 609 credit score car loan approval isn’t unheard of. You’ll need to find a lender willing to offer you financing. Some lenders specifically target borrowers with lower credit who may not be able to get approved for a car loan through a bank or online lender.
The downside of getting a car loan with a 609 credit score is that you’ll most likely pay more interest. Again, that’s because lenders reserve the lowest rates for borrowers with the highest credit scores.
So how much could you pay? Here’s what borrowers in the fair credit score range paid on average for car loans in the third quarter of 2024:
• New car buyers paid 9.73%
• Used car buyers paid 14.07%
By comparison, buyers with excellent credit paid 5.08% for new car loans and 7.41% for used car financing on average.
Here’s an example to review:
• If you got a $20,000 used car loan with a 48-month repayment term at a 14.07% APR, your monthly payments would be $547, and you’d pay $6,267 in interest over the life of the loan.
• Now, if you built your credit and qualified for a 7.41% APR instead, your monthly payment would drop to $483, and you would pay just $3,171 in total interest.
Those numbers could be a great incentive to work on building your score before applying for a car loan.
Can I Get a Mortgage With a 609 Credit Score?
A 609 credit score isn’t a barrier to getting a mortgage, but it may limit your loan options. For example, most lenders require a minimum credit score of 620 to qualify for conventional mortgages, as well as VA and USDA loans.
That said, some VA and USDA lenders will review your application and may fund your loan, even if your credit score is below 620.
You could also qualify for an FHA loan with a FICO score as low as 500. FHA loans are federally insured loans that are designed to help people buy homes, even when their credit isn’t perfect. If you’re in the 609 credit score range, you could buy a home with as little as 3.5% down (or 10% if your score ranges from 500 to 579) and access a favorable interest rate.
The best way to find a good FHA loan rate for fair credit is to shop around and compare rates from multiple lenders. Look for lenders that offer free rate quotes without affecting your credit scores.
Recommended: How Many Personal Loans Can You Have at Once?
Can I Get a Personal Loan With a 609 Credit Score?
Personal loans can put cash in your hands when you need it, whether for a big dental bill or the cost of a vacation. It’s possible to qualify for one with a 609 credit score, albeit probably at a higher interest rate than you’d be offered if your score was higher.
As with mortgages or car loans, it’s important to shop around. Compare personal loan rates, terms, and fees. If you’re getting a credit card consolidation loan to streamline your debts, it’s important to make sure the loan rate you qualify for is less than what you’re paying to your cards. Otherwise, consolidating might not save any money.
To really dig into the numbers, use a personal loan calculator to estimate what you might pay, based on different loan rates and terms.
The Takeaway
A 609 credit score isn’t considered good. Rather, it falls into the tier below that, which is fair. While you can qualify for some forms of credit, it will likely be at higher interest rates and with less favorable terms than if your score was higher. Carefully review options, whether for a credit card or personal loan, to make sure you understand the fine print.
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 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.
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.
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.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
SOPL-Q125-030
Current Mortgage Refinance Rates in Arkansas Today
ARKANSAS MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Arkansas.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Arkansas.
Key Points
• Mortgage refinancing can be a smart move to reduce your monthly payments or save money over the life of the loan, especially if the current rates in Arkansas are lower than what you have now.
• Over the past few years, Arkansas refinance rates have ranged from 3.15% in 2021 to a peak of around 7.00% in 2023.
• A 1% drop in the interest rate on a $300,000 mortgage could put around almost $200 back in your pocket each month.
• Refinancing to a 15-year mortgage can drastically cut down the total interest you pay over the loan’s life.
• If you’ve got at least 20% equity in your home, a cash-out refinance could be a smart move, giving you the financial flexibility for big expenses like home improvements or consolidating debt.
• Closing costs for refinancing usually fall between 2% and 5% of the loan amount.
Introduction to Mortgage Refinance Rates
A mortgage refinance is like hitting the reset button on your mortgage. It replaces your current home loan with a new one, often with more favorable terms and a different interest rate. The type of refinance you choose will depend on your financial goals, whether it’s to snag a lower interest rate or tap into your home’s equity.
This guide will walk you through how Arkansas refinance rates are set and how you can land the best deal. Understanding the factors that sway mortgage refinance rates can help you make a savvy choice. Plus, keeping an eye on the ebb and flow of refinance rates in Arkansas can clue you in on the prime time to make a move.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refi Interest Rates Come From?
Historically, the 10-year U.S. Treasury Note has been the most reliable indicator of future mortgage rates. When the yield on the Treasury Note rises, current mortgage rates usually climb as well. Housing market dynamics also affect rates: An oversupply of homes can prompt lenders to lower their rates to attract buyers. Broader economic conditions play a significant role, too. Strong economic growth and job creation tend to push interest rates up, while a recession typically leads to lower rates.
How Interest Rates Affect Home Affordability
Let’s talk about how interest rates can make a world of difference in your refinance. Your monthly payment is a product of your home loan amount, the term over which you’ll repay it, and the interest rate. For instance, a $200,000 loan at 6.00% over 30 years would mean a monthly payment of $1,199. But if that interest rate were 8.00%, your monthly payment would jump to $1,467. Over the life of the loan, that 2% difference could save you close to $100,000.
Little things can add up, and even a fraction of a percentage point can translate to significant savings. So to ensure you’re getting the best deal, keep an eye on the current mortgage refinance rates in Arkansas.
Trends in Arkansas Mortgage Refinance Rates
Arkansas has seen its share of rate shifts. In 2021, the average 30-year fixed mortgage rate was around 3.15%. But by 2023, it had climbed to about 7.00%. Early 2025 predictions suggest that current mortgage refinance rates in Arkansas will remain elevated for some time. This information can be helpful when deciding if now is the right time to refinance, especially if you’re looking to lower your rate or tap into your home’s equity.
Historical U.S. Mortgage Interest Rates
Mortgage interest rates in the United States have seen significant changes over the years. In the early 2000s, rates were around 6.00% or 7.00%. They dropped to around 3.00% in 2020-2021 but climbed back up to about 7% in 2023. By learning about historical trends, you can gain valuable context about the current mortgage refinance rates in Arkansas and make a more informed decision about refinancing your mortgage.
Historical Interest Rates in Arkansas
Mortgage refinance rates in Arkansas have followed the same trends seen across the country. These changes can have a big impact on the financial implications of refinancing for Arkansas homeowners, particularly in terms of monthly payments and total loan costs. Below, you’ll see the history of Arkansas mortgage rates for the years 2000-2018. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Arkansas Rate | National Rate |
|---|---|---|
| 2000 | 7.98 | 8.14 |
| 2001 | 6.82 | 7.03 |
| 2002 | 6.55 | 6.62 |
| 2003 | 5.84 | 5.83 |
| 2004 | 6.00 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.52 | 6.60 |
| 2007 | 6.47 | 6.44 |
| 2008 | 6.15 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.70 | 4.84 |
| 2011 | 4.57 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.94 | 3.92 |
| 2014 | 4.12 | 4.24 |
| 2015 | 3.88 | 3.91 |
| 2016 | 3.75 | 3.72 |
| 2017 | 4.08 | 4.03 |
| 2018 | 4.61 | 4.57 |
Why Refinance Your Mortgage?
Refinancing your mortgage can be a strategic move, tailored to your financial aspirations. If the current interest rates are in your favor, you could see a reduction in your monthly payments and save big over the life of your loan. To make the most of it, aim for at least 20% equity in your home, especially if you’re eyeing a cash-out refi. You can also use a refi to tweak your repayment term, switch from an adjustable-rate to a fixed-rate loan, or kiss mortgage insurance goodbye if you have an FHA loan and 20% equity.
Common Reasons to Refinance a Mortgage
Which of these reasons is closest to your own? The answer will factor into what type of mortgage refi you choose.
• You qualify for a lower interest rate because of improved credit or market conditions.
• You’re looking to adjust your repayment term to either ease your monthly payments (with a longer term) or pay off the loan quicker (with a shorter term).
• You’re looking to tap into your home equity for major expenses such as college tuition or home improvements.
• Your adjustable-rate mortgage is about to reset, and you’re considering a switch to a fixed-rate loan.
• You have an FHA loan and 20% equity, and you want to eliminate mortgage insurance.
• You’re looking to release a cosigner from the loan.
Recommended: How to Refinance a Mortgage
How to Compare Mortgage Refi Interest Rates
To secure the best mortgage refinance rate, compare rates from multiple lenders. Consider the annual percentage rate (APR), which includes interest, fees, and any discount points you purchase. Evaluate how the refinance aligns with your financial goals. Use a calculator to estimate your savings and the recoupment time. Finally, monitor rate changes, and lock in a rate when the time is right.
Compare Arkansas Interest Rates by Mortgage Refinance Type
Refinance interest rates differ depending on the type of mortgage you choose. For each, closing costs will be about 2% to 5% of the loan amount. (While you may see ads for a “no closing cost refinance,” those lenders typically just roll your closing costs into your loan amount — meaning you’ll be paying interest on them for the life of your loan.)
Conventional Refinance
A conventional refinance, also known as a rate-and-term refinance, involves replacing the current mortgage with a new one that has different terms and an updated interest rate. Conventional refinances typically have higher rates than government-backed loans (think FHA, VA, and USDA loans), but they may be a good option for homeowners who are looking to lower their interest rate, change their loan term, or remove a cosigner. To qualify, you’ll need to meet credit score and equity requirements.
You could opt for lower monthly payments by extending the loan term (but pay more in total interest) or pay off your loan quicker by shortening the term. This type of refinance is particularly suited for homeowners with solid credit and a good chunk of equity in their home.
Cash-Out Refinance
A cash-out refinance allows you to tap into your home’s equity and receive a lump sum. It may come with a slightly higher interest rate than a traditional refinance, but the potential benefits make it worth considering. Imagine your home is valued at $500,000, and you currently owe $300,000 on your mortgage. That means you have $200,000 in equity. A lender may allow you to borrow up to 80% of that equity, leaving you with $100,000 after paying off your existing mortgage. This could be a solution for high-interest debt, home improvements, or other significant expenses.
FHA Refinance
FHA loans, backed by the Federal Housing Administration, often come with lower interest rates, sometimes as much as a full percentage point lower than conventional loans. If you already have an FHA loan, you may be eligible for an FHA Simple Refinance or an FHA Streamline Refinance. If you don’t have an FHA loan, you can still refinance with an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home improvement and rehabilitation projects.
VA Refinance
VA loans, backed by the United States Department of Veterans Affairs, offer some of the most competitive interest rates you’ll find. 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 a game-changer, potentially lowering your monthly payments and eliminating private mortgage insurance. If you’re a veteran who meets the criteria, this could be a great option for you.
15-Year Mortgage Refinance
Refinancing to a 15-year mortgage can be a game-changer, slashing the total interest you pay over the loan’s lifetime. Let’s say you have a 30-year, $500,000 loan at a 7.50% interest rate. You’d be looking at a monthly payment of around $3,500 and a whopping total interest paid of $759,000. But if you refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would go up to $4,500. Yet the total interest paid would be a much more manageable $309,000, which means you could save almost $450,000 in interest.
Adjustable-Rate Mortgage Refinance
An adjustable-rate mortgage (ARM) starts with a lower rate than a fixed-rate loan, but the rate changes over time in line with the market. If you’re planning to move or sell your home before the rate adjusts, refinancing with an ARM could be a smart move. You might be able to lower your monthly payments and free up cash for the next phase of your life./p>
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate, consider these steps:
• Build your credit score by being diligent with your bill payments and avoiding new debt.
• Keep your debt-to-income ratio under 36% for those better rates.
• Compare interest rates and fees from multiple lenders.
• Think about buying mortgage discount points to lower your interest rate.
• Consider a 10- or 15-year mortgage for even lower interest rates.
Online Refinance Calculators
Online refinance calculators are a great way to estimate what your new monthly payment might be and compare different refinance options. By using a refinance calculator, you can see what your potential savings might be and how long it would take to recoup your mortgage refinancing costs. This can help you make a more informed decision about whether or not refinancing is right for you. Refinance calculators can also help you compare different loan terms, interest rates, and fees so you can make the best decision for your financial 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
Mortgage refinancing can offer big financial benefits, like the potential for a lower interest rate, lower monthly payments, or the ability to take cash out of your home. But it’s important to weigh the costs to make sure a refinance aligns with your long-term financial goals. Whether you’re looking to save on interest, consolidate debt, or get cash for home improvements, understanding the different types of refinance and how to get the best rate can help you make a smart decision.
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.
FAQ
Are refinance rates going to drop?
No one can predict what interest rates will do in the future. The key question to ask is whether the potential benefits of refinancing your mortgage outweigh the costs. A refinance calculator can help you determine whether refinancing makes sense for your personal situation.
Can I refinance when rates are low?
Absolutely. When interest rates drop, you can refinance your loan to take advantage of the lower rates. But you should also consider the costs associated with refinancing, such as closing fees and any prepayment penalties. By weighing the potential savings against the expenses, you can make an informed decision about whether refinancing makes sense for you.
How much does 1 percent lower my monthly payment?
A 1% drop in your mortgage interest rate can make a big difference in your monthly payment. Take a $300,000 mortgage, for example. If you were to lower the interest rate from 7.00% to 6.00%, you would save about $165 per month. That adds up to a lot of money over the life of the loan.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
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-Q125-159
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.
Is 618 a Good Credit Score?
Is 618 a Good Credit Score?
A 618 credit score is not considered good, per the traditional FICO® scoring model, which is used by 90% of lenders in the U.S. Instead, FICO labels a 618 credit score as fair — one step below good and notably below the average credit score of U.S. consumers, which is currently 715. VantageScore, another credit scoring model, considers a 618 score to be near prime but still not a good credit score.
However, with a 618 credit score, you should still be able to qualify for a wide range of loan products, including car loans and some mortgages and personal loans. And responsibly managing such loans can help you build your credit score over time and obtain more access to credit at more favorable terms.
Key Points
• A 618 credit score is considered fair, one step below good in the FICO scoring model.
• The average credit score in the U.S. is currently 715.
• With a 618 credit score, you can still qualify for loans and credit cards, but typically at higher interest rates and fees and possibly lower credit limits.
• To build your credit score, focus on making on-time payments and lowering credit utilization.
• Building a longer credit history and avoiding frequent new credit applications can also help build your score.
What Does a 618 Credit Score Mean?
The standard credit score ranges run from 300 to 850 in both the FICO and VantageScore models. The higher your number, the more likely you are to be approved for loans and at better terms, meaning, among other things, lower interest rates and higher limits. Here’s what FICO credit ratings look like:
• Poor credit: 300-579
• Fair credit: 580-669
• Good credit: 670-739
• Very good credit: 740-799
• Exceptional (or excellent) credit: 800-850
FICO’s credit scoring model is based on five credit score factors, some of which have a larger impact on your score than others:
• On-time payment history (35%)
• How much available credit you use (30%)
• Length of your credit history (15%)
• Credit mix (10%), meaning responsibly handing different forms of credit, such as installment loans and lines of credit
• How much new credit you’ve recently applied for (10%); too many applications in a short period of time can negatively impact your score
With that understanding, what does a 618 credit score mean? A 618 credit score indicates to lenders that you aren’t an ideal borrower, based on one or more of these factors. For instance, you may have limited credit history, you might have fallen behind on your rent, you could have applied for too many personal loans recently, or you may regularly max out your credit cards.
That said, a 618 credit score is considered fair by FICO’s standards and signals to lenders that they could still potentially lend to you — but perhaps at a higher interest rate and with some fees, as a precaution.
Also worth noting: It’s not just lenders that look at your credit score. Often, potential landlords, employers, and insurers will review your credit score before moving forward with your application. That’s why it’s important to work hard to improve your credit score over time.
What Can You Get With a 618 Credit Score?
While a 618 credit score is in the fair range, you’ll still be able to qualify for some types of loans. Here’s a closer look at what you can (and can’t) qualify for with a 618 FICO score.
Can I Get a Credit Card With a 618 Credit Score?
Yes, you can likely get a credit card with a 618 credit score. While there’s no universal minimum credit score to get a credit card, many credit card issuers require fair credit or better. That said, even people with poor credit or no credit at all can qualify for some credit cards. A lower credit score simply means fewer options and higher interest rates.
With a 618 credit score, you can qualify for unsecured credit cards, but expect to pay higher rates and fees. You probably won’t qualify for rewards credit cards that earn cash back, points, or miles.
Responsibly managing your credit card — using only a small portion of the credit available, and paying it off every month — can be a good way to build your credit score. In time, you may move from fair credit to good or even excellent credit, and then you’ll be able to qualify for rewards credit cards and lower interest rates.
When making approval decisions, credit card issuers may use the specialized FICO Bankcard Score, which is more industry-specific. Though this score ranges from 250 to 900, the two scoring models are similar; a fair standard credit score usually translates to a fair Bankcard Score.
Can I Get an Auto Loan With a 618 Credit Score?
You should be able to get an auto loan with a 618 credit score. In fact, there’s really no set minimum credit score for an auto loan. Even people with poor credit can sometimes get a car loan, though they may only be approved for a small amount and at a higher interest rate.
For example, with a 618 credit score, you would likely qualify for a new car auto loan with a 9.73% average annual percentage rate (APR), as of the third quarter of 2024. With a higher score of 661 to 780, that rate would drop to 6.70%.
Much like with credit cards, many auto financers use an industry-specific version of your FICO Score when making a lending decision. Instead of the standard score, they’ll use your FICO Auto Score, which ranges from 250 to 900. That said, a fair FICO Score (such as 618) usually indicates a fair FICO Auto Score.
While you might not get the best interest rates on your auto loan with a 618 score, you can use a car loan as an opportunity to improve your credit. Make on-time payments during the course of the auto loan, and you can expect your credit score to start to improve.
Recommended: Average Car Loan Interest Rate by Credit Score
Can I Get a Mortgage with a 618 Credit Score?
Though a 620 is generally considered the credit score needed to buy a house, it’s still possible to get a mortgage with a 618 credit score. That said, it wouldn’t hurt to wait a few months to buy a home so you can focus on building your score by just a few points and open up more borrowing options (and potentially lower mortgage rates).
So, what mortgage options are available if you have a 618 credit score? While you may not qualify for a VA loan (there’s typically a 620 credit score requirement) or a USDA loan (also usually a 620 credit score requirement), you will likely be able to qualify for an FHA loan. These loans require a 580 credit score, though you can get approved with a score as low as 500 if you’re able to make a 10% down payment on the home.
Otherwise, you might consider building your credit score before applying for a conventional loan. You can take such steps as always making debt payments on time and working to lower your credit utilization, among other moves.
Can I Get a Personal Loan with a 618 Credit Score?
You should be able to qualify for a personal loan with a 618 credit score. Credit score requirements for personal loans vary by lender, but a common requirement among popular lenders is 610. It’s important to recognize, though, that while even borrowers with poor credit or limited credit history can qualify for some types of personal loans, it’s usually with a high interest rate, high fees, collateral, and/or a cosigner.
As with other loans, lenders will consider more than your credit score when making a personal loan decision. For instance, lenders will consider your employment status and debt-to-income ratio. With a 618 credit score and a low enough debt-to-income ratio, you should be able to qualify for a personal loan with some lenders, but don’t expect to qualify for the largest loan amounts or lowest interest rates and fees.
Once obtained, a personal loan can be used for an array of purposes, such as:
• Medical, dental, or car repair bills
• Travel expenses, including honeymoon costs
• Credit card debt consolidation
Recommended: Recommended: Personal Loan Calculator
The Takeaway
A 618 credit score is considered fair, according to the FICO credit scoring model. With this score, you should be able to qualify for many popular types of credit, including personal loans, credit cards, car loans, and some mortgages. That said, your lender options may be more limited, and you can expect to pay higher rates and fees, with less flexible loan amounts and repayment terms. Review your options carefully to find the best fit for your needs and situation.
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 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.
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.
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.
Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®
SOPL-Q125-032
Stay up to date on the latest business news and stock market happenings.