Current Mortgage Refinance Rates in Ohio Today
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Compare mortgage refinance rates in Ohio.
Key Points
• Mortgage refinance rates in Ohio are influenced by economic factors such as Federal Reserve policy, inflation, the bond market, housing inventory, and your credit score.
• Even a 1% dip in your mortgage refinance rate can make a world of difference, slashing your monthly payments and saving you a bundle in the long run.
• Cash-out refinancing can help you access a lump sum of cash borrowed against your home equity, which can then be put toward a variety of financial needs.
• FHA refinances, backed by the Federal Housing Administration, can often secure you lower mortgage refinance rates and more flexible terms than conventional loans.
• By switching to a 15-year mortgage in Ohio, you could pocket significant interest savings in the long run, even if it means slightly higher monthly payments.
Introduction to Mortgage Refinance Rates
A home loan refinance is essentially a do-over for your mortgage, with a new set of terms and a fresh interest rate. When mortgage rates fall, it can be a money-wise moment to refi your loan.
The motivation for your mortgage refinance can dictate the type of refi you choose, and the type of refi will play a role in determining your interest rate. This guide is here to help you navigate the landscape of mortgage refinance rates and to empower you to secure the most favorable rate available. Understanding the factors at play and taking the right steps can make a substantial difference in your financial well-being.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refinance Interest Rates Come From?
Mortgage refinance rates are not arbitrary numbers; they are influenced by an array of economic factors and your unique financial standing. Economic indicators such as Federal Reserve policy, inflation, the bond market, and housing inventory all play a role. Inflation, for example, can lead to higher rates, as can a hot real estate market, where inventory is low and prices are climbing. The Federal Reserve’s monetary policy can also have a ripple effect, impacting the direction in which mortgage rates shift nationally and, more specifically, in Ohio.
Another facet that impacts mortgage refi rates is your personal credit profile. Those with higher scores appear more creditworthy to lenders and can therefore secure more favorable rates and terms. Those with lower scores, who were perhaps late with debt payments in the past or missed some bills altogether, are likely to be assessed higher refi mortgage rates.
By keeping an eye on these factors and staying informed, you can better choose the most opportune moment to refinance your home loan.
How Interest Rates Affect Home Affordability
Just like when you first got your mortgage, interest rates are a big factor in how much you’ll be paying each month. Your loan amount, the repayment term, and the interest rate all come together to determine your monthly payment. Here are some specific numbers to give you a better understanding of this important topic:
• Say you have a $200,000 loan with a 6.00% mortgage refinance rate and a 30-year repayment term. That would mean a monthly payment of $1,199.
• But if that same loan had an 8.00% mortgage refinance rate, you’d be looking at a $1,467 monthly payment.
• What’s more, the lower 6.00% interest rate could save you nearly $100,000 over the life of the loan. Think about how that money could be put to good use!
While this example uses a major difference in interest rates to prove a point, smaller shifts can also be a very good thing for your financial health. Even though a less significant interest rate drop might not seem like much in terms of monthly savings, it can really add up over the years.
Why Refinance in Ohio?
Refinancing your mortgage could be a smart move if current interest rates are lower than when you took out your loan. Depending on your reasons for refinancing (such as reducing your monthly payments or taking cash out of your home equity), you can likely find a product to suit your needs.
Common Reasons to Refinance a Mortgage
Homeowners refinance in Ohio (and other states) for various reasons:
• Qualifying for a lower interest rate thanks to improved credit or market conditions.
• Lower interest rates: Perhaps the market has shifted in your favor, or you have built your credit score, making better rates and terms possible.
• Repayment term change: A longer term can mean lower monthly payments, while a shorter term can help you pay off the loan faster and save on interest.
• Cash out home equity: You might want to tap into your equity to cover major expenses, such as education costs.
• Adjustable rate change: Refinancing can switch to a fixed-rate loan, protecting against future rate increases.
• FHA loan with 20% equity: Once you hit that equity milestone, refinancing can help you avoid permanent FHA mortgage insurance premiums for FHA loans taken after 2013 with less than 10% down.
How to Get the Best Available Mortgage Refi Rate
Finding the most favorable rate can take some time and energy. To secure a competitive mortgage refinance rate, consider these moves:
• Build your credit score: That means timely payments, every time, and avoiding new debt.
• Lower debt-to-income ratio: Shoot for 36% or less.
• Compare rates and fees: Be sure to shop around for the best deal.
• Be smart about rates: Focus on annual percentage rates (APRs) vs. interest rates alone to get a truer picture of how much your loan will cost. APRs incorporate fees and other important features.
• Weigh mortgage points: Each point you buy costs 1% of the loan amount and typically lowers your interest rate by 0.25%.
• Opt for a shorter term: Doing so can mean lower rates and less interest in the long run, though your monthly payment will be higher.
Understand Trends in Ohio Mortgage Interest Rates
Mortgage rates have seen their share of ups and downs in recent years. If you’re a homeowner in Ohio who’s thinking of refinancing, here’s a deeper dive into where rates have been nationally and in your home state, as well as where they may be heading.
Historical U.S. Mortgage Interest Rates
Over the past 10 years, mortgage refinance rates have seen some big changes. In 2012, the typical 30-year fixed mortgage rate was around 3.15%. The lowest it got was 2.65% in 2020. By 2023, rates had climbed to around 7.00%. And while many expected a decline in 2025, Freddie Mac’s prediction is that current mortgage rates will remain on the higher side for a bit longer.
But don’t let that discourage you. These changes reflect the broader economic environment, and when you consider that rates peaked at almost 20% in 1981, perhaps 7.00% isn’t so bad.
Historical Interest Rates in Ohio
Ohio’s mortgage refi rates often shadow the national scene. If you’re a homeowner in Ohio, keeping an eye on these trends could lead you to the perfect moment to refinance. Imagine snagging a lower rate during a dip and watching the savings add up over the years. It’s not just a possibility — it could be your reality.
The chart below chronicles almost two decades of rates in Ohio vs. the national rate, which can help you see trends at both levels. (The data points end at 2018 since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
| Year | Ohio Rate | National Rate |
|---|---|---|
| 2000 | 8.02 | 8.14 |
| 2001 | 7.03 | 7.03 |
| 2002 | 6.53 | 6.62 |
| 2003 | 5.66 | 5.83 |
| 2004 | 5.67 | 5.95 |
| 2005 | 5.90 | 6.00 |
| 2006 | 6.48 | 6.60 |
| 2007 | 6.37 | 6.44 |
| 2008 | 5.97 | 6.09 |
| 2009 | 5.07 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.53 | 4.66 |
| 2012 | 3.70 | 3.74 |
| 2013 | 3.97 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 4.01 | 3.91 |
| 2016 | 3.79 | 3.72 |
| 2017 | 4.15 | 4.03 |
| 2018 | 4.59 | 4.57 |
Choose the Right Mortgage Refi Type
You might be aware that refinance rates tend to be a tad higher than those for new home purchases. However, the interest rates themselves can vary based on the type of mortgage refinance you opt for. There’s a whole menu of choices out there, each with its own set of perks.
Just one caveat: In terms of how soon you can refinance your mortgage, you typically need at least 20% equity in your home before you can pursue replacing your loan.
Conventional Refi
Conventional refinancing, also known as a rate-and-term refi, typically comes with slightly higher rates than government-backed loans (FHA, VA, and USDA, each of which has its own specialized qualification criteria). This option is best for homeowners who have a strong credit profile (meaning a score of 620 or higher) and ample equity (20% or higher) in their home.
The beauty of a conventional refi is the flexibility it offers. You can adjust your interest rate and loan term to better align with your financial goals. Looking to lower your monthly payments? Consider extending your loan term. Want to be mortgage-free sooner? Shorten the term.
Cash-Out Refi
Cash-out refinances can be a smart way to leverage the equity you’ve built in your home by replacing your existing mortgage with a larger one. The difference is yours to use as you see fit. Whether it’s consolidating debt, embarking on home improvements, or tackling other financial goals, a cash-out refinance could be the solution.
For instance, if your home is valued at $500,000 and your mortgage balance is $300,000, you have $200,000 in equity. Most cash-out refinance loans allow you to access up to 80% of your equity. So in this instance, you could get a sum over $100,000 to use as you like.
15-Year Mortgage Refi
Opting to swap a 30-year mortgage for a 15-year home loan refinance in Ohio can be a savvy financial move. Though the monthly payments may seem heftier, the lower refinance rate and shorter term can work wonders in reducing your overall interest payments.
To put it in perspective, here’s an example:
• If you have a 30-year, $1 million loan at a 7.50% interest rate, this would typically translate to a monthly payment of around $6,992 and total interest paid of about $1,517,167. (You read that correctly: The overall interest is more than the loan’s principal.)
• If you were to refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would increase to approximately $8,988. That may or may not work for your budget. However, if you could swing it, the total interest paid would be slashed to around $617,891, saving you nearly $900,000 over the life of the loan. That could make a big difference in the state of your personal finances and your net worth.
With numbers that significant, it might be worthwhile to contemplate whether a shorter loan term could be right for you.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) can be a savvy choice for those who foresee a move or refinance before the rate adjusts. If you’re in a 30-year fixed-rate mortgage but have plans to relocate in a few years, an ARM could trim your monthly payments for the time that you are still owning your property.
Just one caveat: It’s important to understand that the rate may climb, which could mean heftier payments down the line. This could be a significant financial burden if you wind up staying put vs. selling your property and moving on. Weigh your financial goals and the risks before taking the leap.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often offer lower mortgage refinance rates compared to conventional loans. These refinances are particularly beneficial for homeowners who already have an FHA loan. FHA Simple Refinances and FHA Streamline Refinances are designed for those with existing FHA loans, and they can reduce required documentation.
For homeowners without an FHA loan, you may still be able to benefit. Options include the FHA cash-out refinance and the FHA 203(k) refinance, which is ideal for those planning home renovations. These alternatives can provide lower rates and more flexible terms, making them a good option for a variety of financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, are known for their low mortgage refinance rates. To qualify for a VA refinance, you must have an existing VA loan. That means you are either an active-duty member of the military, a veteran, or perhaps a spouse.
The most common type of VA refi you’ll find in Ohio is the Interest Rate Reduction Refinance Loan (IRRRL), which is designed to lower your interest rate and reduce monthly payments. This can be a cost-effective way to improve your financial standing, especially if you plan to stay in your home for the long term. VA refinances can be a valuable option for securing better loan terms without the need for a full appraisal or credit check.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Compare Mortgage Refi Interest Rates
Now that you have a better picture of several key refinance options in Ohio, here’s advice on how to secure a competitive mortgage rate:
• Compare lenders’ annual percentage rates (APR), which include interest, fees, and discount points (or mortgage points, which raise upfront costs but can lower the loan’s interest rate).
• Be sure to consider the total cost of refinancing, including closing costs, to ensure your savings are worth it.
• If your current rate is already a good deal lower than what’s out there, refinancing might not be the best move.
• Lower rates can sometimes mean higher mortgage refinancing costs. Make sure you have the full financial picture of upfront costs and payments over the life of the loan before signing off on a refi in Ohio.
• Crunch the numbers with a mortgage refinancing calculator to get a clearer picture of your monthly payments and potential savings.
Use an Online Refinance Calculator
When it’s time to compare refi rates, terms, and options, there’s no need to start tapping the buttons on an old-school calculator. Online refinance calculators can be a great way to get a rough estimate of what your new monthly payment might be and to see how different refinance options stack up against each other.
These calculators take into account your current loan balance, the new mortgage refinance rate, and the term of the new loan. By inputting your specific financial details, you can get a good idea of what your potential savings might be and whether or not refinancing makes sense for you. They can also help you see the long-term financial implications of refinancing, which can help you make a more informed decision.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Ohio can be a smart financial move, but it requires careful thought and planning. Whether you want to lower your mortgage refinance rate, access your home’s equity, or switch from an adjustable to a fixed interest rate, it’s important to understand the different types of refinances and the specific requirements for each. By comparing offers from multiple lenders, you can review your options and choose the best rate and terms for your financial situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How much does 1 percent lower your monthly payment?
A 1% reduction in your mortgage interest rate can save you a significant amount of money. Exactly how much will depend on such factors as your loan amount and term. For example, if you have a 30-year, $300,000 loan at a 7.00% interest rate, your monthly payment will be $1,996. If you can reduce your interest rate to 6.00%, your monthly payment will drop to $1,799. That’s a savings of about $197 each month. A lower interest rate will give you more money in your pocket each month and can add up to big savings over the life of the loan.
Can I get a lower interest rate without refinancing?
If you have some extra cash on hand, you might consider a mortgage recast. With a recast, you make a lump sum payment toward your principal, and your lender then recalculates your payments. This won’t change your mortgage refinance rate, but it can lower your monthly payments and save you a significant amount of interest over the life of your loan. Another option is to request a loan modification if you are having difficulty paying what you owe each month or negotiate with your lender for a lower interest rate.
Can I negotiate a lower interest rate with my lender?
Absolutely! You can always reach out to your lender and see if they’re willing to work with you on a lower rate. If you have a history of on-time mortgage payments, a low debt-to-income ratio, and a good credit score, your lender may be willing to adjust your rate without going through the refinance process.
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SOHL-Q125-190
More refinance resources.
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Current Mortgage Refinance Rates in North Dakota Today
NORTH DAKOTA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
North Dakota.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in North Dakota.
Key Points
• Mortgage refinance rates are influenced by economic factors, including bond market trends and housing inventory.
• Even a 1% drop in your mortgage refinance rate can mean substantial savings, lightening your monthly load and saving thousands of dollars over time.
• Switching to a 15-year mortgage could mean big savings in the long run, even if monthly payments are a bit steeper.
• FHA and VA loans often come with more attractive refinance rates than conventional loans, so they are a smart choice for some homeowners.
• Closing costs for refinancing can range from 2% to 5% of the loan amount.
Introduction to Mortgage Refinance Rates
A mortgage refinance is like a makeover for your home loan — one that leaves you with a more attractive financial profile. You swap your existing mortgage for a new one, complete with fresh terms and an updated interest rate. The reason behind your refinance will dictate the type you choose, and the type will play a role in the interest rate you secure. This guide is your ticket to understanding how mortgage refinance rates are determined, and how you can land the most favorable one. For starters, it helps to understand where mortgage rates come from.
💡 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 Originate?
Current mortgage rates are influenced by both economic and personal financial factors. The big economic factors that come into play include bond market conditions, housing inventory, and the job market. The strongest indicator of the direction mortgage interest rates are headed lies in the performance of the 10-year U.S. Treasury Note. When the rates on the note rise, mortgage interest tends to head in the same direction. Another factor is the housing market. When the market cools, lenders may lower rates to keep customers flowing. Then there is the overall economy: A strong jobs market and economic growth can cause interest rates to rise, while a recession is usually accompanied by lower interest rates.
How Interest Rates Affect Home Affordability
As with your current mortgage, the interest rate you obtain in a refinance is key to its affordability. Your monthly payment is calculated based on your loan amount, the term of repayment, and the interest rate. For instance, a $200,000 loan with a 6.00% refinance rate and a 30-year repayment term would mean a $1,199 monthly payment. The same loan with an 8.00% refinance rate would require a $1,467 monthly payment. The lower interest rate could also save you nearly $100,000 over the life of the loan. While a fraction of a percentage point might seem small, it can mean substantial savings over the loan’s duration.
Why Refinance in North Dakota?
The “why” behind your decision to refinance is crucial and can lead you down different paths, each with its own set of benefits. Wondering about the “when” and how soon can you refinance a mortgage? It’s generally a good idea to have at least 20% equity in your home before you swap out your loan. Here are the more popular reasons owners undertake a refi.
Common Reasons to Refinance a Mortgage
• Lower interest rate: If rates have dropped or your credit has improved so that you qualify for a lower rate than you currently have, you might be able to snag a better deal.
• Change repayment term: Lengthen your term for lower payments (though more interest), or shorten it to pay less overall.
• Cash out home equity: Tap into your increased home value for funds that you can use for a renovation or other big expense.
• Switch to a fixed-rate loan: Protect yourself from potential rate hikes, and plan your budget with consistent monthly payments.
• Refinance an FHA loan: Once you have 20% equity, you can eliminate the FHA mortgage insurance premium by refinancing.
• Consolidate debt or remove a cosigner from a loan.
How to Get the Best Available Mortgage Refi Rate
If one or more of the above reasons applies to you and you’re figuring out how to refinance a mortgage, it will help to prepare by taking these steps:
• Maintain a healthy credit score by being punctual with all debt payments.
• Keep your debt-to-income (DTI) ratio under 36%. To determine your DTI ratio, add up all your monthly debts, divide by your gross monthly income, then multiply by 100.
• Think about whether you have cash on hand that you could use to buy mortgage points (also known as discount points) to lower your interest rate.
• Consider whether your monthly budget would allow you to opt for a shorter-term loan, which will have a higher monthly payment but which will help you build equity and pay off your loan faster, with less interest paid.
Understand Trends in North Dakota Mortgage Interest Rates
If you are waiting for an interest rate drop, and you have a certain magical number in mind, it’s a good idea to check in with prevailing interest rates to make sure your figure is realistic. North Dakota interest rates follow national patterns, as you will see below.
Historical U.S. Mortgage Interest Rates
Looking at national average mortgage rates over a long time period will help you understand how unusual it is to see very low rates of less than, say, 4.00%. The graphic shows more than a half-century of rates. They dropped to historic lows of around 3.00% in 2020. But rates that low are rare, as the graphic shows.
| Year | North Dakota Rate | National Rate |
|---|---|---|
| 2000 | 8.04 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.44 | 6.62 |
| 2003 | 5.58 | 5.83 |
| 2004 | 5.58 | 5.95 |
| 2005 | 5.55 | 6.00 |
| 2006 | 6.12 | 6.60 |
| 2007 | 5.97 | 6.44 |
| 2008 | 5.63 | 6.09 |
| 2009 | 4.79 | 5.06 |
| 2010 | 4.58 | 4.84 |
| 2011 | 4.29 | 4.66 |
| 2012 | 3.63 | 3.74 |
| 2013 | 3.87 | 3.92 |
| 2014 | 4.21 | 4.24 |
| 2015 | 3.89 | 3.91 |
| 2016 | 3.70 | 3.72 |
| 2017 | 3.91 | 4.03 |
| 2018 | 4.32 | 4.57 |
Choose the Right Mortgage Refi Type
Your next step in the refinance process is to determine what type of loan you might want to choose. Generally, conventional loan refinances come with slightly higher rates, while government-backed options like an FHA loan offer lower rates and more lenient credit-score requirements. But there’s more to it than that. Here are the most common refi types so you can determine which direction you’re inclined to go.
Conventional Refi
Also known as a rate-and-term refi, conventional refinances are popular with homeowners who want to adjust their interest rate, loan term, or both. Conventional refis are straightforward and do not require the same level of documentation as government-backed loans. However, they may have stricter credit requirements and higher closing costs. Despite these drawbacks, a conventional refi can still be a cost-effective option if you qualify for a lower mortgage refinance rate.
15-Year Mortgage Refi
As noted above, a 15-year mortgage could be a smart move. Yes, monthly payments may be higher than your current payment, but the savings on interest in the long run could be substantial. Some borrowers opt for the shorter term because they are in their peak earning years and want to pay off their mortgage before a child heads to college, or before they retire. (Of course, it’s also true that some borrowers refinance to a longer term, such as a 30-year loan, so they can reduce their monthly loan payments.)
Adjustable-Rate Mortgage Refi
Borrowers move into or out of adjustable-rate mortgages (ARMs) during the refinance process. Homeowners who plan to move in a few years might choose an ARM because these loans tend to have a low introductory interest rate, followed by adjustments that can go up or down depending on the market. They are banking on the idea that they will move before they face a rate increase. Other refinancers are aiming to get out of an ARM and into a fixed-rate loan to ensure more predictable monthly payments.
Cash-Out Refi
A cash-out refinance lets you unlock your home’s equity, providing you with a lump sum that can be used for home improvements, debt consolidation, or other needs. These refinances often come with slightly higher mortgage rates than traditional ones, but a cash-out refinance is one of the more cost-efficient ways to borrow a large sum. For instance, if your home is valued at $500,000 and you owe $300,000, you could have $200,000 in equity. A lender may allow you to borrow up to 80% of this equity.
FHA Refi
FHA loans, insured by the Federal Housing Administration, often come with lower mortgage refinance rates than conventional loans. But as noted above, many FHA loan holders pay a monthly mortgage insurance charge. Refinancing once you hit 20% equity can help you shake off this expense. The FHA Simple Refinance and FHA Streamline Refinance are for homeowners who already have an FHA loan. If you don’t have an FHA loan, you may want to consider applying for an FHA cash-out refinance or an FHA 203(k) refinance, which is specifically designed for home renovations and improvements.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, are known for offering some of the most competitive mortgage refinance rates. To be eligible for the VA’s Interest Rate Reduction Refinance Loan (IRRRL), you must already have an existing VA loan. This type of refinance can potentially lower your monthly payments and save you a significant amount of money on interest over the life of the loan. If you’re eligible, this could be a great way to improve your financial situation.
Compare Mortgage Refi Interest Rates
After you’ve settled on the type of refinance you’re going to pursue, you want to do everything possible to secure the most competitive mortgage rate. Here are your next steps:
• Obtain rates from multiple lenders; many have an online prequalification process that will give you a rate in minutes.
• Look at the total mortgage refinancing costs of each loan, including fees. This means looking at the annual perccentage rate (APR), not just the interest rate on the loan.
• If your current rate is lower, refinancing might not be the best move unless you have other compelling reasons to refinance, such as the need for a cash-out refi.
• Remember that a lower rate doesn’t always equal savings.
An online calculator can be a helpful tool during this process.
Use an Online Refinance Calculator
An online refinance calculator is a great way to get an estimate of how much you could save by refinancing your mortgage. Armed with this knowledge, you can make an informed decision about whether refinancing is the right financial move for you. Here are a few of our favorite calculators.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it takes some careful thought (and a bit of math). By working to nurture your credit score and lower your DTI, and by comparing the total cost of mortgage refinance rate offers, you could land a better deal and save big over the life of your loan.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can you refinance when rates go down?
Seeing interest rates go down is one signal that it may be time to refinance your mortgage, but it’s important to weigh the potential savings against the costs involved. One way to make sure the refi is worth the work and expense involved is to look at how long you would need to stay in your home before the monthly savings outweigh the fees from the refi.
How much does one-percent lower interest reduce your monthly payment?
A one percent reduction in your mortgage rate during a refinance can impact your monthly budget. Let’s say you have a $300,000, 30-year mortgage. If you’re currently paying 7.00% interest and can refinance to 6.00%, you could see a $197 drop in your monthly payment. Over time, that seemingly small change can add up to big savings. The larger your mortgage, the more you save.
Can I lower my interest rate without refinancing?
If you’re in the fortunate position of having some extra funds, a mortgage recast might be just the thing for you. With a recast, you make a lump sum payment toward your principal, and your lender recalculates your remaining payments. Though it won’t affect your mortgage refinance rate, it could lead to a reduction in your monthly payments and save you a significant sum in interest over the loan’s lifetime.
Is there a fee to recast your mortgage?
There is a fee to recast your mortgage. It’s not as expensive as refinancing, but it can still cost you. The fee is typically between $100 and $500, and is charged by the lender. This fee covers the cost of the lender re-amortizing the loan and preparing new loan documents.
Do you have to pay closing costs when you refinance?
Yes, you will likely have to pay closing costs when you refinance. These costs can range from 2% to 5% of your loan amount, and they can add up — so it’s important to factor in these costs when you’re thinking about refinancing. You should also compare mortgage refinance rates to make sure you’re getting the best deal. Take the time to evaluate all of the costs and benefits of refinancing to see if it makes sense for you and your financial situation.
How many times can you refinance your home loan?
There’s no rule that limits the number of times you refinance a home loan, but each time you change your loan there will be closing costs. So it’s important to weigh any savings from refinancing against these costs. If you have the urge to refinance again and again, you might want to consider how much you’ve spent on interest on your home loan thus far and how you might refocus your budget to pay that loan off.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q125-189
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 North Carolina Today
NORTH CAROLINA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
North Carolina.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in North Carolina.
Key Points
• Mortgage refinance rates are influenced by economic factors such as the bond market and housing inventory.
• Even a 1% drop in the refinance rate can make a world of difference in your monthly payments. Over the long haul, this can add up to some serious savings.
• In North Carolina, mortgage refinance rates often follow national trends.
• A 15-year mortgage can lead to substantial savings in interest over the loan’s lifetime, even though it comes with higher monthly payments.
• FHA refinances, backed by the Federal Housing Administration, often come with lower mortgage refinance rates, making them a flexible and attractive option for many homeowners.
Introduction to Mortgage Refinance Rates
Mortgage rates are an important consideration, as your monthly loan payment is likely a significant part of your budget. When you opt for a mortgage refinance, you’re essentially trading in your current home loan for a new one, with updated terms and — ideally — a more favorable interest rate. The reason behind your refinance will dictate the type of refi you pursue, which, in turn, can influence the interest rate you’re offered. This guide will illuminate the process and help you secure the most competitive rate available. Step one? Understand how rates are determined in the first place.
💡 Quick Tip: How soon can you refinance your mortgage? It varies by loan type, but typical waiting periods are 6 to 12 months.
Where Do Mortgage Refinance Interest Rates Come From?
As you look at current mortgage refinance rates in North Carolina, it’s important to understand why they might shift by as little as a fraction of a percentage point. The performance of the 10-year U.S. Treasury Note is the most important determinant of current mortgage rates. When rates on the note rise, mortgage interest tends to rise as well. Another factor is the housing market. When more homes are available than there are buyers, lenders may lower rates to keep attracting customers. The overall economy plays a role as well: A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates. Of course, there are factors that are personal to each borrower, such as credit score, that help determine what rate you will be offered.
How Interest Rates Affect Home Affordability
Why so much fuss about tiny percentage shifts? Imagine a $200,000 loan with a 6.00% interest rate and a 30-year term. That would mean a monthly payment of $1,199. But if that rate were 8.00%, your monthly payment would jump to $1,467. You can see more examples below. Look closely at total interest. Obtaining even a half-percentage-point lower rate in a mortgage refinance can save you tens of thousands of dollars.
| Interest Rate | Monthly Payment | Total Interest |
|---|---|---|
| 6.00% | $1,199 | $231,677 |
| 6.50% | $1,264 | $255,085 |
| 7.00% | $1,330 | $279,021 |
| 7.50% | $1,398 | $303,403 |
| 8.00% | $1,467 | $328,309 |
Why Refinance in North Carolina?
Refinancing your mortgage can be a strategic financial move for several reasons, as the list below shows.
Common Reasons to Refinance a Mortgage
• To take advantage of a lower mortgage rate due to improved credit or market conditions.
• To change the repayment term on your loan for lower monthly payments (a longer repayment term) or quicker payoff (a shorter term).
• To access home equity to meet financial goals like college funding.
• To move from an adjustable-rate mortgage to a fixed-rate mortgage (or vice versa).
• To remove the FHA mortgage insurance premium from a Federal Housing Administration loan.
How to Get the Best Available Mortgage Refi Rate
These are key steps to take as you think about how to refinance a mortgage that will help prepare you to get a good rate when the time comes:
• Pay your bills on time and steer clear of new debt to nurture your credit score.
• Assess the equity you have in your home. Ideally, you’ll have at least 20% equity before refinancing, especially if you’re cashing out some equity.
• Keep your debt-to-income (DTI) ratio under 36%. To compute your DTI ratio, add all your monthly debts and divide by your gross monthly income. Then multiply by 100.
• Compare rates and fees from multiple lenders.
• Think about whether you have room in your budget to buy discount points (also called mortgage points) to lower your rate.
• Also examine your budget to see if you can afford to choose a shorter loan term (which may mean a higher monthly payment). This can reduce the total amount of interest you’ll have to pay.
Understand Trends in North Carolina Mortgage Interest Rates
As you think about whether the time is right to refinance, it can help to see how today’s mortgage rates compare to your existing loan, as well as how they compare to historic averages.
Historical U.S. Mortgage Interest Rates
Looking at a much longer span of time, more than a half-century, can help you see that if you are waiting for an interest rate drop to the historic low of around 3.00% that borrowers saw in 2021, you might be waiting a long time. Understanding these historical trends can give you a better sense of the current market and help you make more informed decisions about refinancing.
Historical Interest Rates in North Carolina
North Carolina refinance rates tend to move in line with national trends, often sitting slightly below the U.S. average, as shown in the chart below.
| Year | North Carolina Rate | National Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.87 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.76 | 5.95 |
| 2005 | 5.93 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.32 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.74 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.58 | 4.57 |
Choose the Right Mortgage Refi Type
The interest rate and terms you get for your refinance can vary depending on the type of loan you choose. Here are some common refinance arrangements, so you can think about what you are looking for.
Conventional Refi
Also known as a rate-and-term refinance, a conventional mortgage refinance will typically have a slightly higher interest rate than a government-backed loan refinance. But it is a common choice for borrowers as it is a very flexible loan option. Two common types of conventional refi are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
Refinancing a mortgage to switch from a 30-year term to a 15-year term can be a smart move that can significantly slash the total interest paid over the loan’s life, although it often does mean a bump in your monthly payment amount. Some borrowers, however, prefer to refinance out of a 15-year mortgage and into a 30-year one (if the higher monthly payments on the shorter-term loan have become untenable).
Adjustable-Rate Mortgage Refi
If your first mortgage is an adjustable-rate mortgage (ARM), you might be looking to refinance into a fixed-rate loan to protect against interest-rate increases and to obtain a predictable monthly payment amount. However, some borrowers choose to refi into an adjustable-rate loan. ARMs often have a low introductory interest rate that is appealing to borrowers who plan to sell their property before the rate begins to adjust. If you choose an ARM, just be sure you understand when the rate may increase and how high it could go.
Cash-Out Refi
A cash-out refinance is a smart way to make your home’s equity work for you. Imagine this: Your home is valued at $500,000, and you still owe $300,000 on your mortgage. That means you’ve got $200,000 in equity. A lender might let you borrow up to 80% of that in a cash-out refi. Your new loan would pay off your old one and leave you with $100,000 to use as you wish. Cash-out refis might come with slightly higher mortgage refinance rates, but they can be a powerful tool for your financial goals.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often offer very attractive mortgage refinance interest rates, sometimes up to a full percentage point lower than conventional loans. An FHA Simple Refinance and FHA Streamline Refinance caters to homeowners with an existing FHA loan, while an FHA cash-out refinance and FHA 203(k) refinance are available to qualified borrowers more generally.
VA Refi
VA refinances, guaranteed by the U.S. Department of Veterans Affairs, are known for offering some of the most competitive mortgage refinance rates. To qualify for a VA loan refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA mortgage. This type of refinance can help you lower your monthly payments and save a significant amount of money in interest over the life of your loan. This makes it a great option for those who meet the requirements.
Compare Mortgage Refi Interest Rates
Refinancing can be a money-saver, but only if the North Carolina refinance rate you obtain is a good one. Here’s how to snag a competitive rate:
• Compare rates from multiple lenders.
• Look at the annual percentage rate (APR), which includes fees and discount points.
• Make sure you factor in closing costs, which are part of your total mortgage refinancing costs. Some lenders offer a no-closing-cost refinance, but may have higher interest rates or may add closing costs to the principal.
• Remember that if your current interest rate is lower than any rate you are offered, refinancing might not be the best move. A mortgage refinance calculator can help you determine whether you stand to save money.
Use an Online Refinance Calculator
Online calculators are valuable tools that can help you compute all kinds of housing-related expenses. As you think about whether it makes sense to refinance and how large a monthly payment you can afford, an online refinance calculator will be a helpful tool. Here are a few of our favorite calculators.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it does require some planning and careful consideration. By taking good care of your credit score, reducing your debts, and carefully comparing mortgage refinance rates and total costs from multiple lenders, you can make an important decision and qualify for the best available rate in North Carolina.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates going to drop?
No one can definitively predict future mortgage rates, but you can look at key indicators to try to get a sense of where interest rates are headed. If the 10-year Treasury Note rate is rising, the housing market is hot, or the economy is generally strong, it’s unlikely that rates will fall in the near future. Keep close watch on the current refinance rates in North Carolina so you’ll know when the time to refinance is right for you.
Can you lower your mortgage interest rate without refinancing?
It’s hard to lower a mortgage interest rate without a refinance, but you can lower your monthly payments by requesting a mortgage recast from your lender. You’ll make a lump-sum payment toward your principal balance, and then your lender will “recast” your monthly payment amount to reflect the lower principal. There is sometimes a small charge of $500 or less for this service. If you’re facing financial hardship, you could also explore a loan modification. Of course, if you have a solid credit score and stellar payment history, you can always ask your lender to modify your rate, but the lender may suggest a refi or recast instead.
Can I take out a home equity loan without refinancing?
You have the power to tap into your home’s equity without altering your current mortgage rate. You can use a home equity line of credit (HELOC) or a home equity loan to access your equity. Shop around for home equity lending rates to make sure you’re getting the best deal for your financial situation, just as you would shop around for a home loan or a refinance rate.
How much are closing costs on a refinance?
On average, closing costs typically fall somewhere between 2% and 5% of the total loan amount. To illustrate, if you were to refinance a $250,000 mortgage, you could expect to pay anywhere from $5,000 to $12,500 in closing costs. It is important to note that these figures serve as a general guideline, and actual costs may vary depending on several factors, including the specific lender, type of loan, and location. Therefore, it is advisable to research and compare different lenders to obtain the most competitive rates and terms for your specific situation.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q125-188
More refinance resources.
-
How Much Does It Cost to Refinance a Mortgage?
-
How to Refinance a Home Mortgage Loan
-
7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in New Mexico Today
NEW MEXICO MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
New Mexico.
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in New Mexico.
Key Points
• New Mexico mortgage refinance rates are influenced by a variety of economic factors, including Federal Reserve policy, inflation, and the bond market, and your credit rating.
• A mere 1% drop in your refinance rate could mean pocketing around $175 in monthly savings on a $300,000 mortgage. That could free up funds for other important uses.
• In New Mexico, you have a variety of mortgage refinance options to choose from, including conventional, cash-out, and adjustable-rate mortgages, each with its own benefits and considerations.
• Refinancing can be a smart move, helping you to achieve a range of financial goals, from lowering your monthly payments to accessing your home equity to changing the loan term.
• Closing costs for a New Mexico mortgage refinance usually range from 2% to 5% of the loan amount, so it’s a good idea to factor that into your plans.
Introduction to Mortgage Refinance Rates
A mortgage refinance is the process of replacing your current mortgage with a new one, which comes with new terms and a new interest rate. Whether you want to lower your monthly payments, pay off your loan faster, or take cash out of your home, the type of refinance you choose will play a big role in the interest rate you get. In this guide, we’ll explain how New Mexico mortgage refinance rates are set and give you some tips to help you get the best rate for your situation.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
The rates you’re offered for a mortgage refinance are the result of a complex interplay of economic factors and your personal financial situation.
• On the economic side, the Federal Reserve’s policies, inflation, and the bond market all play a role. In general, periods of high inflation and rising federal funds rates lead to higher mortgage rates. When bond prices fall, interest rates tend to rise.
• Housing demand can also have an impact. When there is a hot real estate market (meaning low inventory and high demand), with bidding wars and higher prices, interest rates may climb.
• On the personal side, your credit score can impact your rate. Those with higher scores, who appear more creditworthy, tend to qualify for lower interest rates, and those with lower scores, indicating that they did not handle credit meticulously in the past, will be charged higher rates.
By understanding these factors, you can better understand current mortgage rates, predict how rates are likely to shift, and make a more informed decision about when to refinance your New Mexico mortgage.
How Interest Rates Affect Home Affordability
Interest rates have a big impact on how much your refinance will cost you each month. Your monthly home loan payment is like a recipe, with your loan amount, repayment term, and interest rate as the key ingredients.
For example, a $200,000 loan with a 6.00% interest rate and a 30-year term would have you paying $1,199 each month. But bump that interest rate to 8.00%, and suddenly you’re looking at $1,467 a month. That adds up to almost $100,000 more over the life of the loan. While this example reflects a shift of two percentage points, even a tiny rate difference has the potential to add up to major savings over the years.
Why Refinance in New Mexico?
Homeowners opt to refinance for a variety of reasons. If the current interest rates are more favorable than your existing mortgage, this could translate to significant savings. Refinancing can also present the opportunity to alter your repayment term, extract home equity, or transition from an adjustable-rate to a fixed-rate loan. Each rationale will influence the type of refi you select and the interest rate you secure. Refinancing your New Mexico mortgage could be a shrewd financial move.
Just remember as you make your plans: In terms of how soon you can refinance your loan, you typically need at least 20% equity to move forward.
Common Reasons to Refinance a Mortgage
Here are some typical motivations for refinancing a mortgage in New Mexico:
• You might be eligible for a lower interest rate due to improved market conditions or thanks to building your credit score.
• You want to adjust your repayment term to either reduce your monthly payments or clear your loan quicker.
• You need to tap into your home’s equity to cover expenses such as college tuition or home improvements.
• Your adjustable-rate mortgage (ARM) is about to reset, and you’re considering a switch to a fixed-rate loan. Or you want to snag a low interest rate offered by an ARM since you plan to sell your property in a couple of years.
• You have an FHA loan and 20% equity, and you want to eliminate FHA mortgage insurance premiums by refinancing to a conventional loan.
How to Get the Best Available Mortgage Refi Interest Rate
To secure a competitive mortgage refinance rate, try these tactics:
• Build your credit score by being punctual with payments (setting up autopay can help) and avoiding new debt.
• Keep your debt-to-income ratio under 36%.
• Compare rates and fees from multiple lenders rather than assuming the first offer is as good as it gets.
• Consider purchasing mortgage points to reduce your interest rate, which can offer lower monthlies and less interest paid over the life of the loan. Doing so will, however, raise your upfront costs..
• Choose a shorter loan term for lower rates, even if it means higher monthly payments.
Research and preparation can be key, as rates vary when you’re thinking about refinancing in New Mexico.
Understand Trends in New Mexico Mortgage Interest Rates
In recent years, New Mexico has seen its mortgage rates ebb and flow, much like the rest of the nation. If you’re thinking about refinancing your mortgage in New Mexico, it’s important to keep a close eye on key economic indicators to help you get the best deal. By staying informed and being proactive, New Mexico residents can make smart choices about their mortgage refinance options. Here’s more detailed information on this important financial topic.
Historical U.S. Mortgage Interest Rates
In terms of national numbers, interest rates rise and fall regularly. The average 30-year fixed mortgage rate in the U.S. was 3.15% in 2021, before shooting up to 7.00% in 2023. As of early 2025, predictions suggest that these higher rates are here to stay for a while. And remember, within the context of recent years, these mortgage rates may be high, but rates hit almost 20% in the early 1980s, as the graph below reveals.
Knowing historical trends in interest rates can give you a better perspective on today’s market and help you make a more informed decision about refinancing.
Historical Interest Rates in New Mexico
New Mexico mortgage refinance rates have closely followed national trends, which have changed dramatically over the years. When national rates are low, New Mexico rates tend to be low, making refinancing an attractive proposition. When national rates are on the rise, New Mexico rates usually follow suit. Take a look at the chart below to see how this has played out since the year 2000. (The data points stop at 2018, since the Federal Housing Finance Agency stopped compiling state by state intel at that time.)
By keeping an eye on these trends, you can decide when the time is right to refinance your New Mexico mortgage and get the best rate and terms.
| Year | New Mexico Rate | National Rate |
|---|---|---|
| 2000 | 8.06 | 8.14 |
| 2001 | 6.88 | 7.03 |
| 2002 | 6.49 | 6.62 |
| 2003 | 5.83 | 5.83 |
| 2004 | 5.82 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.45 | 6.60 |
| 2007 | 6.48 | 6.44 |
| 2008 | 6.08 | 6.09 |
| 2009 | 5.19 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.59 | 4.66 |
| 2012 | 3.68 | 3.74 |
| 2013 | 3.81 | 3.92 |
| 2014 | 4.23 | 4.24 |
| 2015 | 3.98 | 3.91 |
| 2016 | 3.81 | 3.72 |
| 2017 | 4.17 | 4.03 |
| 2018 | 4.72 | 4.57 |
Choose the Right Mortgage Refi Type
Each homeowner has their own reason to consider a New Mexico mortgage refinance. One person may want to lower their interest rate and enjoy less costly monthly payments; another may have decided to accelerate their loan, swapping a longer term for a shorter one — and higher monthlies. And yet another may want to unlock some cash by tapping their home equity.
The kind of refi you choose impacts the interest rate you are assessed. Read on to learn more.
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a popular option for homeowners. These loans often have higher rates than government-backed loans such as FHA, VA, and USDA (which only certain borrowers will qualify for).
A conventional refi can lower your rate or change your term, which can help you manage your payments. To get approved for this kind of New Mexico mortgage refinance, you’ll usually need a minimum credit score of 620 and home equity of at least 20%.
Cash-Out Refi
Cash-out refinances can be an effective way to leverage your home equity, giving you a lump sum that can be used for a multitude of financial needs, from home improvements to consolidating debt.
Here’s a simple example: If your home is valued at $500,000 and your current mortgage balance is $300,000, you have $200,000 in equity. A lender might offer you a loan for up to 80% of your equity, which could leave you with more than $100,000 after paying off your existing mortgage. Accessing this kind of New Mexico mortgage refinance could provide money to pay down to high-interest debt or finance a major expense.
15-Year Mortgage Refi
Here’s a potentially money-savvy move: Consider refinancing from a 30-year to a 15-year mortgage. Yes, the monthly payments are higher, but the long-term savings are substantial. Need proof? Here you go:
• Say you have a 30-year, $1 million loan at 7.50%. Your monthly payment would be around $6,992, with a total interest of $1,517,167.
• By refinancing to a 15-year mortgage at 7.00%, your monthly payment would increase to about $8,988. However, the total interest would drop to approximately $617,891, saving you nearly $900,000. That’s an amount that could make a major difference in your financial profile.
New Mexico mortgage refinance rates can vary, so it’s important to compare offers from multiple lenders to find the best deal for your needs and financial situation.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, but the rate can change over time. If you’re planning to move before the rate adjusts, an ARM could be a cost-effective option. However, it’s important to understand the potential for the rate to increase and the impact it could have on your monthly payments. Perhaps your plans to sell your home in a year or two fall through; would you be able to afford a higher mortgage amount every month?
Remember to look at the annual percentage rate (APR), which wraps in fees and other factors, vs. the basic interest rate. You’ll likely get a better picture of the true cost of your loan.
One last note: Keep in mind that mortgage refinancing costs can add up. For instance, closing costs usually range from 2% to 5% of the loan amount.
FHA Refi
FHA refinances, insured by the Federal Housing Administration, often come with lower interest rates, making them an attractive option for homeowners. FHA Simple Refinances and FHA Streamline Refinances are designed for those with existing FHA loans.
FHA cash-out refinances and FHA 203(k) refinances are available to others. The 203(k) refinance is particularly useful for homeowners planning renovations. These options can help reduce monthly payments and finance property upgrades.
VA Refi
The Department of Veterans Affairs backs VA refinances, which are known for their low interest rates and easy requirements. The Interest Rate Reduction Refinance Loan (IRRRL) is designed for those with existing VA loans, allowing them to get a lower interest rate or to convert from an adjustable rate to a fixed rate mortgage. (A bit more detail on who can hold a VA loan: active and prior members of the military and some spouses.)
This kind of home loan refi can dramatically reduce your monthly payments and the total interest you pay over the life of the loan. In this way, VA refinances in New Mexico can offer a number of benefits for veterans.
Compare Mortgage Refi Interest Rates
So you’ve just read about an array of mortgage refi options (and there are lots of them!). Once you’ve zeroed in on which one would suit your needs, here are tips to help you get a great rate:
• Shop around. Request a rate from multiple lenders to compare rates and fees (often you can do this by answering a few simple questions online).
• Shop around with multiple lenders to compare rates, terms, and fees. See which might make the most sense for your situation.
• Go through the prequalifying process to see how much you might be able to borrow and at what rate. This won’t lower your credit score, since a hard inquiry is not required.
• Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points (also known as mortgage points, these allow you to buy down your interest rate by paying more upfront). It’s often a balancing act between rates and fees. Lower rates can sometimes mean higher costs overall.
• Use a mortgage refinancing calculator to compare new and existing terms (more on that in a moment) to figure out the best New Mexico refi offer for your needs.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Use an Online Refinance Calculator
All this talk about comparing offers and crunching numbers can be intimidating, especially for those who don’t like doing math. But that’s where online refinance calculators can come in. They can be a great way to estimate your new monthly payments and compare different refinance options. These calculators take into account your current mortgage balance, the interest rate you are paying on your loan, and the terms of the new loan you are considering.
By entering your information, you can see how much you might save each month and over the life of the loan. They can also be helpful in understanding and comparing New Mexico mortgage refinance rates and can give you a sense of what the local mortgage market looks like.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Mortgage refinancing can be a powerful tool for managing debt and improving your financial health. Whether you’re looking to lower your interest rate, access home equity, or switch to a different loan type, understanding your options and preparing your financial profile are key. New Mexico mortgage refinance programs can offer a range of solutions to meet different financial goals. Shop around so you can explore your refinancing options and find the right fit for your particular situation.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
How do I know if refinancing in New Mexico is a good idea?
Knowing when to refinance your mortgage isn’t just about rates dropping. When you’re considering a mortgage refi in New Mexico, it’s important to weigh the potential savings against the fees and closing costs. This includes looking at such factors as how much you could save on interest, what your closing costs would look like, and whether you’ll have to pay a prepayment penalty. Then you can make an informed decision about whether refinancing is right for you.
Can I access my home equity without refinancing my mortgage?
Yes, you can tap into your home’s equity without going through the refinancing process. One popular option is a home equity line of credit, HELOC, which allows you to draw funds up to a certain limit. Or you might prefer a lump sum of funding via a home equity loan. Both of these options allow you to access the equity in your home without having to refinance your entire mortgage. This means you can keep your current loan’s terms and interest rate, while also taking advantage of the equity you’ve built up in your home and accessing cash.
Is there a cost to recast your mortgage?
Yes, there is a fee to recast your mortgage, but it’s typically much smaller than the fees you’d pay to refinance. Recasting a mortgage involves paying a significant lump sum toward the amount you borrowed and then having your lender recalculate the monthly payments based on the new, lower amount of the principal. The fee will typically be anywhere from $150 to $500, which is considerably less than the 2% to 5% of the loan amount assessed as closing costs for many refis.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q125-186
More refinance resources.
-
How Much Does It Cost to Refinance a Mortgage?
-
How to Refinance a Home Mortgage Loan
-
7 Signs It’s Time for a Mortgage Refinance
Apply online or call for a complimentary mortgage consultation.
Current Mortgage Refinance Rates in Nevada Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage refinance rates in Nevada.
Key Points
• Mortgage refinance rates in Nevada are influenced by economic factors such as the bond market and housing inventory.
• Even a 1% drop in the mortgage refinance rate can trim monthly payments and save a significant sum in the long run.
• Even a 1% drop in the mortgage refinance rate can trim monthly payments and save a significant sum in the long run.
• In Nevada, homeowners have a variety of mortgage refi options to choose from: conventional, 15-year, adjustable-rate, cash-out, FHA, and VA mortgages, each with their own set of perks and things to consider.
• To lock in the best Nevada mortgage refinance rates, it helps to have a good credit score and low debt-to-income ratio.
• Closing costs for refinancing generally fall between 2% and 5% of the loan amount.
Introduction to Mortgage Refinance Rates
Taking out a mortgage refinance loan means you’re getting a new mortgage to replace your old one, and that means a new set of terms and a new interest rate that’s based on current mortgage rates. Whether you’re looking to lower your monthly payments, shorten your loan term, or cash out some home equity, it’s important to understand how mortgage refinance rates work and how to get the best one. This guide is here to help. The first step is understanding what drives the ups and downs of mortgage refinance rates in Nevada.
💡 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 Refi Interest Rates Come From?
The refinance rate you’ll be offered on your new home loan is a product of a complex interplay between the nation’s economic landscape, your area’s housing market, and your personal financial picture. Economic factors, and especially the price of the 10-year Treasury Note, can often signal what direction mortgage rates are headed. When the rates on the T note rise, mortgage interest rates tend to rise too.
When the market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. Then there is the overall economy: A strong jobs market and economic growth can lead interest rates to rise, while a recession usually means lower interest rates.
How Interest Rates Affect Home Affordability
It’s no secret that interest rates play a major role in the affordability of your mortgage refinance. Your monthly payment is a product of your loan amount, the term over which you repay it, and the mortgage refinance rate.
Let’s break it down: A $300,000 refinance loan with a 6.00% rate and a 30-year repayment term would mean a $1,799 monthly payment. But if that rate were to jump to 7.00%, you’d be looking at a $1,996 monthly payment. Over the life of the loan, that’s more than $60,000 in potential savings. If you can afford the larger monthly payments that come with a shorter payment term (as shown below), you can trim your interest costs even more.
| 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 Nevada?
Refinancing your mortgage can be a smart money move, but it requires careful thought. If current rates are lower than the one you locked in, it might be a good time to refinance. But there are other motivations to refinance as well.
Common Reasons to Refinance a Mortgage
• You qualify for a lower mortgage refinance rate because of an improved credit score.
• You want to adjust your repayment term to pay off your loan more swiftly, or reduce your monthly payments and stretch out the time you have to pay off your loan.
• You’re looking to tap into your home equity for big bills such as those associated with education or home improvements.
• Your adjustable-rate mortgage is about to change, and you want a fixed-rate loan.
• You have an FHA loan (backed by the Federal Housing Administration) and 20% equity in your home, and you want to stop paying the FHA mortgage insurance premium.
• You need to remove a cosigner from the loan (although it is sometimes possible to do this without refinancing).
How to Get the Best Available Mortgage Refi Rate
Even if you’re just starting to think about how to refinance a mortgage, there are steps you should take immediately that could help you secure a competitive mortgage refinance rate in Nevada:
• Maintain a good credit score by being punctual with payments and steering clear of new debt.
• Aim to keep your debt-to-income (DTI) ratio under 36%. (Your DTI is your monthly debts, divided by your gross monthly income, multiplied by 100).
• Examine whether you have some cash on hand that you could use to buy discount points to lower your rate. Each point typically costs 1% of your principal amount.
• Look closely at your monthly budget to see if you might have the ability to cover the cost of a higher monthly payment, in which case you might choose a shorter mortgage term. (Remember, though the payment may be higher with a shorter term, you would pay less interest over the long haul.)
Understand Trends in Nevada Mortgage Interest Rates
If you’re waiting for an interst rate drop before refinancing, having a sense of the trends in mortgage interest in your home state may help you decide whether or not to refinance or continue to wait it out.
Historical U.S. Mortgage Interest Rates
The graph below showing mortgage rates over a long span of time — more than 50 years — will give you a sense of what might be realistic in terms of your expectations. In early 2021, the average 30-year fixed refinance rate hit a record low of 3.15%. By 2023, the rate had risen to 7.00%. By keeping an eye on market forces, you can make an informed decision about when to refinance your mortgage.
Historical Interest Rates in Nevada
Mortgage refinance rates in Nevada tend to follow national trends, and are often slightly above the national average as shown in the chart below. (The Federal Housing Finance Agency stopped tracking state rates after 2018.) As you can see, it’s unusual for the average rate to change by more than a percentage point from year to year.
| Year | Nevada Rate | National Rate |
|---|---|---|
| 2000 | 7.99 | 8.14 |
| 2001 | 6.98 | 7.03 |
| 2002 | 6.44 | 6.62 |
| 2003 | 5.74 | 5.83 |
| 2004 | 5.66 | 5.95 |
| 2005 | 5.82 | 6.00 |
| 2006 | 6.56 | 6.60 |
| 2007 | 6.51 | 6.44 |
| 2008 | 6.09 | 6.09 |
| 2009 | 5.19 | 5.06 |
| 2010 | 4.93 | 4.84 |
| 2011 | 4.75 | 4.66 |
| 2012 | 3.90 | 3.74 |
| 2013 | 3.97 | 3.92 |
| 2014 | 4.32 | 4.24 |
| 2015 | 4.00 | 3.91 |
| 2016 | 3.83 | 3.72 |
| 2017 | 4.15 | 4.03 |
| 2018 | 4.70 | 4.57 |
Choose the Right Mortgage Refi Type
Knowing what qualifies as a “good” rate is part of your refinance equation. But refinance rates in Nevada differ based on the type of refinance you’re considering, so it’s helpful to understand the more common kinds of refinancing. Each option has its own unique features and advantages:
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, is a popular choice for homeowners seeking to adjust their interest rate, loan term, or both. Typically, these refis come with slightly higher mortgage refinance rates than government-backed loans. Nevertheless, they offer increased flexibility and are a great fit for homeowners with strong credit and ample equity. Two common forms of refinancing a conventional loan are the 15-year refi and the adjustable-rate refi.
15-Year Mortgage Refi
As noted above, by refinancing to a 15-year mortgage, you could be looking at a substantial cut in the total interest paid over the loan’s lifetime, although you may have higher monthly payments. Some people refinance into a shorter loan term because they want to finish paying their mortgage before a child goes to college or before they face retirement. Of course, other borrowers prefer to refinance into a 30-year loan because they want to stretch out their payments and keep them low.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans, so some borrowers like the idea of getting into an ARM. If you know you’re going to move before the ARM’s low introductory rate changes, you might consider refinancing from a traditional 30-year fixed-rate mortgage to an ARM. (It’s also possible that a homeowner wants to refinance out of an ARM and into a fixed-rate loan because a more predictable, constant rate is desirable.)
Cash-Out Refi
A cash-out refinance is a way to leverage the equity you have in your home to access a lump sum that can be used for home improvements, debt consolidation, or any purpose. Although the rate for this type of refinance is typically a tad higher than the one for a traditional refinance, it will very likely be lower than the interest rate on a personal loan.
FHA Refi
Borrowers with an FHA loan, insured by the Federal Housing Administration, benefit from refi rates that are lower than the refi rate for a conventional loan. Homeowners who currently have an FHA loan can use an FHA Simple Refinance or FHA Streamline Refinance. Homeowners without a FHA loan can still benefit from an FHA cash-out refinance or FHA 203(k) refinance, which can be used for home improvements.
VA Refi
U.S. Department of Veterans Affairs loans are known for their competitive mortgage refinance rates. To qualify for a VA loan refinance, specifically an interest rate reduction refinance loan (IRRRL), you must have an existing VA loan. This type of refinance can significantly lower your monthly payments and save you a lot of money on interest over the life of the loan.
Compare Mortgage Refi Interest Rates
To compare mortgage refinance rates, it pays to shop around and check what rate you are offered by multiple lenders. Don’t just make your choice based on interest rate: Consider the annual percentage rate (APR) and trade-offs between rates and fees.
Evaluate the new payoff date, closing costs, and daily rate changes to secure a favorable rate. Note that some lenders will offer a no-closing-cost refinance, but costs may be rolled into the principal on your loan or reflected in a higher interest rate. An online calculator will help you see how different loans might fit into your budget.
Use an Online Refinance Calculator
An online refinance calculator is incredibly useful when you want to get a detailed look at what your new monthly payments might be. You’ll want to get a picture of the total mortgage refinancing costs, not only the interest you’ll pay on your loan. They are designed to help you compare different refinance options side by side, so you can make the best financial decision for your long-term goals. By entering your current loan details and looking at different refinance terms, you can see how much you might save on interest and monthly payments. This can help you make a more informed decision about what might work best for your financial situation.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a savvy financial move that offers a range of potential benefits, from lowering the monthly cost of your loan to freeing up extra cash. But before you take the plunge, it’s important to weigh the costs and potential long-term effects. Spend some time thinking about your financial goals, shop around for the best rates and terms, and use an online calculator to see if refinancing makes sense for you.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Are refinance rates expected to go down?
The future of mortgage refinance rates is never certain. But you can look at key indicators to try to get a sense of where rates might be headed. If the 10-year Treasury Note rate is rising, the housing market is hot, or the economy is generally strong, it’s unlikely that you will see rates falling in the near term. You’ll need to weigh your desire for a refinance against the current rates and also look at whether a switch either results in lower monthly payments, less interest paid overall, cash out that you can use for a big expense, or some combination of these.
Can you refinance when rates go down?
When mortgage refinance rates drop, you can take advantage of the lower rate. But you should also consider the costs associated with refinancing. Refinancing can come with application fees, appraisal fees, and closing costs. These fees can add up and may not make refinancing worth it. To figure out if refinancing makes sense for you, calculate your break-even point. This is the point at which the amount you save on mortgage payments each month equals the cost of refinancing.
Can I get a lower interest rate without refinancing?
If you’ve got some savings and are keen to find a way to cut down your monthly mortgage payment, a mortgage recast might be just the ticket. If you make a substantial payment toward your loan’s principal, you can request that your lender “recast” your remaining payments. While this won’t alter your mortgage interest rate, it’s less costly than a refinance (a recast usually costs $100 to $500) and could save you a bundle on interest over the life of the loan.
Can I get equity out of my house without refinancing?
You can access the equity in your home without changing your existing mortgage by getting a home equity line of credit (HELOC) or a home equity loan. These options allow you to tap into the equity you’ve built up without refinancing. By choosing one of these options, you can access the value you’ve built in your home while keeping the terms of your current mortgage the same.
Do I have to pay closing costs again when I refinance?
It’s important to note that when you refinance your mortgage, you’ll typically have to pay closing costs again. These costs can range from 2% to 5% of your loan amount and are necessary to process your new mortgage refinance rate and loan terms. You’ll want to make sure you factor these costs into your financial calculations to ensure the potential savings are worth the cost.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.
All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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.
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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-Q125-183
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.
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