Compare mortgage refinance rates in Tennessee.

Introduction to Mortgage Refinance Rates

Where Do Mortgage Refinance Interest Rates Come From?

Mortgage refinance rates are influenced by both economic factors and your personal financial situation. Economic factors that can impact your Tennessee refinance rate include Federal Reserve policy, inflation, the bond market, and housing inventory levels. Generally speaking, high inflation and rising federal funds rates can lead to higher mortgage refinance rates, while rising bond prices can lead to lower rates.

On the personal side, a borrower’s credit score significantly affects refinance rates, as higher scores often lead to better terms. Debt-to-income (DTI) ratio also matters, with lower DTI ratios signaling to lenders that the borrower can manage their financial obligations. Loan-to-value (LTV) ratio plays a role as well, with more home equity reducing lender risk and potentially lowering interest rates.

By understanding these factors, you can better anticipate rate movements and make an informed decision about when to refinance your mortgage.

How Interest Rates Affect Home Affordability

Your mortgage refinance rate is a key player in the financial game, impacting both your monthly
payment and the overall cost of your loan. Let’s look at an example:

With a $200,000 loan at a 6.00% interest rate over 30 years, you’d be looking at a monthly payment of $1,199. But if the interest rate were to jump to 8.00%, that monthly payment would swell to $1,467. Over time, that seemingly small 2% difference in interest could add up to nearly $100,000 in savings. It’s a big deal, and it’s why we’re here to help you get the best rate possible.

Here’s a closer look at how different interest rates and loan terms affect payments and total interest paid on a $200,000 loan:

Trends in Mortgage Interest Rates

The past few years have seen significant movement in mortgage refinance rates in Tennessee and in the U.S. The average 30-year fixed mortgage rate in the U.S. was 2.96% in 2021, and by 2023, it was up to 7.03%. As of March 2025, average rates were 6.65%.

💡 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.

Why Refinance in Tennessee?

Refinancing your mortgage is a smart financial move, but it’s not one to be taken lightly. If the current mortgage refinance rates in Tennessee are lower than the rate you’re locked into, it’s a prime opportunity to refinance your home. This could mean a reduced monthly payment and significant savings over the loan’s lifetime.

Refinancing also gives you a chance to switch from an adjustable-rate to a fixed-rate mortgage, which can provide a more secure financial foundation. Worth noting: The rule of thumb is to have at least 20% equity in your home, especially if you’re considering a cash-out refinance.

Common Reasons to Refinance a Mortgage

Common reasons homeowners in Tennessee may want to refinance their mortgage include:

•   You may be eligible for a lower mortgage refinance rate because of better credit or market conditions.

•   You’re considering adjusting your repayment term to better suit your financial goals.

•   You’re looking to tap into your home’s equity to cover expenses such as college tuition or home improvements.

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

•   You have an FHA loan and 20% equity, and you’re eager to eliminate mortgage insurance.

•   You’re looking to remove a cosigner or untangle finances from a past relationship.

How to Compare Mortgage Refi Interest Rates

Homeowners with strong credit and a low debt-to-income ratio may secure much lower rates than average.

To secure a competitive mortgage refinance rate, here’s what you need to do:

•   Shop around for the best mortgage refinance rates. Compare offers from multiple lenders.

•   Get prequalified to see what you’re offered in terms of loan amount, rate, and fees.

•   Compare annual percentage rates (APRs), which include the interest rate and other costs.

•   Crunch the numbers on the total cost and break-even point.

•   Make sure the mortgage refinance costs and new payment work for you.

Choose the Right Mortgage Refi Type

The rates for mortgage refinance in Tennessee are as diverse as the options themselves. Conventional refis, often referred to as rate-and-term refis, may have different rates than those backed by the government, such as FHA, VA, and USDA loans. Below are the different types of mortgage refinance options available.

Recommended: How Soon Can You Refinance a Mortgage?

How to Get the Best Available Mortgage Refi Interest Rate

Getting a competitive mortgage refinance rate in Tennessee is key to saving money over the life of your loan. Here are some steps to help you get the best rate:

•   Boost your credit score: Timely bill payments and avoiding new debt can help you here.

•   Lower your DTI: A debt-to-income ratio under 36% is the sweet spot for nabbing a favorable rate.

•   Compare lenders: Don’t settle for the first offer. Shop around and compare interest rates and fees from multiple lenders.

•   Purchase mortgage points: Consider paying for discount points to lower your interest rate.

•   Opt for a shorter term: Consider a 10- or 15-year mortgage for potentially lower rates, even though monthly payments will be higher.

Online Refinance Calculators

Online refinance calculators are a great way to get a rough estimate of your potential monthly savings. They take into account your current loan balance, current mortgage refinance rate, and closing costs to help you decide if refinancing makes sense for you.

The Takeaway

Refinancing your mortgage in Tennessee can be a smart financial move, but it’s not something to jump into without doing your homework. Think about what you want to get out of a refinance, compare Tennessee refinance rates from multiple lenders, and consider your loan term and the potential impact of fees on 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.

FAQ

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

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

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

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

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

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

SOHL-Q125-197

Compare mortgage refinance rates in Iowa.

Intro to Mortgage Refi Interest Rates

Where do mortgage refi interest rates come from?

The mortgage refinance rates available to you are the product of economic conditions and your personal financial situation.

The strongest indicator of the direction mortgage interest rates are going has historically been the bond market — specifically the performance of the 10-year U.S. Treasury Note. When the note’s rates go up, mortgage interest rates also tend to rise.

The housing market also plays a key role. When it cools and available homes outnumber potential buyers, lenders may lower rates. The state of the overall economy is also significant: A strong job market and healthy economic growth may result in rising rates, while a recession is usually accompanied by lower interest rates.

Keeping an eye on these moving parts and maintaining a good credit rating can help you time your refinance for the most favorable terms.

How Interest Rates Affect Home Affordability

Remember how important your interest rate was when you got your original mortgage? It’s just as important for your refi loan. Your new interest rate will be a big factor in determining how much you’ll pay each month, so it’s critical to be aware of current mortgage rates.

Your payment is based on your loan amount, the interest rate, and the length of your loan. For example, a $200,000 loan with a 6.00% rate and a 30-year term would have a monthly payment of $1,199. That same loan with an 8.00% rate would have a monthly payment of $1,468. But the lower rate would also save you almost $100,000 in interest over the life of the loan. It’s important to weigh short-term and long-term savings as you make your decision — and to pay attention to how much difference even a small change in your interest rate can mean over time.

Bear in mind, too, that in addition to your monthly payments, you’ll need to budget for mortgage refinancing costs, which are generally similar to the closing costs you paid on your existing mortgage.

💡 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.

Why Refinance in Iowa?

There are several financially strategic reasons you might want to refinance your mortgage. For instance, if current interest rates dip lower than your existing mortgage, it might be a good time to refinance. Refinancing can help you secure a lower mortgage refinance rate, change your repayment term, or access cash from your home equity. It can also help you switch from an adjustable-rate to a fixed-rate loan, providing more financial stability.

Your motivation for the refi determines in part what kind of refi it makes sense to choose, and that, in turn, influences the rates available to you. Ideally, you’ll want to have at least 20% equity in your home before you refinance, especially if you’re cashing out some equity.

Common Reasons to Refinance a Mortgage

Here are some of the key reasons why homeowners decide to get a mortgage refinance:

•   To get a lower interest rate or better terms than their original home loan came with.

•   To adjust their repayment term: A longer term means paying lower monthly payments but more interest over time. A shorter term gets the homeowner debt-free more quickly and reduces the amount of interest they’ll pay over the life of the loan.

•   To cash out home equity: Homeowners can borrow against the amount of money they’ve already invested in their home.

•   To protect the homeowner from the potential rate hikes of an adjustable rate mortgage by switching to a fixed-rate loan.

How to Get the Best Available Mortgage Refi Interest Rate

Follow these steps to improve your chances of securing the best current mortgage refinance rates in Iowa.

•   Pay your bills on time to help build a strong credit rating.

•   Lower your debt-to-income ratio.

•   Know what’s standard in your area by comparing rates and fees from multiple lenders.

•   Consider purchasing mortgage points, also known as discount points.

•   Select a shorter loan term, which typically comes with better rates.

💡 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.

Trends in Iowa Mortgage Interest Rates

The landscape of mortgage rates has seen its share of shifts. Take the 30-year fixed mortgage. In 2021, the national average dropped as low as 2.67%. Fast forward to 2023, and it had climbed to a hefty 6.95%. The good news? A rise in home values across Iowa has bolstered homeowners’ equity, opening the door to cash-out refinance opportunities for a variety of needs.

Compare Iowa Interest Rates by Mortgage Refi Type

You probably know that refinance rates can be a bit higher than original mortgage rates. But did you know that interest rates can vary depending on the type of mortgage refinance you choose? There are a number of mortgage refinance options available, each with its own unique features and benefits. Understanding your options lets you select the mortgage refinance that will best fit your needs. For example, while conventional refis often have higher rates than government-backed loans, they may offer more flexibility in terms of loan amount and repayment term.

How to Compare Mortgage Refi Interest Rates

Getting a competitive mortgage refinance rate can save you money over the life of the loan. Even a small difference can add up to thousands in extra interest you’ll end up paying. These tips can help you secure a competitive rate:

•   Compare rates from multiple lenders to find the best deal.

•   In addition to interest rates, look at the annual percentage rate (APR), which includes interest, fees, and discount points.

•   Compare current rates to your existing one, and watch the trends to assess whether refinancing is a good move and when.

•   Consider both your monthly budget and the long-term financial impact of your refi to assess how it fits into your financial goals.

Online Refinance Calculators

Using a reliable mortgage calculator lets you get a rough idea of what you might be able to save with a refi. It can help you get an estimate for your new monthly payment and compare different refinance options. You can also see how changing the refinance rate, loan term, and loan amount can impact your finances. By plugging in your current mortgage details and the terms of any new mortgage you’re considering, you can get a better idea of whether refinancing makes sense for you.

You can also use a calculator to estimate how much equity is in your home.

The Takeaway

Refinancing your mortgage can be a smart financial move, but it requires careful thought. Whether you want to get a lower rate with your mortgage refinance, tap into your home’s equity, or switch to a different type of mortgage, you’ll need to understand the different refinance options available to you and the specific requirements for each. By working to improve your credit score, lowering your debt-to-income ratio, and shopping around with multiple lenders, you can find the right refinance option for your financial goals.

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

FAQ

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

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

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

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

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

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

SOHL-Q125-170

Compare mortgage refinance rates in Delaware.

Introduction to Mortgage Refinance Rates

Where Do Refi Interest Rates Come From?

Historically, the bond market is the strongest indicator of where mortgage interest rates are going. The performance of the 10-year U.S. Treasury Note is particularly important here. When the rates on the note go up, typically mortgage interest rates are likely to rise, too.

The performance of the housing market is another factor to be aware of. When the market slows and there are more homes available than there are people who want to buy them, lenders may lower their rates in hopes of attracting more customers. Finally, the overall economy also plays a role in refinance rates: A strong jobs market and economic growth may be accompanied by a rise in interest rates, while a recession is typically associated with lower interest rates.

How Interest Rates Affect Home Affordability

Interest rates play a significant role in the affordability of your mortgage refinance. They’re not the only factor – there are also mortgage refinancing costs, which can include closing costs, fees, and more. But the rate you secure will directly impact your monthly payments, which are calculated based on your loan amount, repayment term, and the interest rate.

For instance, a $200,000 home loan with a 6.00% interest rate over a 30-year term would mean a monthly payment of $1,199. However, the same loan with an 8.00% interest rate would increase your monthly payment to $1,468. Over the life of the loan, that adds up to nearly $100,000 in savings if you have the lower interest rate.

Even a small change in rates can make a big difference in your overall savings. Be sure to keep an eye on mortgage refinance rates in Delaware to ensure you’re getting the best deal.

Why Refinance in Delaware?

A mortgage refinance can be a smart strategic move, depending on your financial situation. If the current mortgage interest rates in Delaware are lower than you’re paying on your existing mortgage, refinancing can reduce your monthly payments and the total amount you pay over the life of the loan.

Before refinancing, it’s a good idea to have at least 20% equity in your home, especially if you plan to cash out some equity. Accessing home equity, securing a lower rate, and changing your loan term are all ways that a refinance may be able to improve your finances.

Common Reasons to Refinance a Mortgage

Here are some typical reasons you might choose to refinance your mortgage.

•   If current mortgage rates are lower than when you got your mortgage or your credit profile has improved, you may be able to secure a better rate.

•   You might want to change to a longer term to ease monthly payments, or to a shorter one to pay off your loan sooner.

•   If you need funds, you can cash out home equity for your expenses.

•   For stability and predictability, you may want to switch from an adjustable rate to a fixed rate.

•   Refinancing can let you eliminate your mortgage insurance premium if you have an FHA loan and 20% equity.

How to Get the Best Available Mortgage Refi Interest Rate

To secure the best mortgage refinance rate, follow these steps:

•   Be punctual with payments and avoid new debt to help build your credit rating.

•   Keep your debt-to-income ratio below 36%.

•   Understand what’s available: Compare rates and fees from multiple lenders.

•   Consider buying mortgage points (also called discount points) to reduce your mortgage rate if you plan to stay put for the long term.

•   Opt for a shorter loan term: 15 years rather than 30. Generally, shorter terms come with lower interest rates. Your monthly payment will be higher, but your overall mortgage cost will be lower. Opting for a shorter loan term can also help you secure a better refinance rate.

Trends in Delaware Mortgage Interest Rates

Over the years, mortgage rates in Delaware, like national rates, have seen their fair share of ups and downs. For homeowners, staying abreast of current mortgage refinance rates in Delaware is key to making well-informed choices. By keeping an eye on these trends, you can position yourself to refinance at an optimal time and potentially trim down your interest expenses.

Compare Delaware Interest Rates by Mortgage Refi Type

Mortgage refi rates are not one-size-fits-all. Here’s a quick rundown of the most common types and their features, including a sense of the current Delaware refinance rates.

How to Compare Mortgage Refi Interest Rates

Now that you know what kinds of rates, terms, and loans may be available, take these steps to help you secure a refinance loan that will work for you.

•   Use a mortgage calculator to understand how much you can probably afford to pay.

•   Compare terms and rates from different lenders and consider the tradeoffs..

•   Dig deeper by looking at each loan’s annual percentage rate (APR), which include closing costs, fees and discount points, if any. This gives you a more accurate way to compare loans than just using the interest rate for each loan.

•   Be aware of not only your monthly payments with each loan, but also your total costs over the life of the loan.

•   Review and do what you can to improve your credit score, debt-to-income ratio, and home value to secure the best rates.

💡 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.

Online Refinance Calculators

A good online mortgage calculator can be invaluable for estimating your new monthly payment and comparing different refinance options. You can typically personalize them, taking into account your current loan balance, the new interest rate, and the term of the loan to provide a clear picture of your potential savings. By inputting your specific financial details, you can determine whether refinancing is a viable option for you.

A calculator can also help you estimate how much equity is in your home, which can be useful if you’re interested in a cash-out refi.

The Takeaway

Mortgage refinancing is a powerful financial tool that can work in your favor. Whether you’re after a lower interest rate, a change in your loan term, or access to home equity, there are options like cash-out refinances, FHA refinances, VA refinances, and more to consider. By getting your financial ducks in a row, comparing rates from various lenders, and using online tools, you can find the best Delaware refinance rates and make a smart, informed decision. Be sure to weigh the costs against the benefits to ensure that refinancing is the right move for your long-term financial goals.

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

FAQ

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

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

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

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

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

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

SOHL-Q125-163