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Your credit scores tell lenders how likely you are to repay your debts on time. A higher score can make it easier to qualify for loans and credit cards with favorable rates. But what exactly is “good” credit? Is a 677 score good — or bad?
According to the FICO® scoring model, which is the one most commonly used by lenders, a 677 credit score lands in the “good” credit tier (670 to 739). This means you fall right around the middle — below “very good” and “exceptional” credit but above “poor” and “fair” credit.
What can a 677 credit score get you? Here’s a closer look at what it means for your finances.
Key Points
• A 677 credit score is considered “good” in the FICO scoring model but is below average.
• With a 677 score, you can qualify for various credit products but may not get the best interest rates or offers.
• You may qualify for credit cards with limited rewards and no annual fee.
• A 677 score is sufficient to get an auto loan, but you’ll likely pay an above-average interest rate.
• Your score is high enough to qualify for most types of mortgages, including conventional home loans (though not jumbo loans).
What Does a 677 Credit Score Mean?
FICO credit scores are calculated based on information in your credit reports. This information is grouped into five categories and each is weighted differently. Here’s how it breaks down:
• Payment history (how often you pay your bills on time): 35%
• Amounts owed (how much of your available credit you’re using): 30%
• Length of credit history (how long you’ve had credit and the average age of your credit accounts): 10%
• Credit mix (having different types of debt, such as revolving credit and installment loans): 10%
FICO scores range from 300 to 850 and are grouped into five different tiers:
• 300-579: Poor
• 580-669: Fair
• 670-739: Good
• 740-799: Very Good
• 800-850: Exceptional
Your 677 credit score falls in the “good” credit tier. However, it just makes it, and it’s lower than the average FICO credit score in the U.S., which is 715.
With a 677 score, many lenders will consider you to be an “acceptable” borrower and eligible for a wide range of credit products. However, they likely won’t offer you their lowest-available rates or premium product offers.
What Else Can You Get with a 677 Credit Score?
So is 677 a bad credit score when you need to borrow? Not at all. Here’s what you can expect with different types of lending products, including credit cards, auto loans, mortgages, and personal loans.
Can I Get a Credit Card with a 677 Credit Score?
Yes, a 677 credit score should put you in the path for many unsecured credit cards (which don’t require a deposit to open). However, your “good” credit may not be good enough for a premium credit card that offers generous rewards, travel benefits, or cash-back incentives. You may also be offered a higher-than-average annual percentage rate (APR).
With a 677 score, your credit card options might include:
• Cards that earn a limited amount of cash back on purchases
• Cards with no annual fee
• Basic travel credit cards that earn points or miles
• Cards that offer a sign-up bonus
• Retail store credit cards
Keep in mind that your credit score isn’t the only thing a lender will look at when you apply for a credit card. They typically also pay close attention to your debt-to-income ratio (DTI), which is the percentage of your gross monthly income that goes toward paying your debts, to make sure you have enough income (and room in your budget) to manage the card’s standard credit line.
Yes, a 677 credit score is generally sufficient to qualify for a car loan. While there’s no set minimum credit score required to get a car loan, your score can have a significant impact on the rate you get. This is generally true for all loans but particularly so with auto loans.
With a 677 score, you’ll probably won’t qualify for the best-available rates. According to a four-quarter 2024 report from Experian®, borrowers with high credit scores (over 780) paid, on average, 4.77% for new cars and 7.67% for used cars. Car buyers with scores between 661 to 780, on the other hand, paid (on average) 6.40% for new car loans and 9.95% for used car loans.
To get the best deal possible on a car loan with a 677 score, it’s a good idea to shop rates with multiple lenders, even before you shop for the vehicle, and compare. Many lenders offer prequalification with a soft credit check, which can give you an idea of the rate you might qualify for without impacting your credit score.
If the rates you’re seeing are higher than you’d like, consider putting down a larger down payment or adding a cosigner. Alternatively, you might wait to purchase a car and take time to build your credit profile before applying for a loan. Steps like paying down existing debt, making timely payments on credit cards, and not submitting any other credit applications, may help you qualify for better rates and terms in the future.
Can I Get a Mortgage with a 677 Credit Score?
A credit score of 677 should be more than enough to qualify for a mortgage loan. A score in this range gives you numerous borrowing options, including:
• Conventional mortgages
• USDA loans (insured by the U.S. Department of Agriculture)
• FHA loans (insured by the Federal Housing Administration)
• VA loans (offered by the U.S. Department of Veterans Affairs to eligible veterans, service members, and surviving spouses)
For a conventional loan, which is the most popular type of mortgage, lenders typically require a minimum credit score of 620, though some may require a score of at least 660 or higher. These loans aren’t directly insured by a government program and may conform to certain standards set by the government-sponsored entities Fannie Mae and Freddie Mac. Conventional mortgages are available with several different term options, the most popular being 15 or 30 years.
Your 677 score probably isn’t high enough to get a jumbo home loan, however. This is a type of conventional loan that doesn’t meet the requirements to be a conforming loan due to a higher loan amount. Lenders typically require a credit score of 700 or higher for jumbo mortgages.
To get the best deal on a mortgage with a 677 score, it’s a good idea to shop around to compare mortgage rates from different lenders. Even a small difference in rates, say half a percentage point, could make a big impact on what you pay for a home loan in the long run. Consider getting preapproved with a few lenders to see what you might qualify for. This typically involves a soft credit check, which won’t impact your scores.
Can I Get a Personal Loan with a 677 Credit Score?
Yes, you can likely get a personal loan with a 677 credit score, but the terms might not be the most favorable. Many personal loan lenders require a minimum credit score of 580, but save their better rates and terms for borrowers with scores in the mid 700s or higher. To snag a lender’s lowest interest rate, you typically need a score of at least 800, along with a high income.
If you’re considering a personal loan to consolidate credit card debt (and potentially save money on interest), you’ll want to make sure you can qualify for a rate that is lower than what you’re currently paying on your credit card balances. An online personal loan calculator can help you figure this out.
Also keep in mind that you can use a personal loan for virtually any purpose, including:
• Medical bills
• Emergency expenses
• Home repairs or improvements
• Large expenses, like new furniture or a vacation
• Wedding costs
Personal loans and credit card consolidation loans are available through traditional and online banks and credit unions, as well as nonbank lenders. Similar to shopping for other types of loans, it can be a good idea to prequalify with a few lenders. This can give you an idea of rates and terms you may be able to get and compare offers without impacting your credit.
The Takeaway
A 677 credit score is not bad, but it’s not great either. You can qualify for various credit products, including credit cards, auto loans, mortgages, and personal loans, but your interest rates and terms may not be the most desirable. To improve your financial opportunities, consider taking steps to strengthen your credit profile, such as making on-time payments, reducing debt, and maintaining a healthy credit mix. This can help you gain access to a wider range of lending products and lower interest rates in the future.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
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 .
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
By Mario Ismailanji |
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Comments Off on March 2025 Market Lookback
March delivered a stark illustration of evolving market dynamics. International markets dramatically outperformed their U.S. counterparts by one of the widest margins in history, as the Magnificent Seven stocks suffered their worst quarter since 2022. Federal Reserve officials downgraded their growth forecasts while expecting higher unemployment and inflation, and consumer confidence and deteriorating business surveys suggest economic headwinds are intensifying. Bond markets reflected the growing caution, with high yield credit spreads widening by the most in a single month since September 2022.
Macro
• The Federal Reserve left the fed funds rate unchanged at a target range of 4.25%-4.50%, citing an uncertain outlook.
• The Fed revised its quarterly economic projections to show lower growth (2.1% to 1.7%), higher inflation (2.5% to 2.7%), and higher unemployment (4.3% to 4.4%) in 2025.
• Unemployment ticked up from 4.0% to 4.1% in February, below expectations.
• Inflation reports were mostly cooler than expected, with the February Consumer and Producer Price indices coming in at 0.2% m/m (2.8% y/y) and 0.0% m/m (3.2% y/y), respectively.
• March consumer confidence plunged to multi-year lows, according to data from both the University of Michigan and the Conference Board.
• Regional Fed bank surveys of executives from manufacturing and service firms indicated the sharpest slowdown in economic activity since 2022.
Equities
• The Magnificent Seven stocks returned -10.2% in March, bringing their quarterly return to -16.0%. Both period returns rank as the worst since 2022.
• International markets’ beat the S&P 500 by 5.1 percentage points in March, one of the biggest outperformances in two decades.
• For a second straight month, forward 12-month earnings expectations rose (+0.7%) while the forward P/E ratio contracted (-6.4%).
• Cyclical stocks underperformed defensive stocks by 2.2 percentage points, the third straight month of underperformance.
Fixed Income
• Short-term Treasury yields fell by 5-10 basis points in March, while longer-term yields were flat-to-up.
• High Yield corporate bond spreads widened by 67 basis points, the most since September 2022, as tariff fears weigh on profit outlooks.
• While inflation-adjusted 10-year yields ended the month where they began in the U.S., they increased by 13-25 basis points in international markets on increased government spending expectations.
Going International
The first quarter of 2025 presented a notable shift in global market dynamics, with international markets outperforming their U.S. counterparts in a departure from recent trends. This divergence can be attributed to several key factors, including heightened fiscal spending initiatives across European economies, and investors pricing in the impact of tariffs on consumer spending.
While this burst of outperformance has prompted some discussion about a possible regime shift in global market leadership, it’s important to maintain perspective. This quarter’s results occurred in the aftermath of a decade and a half of U.S. market dominance.
Of course, every trend begins somewhere. Before the United States’ recent dominance, emerging markets led during the 2000’s commodity supercycle, a period of surging commodity prices driven by China’s rapid development. Sustained leadership transitions often occur alongside big structural shifts that, while not immediately recognizable in the moment, are undeniable after the fact.
Are we on the precipice of such a transition? A potential restructuring of global trade certainly could qualify, but only time will tell if we’re witnessing the early days of a new market regime.
Uncertainty Hits the Fed
It’s early in the year, but “uncertainty” is in the pole position for word of the year in finance. Consumers and investors alike have become gripped by it, and the Federal Reserve is not immune. In their quarterly Summary of Economic Projections, Fed officials also included a qualitative assessment of how uncertain their projections are relative to the average of the last 20 years. What they said probably won’t surprise you.
After declining over the last year or two, officials’ assessments of uncertainty have spiked the most since the initial COVID-19 crisis. History suggests that the Fed is less likely to make interest rate adjustments when the direction of the economy is this unclear. Recent Fedspeak underscores this dynamic, with officials signaling no interest rate changes while the broader economic and regulatory environment remains in flux.
The central bank is stuck between a rock and a hard place. While a “wait-and-see” approach is understandable, it raises the odds that the Fed falls behind the curve if economic conditions deteriorate quickly. That could mean a continuation of the market volatility investors have already been dealing with, and possibly more sharp corrections if the risks of higher unemployment and inflation are realized.
Performance data quoted represents past performance. Past performance does not guarantee future results. Market returns will fluctuate, and current performance may be lower or higher than the standardized performance data quoted.
• Mortgage refinance rates are influenced by economic factors such as the bond market and housing-market demand.
• A 1% drop in your mortgage refinance rate could translate to real savings — potentially hundreds of dollars off monthly payments.
• Refinancing to a 15-year mortgage can save significant amounts. Monthly payments may be larger, but less interest is paid overall.
• Homeowners should aim for at least 20% equity in a home before considering a cash-out refinance.
• Closing costs for a mortgage refinance usually fall between 2% and 5% of the loan amount, and should be factored into total costs.
Introduction to Mortgage Refinance Rates
Some people dream of a new home. Others just dream of a new home loan. A mortgage refinance lets the latter group achieve their dream. It’s like a reset button for your mortgage. A refinance gives you the chance to change the terms of your mortgage. Whether you’re looking to lower your monthly payments, pay off your loan faster, or get cash from the equity you have in your home, the type of refinance you choose can affect your financial future. This guide will help you understand how mortgage refinance rates are set and how to obtain the best rate you can. First step? Understanding where mortgage interest rates come from and why they change so much.
💡 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 Originate?
The interest rate you’ll be offered if you pursue a mortgage refinance is influenced by various economic forces as well as your personal financial profile. Key economic factors include the performance of the 10-year U.S. Treasury Note. When its rate rises, 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 attracting customers. Then there is the overall economy: A strong jobs market and economic growth can lead interest rates to rise, while weakness is usually accompanied by lower interest rates. By closely monitoring these factors, you may be able to anticipate changes in rates and make informed decisions regarding the optimal time to refinance your mortgage.
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Interest rates play a pivotal role in the cost of your mortgage refinance. Your monthly payment hinges on your loan amount, the term of repayment, and the mortgage refinance rate you secure. Here’s a look at how term and rate changes play out for a $300,000 loan:
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$1,799
$347,515
6.00%
15-year
$2,532
$155,683
7.00%
30-year
$1,996
$418,527
7.00%
15-year
$2,697
$185,367
Why Refinance in Kentucky?
Refinancing your mortgage can be a savvy financial move if current interest rates are noticeably lower than the rate you have on your existing mortgage. But there are additional reasons that a refi might make sense.
Common Reasons to Refinance a Mortgage
• You qualify for a lower interest rate because your credit score has improved since you purchased your home.
• You want to trim down your repayment term to pay off your loan more quickly and save money on interest, or perhaps you want to extend your repayment term to make monthly payments more manageable.
• You need to tap into your home equity for expenses like college tuition.
• Your adjustable-rate mortgage is about to change, and you want to switch to a fixed-rate loan.
• You have an FHA loan (backed by the Federal Housing Administration) and 20% equity, and you want to eliminate the FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Rate
If you have a good reason to refinance, your next step is preparing your finances so that you’ll present to a potential lender in the best possible light. Here are some steps to help you get the best available rate:
• Take good care of your credit score: Timely payments and avoiding new debt can give your score a lift if it isn’t already in sparkling shape.
• Check your equity. If you’re wondering how soon can you refinance a mortgage, the general rule of thumb is that you will need 20% equity. This is especially true for a cash-out refinance (more on that below).
• Reduce your DTI: Aim for a debt-to-income (DTI) ratio of 36% or less to keep your financial house in order. (To determine your DTI ratio, add up your monthly debts and divide by your gross monthly income; multiply by 100.)
• Examine your cash on hand to determine whether you might be able to purchase mortgage points, also known as discount points, to reduce your interest rate.
• Get a handle on your monthly budget so you’ll be able to determine whether a 10- or 15-year mortgage term will work for you. Although it may mean higher monthly payments, a shorter term usually equals less interest paid overall.
Understand Trends in Kentucky Mortgage Interest Rates
As you’re looking at current mortgage rates in Kentucky, it helps to have a sense of context. The chart below shows how closely Kentucky’s rates have stayed to the national average over a span of almost 20 years. (The Federal Housing Finance Agency stopped tracking states after 2018.) It’s important to keep an eye on the market and stay informed about where rates are today and where they may be heading.
Historical U.S. Mortgage Interest Rates
You might have an ideal interest rate in mind, a point at which you’ll feel good about refinancing. But as you’re waiting for an interest rate drop, study the history of rates in the U.S. to make sure your expectations are realistic. Below you can see more than a half-century of rates. Those who remember the rock-bottom rates of early 2021 may be awaiting a drop below 4.00% or 5.00%. But as you can see from the graph below, those rates don’t come around very often.
Historical Interest Rates in Kentucky
As you can see, the average rate rarely varies by more than a point year over year.
Year
Kentucky Rate
National Rate
2000
8.09
8.14
2001
7.00
7.03
2002
6.49
6.62
2003
5.68
5.83
2004
5.71
5.95
2005
5.94
6.00
2006
6.62
6.60
2007
6.48
6.44
2008
6.12
6.09
2009
5.09
5.06
2010
4.84
4.84
2011
4.53
4.66
2012
3.67
3.74
2013
3.86
3.92
2014
4.18
4.24
2015
3.85
3.91
2016
3.77
3.72
2017
4.00
4.03
2018
4.65
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
As you explore a possible refinance and get acquainted with average rates, it’s important to remember that current mortgage refinance rates in Kentucky vary by the type of mortgage refi you choose. These are some of the most common types:
Conventional Refi
Conventional loans are very popular, and a rate-and-term refinance with a conventional loan may let you lower your interest rate, change your loan term, or both. These loans typically have a higher refinance rate than government-backed loans such as FHA loans. However, they are very flexible. To be eligible for a conventional refinance, you typically need a good credit score and adequate equity in your home.
15-Year Mortgage Refi
As noted above, some borrowers refinance from a 30-year loan into a shorter-term one. Even if you’re able to snag a lower interest rate than you currently have, you may pay more per month than you would with a longer term. But over the life of the loan, you’ll actually significantly trim your interest costs. Some people switch to a 15-year term so they can pay off their mortgage before retirement, and they find higher payments are doable because they are in their peak earning years.
Adjustable-Rate Mortgage Refi
An adjustable-rate mortgage (ARM) starts you out with a lower initial mortgage refinance rate than a fixed-rate loan. But the rate can change over time. If you’re planning to move before the rate adjusts, refinancing from a 30-year fixed mortgage to an ARM can help lower your monthly payment in the short term and save on interest. An ARM could also be a good choice if you’re looking to take advantage of potential interest rate decreases in the future. Just be sure you understand how much your monthly payment could change and how quickly it could increase.
Cash-Out Refi
A cash-out refinance is a way for homeowners to access the equity in their homes by borrowing against it. The rates for these types of refinances are usually a bit higher than the rates for a standard refinance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. A lender may allow you to borrow up to 80% of your equity with a new loan. If you refinance and borrow, say, $100,000, you’ll owe more than you did going into the refi. But it’s a good way to borrow a large sum for a renovation or debt consolidation, and interest rates on home loans are typically lower than those on unsecured loans.
FHA Refi
FHA loans often come with favorable mortgage refinance rates. An FHA Simple Refinance or FHA Streamline Refinance is available to homeowners who currently have an FHA loan. However, even if you don’t have an FHA loan, you can choose an FHA cash-out refinance or an FHA 203(k) refinance. The latter is specifically for home improvement and renovation projects.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. In order to qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must have an existing VA loan.
Compare Mortgage Refi Interest Rates
Once you’ve zeroed in on the type of refinance you want to undertake, it’s time to research rate offers. Take these steps:
• Shop around and get rates and fees for your refi from multiple lenders.
• As you compare offers, examine the annual percentage rate (APR) of each loan, which includes the interest rate and fees. Make sure you factor in all costs associated with the loan, including discount points.
• Evaluate the break-even point to decide if the savings are worth the costs. Find the break-even point by dividing the closing costs by the monthly savings from your new payment. Let’s say refinancing causes a payment to decrease by $150 a month. If closing costs are $3,000, it would take 20 months to recoup the costs and start to see savings.
A refinance calculator will be a useful tool during this process.
Use an Online Refinance Calculator
Online refinance calculators are a great way to figure out what your new monthly payment will be and to compare different refinance options. They can help you understand the impact of different mortgage refinance rates and terms, so you can make an informed decision about whether refinancing makes sense for you. By using these tools, you can carefully consider the potential financial implications of refinancing your mortgage, and make a decision that’s right for you and your financial situation.
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’s not something you should rush into. By working to improve your credit score and lower your DTI ratio, and by comparing refinance rates in Kentucky from multiple lenders, you can increase your chances of getting a better deal. Whether you’re considering a cash-out refinance, an FHA refinance, a VA refinance, or a 15-year fixed-rate mortgage, the key is to make sure that the refinance makes sense in the context of your broader financial situation and long-term 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.
A mortgage refinance could be a game changer for your finances.
There’s no way to predict future mortgage rates, 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. Watch the current refinance rates in Kentucky so you’ll know when the time is right to move forward on a refinance.
When is it a good idea to refinance your home?
Of course it’s a good idea to refinance if you can get a substantially lower interest rate on the new loan. But refinancing your home can also be a smart financial move if it helps you consolidate debt in a cash-out refi, or pay off your mortgage before retirement. One important thing is to figure out at what point the money you spend on refinancing is outweighed by any cash you save in the refinancing process. How long do you plan to stay in the home? If you think you might move before you’ve recouped the cost, a refi may not make sense.
Can I request a rate reduction from my lender?
You can approach your lender and ask for a lower mortgage rate, using the current mortgage refinance rates in Kentucky as a guide. If you have a high credit score and make your payments on time, you’re in a good position to negotiate. But don’t be surprised if your lender says no and suggests a refinance instead.
How much are closing costs on a refinance?
Average closing costs for a refinance usually fall between 2% and 5% of the loan amount. They can fluctuate based on the lender, the type of refinance, and the property’s location and can encompass a variety of fees, including the appraisal and title insurance fee.
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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.
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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.
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
• Mortgage refinance rates are influenced by a variety of economic factors, including the Federal Reserve’s policies, inflation, and the bond market. Your personal financial profile will also play a role in the rates you are offered.
• In Indiana, refinance rates have shifted dramatically in the last few years, from a low of 3.15% in 2021 to a 7.00% high in 2023.
• A 1.00% drop in your mortgage rate in Indiana could translate to substantial monthly savings — around $2,000 a year on a $300,000 loan.
• Government-backed loans such as FHA and VA may offer you lower mortgage refinance rates and more flexible criteria. These loans are accessible to a broad range of borrowers.
• Closing costs for mortgage loan refinancing usually fall between 2% and 5% of the loan amount. Measure these costs against your potential savings to determine if a mortgage refinance is the right move for you right now.
Introduction to Mortgage Refinance Rates
To start: What is a mortgage refinance? It’s what you do to give your current home loan a makeover. Your new loan may have different terms that can be more favorable than those of your existing mortgage. You also may be able to lower your interest rate.
Homeowners thinking about refinancing can find a lot of different motivations for doing it, in Indiana and elsewhere. Maybe you’re hoping to lower your monthly overhead, or to tap some of your equity for a bathroom renovation. How soon can you refinance a mortgage? It is going to depend on a number of factors.
This guide will help you understand how mortgage refinances work and how to get the best rates in today’s market, focusing on factors that affect Indiana homeowners.
Mortgage refinance rates are influenced by outside economic factors and your personal financial profile. When it comes to economics, the most important variables include Federal Reserve policy, inflation, and housing inventory. The bond market, and especially the performance of the 10-year U.S. Treasury Note, plays a key role in determining current mortgage rates. When the yield on the Treasury Note increases, mortgage interest rates generally rise as well.
In times of high inflation, mortgage rates often climb, but when inflation is in check, you might see interest rates drop. The Fed’s monetary policy and the bond market also play parts in this financial symphony. Knowing more about these factors can help you feel educated to make the best decisions about refinancing your mortgage.
Don’t forget to consider your own financial scenario. Having a strong credit score — which is determined by such factors as your history of on-time payments, your credit utilization ratio, and your credit mix (like, having managed any installment loans and credit lines you hold responsibly) — is a definite asset when you apply for a mortgage refi.
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Looking to refinance your mortgage? Interest rates in Indiana are sure to play a major role in what you can afford to do. Your monthly payment will be based on the loan amount, the term of the loan, and the interest rate you’re offered. For example:
A $200,000 home loan with a 6.00% interest rate and a 30-year term will require a monthly payment of $1,199. But the exact same loan with an 8.00% interest rate would give you a monthly payment of $1,467.
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
Secure a lower interest rate and you can save tens of thousands of dollars over your loan term, which could seriously impact your financial state. It could also play a role in achieving long-term goals like starting your own business or financing your child’s college tuition.
Why You Should Refinance Your Mortgage in Indiana
Refinancing your mortgage offers a number of benefits, depending on the financial goals you have. If current interest rates are lower than what your existing mortgage has, refinancing can most likely reduce your monthly payments and save you money over the loan’s life. Refinancing can help you switch, too, from an adjustable-rate mortgage to one with a fixed rate for savings in the long run. Another great approach is to refinance a 30-year mortgage to a new 15-year term, which can save you a lot of money in the long run.
Remember that refinancing a mortgage will almost always involve closing costs. A no-closing-cost refinance sounds like a real find, but they are often too good to be true — those charges will probably get rolled into the new mortgage, or you’ll pay a higher interest rate.
Whatever your reason for wanting to do it, you should have 20% equity or more in your home before you push play on a refinance, especially if you want to cash out some of your equity.
Common Reasons to Refinance a Mortgage
These are some of the more common goals of homeowners who refinance their mortgages:
• Qualifying for a lower interest rate thanks to improved credit or market conditions.
• Adjusting the repayment term to make monthly payments more manageable, or to pay off the loan more swiftly.
• Tapping into home equity in order to fund significant expenses, like a home remodel.
• Wanting to switch to a fixed-rate loan, since an adjustable-rate mortgage reset is coming soon.
• Wanting to get mortgage insurance out of your life when you have an FHA loan and 20% equity.
• Considering a debt consolidation, or releasing a cosigner.
Your financial history always has an impact on interest rates that lenders offer you in Indiana. Homeowners with strong credit and low debt-to-income ratio may secure lower rates than those with less-ideal profiles.
To secure a competitive mortgage refinance rate, here’s what you should work on:
• Bolster your credit score by paying your bills on time and steering clear of new debt.
• Maintain a debt-to-income ratio under 36%.
• Explore offers from multiple lenders.
• Think about buying mortgage discount points to lower your interest rate.
Once you’ve achieved an optimal credit history, it’s time to deep-dive into rate trends.
Examining Trends in Indiana Mortgage Interest Rates
No one can predict with certainty where rates are headed at any given moment, but by understanding where they’ve been, you’ll be better equipped to make a decision right for you.
Historical U.S. Mortgage Interest Rates
Here’s a longer view of national mortgage rates. You can see that rates in the early 2000s were at around 6.00%. In 2020, they dropped lower, to under 3.00%. This decrease planted the idea in people’s minds that low rates were “normal.” In 2023, however, they rose again. Soon they were hitting around 7.00%.
A lot of people today complain about high interest rates. Current mortgage refinance rates, however, remain below the 50-year average.
Historical Interest Rates in Indiana
Below, compare Indiana and U.S. nationwide rates from 2000 to 2018 — they’re similar but not identical. (The Federal Housing Finance Agency stopped compiling state averages after 2018.)
Year
Indiana Rate
National Rate
2000
8.13
8.14
2001
7.08
7.03
2002
6.67
6.62
2003
5.97
5.83
2004
5.89
5.95
2005
5.97
6.00
2006
6.67
6.60
2007
6.55
6.44
2008
6.14
6.09
2009
5.39
5.06
2010
5.01
4.84
2011
4.97
4.66
2012
3.71
3.74
2013
4.05
3.92
2014
5.24
4.24
2015
4.01
3.91
2016
3.86
3.72
2017
4.19
4.03
2018
4.75
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
The type of mortgage refinance you choose will influence the interest rate you’re offered. Some refi loans trend higher or lower, and that’s good to keep in mind when considering refinancing options.
Conventional Refi
A conventional mortgage refinance, also known as a rate-and-term refinance, is a popular choice for homeowners who want to enhance their mortgage terms. These refis often carry higher rates than government-backed loans such as FHA, VA, or USDA, but they provide increased flexibility and potential to waive PMI, or private mortgage insurance, if you have at least 20% in home equity. This type of refinance is an excellent option for a homeowner aiming to reduce an interest rate or adjust their loan term. Two types of conventional refis are a 15-year term refi and and adjustable-rate refi:
15-Year Mortgage Refi
Now, let’s talk about a 15-year mortgage refinance. This option can really be a game-changer. It will help you cut down the total interest you’ll pay over the loan’s life, even though you’ll have higher monthly payments.
On a 30-year, $1 million loan at a 7.50% rate, for instance, you’d be looking at a monthly payment of around $6,992 and a whopping $1,517,167 in total interest over the life of the loan. If you refinanced to a 15-year term at a 7.00% rate, you would see your monthly payments rise to about $8,988 — but the total interest would drop to roughly $617,891, saving you close to $900,000 in interest.
Shorter loan terms save you money in a couple of ways: by reducing the time you’re paying interest on the loan, and by offering slightly lower interest rates than loans with longer terms do.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) usually start with a lower interest rate than fixed-rate loans, but the rate changes over time. If you plan to move before the rate adjusts, an ARM may be a good option for you. In the short term, you can save on monthly payments and get the financial breathing room to set sights on your next home.
Cash-Out Refi
Cash-out refinances are a popular way to leverage home equity. This type of loan can put a lump sum in your hands that you can use for a range of financial needs, from home improvements to consolidating high-interest debt. Here’s one example: Your home is worth $500,000 and your current mortgage balance is $300,000, so you have $200,000 in equity. A lender may allow you to borrow up to 80% of your equity. In that case, you’d be left with $100,000 after you paid off your existing mortgage. This can be a great approach to tackling debt or financing a big-ticket item.
FHA Refi
FHA loans are insured by the Federal Housing Administration, and often come with lower interest rates, making them attractive for refinancers. If you have an FHA loan already, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance to potentially lower your rate. If you don’t have an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance, which is designed for home renovations and repairs. By choosing one of these alternatives, you can get financial flexibility and possibly lower monthly payments.
VA Refi
VA loans, backed by the Department of Veterans Affairs, are known for offering some of the most competitive interest rates in the mortgage market. If you want to qualify for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you’ll need to have an existing VA loan. This type of refinance can lower your monthly payments and remove the need for private mortgage insurance for eligible veterans and their families.
Compare Mortgage Refi Interest Rates
To ensure you’re getting the best deal, you’ll want to compare rates from multiple lenders in Indiana. In fact, it’s smart to look beyond interest rates to the annual percentage rate (APR).
APR is a handy equation that incorporates both fees and any discount points you’ve got. Calculate the total loan cost, as well as your break-even point (that is, how long it takes for the money you save to cancel out the out-of-pocket cost of the refinance). Keep an eye on your credit score and your home’s value — the higher they are, the more favorable rates you’ll receive offers for. Don’t forget to peruse local refinance rates for the best deal.
How Can You Get the Best Available Mortgage Refi Interest Rate?
Knowing refinance rates will be crucial for homeowners in Indiana who are looking to secure a competitive mortgage rate. Follow these tips:
• Compare rates from multiple lenders.
• Get prequalified — it can let you see your borrowing power and rates without triggering a hard credit check.
• Compare APRs vs. interest rates, which include interest costs, fees, and discount points.
• Evaluate and crunch the numbers to see if lower rates will trigger higher long-run costs.
• Use a calculator to estimate your savings.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes around 30 to 45 days, is similar to when you got your original home loan.
Online Refinance Calculators
An online refinance calculator can be helpful. It will give you an idea of what your new monthly payment could be, and help you compare different refinance options. These calculators take into account your current loan balance, the interest rate on a potential new loan, and the repayment term, giving you an estimate of how much you could save by refinancing. You can also use it to see how long it would take to recoup your mortgage refinancing costs.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Mortgage refinancing is a powerful tool to help you manage your home loan and achieve financial goals. Whether you hope to lower your interest rate, access home equity, or shorten your loan’s term, understanding the different refinance options is key. If you improve your credit score, lower your debt-to-income ratio, and compare offers from multiple lenders, you can secure the best available mortgage refinance rates in Indiana. Just consider the long-term financial implications and make sure that the savings justify the costs involved.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
When you can lock in a lower interest rate, consolidate your debt, or meet other important financial goals, a mortgage refi might be a good financial decision. Do the math and figure out at what point the cash you’ll save after your refi will exceed the money you’ll spend on the refi itself. How long will you stay in your home? If you’ll end up moving before you’ve recouped the cost of your refi, it won’t make sense.
Can I draw cash out of my house without refinancing?
You can tap into your home’s equity to get money without a refinance. Request a home equity line of credit (HELOC), or take out a home equity loan. These options can all be great ways to pay for home improvements, consolidate debt, or cover other pop-up expenses. Technically, a HELOC or home equity loan is a second mortgage (assuming you still have your first one). It’s important to find the most competitive interest rate during the application process.
Is it possible to lower my interest rate without refinancing?
It’s hard to lower a mortgage interest rate without a refinance. You can reduce your monthly payment, though, by doing a mortgage recast. This move involves making a lump-sum payment toward your principal balance. Your lender can then “recast” your monthly payment amount. If you are facing financial hardship, you can also ask your lender about a loan modification. But lenders tend to suggest a refi or a recast first.
Are refinance rates going to drop anytime soon?
There’s no crystal ball that predicts future mortgage rates, but look at key indicators and you may 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 future. Keep an eye on the current refinance rates in Indiana so you’ll know when the time is right to refinance.
SoFi Mortgages
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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.
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Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
• Mortgage refinancing can help reduce monthly payments, shorten a loan’s duration, or unlock home equity.
• Mortgage refinance rates in Idaho are influenced by the 10-year U.S. Treasury Note and housing inventory levels, among other factors.
• Borrowers who can manage somewhat higher monthly payments might refinance to a 15-year mortgage and pay less in total interest over the life of the loan.
• VA refinances, supported by the U.S. Department of Veterans Affairs, are known for their competitive interest rates, making them a smart choice for those who qualify and are eligible in Idaho.
• A refinance might cause a slight, temporary drop in the borrower’s credit score due to the hard credit inquiry.
Introduction to Mortgage Refinance Rates
Mortgage refinancing is the process of replacing your current home loan with a new one featuring updated terms and a different interest rate. Whether your goal is to lower your monthly payments, pay off your loan sooner, or take cash out of your home, the type of mortgage refinance you choose will play a big role in the interest rate you get. Below, we’ll explain how mortgage refinance rates are determined and give you some tips for getting the best rate possible. We’ll also cover the latest mortgage refinance rates in Idaho to help you make an informed decision.
Current mortgage rates for a refinance are a product of various economic and personal financial factors. On a large scale, they’re influenced by the bond market, specifically in the performance of the 10-year U.S. Treasury Note. When the rates on the note rise, mortgage interest tends to rise as well.
Another factor is the performance of the housing market. When the market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers. A strong jobs market and economic growth can lead interest rates to rise, while a recession is usually accompanied by lower interest rates.
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Your monthly payment is a product of your loan amount, repayment term, and interest rate, so interest rates play a big role in the affordability of your refinance. The chart below shows how different interest rates affect the size of the monthly payment and the total interest paid on a $200,000 loan.
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 Idaho?
Homeowners refinance their mortgages for various reasons. If interest rates are lower than your current rate, refinancing could certainly save you money. To qualify for a refinance, you typically need at least 20% equity in your home. Here are more reasons to consider a refinance.
Common Reasons to Refinance a Mortgage
• Your credit score has improved (or rates have declined), and you can qualify for a lower interest rate than you currently have.
• You want to change your repayment terms, either for lower monthly payments (which may mean a longer term) or for a faster loan payoff.
• You want to cash out some home equity to cover expenses like college or home improvements or to cover some higher-interest debt.
• You want to transition from an adjustable-rate mortgage to a fixed rate (or vice versa).
Think about Idaho refinance rates when considering these options.
How to Get the Best Available Mortgage Refi Interest Rate
To secure the best mortgage refinance rate, these are some key moves to make before you apply for a new loan. Think of this as how to refinance a mortgage in Idaho:
• Take good care of your credit score by paying your bills on time and sidestepping new debt.
• Aim for a debt-to-income (DTI) ratio of 36% or less. (Your DTI ratio is your monthly debts divided by your gross monthly income, multiplied by 100.)
• Think about whether your budget can accommodate the purchase of discount points. Also known as mortgage points, each one will cost about 1% of your principal amount and will reduce your interest rate — how large a reduction will depend on the lender.
• Determine how large a monthly payment you can afford. A shorter loan term, as we’ve noted, may mean a higher monthly payment but will result in less interest paid over the long haul.
While you’re taking the steps above, it also pays to become familiar with Idaho mortgage rates.
Understand Trends in Idaho Mortgage Interest Rates
Over the past few years, mortgage rates have been on a bit of a rollercoaster. In January 2021, the national average for a 30-year fixed mortgage hit a historic low of 2.65%. By 2023, that number had jumped to 7.79%. Here’s a look at trends in Idaho and nationally.
Historical U.S. Mortgage Interest Rates
If you’re awaiting an interest rate drop, understanding the longer history of U.S. mortgage rates can help you get some perspective on the current landscape. As the graphic below shows, there was a long span of time when rates sat comfortably under 5.00%. In more recent years, they have trended upward.
Historical Interest Rates in Idaho
Idaho’s mortgage refinance rates have generally followed national trends, with rates rising and falling in line with changes in the broader interest rate environment. It’s worth noting that it would be unusual for the average rate in Idaho to fall by more than a percentage point year to year.
Year
Idaho Rate
National Rate
2000
7.77
8.14
2001
6.93
7.03
2002
6.53
6.62
2003
5.66
5.83
2004
5.63
5.95
2005
5.86
6.00
2006
6.49
6.60
2007
6.43
6.44
2008
5.99
6.09
2009
5.00
5.06
2010
4.79
4.84
2011
4.67
4.66
2012
3.73
3.74
2013
3.83
3.92
2014
4.19
4.24
2015
3.91
3.91
2016
3.72
3.72
2017
4.08
4.03
2018
4.62
4.57
Source: Federal House Finance Agency
Choose the Right Mortgage Refi Type
Interest rates vary depending on the type of mortgage refi you’re considering. Here are a few of the more popular options:
Conventional Refi
Conventional refinance loans, also known as rate-and-term refinances, often have higher interest rates than government-backed FHA and VA loans. But conventional loans are a good option for homeowners who want to lower their interest rate or change their loan term. To be eligible for a conventional refinance, you will need a minimum credit score and adequate equity in your home. Two common types are the 15-year refinance and the adjustable-rate refinance.
15-Year Mortgage Refi
It can be a smart move to refinance into a 15-year mortgage. Yes, it means higher monthly payments, but you stand to save substantial interest over the life of the loan. If you owed $350,000 on your mortgage and refinanced into a 15-year loan at 6.50%, your monthly payment would be $3,049 and you would pay a total of $198,798 in interest. Choosing a 30-year term would lower the monthly payment to $2,212 but increase the interest paid to $446,406.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower interest rate than fixed-rate loans, making them appealing for homeowners who plan to move before the rate adjusts. If you currently have a 30-year fixed-rate mortgage but anticipate leaving your home within a few years, switching to an ARM could lower your monthly payments. However, it’s important to understand the potential for rate increases in the future. (Some people, on the other hand, refinance out of an ARM and into a fixed-rate loan because they think rates will rise in the future and they want a predictable monthly payment.)
Cash-Out Refi
A cash-out refinance is a smart way to make your home’s equity work for you. Imagine your home is valued at $500,000 and you still owe $300,000 on your mortgage. That leaves you with $200,000 in equity. A lender might allow you to borrow up to 80% of that equity in a cash-out refi. You can use the extra cash for any purpose. It’s a popular solution for debt consolidation and renovations. While the rates for cash-out refis can be a bit higher, the financial flexibility they provide can be well worth it.
FHA Refi
An FHA loan refinance, insured by the Federal Housing Administration, often comes with an attractive low interest rate. If you already have an FHA loan, you can opt for an FHA Simple Refinance or an FHA Streamline Refinance, which simplifies the process. For those without an FHA loan, options include an FHA cash-out refinance or an FHA 203(k) refinance (the latter is designed for home renovations).
VA Refi
A VA loan refinance, backed by the U.S. Department of Veterans Affairs, offers some of the lowest interest rates available. The VA Interest Rate Reduction Refinance Loan (IRRRL) can help you secure a lower interest rate or move from an adjustable-rate mortgage to a fixed-rate one. VA refinance rates offer significant savings and financial flexibility for those who qualify.
Compare Mortgage Refi Interest Rates
Snagging a competitive mortgage rate can save you thousands of dollars on mortgage refinancing costs. Here are some tips:
• Shop around and compare current mortgage refinance rates in Idaho to find the best deal.
• When you’re comparing offers, look at the annual percentage rate (APR) to get a full picture of the costs, including fees and mortgage points.
• Think about the trade-off between rate and fees; lower rates often come with higher costs. Some lenders offer a no-closing-cost refinance but may have higher interest rates instead.
An online refinance calculator will be a valuable tool during this process.
Use an Online Refinance Calculator
Online refinance calculators are a great way to get a rough estimate of what your new monthly payments and potential savings could be. You can put in different interest rates and loan terms to see how different offers compare. Here are a few of our favorite calculators.
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 powerful way to manage debt and improve your financial situation. Whether you want to lower your interest rate, shorten your loan term, or tap into your home’s equity, it’s important to understand the different refinance options available. By getting your financial house in order and shopping around for the best mortgage refinance rates in Idaho, you can make a smart decision that helps you reach 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.
A mortgage refinance could be a game changer for your finances.
It’s a savvy financial play to refinance if you can snag a lower interest rate, consolidate debts, or pay off your loan faster. The key is to figure out at what point the money you spend on refinancing in the form of closing costs, discount points, and other fees is outweighed by the money you save in the refinancing process. How long do you plan to stay in the home? If you think you might move before you’ve recouped the cost, a refi may not make sense.
Can I ask my lender to lower my rate?
You can have a conversation with your lender and ask for a lower interest rate on your existing mortgage loan. If you’ve been diligent about making your payments on time, and your credit score is in good standing, your lender might just be open to the idea. But it’s also possible that the lender will instead suggest a refinance or a mortgage recast (which involves paying down a portion of the principal and then recomputing future payments).
How much are closing costs on a refinance?
On average, closing costs typically range from 2% to 5% of the loan amount. So for a $350,000 refinance, you might be looking at $7,000 to $17,500. The final figure can vary based on a few things, like where your property is located, the type of loan you’re getting, and your lender. Keep in mind that these costs can significantly impact the overall price of your loan.
How many times can you refinance your home loan?
There are no limits on how many times you can refinance your home. However, each time you do, you will have to pay closing costs and your credit score could be affected. And even the smoothest refinance takes time and energy. So it’s important to think about the pros and cons before you refinance to ensure that it makes sense for your financial situation.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
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*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.
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‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
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