Compare mortgage refinance rates in West Virginia.

Intro to Mortgage Refi Interest Rates

Where Do Mortgage Refi Rates Come From?

Mortgage refinance rates are a product of both economic factors and your own financial situation.

•   On the economic side, things like Federal Reserve policy, inflation, the bond market, and housing inventory can all play a role. Generally, high inflation and federal funds rate increases can lead to higher rates when refinancing a home loan. Low inflation and bond prices can help keep rates in check.

•   The real estate market can also lead to rate shifts. When housing inventory is scarce and prices rise, so too can mortgage interest rates in West Virginia creep up.

•   On the personal side, your own credit score plays a role in the rate you’ll pay if you refinance in West Virginia. If you have a strong score, showing that you have managed debt responsibly in the past, you will likely get a lower interest rate than someone with a bad score. That’s because a lower credit score indicates that you have not handled credit well in the past and could be a risk to lenders.

By keeping an eye on these factors, you can get a sense of when might be a good time to refinance.

How Interest Rates Affect Home Affordability

Interest rates play a significant role in determining the affordability of your mortgage refinance. Your monthly payment is influenced by your loan amount, the term over which you’re repaying it, and the refinance rate you secure.

Here’s a specific example to show you how the numbers can stack up:

•   A $200,000 loan with a 6.00% interest rate and a 30-year term would mean a monthly payment of $1,199.

•   If that interest rate were 8.00%, you’d be looking at a monthly payment of $1,467.

•   Over the life of the loan, that 2% difference yields $268 more in your budget every month. And over the life of the loan, it could add up to nearly $100,000 in savings.

Even a fraction of a percentage point can make a substantial difference in interest savings (and your long-term financial picture) when you refi in West Virginia.

Why Refinance in West Virginia

Refinancing your mortgage can be a strategic move, but it’s not for everyone. There are closing costs, as well as time and effort involved. The key is to make sure the new rate and terms fit your long-term financial goals. Here’s a closer look at some reasons to refi.

Common Reasons to Refinance a Mortgage

Consider these common reasons homeowners refinance their mortgage:

•   You qualify for a lower interest rate thanks to improved market conditions or having built your credit.

•   You may want to adjust your repayment term to better fit your financial goals and monthly budget.

•   You’re looking to tap into your home’s equity to cover costs like education or renovations.

•   Your adjustable-rate mortgage is about to reset, and you’re considering a switch to a fixed-rate loan for more predictable payments.

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

One note about that 20% home equity figure cited above: In terms of how soon you can refinance, you typically need to hit that same amount of equity (20%) for any kind of refi, not just FHAs.

How to Get the Best Available Mortgage Refi Rate

Of course, if you are refinancing in West Virginia, you likely want the best deal possible. These are some of the top tips for securing a competitive mortgage refinance rate:

•   Build your credit score by being punctual with payments, keeping your credit utilization ratio to no more than 30% (under 10% is even better).

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

•   Compare rates from multiple lenders; your first offer isn’t always the best.

•   Think about discount points (aka mortgage points) to lower your rate: By putting more money down upfront, you can save money on interest over the life of your loan.

•   Choose a shorter loan term to minimize interest costs.

Understand Trends in West Virginia Mortgage Interest Rates

The mortgage refinance market in West Virginia and the U.S. has seen some big changes in recent years. By delving into those trends, keeping an eye on the market, and making a move when the time is right, you could save a lot of money on interest over the life of your loan.

Choose the Right Mortgage Refi Type

Mortgage refinance rates in West Virginia can depend on the type of refinance you’re considering. Each option has its own unique features and advantages. Your goals (such as lowering your monthly housing costs or tapping into your home equity) can guide your decision and contribute to your rate. Now…let’s dive into some of the main options.

💡 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.

Compare Mortgage Refi Interest Rates

Securing a competitive mortgage refinance rate can save you thousands of dollars over the life of your West Virginia home loan. Here are some tips to help you find the best rate:

•   Shop around and get prequalified by a few lenders to compare rates and fees. (This helps you avoid hard credit pulls, which can ding your credit score.)

•   Look at the annual percentage rate (APR), which reflects the true cost of borrowing, vs. just focusing on the interest rate.

•   Think about buying discount points to lower your mortgage refinance rate.

•   Evaluate the total price tag of the new mortgage, including mortgage refinancing costs and new monthly payments.

•   Assess the break-even point to see if the savings make refinancing worthwhile. That refers to the moment when the savings of your new loan kick in, and your closing costs are in the rearview mirror.

•   Use a refinance calculator to get a better idea of your potential savings.

Use an Online Refinance Calculator

Refinancing a mortgage in West Virginia involves a fair amount of numbers and mathematical calculations. Don’t let that make you sweat: Online refinance calculators can be a terrific way to get an initial look at your potential savings without a lot of effort.

They can give you an estimate of your monthly payments and costs as you compare different refinance options. This can allow you to make a more informed decision about whether a mortgage refinance is right for you and, if so, which offer is your best option.

The Takeaway

Refinancing your West Virginia mortgage can be a smart financial move, but it does require some careful thought about your financial goals and the current mortgage refinance rates. Whether you’re looking to lower your interest rate, get access to cash, or switch to a different type of mortgage or term, it’s important to understand the process and your available options. Then you can determine the best next step.

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

Will refinancing ding your credit score?

Refinancing might cause a small, temporary dip in your credit score due to the hard credit inquiry and the addition of a new account to your credit report. But don’t worry, the impact is usually minor (several points) and short-lived, especially if you keep making payments on time. Just recognize that the exact impact of refinancing on your credit score will depend on your individual circumstances.

Do you need to pay closing costs when you refinance?

Yes, you will likely have to pay closing costs again when you refinance. These costs usually fall between 2% to 5% of the loan amount. You may be able to roll them into the ongoing cost of your loan vs. paying them in a lump sum. Just be aware that you’ll be paying interest on the closing costs that way.

How many times can you refinance your home loan?

When you’re thinking about refinancing your home, it’s important to know that there are no federal restrictions on how many times you can refinance your mortgage. But each time you do, you’ll need to pay closing costs and you could see a hit to your credit. So it’s important to weigh the potential benefits of refinancing against these downsides to make sure it’s the right move for you.

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.

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Compare mortgage refinance rates in Washington.

Intro to Mortgage Refi Interest Rates

Where Do Mortgage Refinance Interest Rates Come From?

Current mortgage rates are influenced by both economic and personal financial factors. The big economic factors that come into play include bond market conditions, housing inventory, and the job market. The strongest indicator of the direction mortgage interest rates are headed is the performance of the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest tends to rise also.

Another factor is the housing market. When the market cools, lenders may lower rates to keep customers borrowing. Then there is the overall economy: A strong jobs market and economic growth can lead to rising rates, while a recession is usually accompanied by lower interest rates.

How Interest Rates Affect Home Affordability

The interest rate you obtain for your new home loan plays a pivotal role in your mortgage refinance. Alongside your loan amount and loan term, your interest determines your monthly and total costs for the loan. The chart below shows how changing rate or term on a $300,000 loan affects monthly payments and total costs. Over time, that seemingly small one-percentage-point change from a 6.00% to 7.00% rate on a 30-year loan can translate to more than $70,000 in extra costs. So, yes, every digit after the decimal counts.

Why Refinance in Washington?

Refinancing your mortgage can be a savvy financial move, especially when current mortgage refinance rates are lower than your existing rate. But there are other reasons to swap out your loan.

Common Reasons to Refinance a Mortgage

•   You qualify for a lower mortgage refinance rate because of improved credit or an interest rate drop in the market.

•   You want to alter your repayment term to either reduce monthly costs or pay off the loan more swiftly (the latter often means larger monthly costs, even if you can score a lower rate).

•   You need to tap into your home equity to finance a big expense, like a renovation or your child’s education, or to pay off higher-interest debt.

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

•   You’ve got an FHA loan (backed by the Federal Housing Administration) with at least 20% equity, and you’re ready to shake off the FHA mortgage insurance premium you’ve been paying.

If you’re wondering how soon can you refinance a mortgage, it’s generally best to have 20% home equity before you embark on a refinance, especially if you are doing a cash-out loan (more on that below).

How to Get the Best Available Mortgage Refi Interest Rate

Ready to learn how to refinance a mortgage and get your best available rate? Here are the first steps you should take, before you even start to look for a new loan.

•   Help build a strong credit score by paying bills on time and avoiding new debt.

•   Keep your debt-to-income (DTI) ratio under 36%. To compute your DTI ratio, add up your monthly debts, such as student loans or an auto loan, and divide by your gross monthly income. Multiply by 100.

•   Consider whether you have cash on hand that you could use to purchase discount points, also known as mortgage points, to lower your interest rate. Each point generally costs 1% of your principal amount.

•   Examine your monthly budget to see if you have room to take on a higher mortgage payment, which would allow you to secure a shorter term loan. The shorter the term, the less interest you’ll likely pay over the long haul — and the sooner you’ll be free of mortgage debt.

Understand Trends in Washington Mortgage Interest Rates

If you are waiting for interest rates to drop and you have a certain magical number in mind, it’s a good idea to check in with prevailing interest rates to make sure your figure is realistic. Washington interest rates follow national patterns, as you will see below.

Choose the Right Mortgage Refi Type

Once you have a grasp of the highs and lows of mortgage rates, it’s time to explore your options for mortgage refinancing in Washington. Here are some of the more popular ways to refinance:

Compare Mortgage Refi Interest Rates

Securing a competitive mortgage refinance rate and understanding mortgage refinancing costs more generally can save you thousands of dollars. Here are some tips:

•   Shop around with different lenders to compare rates and terms. Many lenders will have an online prequalification process that lets you know, based on a few questions you answer, what rate you might obtain.

•   Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points. Don’t just look at interest rates — they won’t tell the whole story.

•   Weigh the trade-offs between rate and fees; a lower rate might mean higher costs elsewhere.

•   Assess whether the savings are worth the closing costs and any adjustments to your loan term.

An online refinance calculator will be helpful as you’re comparing loan offers.

Use an Online Refinance Calculator

An online refinance calculator can help you get an initial look at how various refinance options will affect your monthly costs and total interest paid. Online calculators are helpful at all phases of the homebuying and ownership process, in fact. Here are a few of our favorites:

The Takeaway

Refinancing your mortgage in Washington can be a smart financial move, potentially helping you to secure a lower interest rate, reduce your monthly payments, or obtain funds to cover a major life expense. But it’s important to weigh the costs and benefits of refinancing on your personal financial situation. That means considering the cost of closing fees and how long it will take to recoup costs. You can also help yourself get the best deal on a refinance by tidying up your credit score, reducing your debts, and shopping around for the best refinance rates from multiple lenders.

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-Q125-202