Get Today’s Refinance Rates
At Homesite Mortgage, you can take advantage of our consumer-direct mortgage services. Our below-market refinance rates and years of experience make us the best choice for your refinance or home loan needs.
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About Refinance Interest Rates
Refinance rates are the interest rates that you pay for each month on your mortgage (over the course of your entire mortgage). Because interest rates fluctuate, many homeowners opt to refinance their original mortgage in order to lock in a lower interest rate than what was previously available when they started their mortgage. Various factors will determine available refinance rates, including the economy and your credit score. Be sure to select a trustworthy lender with the best experience to seamlessly guide you through your refinance.
What Affects Your Individual Refinance Rate?
Credit Scores and Refinance Rates
A homeowner’s credit score is one of the most important factors when it comes to determining the rate of their refinance. If your credit score isn’t in a good position right now, start improving your credit score—check out the Credit Score Improvement Checklist. The higher your credit score is, the lower your refinance rate will be—even a “good” credit score can have significantly higher interest rate compared to an “excellent” credit score.
Size of Refinance Amount
If you need to refinance your mortgage above the conforming limits, a higher interest rate will likely accompany it. Expect to see an interest rate of .75% higher for a jumbo loan refinance—learn more about jumbo loans. On the other hand, a refinance with an exceptionally small loan amount can also generate a higher interest rate. With a loan size less than $50,000–100,000, expect to see an add-on to your base interest rate.
Loan to Value Ratio
Your Loan-to-Value (LTV) ratio reflects the amount you owe on your home in comparison to the appraised value of the home.
The lower your LTV ratio, the fewer hurdles you’ll have to cross in order to lock in the lowest refinance rate. If your LTV ratio is over 80%, you will likely have to invest in mortgage insurance (PMI) in order to qualify for a refinance.
Why Homesite Mortgage for Your Refinance?
Because Homesite Mortgage is a consumer-direct mortgage company, our customers’ best interests come first when it’s time to determine their refinance rates. We have years of successful experience helping homeowners save thousands of dollars through refinancing their mortgage to a lower interest rate.
Have questions or want to speak with a refinance specialist?
Refinance Rates FAQs
How often can I refinance my mortgage?
There is no official limit on how many times you’re allowed to refinance your mortgage. The main questions to keep in mind are “will this refinance save me money, and how many years will it take to reach those savings after closing costs are accounted for?” If you refinance and interest rates drop significantly in the next year, work with your lender to figure out if refinancing again is a wise option.
Do different types of homes affect my refinance rate?
All homes are not created equal when it comes to your refinance. Single family homes and townhouses are traditionally the safest option when it comes to locking in the lowest refinance rate. Condos often come with a higher refinance rate of .125–.25%. There is also an adjustment to the interest rate you qualify for if the home is a second home (versus a primary residence). The interest rate on investment properties are typically about 1/4 to 1/2 percent higher because homeowners are more likely to let those types of homes go into default versus their primary residence
How long does the refinance process take?
Typically, a refinance will take two to four week—it’s a much more streamlined process compared to taking out a purchase loan for buying a home. Refinancing involves getting an appraisal of your home, and that is often the portion of the refinance that takes the longest period of time. Take advantage of the historically-low interest rates now by scheduling your appraisal in order to lock in a low rate.
What is the 2% rule on refinancing?
The 2% rule refers to aiming for a lower interest rate of at least 2% when refinancing. If the interest rate is less than 2% of what you’re currently paying for on your home loan, the hassle and new closing costs may not be worth the savings. The 2% rule applies if you plan to live in your home for the next two years. If you think you’ll be in your current home for more than five years, even a 1% interest rate reduction will likely be worth the cost of refinancing.
How much does refinancing cost?
Closing costs for a refinance typically fall between 1–2% of the total loan amount. If you are interested in lowering your interest rate to reduce your future mortgage payments, you may have the ability to purchase points (also known as discount points). Points can be purchased by paying 1% of the total loan amount upfront—resulting in a lower interest rate of around 1/8—1/4%.