There’s no time like the present, as the old saying goes. The mortgage refi industry has seen impressive trends where current rates are concerned. Feeding off the consumer-friendly momentum of 2020’s final quarter, we’ve seen mortgage rates hit record lows over the last six months. In fact, those numbers peaked early in 2021, with average 30-year rates sitting around 3%, and 15-year rates averaging 2.5%. At its lowest point between January and March, 30-year rates of 2.7% were a common occurrence. 

Rates are currently bouncing back, albeit at a very slow rate. Most prominent lenders still offer mortgage refi rates in the 3% neighborhood, a number that’s expected to rise marginally over the last half of 2021. 

While rates might not be sitting on the basement floor any longer, it is still the optimal time to refinance your existing mortgage. Just make sure you are aware of the complete checklist you need to go through before refinancing.

We’ve taken the time to analyze current mortgage rates in seven of the country’s most populous states in order to help guide consumers toward the optimal refinancing product for their specific needs. Below are the best refi rates nationwide, from Florida to Texas, with a few stops in between. Just make sure that you use the button below to find out which bank as the lowest refinance rate in your state.   

Bank with The Lowest Refinance Rates in Texas 

LincolnWay Community Bank (Texas)

Homeownership in Texas is on the rise. According to the Census Bureau, the state’s official homeownership rate is sitting at a respectable 66.5% as of July with more than 11 million available homes nationwide. Millions of Texas residents are using this opportunity to buy their first home or refinance their existing mortgage. With Metropolitan areas like Houston, San Antonio, and Austin experiencing rapid expansion and a massive influx of tech and financial jobs, the refi market in Texas is highly competitive. 

The state’s median household price tag is just north of $289,000. Home values across Texas are, however, wildly divergent given the state’s massive geographic footprint. For the purpose of evaluating and comparing rates, we’ll use each state’s median housing cost going forward. It should also be noted that these numbers assume a credit score of 740 or above. Rates rise sharply the lower your personal credit history is, with a minimum score of 500 necessary in order to apply for most loan products.  

One of the best rates we found in Texas came out of the Dallas area via the LincolnWay Community Bank. As of this writing, a 30-year fixed refi is sitting comfortably at 2.875%, with a 2.904% APR and $1,085 in upfront closing costs. With a 15-year fixed refi, that percentage plummets to 2.375% with a 2.428% APR. Compare this to the statewide average offered by large-scale lenders such as PNC, Ally, or Better, which all hover around 3%, and it seems like the perfect time for Texans to pull the trigger on a mortgage refi. 

Bank with The Lowest Refinance Rate in Florida

VyStar Credit Union (Florida)

Like the state of Texas, Florida’s housing market is also surging forward. With nearly 10 million residential properties available statewide, Florida sits at more than a 68% housing rate. The state’s median property cost is just above $317,000. Given the same criteria as Texas, i.e. a 740 credit score and above, what are Florida’s best refi rates?

Our research shows that the Orlando area VyStar Credit Union currently offers an outstanding rate to qualified refi applicants. A 30-year fixed mortgage through VyStar comes with a 2.990% rate attached, with a matching APR of 2.990% and a staggering zero dollar upfront cost. Selecting a 15-year fixed refi nets you an unbelievably low 1.875% rate and APR. 

LincolnWay also maintains a presence in Florida at the exact same rates as its Texas branches. However, APR is slightly higher at 2.902%, with upfront costs in excess of $1,000, giving VyStar a slight advantage.  

Bank with The Lowest Refinance Rates in New York

Teachers Federal Credit Union (New York)

Despite the New York metropolitan area, New York comes with slightly less population statewide than the previous entries. As a result, there are somewhere around 8 million residential homes available across the state, with a homeownership rate of 53%. The median housing cost, however, exceeds the national average, sitting at $314,000.

Refi rates in New York State are slightly less competitive than those in Texas or Florida. With a 30-year fixed mortgage, rates at the Rochester-based ESL Federal Credit Union are currently 2.750% with an APR of 2.820% and upfront costs of $1,179. If you select a 15-year term instead, rates drop to a solid 2.250% with a 2.361% APR and a considerably lower $786 upfront cost. 

LincolnWay Community bank is the only other NY bank under 3% in both rates and APR. Banco Santander and Chemung Canal Trust offer 30-year fixed rates just above 3% on average. 

Lowest Refi Rate in Illinois

Liberty Bank for Savings (Illinois)

Compared to the populous powerhouses of Texas, Florida, and New York State, Illinois has significantly fewer residents and housing units. There are just over 5 million residential properties statewide, featuring a 66.2% ownership rate. The median housing cost in Illinois, however, is well below the national average, sitting at a comfortable $195,300 as compared to the $217,000 national average. 

Given the same conditions as the other entries on this list, the best rates in Illinois are available through Liberty Bank for Savings. For a 30-year fixed refi rate, Liberty offers 2.875% with a close 2.901% APR and upfront costs of only $646. With a 15-year term under fixed-rate refi, rates drop to 2.125% with an APR of 2.171%. The upfront costs, however, remain static.   

The second-best option for Illinois residents is First Merchants Bank with a 30-year fixed refi rate of 2.875%. Either institution offers good, affordable rates for homeowners looking to save on their monthly bills. 

Bank with The Lowest Refi Rate in Pennsylvania 

Dollar Bank, a Federal Savings Bank (Pennsylvania)

The state of Pennsylvania is more vast and diverse than stereotypical perceptions might suggest. As a result, the state has a respectable 5.7 million residential homes available with a healthy ownership rate of 68%. The median household cost is even lower than that of Illinois, and well under the national average, with a figure of $181,200. 

Based on our research, one of the best options currently available to Pennsylvania residents is through Dollar Bank, a Federal Savings Bank. Through Dollar Bank, a 30-year fixed refi loan is 2.875% with an APR of 2.977% and upfront costs of $926. A 15-year fixed mortgage shifts matter slightly, making rates 2.250% with an APR of 2.364%, and upfront costs of $1,486. Any other option in PA is currently above the 3% mark.  

Bank with The Lowest Refinance Rates in Ohio

First Merchants Bank (Ohio)

The average value of a home in Ohio is low —much lower than the national average in fact. The average home in Ohio costs $144,200, well below the national average of $217,000. There are currently just upwards of 5 million residential properties in Ohio with a decent 66% occupancy rate. Despite the low property values, the market is expanding in lockstep with nationwide trends. 

Options for refi rates below 3% are scarce in Ohio. Aside from major lenders like Rocket or PNC, Ohio natives have First Merchants Bank to rely on. A 30-year fixed refi comes with a rate of 2.875%, an APR of 2.924%, and upfront costs of $927. Dropping to a 15-year term lowers the rates to 2.375%, APR to 2.464%, and upfront costs to $907. With housing costs so low, and refi rates so affordable, now is the time for Ohio residents to refinance their mortgage, saving valuable dollars in the process. 

Bank with The Lowest Refinance Rates in Kentucky

Cumberland Valley National Bank & Trust Company (Kentucky)

Out of any entry on our list, Kentucky has the smallest population, with only 2 million available residential properties. Still, ownership rates are high at 67%. Average housing costs fall way below the national average for Kentuckians. The average property costs only $148,000 statewide. 

Refi rates below the 3% mark are hard to come by in Kentucky. The best option is Citizens Commercial National Bank which offers a 30-year fixed rate of 2.875%, an APR of 2.931%, and upfront costs of $1063. Adjusting your term to a 15-year fixed term results in rates of 2.125%, an APR of 2.226%, and costs in the range of $1,063. With rates expected to slowly rise over the back half of 2021, there’s no better time for Kentucky’s residents to refinance their existing mortgages. 

2021 Means Consumer Options 

Ten years ago, mortgage refi rates of 3% or lower would’ve seemed unimaginable. In the wake of the housing market’s crash, mortgage rates skyrocketed, often exceeding 6%. But in 2021, it is a buyers/ owners market. Finding a rate in the 3% range is simple; numerous, high-volume lenders are willing to extend reduced rates to families looking to refinance. By doing business with smaller, regional banks and credit unions, however, you can find numerous offers that fall well below the 3% mark. 

There is no better time than the present to refinance your home. With rates like these, there’s no reason not to.  

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