Banks with the lowest mortgage refinancing rates by state [Updated 2021]


There is no time like the present, as the old saying goes. The mortgage refi industry has seen some impressive trends when it comes to current rates. Building on the consumer-friendly momentum of the last quarter of 2020, we’ve seen mortgage rates hit record highs over the past six months. In fact, those numbers peaked in early 2021, with 30-year average rates hovering around 3% and 15-year rates averaging 2.5%. At its lowest point between January and March, 30-year rates of 2.7% were commonplace.

Rates are rebounding now, but at a very slow pace. Most leading lenders are still offering mortgage refinance rates in the range of 3%, a number that is expected to increase slightly in the last half of 2021.

While rates may no longer be in the basement, now is the best time to refinance your existing mortgage. Just make sure you know the full checklist you need to go through before refinancing.

We’ve taken the time to analyze current mortgage rates in seven of the nation’s most populous states to guide consumers to 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 be sure to use the button below to find out which bank has 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 stood at a respectable 66.5% in July with more than 11 million homes available nationwide. Millions of Texas residents are taking 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 is just north of $ 289,000. Home values ​​across Texas, however, differ widely given the state’s massive geographic footprint. For the purpose of evaluating and comparing rates, we will use the median cost of housing for each state in the future. It should also be noted that these numbers assume a credit score of 740 or higher. Rates rise sharply the lower your personal credit history, with a minimum score of 500 required to purchase most loan products.

One of the best rates we’ve found in Texas is from the Dallas area through the LincolnWay Community Bank. As of this writing, a 30-year fixed refi sits comfortably at 2.875%, with an APR of 2.904% and initial closing costs of $ 1,085. With a fixed refi of 15 years, this percentage drops to 2.375% with an APR of 2.428%. Compare that to the statewide average offered by large-scale lenders like PNC, Ally, or Better, all of which are hovering around 3%, and it looks like now is a great time for Texans to push. on the trigger of a mortgage refi.

Bank with the lowest refinance rate in Florida

VyStar Credit Union (Florida)

Like the state of Texas, the Florida real estate market is also booming. With nearly 10 million residential properties available statewide, Florida has a housing rate of over 68%. The state’s median real estate cost is just over $ 317,000. Considering the same criteria as Texas i.e. a credit score of 740 and above, what are Florida’s best refi rates?

Our research shows that the VyStar Credit Union in the Orlando area is currently offering an exceptional rate to qualified refi applicants. A 30-year fixed mortgage through VyStar carries a rate of 2.990%, with a corresponding APR of 2.990% and a staggering initial cost of zero dollars. Selecting a 15-year fixed refining gives you an incredibly low rate and APR of 1.875%.

LincolnWay also maintains a presence in Florida at the same rates as its Texas branches. However, the APR is slightly higher at 2.902%, with up-front costs over $ 1,000, giving VyStar a slight edge.

Bank with the lowest refinance rates in New York

Teachers Federal Credit Union (New York)

Despite the New York metropolitan area, New York has slightly less statewide population than previous entries. As a result, there are approximately 8 million residential housing units available statewide, with a homeownership rate of 53%. The median cost of shelter, however, exceeds the national average, standing 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, the ESL Federal Credit Union of Rochester rates are currently 2.750% with an APR of 2.820% and an upfront charge of $ 1,179. If you choose a 15-year term instead, rates drop to a solid 2.250% with an APR of 2.361% and a significantly lower initial cost of $ 786.

LincolnWay Community Bank is the only other bank in New York City at less than 3% in rates and APR. Banco Santander and Chemung Canal Trust offer fixed 30-year rates slightly above 3% on average.

Lowest refi rate in Illinois

Liberty Bank for Savings (Illinois)

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

Given the same terms as the other entries on this list, the best Illinois rates are available through Liberty Bank for Savings. For a fixed 30-year refi rate, Liberty is offering 2.875% with an APR close to 2.901% and upfront costs of just $ 646. With a duration of 15 years in fixed rate refi, the rates fall 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 larger and more diverse than stereotypical perceptions might suggest. As a result, the state has a respectable 5.7 million residential housing units available with a healthy 68% homeownership rate. The median household cost is still lower than in Illinois, and well below the national average, with a figure of $ 181,200.

According to our research, one of the best options currently available to residents of Pennsylvania is 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 loan counts slightly, with rates of 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 Lowest Refinance Rates in Ohio

First Merchants Bank (Ohio)

The average home value in Ohio is low, well below the national average in fact. An average home in Ohio costs $ 144,200, well below the national average of $ 217,000. There are currently just over 5 million residential properties in Ohio with a decent 66% occupancy rate. Despite the low value of properties, the market is growing at the rate of national trends.

Options for refi rates below 3% are rare in Ohio. Aside from major lenders like Rocket or PNC, Ohio natives can count on First Merchants Bank. A 30-year fixed refi comes with a rate of 2.875%, an APR of 2.924%, and upfront costs of $ 927. The move to a 15-year term lowers rates to 2.375%, the APR to 2.464% and up-front 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 precious dollars.

Bank With Kentucky’s Lowest Refinance Rates

Cumberland Valley National Bank & Trust Company (Kentucky)

Of all the entries on our list, Kentucky has the smallest population, with just 2 million residential properties available. Yet homeownership rates are high at 67%. Average housing costs are well below the national average for Kentuckians. The average property costs just $ 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 an upfront fee of $ 1,063. 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 in the second half of 2021, there’s no better time for Kentucky residents to refinance their existing mortgages.

2021 means options for consumers

Ten years ago, mortgage refinancing rates of 3% or less would have seemed unimaginable. In the wake of the real estate crash, mortgage rates have skyrocketed, often exceeding 6%. But in 2021, it’s a buyers / owners market. Finding a rate of around 3% is simple; many high volume lenders are willing to offer reduced rates to families looking to refinance. However, by doing business with regional banks and smaller credit unions, you can find many offers well below the 3% mark.

There is no better time than now to refinance your home. With rates like these, there is no reason not to.

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About Teresa G. Wilson

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