Updated: January 9, 2025
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The current mortgage refinance rates in South Dakota for a 15-year fixed loan stand at 6.26%, while the 30-year fixed loan is 6.85%. In comparison, the national average rates are 6.12% and 7.08%, respectively.
Our comprehensive guide will equip you with the insights needed to navigate mortgage refinancing in South Dakota. From today's rates and trends to the best time to refinance, we offer practical advice tailored to your needs.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for South Dakota. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in South Dakota is 6.85%. According to Experian, the average mortgage debt in South Dakota is $187,463 as of September 2023. Refinancing your mortgage can be an effective strategy to manage this debt, potentially lowering your monthly payments and reducing the total interest over the life of the loan.
If your current mortgage rate is higher than 6.85%, refinancing could save you a substantial amount. Below are the current refinance rates in South Dakota so you can explore your options.
| 15-Year Fixed | 6.11% | 6.26% |
| 30-Year Fixed | 6.76% | 6.85% |
In the last few months, refinance rate trends in South Dakota showed increases for both 15-year and 30-year fixed rates.
Lower rates indicate a more favorable environment for refinancing, providing homeowners with savings. However, now might not be an opportune time for homeowners in South Dakota to explore refinancing options.
Interest rates rise due to factors like the US Federal Reserve's monetary policy and economic growth. These shifts affect refinance rate trends in South Dakota, impacting how residents manage their finances. Understanding these influences can provide clarity without causing unnecessary alarm.
Refinancing your mortgage in South Dakota can offer financial relief through lower monthly payments. Let's explore the process, from evaluating your current terms to finding the right loan options, helping you make the most of your financial situation.
Credit scores impact the rates you qualify for, with higher scores leading to better rates. If your score is below the South Dakota average of 734, consider paying debt or disputing errors to improve it.
Evaluate your current mortgage terms against current market rates. With 30-year rates at 6.85% and 15-year rates at 6.26%, refinancing might not be wise for now. Consider your stay duration, as well; refinancing is beneficial if you stay long enough to recoup costs.
Assemble essential documents like tax returns, pay stubs and bank statements for your current mortgage. This preparation streamlines the application process and ensures you have everything needed for lender evaluation.
Compare lenders for favorable terms. Look for competitive rates, low fees and good customer service to potentially save you a significant amount over the life of the loan.
Be aware of closing costs like appraisal, title and origination fees to help you budget effectively. According to the National Association of Realtors, these average $3,839 in South Dakota.
Submit your application to the chosen lender, providing all necessary documents. Being organized and responsive can expedite the process, reduce stress and help you secure the loan more quickly.
Secure your rate with a mortgage rate lock to protect against fluctuations. Monitor market trends to choose an optimal time and get the best possible rate.
Review and sign the final loan documents. Double-check all terms for accuracy. Staying organized and communicating with your lender can help ensure a smooth closing process.
Begin payments on your new loan promptly. Setting up automatic payments can help avoid missed payments and maintain your credit score and financial health.
Periodically reassess your mortgage terms and market rates. Staying informed allows you to seize future opportunities for better terms and helps you act swiftly when advantageous conditions arise.
How soon you can refinance a mortgage in South Dakota depends on your loan type. For conventional loans, you can refinance immediately, though a cash-out refinance requires a six-month wait. USDA loans generally mandate a 12-month waiting period before refinancing.
The average refinance rate in September was 5.74%, which has decreased since June, suggesting a good time to refinance as rates are favorable. However, remember that refinancing comes with additional closing costs, which can take years to recover. While you could refinance within a year, it is often not worth it unless there is a drastic reduction in interest rates.
Refinancing your mortgage in South Dakota can lower your monthly payments by reducing interest rates. However, consider the risk of increased debt from closing costs. Knowing when to refinance a mortgage in South Dakota ensures you maximize financial benefits. Let's look at scenarios where refinancing might be advantageous.
Refinancing when interest rates are lower can reduce monthly payments and total interest paid. Visit local banks and credit unions to negotiate the best rates, as they often offer competitive terms to attract local customers.
High home value increases home equity, making refinancing appealing. Enhance value by updating kitchens or landscaping. With South Dakota's average home value at $311,866, leveraging increased equity can secure better loan terms.
A better credit score can lead to lower interest rates when refinancing. Boost your score by paying bills on time and reducing debt. This improvement can translate into significant savings over the life of the loan.
Refinancing to a shorter term can save on interest and pay off the mortgage faster. Benefits include building equity quicker and reducing total interest costs, making it a smart financial move for those who can afford higher monthly payments.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage provides stability. A fixed rate protects against future rate hikes, offering predictable payments and peace of mind.
Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score can affect the rates you qualify for in South Dakota. For example, the current average refinance rates in South Dakota for a 30-year fixed loan with a loan-to-value ratio of 80% or lower equate to 6.91% for credit scores between 680 and 740, compared to 6.85% for scores above 740. The table below shows average APRs for various credit scores and LTV ratios.
| 5.77% | 6.26% |
Loan type is another factor influencing the rates you qualify for in South Dakota. For example, the current average refinance rate in South Dakota for a 30-year conventional fixed-rate loan is 6.85%. The table below shows average APRs for various loan types in South Dakota.
| 6.11% | 6.26% |
Understanding current refinance rates in South Dakota can be a puzzle for many homeowners. In this section, we address some of the most commonly asked questions about refinance rates in South Dakota, providing straightforward answers to help you stay informed and confident in your financial decisions.
Refinancing your mortgage could be beneficial if it results in a lower interest rate or better terms. Consider your financial goals and the costs involved to determine if it's the right move for you.
To secure the best refinance rate, compare offers from different lenders. Additionally, work to improve your credit score and consider paying down your mortgage to increase your chances of getting a favorable rate.
Refinancing can lower your monthly payments and interest rates, saving you money. However, it also involves closing costs and may extend your loan term, which can increase the total interest paid.
The cost to refinance a mortgage typically ranges from 2% to 5% of the loan amount. These costs can include application fees, appraisal fees and closing costs, so it's important to factor them into your decision.
The current average refinance rates in South Dakota are 6.26% for a 15-year fixed-rate loan and 6.85% for a 30-year fixed-rate loan. Rates in Sioux Falls are likely to mirror these state averages, but the rates you qualify for may vary depending on factors such as your credit score and loan amount.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
