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    12 Best US States For Mortgage Refinancing

    Mortgage Relief application and key from home.

    A mortgage refinancing is one of the best ways to reduce one’s monthly mortgage payments and save tens of thousands of dollars over the lifetime of their loan. 

    While the market conditions are the primary contributing factor to what interest rate one will receive, people are surprised to find out that some states offer better rates than others. In addition to this, there are certain states that are experiencing low mortgage rates due to COVID-19 pandemic

    Here we’ll look at which US states offer the most favorable terms for mortgage refinancing.


    This state is home to one of the country's fastest-growing housing markets, with home prices having risen 58% between 2012 and 2019. Homeowners in this state may be surprised to find out that they have more equity in their homes than they previously thought. Average loan amounts are typically around $300,000 with a 79% refinancing approval rating.


    Minnesota is another state that boasts a high mortgage refinancing approval rating with 78.6% of applicants receiving approval. The average refinanced mortgage amount is somewhat lower than in Colorado, coming in at just over $200,000.


    Massachusetts hasn’t experienced the same increase in property prices that other states have. Even though this state has a relatively higher cost of living, its stable housing market helps keep it from rising too much. 

    Many Massachusetts residents have taken advantage of the low-interest rates and have refinanced their mortgages, leaving them with a smaller monthly payment. The state has a high refinancing loan approval rating at nearly 80%.


    With the average cost of a single-family home coming in at just under $180,000, Nebraska offers residents an affordable cost of living compared to other states. Just like Massachusetts, the approval rating for refinancing loans in Nebraska is just under 80%.


    The state of Washington has seen a rather sharp increase in property value that has led many residents to refinance their mortgage to receive better rates. The average refinancing loan in the state of Washington is just under $300,000, with an acceptance rate of 80%.

    South Dakota

    South Dakota is most widely known for Mount Rushmore depicting four well-known American Presidents. Aside from this, the state boasts the third-highest mortgage refinancing approval rating at just over 80%, with the average refinancing loan being $182,000.

    North Dakota

    North Dakota has a similar approval rating as South Dakota, with just over 80% of applicants being approved. Unlike South Dakota, North Dakota has experienced a sharp rise in property value, with houses rising nearly 60% between 2012 and 2019. This increase has spurred many residents to take advantage of refinancing opportunities.


    Utah holds the highest refinancing loan approval rating out of any state in the mainland USA. Just over 82% of applicants will be approved for a mortgage refinancing loan, the average size of which comes in around $250,000. This state is best for those borrowers who are trying to refinance with bad credit


    Oregan is another state that has experienced a rise in property prices over the last few years, which has prompted many homeowners to refinance their mortgage. Approval ratings are around 77%, with the average refinancing loan being around $250,000.


    Wisconsin is known by many as the setting for the popular late-90’s sitcom That 70’s Show. It’s also a great place to be approved for a mortgage refinancing loan with 77% of applicants receiving approval.


    Montana is home to the nation's highest mortgage refinancing approval rates at 77.5%. Montana residents have seen a noticeable increase in property values, causing many to refinance their mortgage, with the average refinancing loan being just under $250,000.


    Idaho is another state where residents enjoy a high mortgage refinancing rate. In this state, just under 80% of applicants receive approval, with the average loan amount totaling $200,000.

    Bottom Line

    A mortgage refinancing is an excellent way to lower the overall cost of one’s mortgage as well as a borrower’s monthly payments. There are times when refinancing your mortgage is a bad idea but fortunately, those in the above-listed states can take advantage of high approval ratings, which often stretch up to 80% and above. 

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