Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated October 21, 2026

Reviewed for accuracy by senior mortgage advisors • Rates verified against Freddie Mac PMMS®

1st Mortgage Cash-Out Refinance Options for Homeowners in South Carolina

As of May 4, 2026, according to Freddie Mac's Primary Mortgage Market Survey® (PMMS®), the 30-year fixed mortgage rate is 6.3%, and the 15-year fixed mortgage rate is 5.64%. These rates are subject to change based on market conditions and individual qualifications.

If you're a South Carolina homeowner considering a cash-out refinance, you're not alone. This financial strategy allows you to tap into your home's equity, providing funds for various needs such as home improvements, debt consolidation, or other significant expenses. Additionally, Reliant Home Funding is licensed and actively lending in South Carolina, serving homeowners in this market.

What Are Today's Mortgage Rates in South Carolina?

Understanding current mortgage rates is crucial when considering a cash-out refinance. Here's a snapshot of the latest rates:

Loan Type	Interest Rate	APR	Weekly Change
30-Year Fixed	6.3%	6.5%	+0.05%
15-Year Fixed	5.64%	5.8%	+0.04%

Data as of May 4, 2026, according to Freddie Mac PMMS®. Loans are subject to credit approval. Rates and terms may change. NMLS #292473.

Key Considerations for a Cash-Out Refinance in South Carolina

Before proceeding with a cash-out refinance, consider the following:

Loan-to-Value (LTV) Ratio: Lenders typically allow cash-out refinances up to 80% of your home's appraised value.
Credit Score: A higher credit score can secure better interest rates.
Debt-to-Income (DTI) Ratio: Lenders assess your DTI to determine your ability to repay the loan.
Property Type: Primary residences often qualify for better terms than investment properties.

Pro Tip: Improving your credit score before applying can lead to more favorable refinancing terms.

Steps to Secure a Cash-Out Refinance in South Carolina

Evaluate Your Financial Goals: Determine how much equity you need to access and for what purpose.
Check Your Credit Report: Ensure your credit history is accurate and address any discrepancies.
Calculate Your Home's Equity: Subtract your current mortgage balance from your home's estimated market value.
Research Lenders: Compare offers from multiple lenders to find the best terms.
Prepare Documentation: Gather necessary documents such as income verification, tax returns, and proof of assets.
Apply for Pre-Approval: Obtain pre-approval to understand the loan amount and terms you qualify for. Using Reliant Home Funding's online mortgage application can expedite the process, often providing pre-approval within 24 hours without the need for in-person visits.
Review Loan Estimates: Carefully examine the terms, fees, and conditions of each loan offer.
Choose the Best Offer: Select the loan that aligns with your financial objectives and offers the most favorable terms.
Close the Loan: Finalize the refinancing process by signing the necessary documents.

Common Mistakes Homebuyers Make

Avoid these common pitfalls to ensure a smooth refinancing experience:

1. Overestimating Home Equity

Assuming your home has more equity than it does can lead to borrowing more than you should.

Impact: Higher loan amounts can result in larger monthly payments and increased interest over time.
How to Avoid: Obtain a professional appraisal to accurately determine your home's value.

2. Ignoring Closing Costs

Overlooking fees associated with refinancing can affect your overall savings.

Impact: Unexpected costs can diminish the financial benefits of refinancing.
How to Avoid: Request a detailed breakdown of all fees from your lender before proceeding.

3. Choosing the Wrong Loan Term

Opting for a loan term that doesn't align with your financial goals can be detrimental.

Impact: Longer terms may lower monthly payments but increase total interest paid.
How to Avoid: Assess your budget and financial objectives to select an appropriate loan term.

4. Failing to Shop Around

Not comparing multiple lenders can result in less favorable terms.

Impact: Missing out on better interest rates and loan conditions.
How to Avoid: Obtain quotes from several lenders to ensure competitive rates.

Pro Tip: Utilizing an online mortgage application can expedite the process, often providing pre-approval within 24 hours without the need for in-person visits.

Frequently Asked Questions

1. How long does the refinancing process take?

The refinancing process typically takes 30 to 45 days, depending on the lender and complexity of the loan.

2. Can I refinance if I have less than 20% equity?

Yes, but you may be required to pay private mortgage insurance (PMI) until you reach 20% equity.

3. Will refinancing affect my credit score?

Refinancing can cause a slight dip in your credit score due to the hard inquiry, but timely payments can help rebuild it.

4. Are there any prepayment penalties?

Some loans may have prepayment penalties; review your loan agreement for specific details.

5. Can I refinance with a co-borrower?

Yes, adding a co-borrower can strengthen your application, especially if they have a strong credit profile.

Disclaimer: All loans are subject to credit approval. Rates and terms may change. NMLS #292473. Contact Reliant Home Funding for personalized rates or to get pre-approved.