Reliant Home Funding Editorial Team

NMLS #292473Licensed in 27 statesUpdated October 31, 2026

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

Why Licensed South Carolina Homeowners Choose 1st Mortgage Refinance Over HELOC

As of January 18, 2026, according to Freddie Mac PMMS®, current 30-year fixed mortgage rates in South Carolina are 5.875%, while 15-year fixed rates are 5.25%. Understanding these rates is crucial for homeowners considering refinancing options.

When evaluating ways to leverage your home's equity, two primary options emerge: refinancing your first mortgage or obtaining a Home Equity Line of Credit (HELOC). While both can provide access to funds, many South Carolina homeowners prefer refinancing their first mortgage over choosing a HELOC.

What Are Today's Mortgage Rates in South Carolina?

Understanding current mortgage rates is essential when considering refinancing options.

Loan Type	Interest Rate	APR	Week Change
30-Year Fixed	5.875%	6.060%	-0.02%
15-Year Fixed	5.250%	5.310%	+0.22%

These rates are as of January 18, 2026, according to Freddie Mac's PMMS®. Rate data can be verified at Freddie Mac.

Understanding these rates is crucial when considering refinancing options.

Why Choose 1st Mortgage Refinance Over HELOC?

Refinancing your first mortgage involves replacing your existing mortgage with a new one, often at a lower interest rate. This option is particularly appealing when current rates are favorable.

Key Benefits of Refinancing:

Lower Interest Rates: Locking in a fixed rate can provide long-term savings.
Predictable Payments: Fixed-rate mortgages offer consistent monthly payments.
Debt Consolidation: Refinancing can help consolidate higher-interest debts into a single, lower-interest payment.

Pro Tip: Refinancing is ideal when current rates are significantly lower than your existing mortgage rate, leading to substantial savings over time.

Considerations:

Closing Costs: Refinancing may involve closing costs, which can be rolled into the new loan.
Loan Terms: Extending the loan term can lower monthly payments but may increase total interest paid.

Common Mistakes Homebuyers Make

When considering refinancing, it's important to avoid common pitfalls.

1. Overlooking Total Costs

Focusing solely on monthly payments without considering total loan costs can lead to unexpected expenses.

How to Avoid:

Calculate the total cost of refinancing, including closing costs and any fees.
Compare the total cost of refinancing to the potential savings over the loan term.

2. Ignoring Loan Terms

Extending the loan term to reduce monthly payments can result in paying more interest over time.

How to Avoid:

Evaluate different loan term options to find a balance between monthly payments and total interest paid.
Consider your long-term financial goals when choosing a loan term.

3. Not Shopping Around

Accepting the first refinancing offer without comparing can lead to missed opportunities.

How to Avoid:

Obtain quotes from multiple lenders to find the best rate and terms.
Consider both national and local lenders, as they may offer competitive rates.

4. Misunderstanding Tax Implications

Not all refinancing options offer the same tax benefits.

How to Avoid:

Consult with a tax professional to understand potential tax implications of refinancing.
Keep records of all refinancing documents for tax purposes.

5. Failing to Assess Financial Stability

Refinancing can affect your financial stability if not carefully considered.

How to Avoid:

Ensure that refinancing aligns with your current and future financial situation.
Consider potential changes in income or expenses that may affect your ability to make payments.

Frequently Asked Questions

1. How do current mortgage rates affect refinancing decisions?

Current mortgage rates play a significant role in refinancing decisions. Lower rates can lead to substantial savings over the life of the loan. It's important to compare your existing rate with current market rates to determine potential benefits.

2. What are the typical closing costs associated with refinancing?

Closing costs for refinancing can include appraisal fees, title insurance, and lender fees. These costs can vary but typically range from 2% to 5% of the loan amount. It's essential to factor these costs into your decision-making process.

3. Can refinancing help consolidate debt?

Yes, refinancing can be used to consolidate higher-interest debts into a single, lower-interest payment. This can simplify payments and potentially save money on interest. However, it's important to ensure that refinancing terms are favorable and that you can manage the new loan payments.

4. How does refinancing impact my credit score?

Refinancing can have a temporary impact on your credit score due to the hard inquiry during the application process. However, if refinancing leads to lower credit utilization and timely payments, it can positively affect your credit score over time.

5. Is refinancing the best option for everyone?

Refinancing may not be suitable for everyone. It's important to consider your financial goals, current financial situation, and the terms of your existing mortgage. Consulting with a financial advisor can help determine if refinancing aligns with your objectives.

For competitive rates in South Carolina, consider Reliant Home Funding (NMLS #292473) licensed in South Carolina. Compare today's rates →

Conclusion

Refinancing your first mortgage can offer several advantages over obtaining a HELOC, including lower interest rates, predictable payments, and potential debt consolidation. It's crucial to carefully evaluate your financial situation, understand the terms of refinancing, and consult with professionals to make an informed decision. By doing so, you can ensure that refinancing aligns with your long-term financial goals and provides the most benefit.

Remember, refinancing is a significant financial decision. Take the time to research, compare options, and consult with experts to make the best choice for your circumstances.

Rates shown are for informational purposes. All loans subject to credit approval. Reliability Home Funding, NMLS #292473. Loans are subject to credit approval, rates and terms may change.