Providence, Rhode Island Mortgage Refinance Interest Rates
Discover the latest mortgage interest rates to make informed decisions about your home refinancing.
Interest rate over time in Providence, Rhode Island
Timeframe
Daily refinance averages provided by the Mortgage Research Center.
Compare mortgage rates in Providence, Rhode Island
Showing results for: 15-Year Fixed and 30-Year Fixed refinance offers for Single Family or Townhome properties in RI, total loan amount of $228,000.
| Lender | APR / Rate | Monthly Payment | |
|---|---|---|---|
Rate data provided by RateUpdate.com. Displayed by Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Rates and fees are estimates and subject to change without notice. Payments do not include taxes and insurance premiums. Actual payments may be higher. Not all lenders participate in this marketplace. Loan availability and terms may vary by state and lender. Lender offers, including badges like “Lowest APR” or “Lowest Payment,” are based only on results displayed here and may not reflect the absolute lowest offer available in the market. Rate and product details
Should You Refinance in Providence?
5% annual appreciation
· Data updated 9/2/2026Providence's growing market (5% annual appreciation) suggests homeowners have been building equity. Refinancing to a lower rate could provide substantial monthly savings while your home value continues to grow.
Local Market Context
Providence, Rhode Island homes have a median value of $359,600, with 5% year-over-year appreciation. Steady home value growth means homeowners are building equity, which can improve refinancing terms and open up options like cash-out refinancing for home improvements.
Estimated Monthly Payment in Providence
Based on the median home price of $359,600 with 20% down at 6.82% (30-year fixed):
| Principal & Interest | $1,878.33/mo |
| Property Tax | $488/mo |
| Homeowner's Insurance (est.) | $125/mo |
| Estimated Total (PITI) | $2,491/mo |
Rate Savings Scenarios for Providence
How your monthly principal & interest payment changes at different rates (20% down on $359,600 median home):
| Interest Rate | Monthly P&I | vs. Current Rate |
|---|---|---|
| Current rate (6.82%) | $1,878 | — |
| 6.32% (–0.5%) | $1,783 | –$95/mo |
| 5.82% (–1.0%) | $1,691 | –$187/mo |
Down Payment Impact in Providence
Monthly principal & interest at 6.82% for different down payments on the $359,600 median home:
| Down Payment | Loan Amount | Monthly P&I |
|---|---|---|
| 10% down ($35,960) | $323,640 | $2,113 |
| 15% down ($53,940) | $305,660 | $1,996 |
| 20% down ($71,920) | $287,680 | $1,878 |
Property Tax Impact
Property taxes in Providence, Rhode Island average 1.63% of home value, which is higher compared to the national average. When refinancing, it's important to remember that your total monthly payment includes these taxes (approximately $488 per month for a median-valued home). A lower interest rate might reduce your principal and interest payment, but your property tax portion stays the same.
Rhode Island ranks 39th (high) nationally for property taxes, which directly affects your total monthly payment when buying or refinancing.
Cost of Living Context
Providence's cost of living is 2% below the national average (index: 98), meaning housing costs tend to run lower than typical — which may allow for higher purchasing power when buying or refinancing.
Calculate Your Exact Refinance Savings
Get a personalized analysis based on your specific mortgage details, compare multiple offers, and see your break-even point.
Use Refinance CalculatorProvidence is Booming: How Fast Appreciation Changes Your Refinance
Hey Providence homeowners! If you bought a home here recently, you are sitting on a goldmine. Rhode Island's capital is experiencing massive real estate growth, and that rapid appreciation completely changes the math on whether you should refinance today.
The Magic Trick: Dropping Your PMI via LTV
Your Loan-to-Value (LTV) measures how much you owe versus what the home is worth.
If you are paying Private Mortgage Insurance (PMI), refinancing right now allows you to reappraise at this new, higher value. This drops your LTV well below the 80% threshold required to cancel PMI forever.
Property Tax Tip for Providence Homeowners
Don't let rising taxes eat your refinance savings. Ensure your new lender accurately calculates your escrow requirements at closing so you aren't hit with a massive adjustment letter from the city at the end of the year.
State & Local Assistance in Providence
The RIHousing agency offers robust support. Look into their statewide programs that offer interest rate discounts, and take advantage of Mortgage Credit Certificates (MCC) if you qualify!
What Interest Rate Drop Makes Refinancing Worth It in Providence?
In Providence's stable market with 5% annual appreciation, refinancing is generally worthwhile when you can reduce your rate by at least 0.75-1%. For a $359,600 home with an 80% LTV ($287,680 loan), dropping from 7% to 6% saves approximately $140/month. With typical closing costs around $7,192, you'd break even in about 51 months. If you plan to stay in your home at least 5 years, refinancing makes financial sense.
How Do I Calculate My Break-Even Point for Refinancing in Providence?
Calculate your break-even point by dividing total closing costs by monthly savings. In Providence, closing costs typically run 2-3% of your loan amount. If you're refinancing $287,680 (80% of Providence's $359,600 median home value), expect around $7,192 in costs. Compare your current monthly payment to your new payment including the 1.63% property tax, insurance, and the new principal/interest. If refinancing saves $150/month, your break-even is 48 months. Don't forget to factor in how long you plan to keep the home.
Should I Refinance from a 30-Year to 15-Year Mortgage in Providence?
Shortening your term from 30 to 15 years can save substantial interest and typically offers rates 0.5-0.75% lower. On Providence's median home value of $359,600, you could save over $100,000 in interest over the loan's life. However, monthly payments increase significantly-a $287,680 loan at 6% jumps from approximately $1,953/month (30-year) to $2,506/month (15-year at 5.5%). Refinance to a 15-year if you can comfortably afford the higher payment and want to build equity faster in Providence's stable market.
Can I Refinance If I Still Have PMI in Providence?
Yes, and eliminating PMI is often a primary refinancing goal. PMI typically costs 0.5-1% of your loan amount annually. On a $287,680 mortgage in Providence, that's $200-400/month. With 5% annual appreciation plus principal paydown, you may have crossed the 80% LTV threshold. If you purchased with 5-10% down 3-4 years ago, appreciation likely brought you to 20%+ equity. Refinancing removes PMI permanently (unlike conventional loans where it can take years to cancel), immediately lowering your payment even if you get the same interest rate.
Is a No-Closing-Cost Refinance a Good Deal in Providence?
No-closing-cost refinances roll $8,630 in typical closing costs into your loan balance or offset them with a slightly higher interest rate (usually 0.25-0.5% higher). In Providence's stable market, this makes sense if you plan to move within 3-5 years, avoiding the $48-month break-even period on traditional refinances. However, if you're staying long-term, paying closing costs upfront and getting a lower rate saves more money over time. Calculate both scenarios: upfront costs with lower rate versus no costs with higher rate over your expected timeline.
How Providence compares across Rhode Island
Median home prices vary widely across Rhode Island, which changes what a typical refinance costs. Here is the estimated monthly principal and interest on a median-priced home (80% loan-to-value) at today's average 30-year fixed rate of 6.82%:
| City | Median home price | Est. monthly P&I | vs. Providence |
|---|---|---|---|
| Providence | $359,600 | $1,878 | — |
| Pawtucket | $268,100 | $1,400 | −$478/mo |
| Woonsocket | $241,200 | $1,260 | −$618/mo |
| Cranston | $576,600 | $3,012 | +$1,134/mo |
Estimates use each city's median home price with the same statewide average rate; actual quotes vary by lender, credit profile, and loan size.