Refinancing in South Carolina: A Data-Driven Overview
South Carolina’s mortgage refinance market reflects a state where homeownership is relatively strong, but refinancing activity has slowed alongside rising interest rates. With 6,337 refinance originations in 2023 and a few notable state-specific cost considerations, South Carolina homeowners should understand the local landscape before deciding whether refinancing makes sense. Here is what the data reveals.
Refinance Activity in South Carolina
In 2023, South Carolina accounted for 6,337 refinance originations, representing roughly 1.5% of the national total of 435,709. The average refinance loan amount in the state was $336,979, which sits well below the national average of $410,429. This aligns with the state’s median home value of $236,700, which is considerably lower than many coastal and metropolitan-heavy states.
South Carolina’s homeownership rate of 71.43% is above the national average, meaning a large share of the population could potentially benefit from refinancing under the right conditions. With a median household income of $66,818, affordability and closing costs play an especially important role in determining whether a refinance pencils out for Palmetto State homeowners.
How South Carolina Compares to National Averages
Several data points help frame where South Carolina stands relative to the broader market:
- Average loan amount: $336,979 vs. $410,429 nationally. South Carolina’s lower home values translate directly into smaller loan balances, which can make it harder to recoup fixed closing costs.
- Denial rate: 29.49% vs. 27.87% nationally. South Carolina’s denial rate is roughly 1.6 percentage points above the national average, suggesting that some borrowers may face challenges with credit profiles, debt-to-income ratios, or appraisal values.
- Loan composition: Conventional loans dominate at 83%, with FHA at 11% and VA at 6%. The strong conventional share indicates that most refinancing borrowers in the state have sufficient equity and credit to qualify for conventional terms.
The slightly elevated denial rate is worth noting. Homeowners who are considering a refinance may want to review their credit reports and ensure their financial profile is strong before applying. Our refinance calculator can help you estimate potential savings before you start the application process.
Loan Type Breakdown: What It Signals
The 83% conventional loan share in South Carolina is consistent with a mature refinance market where most applicants have built meaningful equity. The 11% FHA share suggests that a notable minority of borrowers are using government-backed options, potentially due to lower credit scores or smaller equity positions. The 6% VA share reflects the state’s military presence, including installations like Fort Jackson, Joint Base Charleston, and Marine Corps Air Station Beaufort.
If you currently hold an FHA or VA loan, streamline refinance options may offer a simpler path to a lower rate with reduced documentation requirements.
Top Lenders in South Carolina
Based on HMDA filing volume, the most active lenders in South Carolina’s mortgage market include:
- Vanderbilt Mortgage and Finance, Inc. (12,637 filings)
- Rocket Mortgage, LLC (9,234 filings)
- PennyMac Loan Services, LLC (8,743 filings)
- 21st Mortgage Corporation (7,670 filings)
- Bank of America, National Association (6,049 filings)
The prominence of Vanderbilt Mortgage and 21st Mortgage Corporation – both of which specialize in manufactured housing – reflects South Carolina’s significant manufactured home market. For homeowners with site-built properties, Rocket Mortgage, PennyMac, and Bank of America represent more traditional refinance options. Comparing multiple lenders is generally advisable, as rates and fees can vary significantly. Visit our best refinance lenders page for more information on evaluating your options.
Current Rate Environment
As of the latest data, the current 30-year fixed rate is 6.38% and the 15-year fixed rate is 5.75%. For homeowners who locked in rates during the 2020-2021 low-rate window, refinancing at today’s levels would likely not make financial sense. However, for those who purchased or last refinanced when rates were above 7%, the current environment may offer meaningful savings.
Additionally, homeowners approaching retirement or seeking to pay off their mortgage faster may find the 5.75% 15-year rate attractive, even if their current rate is similar, since the shorter term builds equity significantly faster.
State Regulations and Closing Costs
South Carolina has several state-specific rules that directly affect the cost and process of refinancing:
- Attorney required at closing: Yes. South Carolina is an attorney state, meaning a licensed attorney must conduct the closing. This adds to the overall cost of the transaction but also provides borrowers with legal oversight of the process.
- Mortgage recording tax: South Carolina imposes a mortgage recording tax of 0.4% of the mortgage amount in most counties, plus recording fees and deed stamp taxes. On a $336,979 loan (the state average), this would amount to approximately $1,348 in mortgage tax alone.
- Right of rescission: As with all states, federal law provides a 3 business day right of rescission after signing refinance documents, giving borrowers time to reconsider.
These requirements mean that closing costs in South Carolina may be higher than in states that do not require attorneys or impose recording taxes. Factoring in these costs is essential when calculating your break-even point.
State Housing Programs
SC Housing, the state’s housing finance agency, offers programs such as Palmetto Home Advantage and other homebuyer assistance initiatives. However, SC Housing does not currently offer a dedicated refinance product. Homeowners seeking to refinance will generally need to work directly with private lenders. Those who originally purchased through an SC Housing program should verify whether their existing loan terms include any restrictions or considerations related to refinancing.
Tips for South Carolina Homeowners Considering Refinancing
Given the state’s higher-than-average denial rate, unique closing cost structure, and current rate environment, here are practical considerations:
- Account for all closing costs: Between attorney fees, the 0.4% mortgage recording tax, and standard lender fees, closing costs in South Carolina may range from $4,000 to $7,000 or more depending on your loan amount. These costs directly affect your break-even timeline.
- Check your credit and equity position: With a denial rate of 29.49%, nearly three in ten applications are turned down. Reviewing your credit report, verifying your home’s current value, and ensuring a healthy debt-to-income ratio can improve your odds.
- Compare at least three lenders: Rate and fee differences between lenders can save thousands over the life of your loan.
- Run the numbers before applying: Use our refinance calculator to estimate your potential savings.
A Worked Example
Consider a South Carolina homeowner with a $337,000 loan balance (close to the state average) currently paying 7.25% on a 30-year fixed mortgage. Their current monthly principal and interest payment would be approximately $2,299. By refinancing to today’s 30-year rate of 6.38%, that payment would drop to approximately $2,104, saving about $195 per month.
Now, factor in South Carolina’s closing costs. The 0.4% mortgage recording tax on a $337,000 loan adds roughly $1,348. Combined with attorney fees, lender origination fees, and other standard charges, total closing costs might reach approximately $5,500. At $195 in monthly savings, the break-even point would be around 28 months. If you plan to stay in your home for at least three years or more, the refinance could generate significant long-term savings. Use our break-even calculator to run your own scenario.
Every homeowner’s situation is different. Taking the time to understand South Carolina’s specific costs and comparing your options carefully can help you make a well-informed decision about whether refinancing is the right move for you.