Conventional Refinance in South Carolina
Lower your rate, eliminate PMI, shorten your term, or access your equity. A conventional refinance gives South Carolina homeowners flexible options — with no VA or FHA requirements.
What Is a Conventional Refinance?
A conventional refinance replaces your existing mortgage with a new loan that conforms to Fannie Mae or Freddie Mac guidelines — without government backing. It’s available to any qualified homeowner, regardless of whether your current loan is conventional, FHA, or VA.
South Carolina homeowners use conventional refinances to reduce their interest rate, switch from an adjustable-rate to a fixed-rate loan, eliminate private mortgage insurance (PMI), shorten their loan term, or pull cash out of built-up equity.
Conventional Refinance Options
Conventional vs. VA IRRRL Refinance
If you’re a veteran, you may be weighing a conventional refinance against the VA IRRRL (Streamline Refinance). Here’s how they compare:
| Feature | Conventional Refi | VA IRRRL |
|---|---|---|
| Appraisal | Required | Usually not required |
| Income Verification | Required | Usually not required |
| Cash Out Option | Yes | No |
| PMI Risk | If equity < 20% | None |
| Eligibility | Any borrower | Veterans/active duty only |
| Funding Fee | None | 0.5% |
| Minimum Credit Score | Typically 620+ | No VA minimum |
Read the full comparison: VA IRRRL vs. Conventional Refinance
See If a Conventional Refinance Makes Sense
We’ll run your numbers and show you exactly what a refinance would cost — and save — with no obligation.
Get My Free Refinance Quote →Who Qualifies for a Conventional Refinance in SC?
- Credit score: Typically 620 or higher (better rates at 740+)
- Debt-to-income ratio: Generally 45% or below
- Equity: At least 3–5% equity; 20%+ to avoid PMI
- Income verification: W-2s, tax returns, or bank statements required
- Property type: Primary residence, second home, or investment property
- Loan limits: Up to $806,500 (2026 conforming limit for most SC counties)
How Much Does a Conventional Refinance Cost in SC?
Closing costs on a conventional refinance typically range from 2%–5% of the loan amount. Common costs include:
- Appraisal fee ($400–$700)
- Origination fee (0.5%–1% of loan)
- Title insurance and settlement fees
- Recording fees and transfer taxes
- Prepaid interest and escrow setup
Full breakdown: Refinance Closing Costs in South Carolina
When Does a Conventional Refinance Make Sense?
A conventional refinance is worth pursuing when your new rate is meaningfully lower than your current rate, when you need cash from equity, when you want to eliminate PMI, or when you’re ready to shorten your loan term. The key metric is the break-even point — how many months until your savings cover the cost of refinancing.
Use our guide: Break-Even Point on a Refinance and When Does It Make Sense to Refinance?
Does Refinancing Hurt Your Credit?
A conventional refinance requires a hard credit pull, which may temporarily reduce your score by a few points. However, multiple mortgage inquiries within a 45-day window are typically counted as a single inquiry by the major credit bureaus. Your score often recovers within a few months.
Learn more: Does Refinancing Hurt Your Credit?
Serving Homeowners Across Charleston & Summerville
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