The average interest rate on mortgage loans in the U.S. in the fourth quarter of 2016 was 4.22%, up from 3.93% in the third quarter, according to data from Freddie Mac (Freddie Mac). When determining what the average mortgage interest rate is, you must consider a number of factors including your credit score, state of residence, and loan type as well as the time period over which you calculated the average interest rate and/or considered a loan (e.g., 30 years or 15 years). In this article, we look at average mortgage interest rates in the U.S.
A map of all 50 states with interest rates broken down
Scroll to your state in the map below or search for it by name, and check out our data on what your average mortgage interest rate will be if you get a 30-year fixed-rate loan with an interest rate of 4.5%. Remember, this is just an estimate, so contact your local lender for more accurate numbers before you apply.
A list of monthly mortgage payments based on principal and interest alone
Select your state and see how your monthly mortgage payment can vary depending on different factors. Average rates will also be included for comparison.
When it comes to picking a mortgage, you can’t just look at interest rates. Sure, you want a low-interest rate, but you also need to factor in your property taxes and insurance payments. If your payment stays roughly similar over time as those factors increase, you’re likely getting a good deal on your loan. Compare average mortgage interest rates by state based on principal and interest alone with our interactive map below.
A list of monthly mortgage payments based on principal, interest, taxes and insurance
Considering how much you will be spending on your mortgage payment each month is a significant factor in determining if you can afford to buy a home. Use this helpful information to get an idea of what your average mortgage interest rate might be in your state.
Now that you know the average monthly mortgage cost, find out what’s the typical cost per square foot for housing in your state and county!
The highest 30-year fixed rates from January–June 2018
The average mortgage interest rate in California is 4.00% with an APR of 4.27%. Maine has the lowest rates with a 3.50% average and an APR of 3.94%. Homeowners in Arkansas, Montana, Mississippi, and Oklahoma are paying an average interest rate of 3.99%, whereas people in New York, Connecticut, Maryland, and New Jersey have to shell out 5.15%. For more information on state-by-state lending trends for first-time homebuyers visit LendingTree’s Mortgage Research Center.
How will your monthly payment change if you have an FHA Loan vs. a Conventional Loan?
The average mortgage interest rate by state can fluctuate from 4.12% in New Mexico to 6.37% in Connecticut, but not all mortgages are created equal. Take for example FHA and conventional loans – these loan types have drastically different interest rates, varying by state.
What about Credit Scores?
While a low credit score can hamper homeownership, there are mortgage rates for people with subpar credit. Use the table below to find out what the mortgage interest rate is in your state based on your loan type and credit score.
Mortgage Interest Rate by State, Credit Score, Year, and Loan Type
Mortgages rates can vary widely from state to state, loan type, and even down to your credit score. It’s important to note that these are average mortgage interest rates and they may not reflect what you’ll pay if you apply for a loan. To make sure you’re looking at good loans available near you, start comparing online today!
Best Lenders for Low Credit Scores
The average mortgage interest rate can vary from region to region, but what is more important is understanding the rate based on your financial situation. For instance, if you have a low credit score, your interest rate will be higher than someone with a high credit score. Furthermore, in some states like Arizona and Florida, you might qualify for an ARM even if you have lower credit scores. You should know that a fixed-rate mortgage tends to be lower than an ARM since it is always guaranteed to be at that interest rate, but keep in mind that ARMs are available as low as 2% now while they are typically 5%. Finally, there are also loans available specifically for those who don’t want any property upkeep responsibility like reverse mortgages.
Best Lenders for High Credit Scores
Interest rates are generally higher in states with a high cost of living. The average mortgage interest rate in New York is 6.15%, and in Connecticut it is 5.93%. These rates compare to 4.76% in Arizona and 3.27% in Colorado, both of which have much lower costs of living than New York or Connecticut. Some states are known for having relatively favorable lending climates for high credit scores, including Oregon (4%), Utah (4%), and North Carolina (3%).