To help shoppers get a better picture of where it is best and least expensive to get a mortgage, GOBankingRates ranked all 50 states based mostly on the native rates offered on 15- and 30-year fastened-rate mortgages (FRMs) in the first quarter of 2015, weighted with the typical home listing worth within the state. Read on to see in case your state ranks among the many 10 states offering the best mortgage rates.
Mississippi offers low mortgage rates to its residents, with the second-best ordinary 15-year FRM rate within the study at 3.024% APR throughout the first quarter of 2015. Its 30-year mortgage rate can also be below the national ordinary at 3.764% APR. The state’s low home costs are also a big boon to buyers. Trulia reports a mean listing worth in Mississippi of $233,639.
For the bottom 30-year mortgage rate, look to Iowa. The Midwest state’s 3.748% ordinary rate on 30-year FRMs is the best of any state, and its ordinary 15-year FRM rate is 3.047%. The low ordinary listing worth of $200,665 signifies that mortgage payments will stay low. Des Moines, Iowa, was named one of many hottest housing markets in 2015 by Realtor.com, with the state’s low home costs making homeownership accessible to millennials.
Ohio got here in at No. 3 thanks to favorable 15-year and 30-year mortgage rates. The typical 3.757% 30-year mortgage rate in Ohio is the more competitive of the 2, ranked sixth amongst all 50 states, however the Ohio 15-year FRM rate of 3.046% continues to be higher than the median. Ohio also boasts the bottom ordinary listing worth within the nation at $191,283, according to Trulia.
Continuing the trend amongst Midwestern states, Missouri also offers a few of the best 30-year mortgage rates on the market. Its ordinary 30-year mortgage rate of 3.756% is the fourth-best rate within the nation. Its higher-than-ordinary 15-year FRM rate of 3.052%, nevertheless, pushed Missouri down to the No. 4 spot on this list. The typical home listing costs can also be low, at $208,059.
The mortgage rates in Kansas are fairly competitive, though the state’s ordinary 30-year FRM rate pulls ahead at 3.763%, which ties it with Georgia for the 14th-best mortgage rate. The higher-than-ordinary 30-year rate and middle-of-the-pack 15-year mortgage rate ordinary (3.048%) provide a balance that kept Kansas close to the top of this list, together with its low ordinary listing worth of $208,998.
With low listing costs second only to Ohio, Indiana residents can still get a nice deal on their mortgages, despite the fact that its ordinary 15-year and 30-year FRM rates are both middling. The Indiana housing market can also be hot immediately due to restricted inventory pushing up demand and costs, according to the Indiana Affiliation of Realtors.
7. West Virginia
West Virginia’s mortgage rates are higher than most, with its ordinary 30-year rate about on par with the national ordinary balancing out its ordinary 15-year rate being higher than the national ordinary. Housing costs stay low on this state, nevertheless — the median sales worth is $199,461 — and the mortgage rates can help make sure that home loans aren’t too burdensome for borrowers.
The primary issue that kept Arkansas within the top 10 of the best states to get a mortgage loan is its low 15-year mortgage rate ordinary, which at 3.042% APR is lower than the median for the nation. Low home costs also help Arkansas residents enjoy smaller mortgage payments and pay less interest. Home buyers thinking about a 30-year mortgage ought to beware, nevertheless; the state’s ordinary 3.778% 30-year FRM rate is among the many 5 worst within the country.
9. South Dakota
South Dakota’s ordinary 30-year mortgage rate works in favor of home buyers within the state. The 3.761% APR is among the many 10 lowest within the country, and the state’s 3.044% APR ordinary 15-year mortgage rate is on par with the national ordinary. Even with a higher ordinary listing worth of $265,203, South Dakota is a prime state to save on a mortgage.
10. New Mexico
New Mexico boasts the best ordinary 15-year FRM rate of any state: 3.024% This rate is low enough to get the Western state within the top 10 best states to get a home loan, despite the state having a mean 30-year mortgage rate that’s among the many 15 worst within the nation.