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When people talk about mortgage rates, they’re typically referring to national averages. But if you’re getting ready to buy or refinance a home, these averages aren’t always super useful.
To get the most accurate idea of what types of rates are out there right now, you’ll want to look at average mortgage rates by state and see where they’re at in your area.
Why Mortgage Rates Can Vary by State
Just like you’ll pay different rates for car insurance depending on what state you’re in, mortgages can also cost more or less depending on what state you’re getting a mortgage in.
Why is this? Mortgage rates are impacted by economic forces, including local ones. Factors that can influence a state’s average mortgage rates include:
- Local economic conditions: If a state has a strong economy or a higher rate of inflation, its mortgage rates may be higher as well
- Cost of doing business: If a state generally has more expensive goods and services due to a higher cost of doing business, mortgages will likely be more expensive in that state as well
- Competition: The range of mortgage rates available in your area depends on how much competition there is between lenders. More competition helps drive consumer prices down, including mortgage rates
- State-specific lender regulations: Laws that make foreclosing on a home more costly and time-consuming can also push mortgage rates up in a particular state
The good news is that mortgage rates shouldn’t vary too dramatically from one state to the next.
Finding the Best Mortgage Rates in Your State
Don’t Rely Solely on National Averages
It can be helpful to see how mortgage rates are trending nationwide, but you’ll get a more accurate idea of what you could end up paying by looking at rates for your specific state. This can also help you better compare offers from different mortgage lenders.
Use State-Specific Rate Comparison Tools
Business Insider provides average mortgage rates for each state so you can easily see rates specific to your area. Click or scroll down to your state to see how rates are currently trending.
Many lenders also have tools that let you see sample rates that are customized to your situation, including which state or ZIP code you’re in. Just be aware that the rates you get using these tools might be different than what you’re ultimately given once the lender takes a look at your finances.
Get Multiple Rate Quotes, Including From Local Lenders
Shopping around and getting quotes from at least three lenders is always a good idea, since it helps ensure you’re getting the best deal. You may find you’re able to get a better rate from a local bank, lender, or credit union. Get quotes from both local and national or regional lenders to compare.
Factor in All Costs
Getting the lowest rate might not be worth it if it means paying a lot more in closing costs. Remember to consider the overall picture, including any fees a lender charges or other costs you’ll need to pay in cash at closing.
Make Sure You’re Comparing Rates Accurately
As you compare rates from different lenders, make sure you’re comparing apples to apples. Sometimes, lenders may give you a rate quote that includes points. Mortgage points are a cost you can pay at closing to lower your interest rate.
You can ask lenders for a rate quote that doesn’t include points, so you can easily compare offers.
Key Factors Impacting Your Mortgage Rate
The mortgage rate you end up getting will be impacted by national trends, local factors, and your own individual financial situation. Individual factors that can impact your mortgage rate include:
- Credit score: The exact credit score you need for a mortgage depends on the type of loan you’re getting, but the higher your score, the better your rate will be
- Down payment: Making a larger down payment makes your loan less risky to the lender, so they’ll typically be able to offer you a better rate. If you make only the minimum down payment or no down payment, expect to have a higher rate
- Debt-to-income ratio: Your debt-to-income ratio refers to how much of your gross monthly income goes toward debt payments, including a mortgage. Lower ratios are typically rewarded with lower rates
- Loan details: The type of mortgage you get, its term length, and whether it’s a fixed or adjustable-rate mortgage will all make a difference in what rate you get. The amount you borrow can also have an impact
- Property type: If you’re buying a home to be your primary residence, you’ll likely have a lower rate than someone purchasing a vacation home or investment property.
Mortgage Rates by State
Click on your state to see how mortgage rates are currently trending where you’re at.
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington, DC
West Virginia
Wisconsin
Wyoming
Mortgage Types for Every State
Mortgage Calculator
Take the average mortgage rate and home price in your state and plug them into this calculator to see how much you might pay each month for a typical home in your area.
Mortgage Calculator
$1,161
Your estimated monthly payment
- Paying a 25% higher down payment would save you $8,916.08 on interest charges
- Lowering the interest rate by 1% would save you $51,562.03
- Paying an additional $500 each month would reduce the loan length by 146 months
Whether you’re buying or refinancing, be sure to get quotes from multiple mortgage lenders to ensure you’re getting the best deal. And don’t just compare rates; consider the fees that each lender charges and any additional features or perks they offer that make their services more worthwhile, too.
State Mortgage Rates FAQs
States will usually have slightly different mortgage rates from one another depending on an individual state’s rate of foreclosures, typical operating costs for lenders, competition in a given area, and other factors. But mortgage rates shouldn’t vary dramatically from one state to the next, since rates are largely driven by investor demand for mortgage-backed securities.
The states with some of the lowest mortgage rates include Alabama, Ohio, Pennsylvania, South Carolina, Wisconsin, and Wyoming.
In June, 30-year mortgage rates averaged around 6.58%, according to Zillow data. This is a bit lower than the previous month.
To be sure you’re getting the best rate possible, get quotes from at least three mortgage lenders to compare.
Online lenders sometimes have better rates than other lenders because they have fewer operational costs, but this isn’t always the case. It might be worth getting quotes from both an online-only lender and a local lender to see which one offer you the best overall deal.
Many lenders offer the ability to lock in a mortgage rate for a specified period of time so the rate you’re quoted won’t change between the time you apply for a mortgage and closing. But locking in a rate isn’t free.
