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Key Points
• Mortgage rates in Asheville, North Carolina are influenced by economic conditions and borrower creditworthiness.
• Fixed-rate mortgages offer a stable monthly payment amount.
• Adjustable-rate mortgages (ARMs) often offer lower starting rates.
• The higher the credit score and down payment, the lower the rate a borrower can typically obtain.
• The cost of living in Asheville is somewhat higher than the national average and median home sale prices are up significantly in the last year.
Introduction to Asheville Mortgage Interest Rates
This comprehensive guide on mortgage rates in Asheville, North Carolina is designed to help you understand how home loan rates in Asheville are determined, and, more importantly, how you can secure the lowest possible mortgage rate available to you. As homeowners and homebuyers in Asheville recover from 2024’s devastating Tropical Storm Helene, home prices are trending upward and many families are still seeking to buy. We’ll provide practical, actionable tips for finding the best possible deal on your mortgage, ensuring you make an informed decision that suits your specific needs. The first step is to understand the multiple factors large and small that affect what mortgage rate a lender might offer you.
Where Mortgage Rates Come From
Particularly if you are buying your first home, you may benefit from a brief explanation of how mortgage rates are determined. The factors that influence the rate you’ll be offered are roughly divided into two buckets: external market factors and borrower-specific ones.
Economic Factors Influencing Mortgage Rates
• The bond market, especially the 10-year U.S. Treasury Note, has been a primary indicator of where mortgage rates are headed in years past. When rates on it rise, mortgage interest tends to head in the same direction.
• The health of the housing market plays a role, too. When the market cools, lenders may lower rates to keep customers coming in.
• The overall economy also plays a role in determining mortgage rates. In a strong economy, rates tend to rise, while recessions are usually accompanied by lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a significant predictor of the rate you’ll be offered. The higher the score, the lower the rate you’ll likely be offered.
• The amount of your down payment is also a factor. A larger down payment can result in a lower interest rate because borrowers who have more equity in their newly purchased property are perceived as a lower risk.
• Your debt-to-income (DTI) ratio is also important. Lenders will look at your income in relation to your monthly debts. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
The type of mortgage loan term you choose also contributes to the interest rate you’re offered — we’ll explore the more common types below.
How Interest Rates Affect Home Affordability
Mortgage rates can significantly impact the purchasing power of homebuyers in today’s market. To put this into perspective, let’s say you’re looking at a $400,000 loan. At a 6.50% interest rate, your monthly payment would be about $2,528. But if that rate were to increase to 7.00%, your payment would jump to $2,661. Over the life of a 30-year loan, you’d save almost $48,000 in interest payments by securing the lower rate. Below are more examples for that same $400,000 loan, so you can see how rate and term might impact your spending.
| Interest Rate | Loan Term | Monthly Payment | Total Interest |
|---|---|---|---|
| 6.00% | 30-year | $1,799 | $347,515 |
| 6.00% | 15-year | $2,532 | $155,683 |
| 7.00% | 30-year | $1,996 | $418,527 |
| 7.00% | 15-year | $2,697 | $185,367 |
Asheville Mortgage Rate Trends
Historical U.S. Mortgage Rates
As you’re shopping for a home and mortgage in Asheville, it helps to have perspective on the history of mortgage rates in the area. While it’s true that rates have risen since hitting a historic low in 2021, they are still well below the peaks of previous decades.
To get some perspective on what “high” and “low” rates have looked like over the last half-century, consider the graph below. The chart shows how North Carolina’s average rate has compared to the national average in recent decades — as you can see, the state rate is often just below or the same as the national one. (The Federal Housing Finance Agency stopped compiling this data after 2018.)
| Year | North Carolina Rate | U.S. Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.87 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.76 | 5.95 |
| 2005 | 5.93 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.32 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.74 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.58 | 4.57 |
Types of Mortgages Available in Asheville
For a conventional mortgage in Asheville, a credit score of 620 or above is usually the ticket to financing your dream home. In 2024, the average homebuyer credit score was 758, according to Experian®. But don’t let that scare you. Exploring options like FHA and VA loans can open doors to more flexible terms. Here are some of the most common types of home loan available to buyers in Asheville.
Fixed-Rate Mortgage
A fixed-rate mortgage is a great option for homebuyers who want to have a consistent mortgage bill each month. The interest rate on a fixed-rate mortgage will remain the same throughout the entire loan term of 10, 15, 20, 30, or even 40 years.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) often starts with a lower interest rate than a fixed-rate loan, but after the initial period, the rate can adjust up (or down) with market conditions. This can be appealing if you plan to sell before the rate begins to adjust. But if you’re buying for the long term, run the numbers on a few higher interest rates to make sure the payment will still be comfortable if it adjusts upward.
FHA Loan
FHA loans have the backing of the Federal Housing Administration and more flexible qualifications as a result. If you’ve got a credit score of 580 or above, you could be looking at a down payment as low as 3.5%. These loans are tailor-made for folks who might not fit the mold for a traditional mortgage due to lower credit scores or limited down payment funds. FHA loans do require an upfront and monthly mortgage insurance premium (MIP), but the cost of the monthly premium does decline as you chip away at your mortgage balance.
VA Loan
VA loans, backed by the U.S. Department of Veterans Affairs, are a great option for those who have served our country. They are available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the primary benefits of VA loans is that they do not require a down payment, making them an attractive option for those with limited savings. Additionally, VA loans often come with low interest rates and no mortgage insurance requirement, reducing the overall cost of homeownership.
Jumbo Loans
In Asheville, and throughout North Carolina, a conventional mortgage loan is capped at $806,500 for a single-family dwelling. If you need to borrow more than this amount, that’s where a jumbo loan steps in. These loans typically have more stringent credit score requirements and require larger down payments, but competitive jumbo mortgage rates are still within reach.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
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Should You Wait for Interest Rates to Drop?
If you’re thinking about buying a home in Asheville, you might be wondering if you should bide your time until mortgage rates go down. The truth is, most financial experts are predicting that mortgage rates will remain fairly stable in the near future. According to Fannie Mae, the average mortgage rate is expected to be around 6.3 percent by the end of 2025. Of course, you can do a mortgage refinance if rates do happen to go down noticeably in the future.
The cost of Living in Asheville
When considering home ownership, it’s important to factor in the cost of living in the area. The cost of living in Asheville as a whole helps determine how you fit mortgage payments into your budget. The chart below shows how Asheville compares to other North Carolina cities on an index where 100 equals the average cost of living in the U.S.
| City | Cost of Living |
|---|---|
| Asheville | 102. |
| Chapel Hill | 104.5 |
| Raleigh | 97.2 |
| Salisbury | 91.2 |
| Winston-Salem | 93.4 |
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Get Your Best Possible Rate in Asheville
To secure the best mortgage rates in Asheville, it’s important to focus on improving your credit score, as this can lead to significantly lower rates. Reducing your debt-to-income (DTI) ratio is also beneficial, and you should aim for 36% or below. Increasing your down payment can also help to reduce the overall loan amount and secure a better interest rate.
Lenders will also consider your income stability and assets when you apply. Going through the mortgage preapproval process can be valuable, helping you to lock in a budget, and exploring different types of mortgages, such as adjustable-rate mortgages, might offer lower initial rates. Finally, consider government-backed loans for potential additional savings.
Helpful Tools & Calculators
A mortgage calculator can help you estimate your monthly payment for your home in Asheville. But it’s not the only useful tool you’ll find helpful in your homebuying process. These are three of our favorites:
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Asheville
A competitive mortgage rate is your ticket to long-term savings. Even the smallest difference can add up to significant financial benefits. When you’re weighing your mortgage options in Asheville, be sure to compare interest rates and fees from a selection of lenders. Don’t just compare interest rates. The annual percentage rate (APR) is your friend here, as it factors in fees, closing costs, and discount points. Once you’ve found an offer that feels like a good fit, consider locking in your rate for up to 90 days — usually a fee is required, but it may be worth it to hold on to a great rate.
Asheville Mortgage Resources
North Carolina has a variety of programs, including down payment assistance programs, available for homebuyers who have limited resources, as well as those who qualify as a first-time homebuyer. The NC Housing Finance Agency (NCHFA) offers a few different programs, including the NC Home Advantage Mortgage, which offers a 30-year fixed rate and up to 3% down payment assistance. The NC 1st Home Advantage Down Payment program offers eligible homebuyers up to $15,000 for down payments as a 0% deferred second mortgage. Explore these programs as well as local programs in the Asheville area (search for “homebuyer assistance program Asheville”).
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Closing Costs in Asheville
As you’re budgeting for home-buying, don’t forget closing costs. They typically range from 2% to 5% of the loan value, but this can vary based on the property’s price and location. For instance, a $300,000 home could mean $6,000 to $15,000 in closing costs. These costs cover a variety of services, from loan origination to appraisals and title insurance. In a soft market, you can try to reduce these costs by negotiating with the seller to cover some of them, but in Asheville’s moderately competitive market, that may not yield results right now.
The Takeaway
Asheville’s mortgage landscape offers something for everyone. By keeping tabs on current mortgage rates in Asheville and exploring assistance programs, would-be homeowners can make strategic decisions that align with their financial goals. Whether you’re a first-time buyer or a seasoned homeowner, understanding the different types of mortgages, such as fixed-rate, adjustable-rate, FHA, and VA loans, and working with a trusted lender can help you find the best fit for your needs.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How do I qualify for a VA loan in Asheville, North Carolina?
If you’re active-duty military, a veteran, reservist, National Guard member, or a surviving spouse, you may be eligible for a VA loan. To find out if you can apply for a VA loan, you’ll need to request a VA Certificate of Eligibility through VA.gov or a lender that handles VA loans. VA loans often offer lower rates and no down payment, so it’s worth checking eligibility if you have served your country.
What’s the median home price in North Carolina?
In February 2025, the median home sale price in North Carolina was $367,500, up 1.8% year-over-year.
Will mortgage rates drop in Asheville, North Carolina?
No one can predict with certainty what will happen to mortgage rates in Asheville, North Carolina or anywhere else. But if you keep an eye on the 10-year U.S. Treasury Note, its price can often provide some sense of the direction that mortgage rates will be headed.
Is it a good time to buy a house in Asheville, North Carolina?
Whether or not now is a smart time to purchase a home in Asheville, North Carolina depends as much on whether you can find a home you love (and that you can afford) in this somewhat competitive market as it does on mortgage rates. Each buyer is different, and you’ll need to balance how strong your urge is to move (or to start building equity vs. renting), as well as budget concerns, to make your own decision.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.SOHL-Q225-087
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
