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Compare mortgage rates in Charleston.
Key Points
• Mortgage rates in Charleston are influenced by both economic conditions and personal financial factors.
• Fixed-rate mortgages charge you the same amount each month, while adjustable-rate payments change when benchmark rates adjust.
• The higher your credit score and down payment, the better your mortgage rate is likely to be.
• South Carolina has a range of programs to help first-time homebuyers.
• Closing costs in Charleston usually fall between 2% and 5% of the loan amount.
Introduction to Mortgage Interest Rates
If you’re looking to buy a home in Charleston, South Carolina, it’s important to understand interest rates. This guide explains in detail how mortgage rates in Charleston are determined, and offers advice on how to secure the best possible rate for your specific situation. We’ll explore the various factors that can influence mortgage rates, such as credit score and down payment amount, and we’ll provide practical tips to help you optimize your financial profile for lenders.
Where Mortgage Rates Come From
The mortgage interest rates lenders offer vary from place to place and even person to person. The economy is a factor, and rates are significantly affected by the bond market; the primary benchmark for lenders is the 10-year U.S. Treasury Note. When interest rates on the note rise, home loan rates typically go up as well. The housing market also plays a role. A strong housing market, combined with increasing inflation, can cause mortgage rates to rise.
Mortgage rates are also customized for individual borrowers and their finances. The rate you’re offered is influenced by your credit score, in particular. The higher your score is, the lower the rate you’ll probably get. Making a larger down payment may decrease your interest rate, since lenders often think that a borrower who has more equity in their home will be less likely to default on their mortgage.
Your debt-to-income (DTI) ratio is important in determining your interest rate as well. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that’s not necessarily the maximum.
How Interest Rates Affect Home Affordability
Let’s look more closely at exactly how much different mortgage rates can influence what you can afford.
Say you take out a $300,000 loan. At 6.50%, your monthly payment would be around $1,896. But if the rate is just half a percentage point higher, at 7.00%, that monthly bill jumps up to $1,996.
How that adds up is even more striking: Over the span of 30 years, that 0.50% difference in interest rates translates to nearly $36,000. That’s a meaningful chunk of change.
The term of your loan also has an impact on what you’ll pay. A shorter term may mean higher monthly payments, but it also saves you money in interest over the duration of the loan. The table below shows how much difference changes in your interest rate and loan term can make on a $300,000 fixed-term loan.
| 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 |
Charleston Mortgage Rate Trends
Looking at historical mortgage rates in Charleston can give you a sense of what to expect from lenders. Although rates have increased in recent years, they’re significantly lower than the historical high. In October 1981, for example, weekly rates peaked at a stunning 18.63%. Fortunately, current rates are just a third of that.
Historical U.S. Mortgage Rates
Over the years, mortgage rates in the U.S. have fluctuated significantly. The graph below shows just how much rates have varied during the past 50 years.
Historical Mortgage Rates in Charleston
Charleston is South Carolina’s largest city by population, so its mortgage interest rates play a major part in the rates for the state. The chart below shows how South Carolina’s interest rates compare to the national average during recent decades. (The Federal Housing Finance Agency stopped compiling this city-level data after 2018.)
You can see that South Carolina’s rates have closely followed national trends.
| Year | South Carolina Rate | U.S. Rate |
|---|---|---|
| 2000 | 7.98 | 8.14 |
| 2001 | 6.84 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.67 | 5.83 |
| 2004 | 5.71 | 5.95 |
| 2005 | 5.95 | 6.00 |
| 2006 | 6.59 | 6.60 |
| 2007 | 6.42 | 6.44 |
| 2008 | 6.06 | 6.09 |
| 2009 | 4.93 | 5.06 |
| 2010 | 4.68 | 4.84 |
| 2011 | 4.48 | 4.66 |
| 2012 | 3.62 | 3.74 |
| 2013 | 3.85 | 3.92 |
| 2014 | 4.19 | 4.24 |
| 2015 | 3.93 | 3.91 |
| 2016 | 3.74 | 3.72 |
| 2017 | 4.04 | 4.03 |
| 2018 | 4.59 | 4.57 |
Should You Wait for Interest Rates to Drop?
If you’re looking to buy a home in Charleston, you may well be wondering if you should wait for interest rates to fall.
However, predictions from leading financial institutions suggest that mortgage rates will likely remain stable in the near future. Fannie Mae projects that average rates at the end of 2025 will be about 6.30%, and 2026 will likely end at around 6.20%.
It’s also worth noting that if rates drop after you’ve already bought your home, you can consider a mortgage refinance to take advantage of the lower interest opportunities.
See How Charleston’s Costs Stack Up
The cost of living in Charleston is very close to the national average, though some other cities in the state have slightly lower costs. Your town’s cost of living can be important as you plan your budget, since it has an impact on home prices as well as on how easy it is to fit mortgage payments into your monthly bills.
Here’s how Charleston compares to other South Carolina cities on an index where 100 equals the average cost of living in the U.S.
| South Carolina City | Cost of Living |
|---|---|
| Charleston-North Charleston | 101.9 |
| Columbia | 89.2 |
| Greenville | 93.1 |
| Hilton Head Island | 104.1 |
| Spartanburg | 91.2 |
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How to Get Your Best Possible Rate in Charleston, South Carolina
To help you get the best mortgage rates in Charleston that you can, consider taking these steps.
• Review your credit score. If it’s not as high as you’d like, make a plan to work on building a stronger credit history.
• Lower your debt-to-income (DTI) ratio. Paying down as much debt as you can will help.
• Increase your down payment. Savings and gifts from friends and family can be used to up the amount.
• Compare rates from multiple lenders. Different lenders may offer you different rates and terms, so shopping around can be worthwhile.
• Consider going through the mortgage preapproval process. This will give you a better sense of what you can afford.
Tools & Calculators
If you’re thinking about purchasing a property in Charleston, a mortgage payment calculator can be your best friend. By simply entering your loan amount, anticipated interest rate, and loan term, you can instantly see your estimated monthly payment and the total interest that would be paid over the loan’s life. Armed with this information, you’re far better equipped to make informed decisions about your budget and the loan options that will best suit your needs.
Here are three calculators that can help.
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.
Types of Mortgages Available in Charleston
In Charleston, you have a variety of mortgage options to consider. Conventional mortgages are the most common and typically require a credit score of 620 or higher. The median score for a Charleston resident is 643, which may make this a good type of mortgage loan for many homebuyers.
Fixed-Rate Mortgages
Fixed-rate mortgages are just what they sound like — the interest rate on a fixed-rate mortgage remains the same throughout the life of the loan. This means your monthly payments won’t change, so a fixed rate can be a great option if you like the stability of a consistent payment. Fixed-rate mortgages are available in various term lengths, with 15 and 30 years being the most common.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) start off with a set period during which you get a lower rate than on fixed-rate loans. That initial fixed-rate period is followed by a one during which the rate can adjust depending on market conditions. If you’re thinking of moving or refinancing within a few years — before your initial period ends — an ARM might be a smart choice. Just be sure you’re aware of the potential for rate increases and how they could impact your monthly payments.
FHA Loans
With the Federal Housing Administration’s backing, FHA loans are known for having more relaxed eligibility criteria than conventional loans. If you have a credit score of at least 580, you can secure a loan with a 3.5% down payment. The flexible underwriting guidelines are particularly beneficial if you’re buying your first home.
VA Loans
VA loans help those who have served our country — including active-duty military members, veterans, reservists, National Guard members, and some surviving spouses — afford to buy a home. One of the most significant benefits of a VA loan is that it typically doesn’t require a down payment, which can help make homeownership more accessible. In addition, VA loans often come with lower interest rates than conventional loans, and there’s usually no private mortgage insurance (PMI) requirement.
Jumbo Loans
In most areas, including Charleston, conventional mortgage loans have a 2025 cap of $806,500 for a single-family home. Jumbo loans, which exceed this established limit, are designed specifically for high-value properties and often come with more stringent qualification requirements for approval. These particular loans typically require a higher credit score and a larger down payment than standard mortgages. However, they can still be a good option for buyers in areas where there are some higher property values, such as Charleston.
How to Evaluate Loan Offers in Charleston
A competitive mortgage rate is key to your financial well-being over the life of your loan. As we’ve seen, even a fraction of a percentage point can add up to significant savings.
As you evaluate your home loan options, comparing interest rates and fees from different lenders is a smart move. Look closely at the annual percentage rate (APR), which includes fees, closing costs, and mortgage points. Once you’ve found an offer that works for you, consider locking in your rate for up to 90 days, especially if you’re concerned about rates increasing.
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Charleston Mortgage Resources
South Carolina is rich with resources like down payment assistance programs, designed to assist homebuyers stepping into the market for the first time and those with financial constraints. (And bear in mind that you may still qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years.)
The SC Housing Homebuyer Program is one such resource, offering highly competitive 30-year, fixed-rate mortgages of many types, complemented by the options for a forgivable second loan to ease the burden of down payments and closing costs. The Palmetto Home Advantage program extends similar support, with the added benefit of no first-time buyer restrictions.
Closing Costs in Charleston
For those of you ready to make your home in Charleston, expect closing costs to hover between 2% and 5% of your total loan value. The average cost of a house there is about $573,000, so closing costs would run between around $11,460 and $28,650.
What these costs cover can vary, but typically they’ll include things like loan origination fees, property appraisal fees, and title insurance coverage. Remember, it’s your right to scrutinize these costs and haggle with lenders to secure the best deal.
The Takeaway
The mortgage market in Charleston, South Carolina features many options for you to explore. By keeping an eye on the latest mortgage rates and taking the time to investigate the various assistance programs available, you can make strategic decisions. Savvy choices will not only help you to meet your financial goals but will also set you on the path to successful and sustainable homeownership in Charleston.
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
Will mortgage rates drop in Charleston, South Carolina?
Mortgage rates in Charleston, South Carolina, are influenced by a variety of factors, including changes in the broader economy and the bond market. As a result, it can be challenging to predict the exact direction of mortgage rates. However, by keeping an eye on key economic indicators and staying in touch with local lenders, you can gain a better understanding of potential rate movements. Your personal financial situation also plays into the rates you’re likely to be offered, so if you’re in the market for a new home, it’s a good idea to work on strengthening your credit score, paying down debt, and saving for a down payment so that you’ll be well-positioned when you are ready to buy.
Will mortgage rates ever go back to normal?
While we may not see the record lows we experienced during the Covid-19 pandemic for some time, mortgage rats are now at historically moderate levels. Recent predictions from Fannie Mae suggest that the prevailing rate at the end of 2025 will likely be 6.30%, and 2026 will end with a rate of 6.20%.
How do you lock in a mortgage rate?
After you’ve found a favorable rate from a lender you like and are ready to start finalizing your home purchase, you can request a rate lock from the lender. A rate lock guarantees that your offered rate will not change for a specified period, typically 30 to 60 days. Keep in mind that there may be a small fee required.
How do mortgage interest rates work?
Mortgage interest rates are the fees you pay to borrow money for a home purchase They’re usually expressed as a percentage of the loan amount. These rates can be fixed or adjustable. Fixed-rate mortgages retain the same interest rate for the entire loan term, which can protect you from rising rates and provide predictable monthly payments. Adjustable-rate mortgages (ARMs) have rates that can change after an initial period. They often come with lower initial rates, but then they adjust at regular intervals, meaning that your monthly payments may be less predictable.
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.
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.
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. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. 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-Q225-120
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
