Apply online or call for a complimentary mortgage consultation.
Compare mortgage rates in Charlotte.
Key Points
• Mortgage rates in North Carolina are influenced by economic conditions and your financial profile.
• Mortgage rates in Charlotte can vary based on local market conditions.
• Fixed-rate mortgages offer stability, while ARMs have rates that can change.
• The higher your credit score and down payment, the lower your mortgage rate could be.
• Even a small change in interest rates can make a big difference in your monthly payments and the total amount you’ll pay over the life of the loan.
• Investigate local programs for first-time homebuyers in Charlotte.
Introduction to Charlotte Mortgage Interest Rates
Welcome to our comprehensive guide to mortgage interest rates in Charlotte, North Carolina. This article is designed to help you fully understand how mortgage rates are determined in Charlotte and, more important, how you can secure the lowest possible rate for your specific situation. We’ll explore the various factors that influence these rates, ranging from broad economic indicators to your own personal financial status and credit history. We will also provide practical tips and advice to help you make well-informed decisions when choosing a mortgage, and successfully navigate the often-complex home-buying process.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
Where Mortgage Rates Come From
Mortgage rates are greatly influenced by the economy and financial markets. In particular, the bond market, including the 10-year U.S. Treasury Note, is a primary determinant of mortgage interest rate trends. When the T note goes up, mortgage rates are typically also on the rise.
The housing market can also impact mortgage rates. In a sluggish housing market, rates might be lowered to encourage home buying and lending. Inflation and unemployment rates also have an impact on mortgage rates in North Carolina. These rates can affect the cost of lending and the stability of the economy in the state.
For homebuyers, the important thing is to understand that mortgage rates aren’t arbitrary numbers. By keeping an eye on the headlines about the economy and interest rates, you can become more attuned to when rates are about to make a move.
How Interest Rates Affect Home Affordability
Mortgage rates play a pivotal role in the overall affordability of a home loan. Let’s break it down: If you have a $400,000 loan at a 6.50% interest rate for a 30-year term, your monthly payment would be around $2,528. But if that rate creeps up to 7.00%, your monthly payment jumps to $2,661.
That’s not a huge jump. But over 30 years, that 0.50% difference equates to nearly $48,000 in savings for the borrower who secured the lower rate. This is why understanding mortgage rates is key to smart budgeting and financial planning when purchasing a home.
For you visual learners, the chart below shows how interest rates and repayment terms impact the monthly payment and total interest paid on a $300,000 fixed-rate mortgage.
| 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 |
Charlotte Mortgage Rate Trends
Historical U.S. Mortgage Rates
If the recent history of mortgage interest rates feels like a rollercoaster, you’re onto something. Rates dipped to a historic low of under 3.00% in 2021. More recently, rates have been on the rise, though they’re currently on par with the historical average.
The table shows you how North Carolina rates closely follow the national average, often a bit lower. (The Federal Housing Finance Agency stopped compiling this data after 2018.)
| Year | Kentucky 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 |
Should You Wait for Interest Rates to Drop?
If you’re thinking about buying your first home in Charlotte, you might be wondering if waiting for mortgage rates to fall is a good idea. Current forecasts suggest that mortgage rates in Charlotte will stay fairly steady in the near future. The average rate is projected to end 2025 at about 6.30%. While waiting for a potential decrease could save you some money on interest, it’s important to consider the opportunity cost and the current state of the housing market before making a decision.
If you do decide to move forward with a purchase, remember that you can always take advantage of lower rates later on with a mortgage refinance.
Cost of Living in Charlotte, North Carolina
The average home value in Charlotte was just under $400,000 in spring of 2025. That’s considerably higher than the state average of $332,000, and even higher than the national average of $361,000. However, at 98.9, the overall cost of living in Charlotte is below the national average. This can help homebuyers fit a mortgage payment into their budget.
Here’s how the overall cost of living in Charlotte 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 | 102.7 |
| Chapel Hill | 104.4 |
| Charlotte | 98.9 |
| Durham | 98.5 |
| Raleigh | 97.2 |
| Salisbury | 91.2 |
| Winston-Salem | 93.4 |
Recommended: The Best Affordable Places in the U.S.
How to Get Your Best Possible Rate in Charlotte
To secure the best mortgage rates in Charlotte, there are a few things you can do:
• Focus on improving your credit score, which can make you a more attractive borrower in the eyes of lenders.
• Work to decrease your debt-to-income (DTI) ratio, aiming for no higher than 36%.
• If possible, increase your down payment to reduce the loan amount needed and, potentially, your interest rate.
• A steady income and robust assets also reassure lenders and strengthen your application.
• Consider going through the mortgage preapproval process to get a sense of your monthly payment early on.
• Explore different types of mortgages, such as adjustable-rate mortgages (ARMs) and government-backed loans, which may offer better rates.
• Compare offers from multiple lenders to find the best mortgage rates available in Charlotte.
Tools & Calculators
Mortgage calculators are a great way to estimate your monthly payments and get a feel for the total interest costs over the life of the loan. These user-friendly tools can help you understand the impact of different mortgage rates in Charlotte on your overall budget and financial planning.
Run the numbers on your home loan.
-
Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
-
Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
-
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 Charlotte
Here in Charlotte, you’ve got a range of mortgage options to consider. Conventional mortgages are the go-to for many, with an average homebuyer credit score of 758 in 2024. But if you’re not quite there yet, FHA loans offer a more flexible credit requirement and attractive low down payment options. And let’s not forget VA loans, which come with the significant benefit of no down payment for those who qualify.
Fixed-Rate Mortgage
Fixed-rate mortgages are a solid choice, offering the same interest rate over the entire loan term. This type of mortgage loan means your monthly payments remain consistent, providing a sense of financial stability. Available in 10, 15, 20, 30, or 40-year terms, you can select the option that best aligns with your financial goals. Many homebuyers in Charlotte are drawn to the predictability and protection against potential interest rate hikes that a fixed-rate mortgage offers. By gaining a thorough understanding of mortgage rates, you can make an informed decision on whether a fixed-rate mortgage is the right fit for you.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans. This is great if you plan to sell your home before the end of the initial fixed-rate period. ARMs are also sensitive to changes in the federal funds rate, which can affect mortgage rates in Charlotte. Before you decide on an ARM, make sure you’re comfortable with how your rate and payment can change. And be sure to ask how much your payments could go up over time.
FHA Loan
With the backing of the Federal Housing Administration, FHA loans are known for their more forgiving eligibility criteria compared to conventional loans. If you have a credit score of 580 or higher, you could qualify with a down payment as low as 3.5%, making the dream of homeownership more within reach. This is particularly good news for first-time homebuyers in Charlotte, where the housing market is competitive.
VA Loans
VA loans are a fantastic option for those who have served in the military and their families. If you’re eligible, you could secure a home without a down payment, and with lower interest rates, your monthly payments could be more manageable. It’s a great way to make the most of your service and invest in a place to call your own.
Jumbo Loans
In most parts of the country and throughout North Carolina, the conventional loan limit for 2025 is $806,500 for a single-family home. If you need to borrow more than that to buy a home in an expensive area, you’ll need a jumbo loan. Jumbo loans often come with higher interest rates and stricter underwriting criteria, such as a higher credit score and a larger down payment. But if you’re looking to buy a high-value home in Charlotte, North Carolina, a jumbo loan might be your best option.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
How to Evaluate Loan Offers in Charlotte
Securing a competitive mortgage rate is key to your financial well-being. Even half a percentage point can equate to substantial savings over the loan’s lifetime. By comparing interest rates and fees from multiple lenders, you’re positioning yourself to make an informed decision.
It’s the annual percentage rate (APR) that tells the whole story, factoring in fees, closing costs, and discount points. Once you’ve found a loan offer that resonates, you can opt to pay a fee to the lender to lock in your rate for up to 90 days, shielding you from potential rate hikes.
Charlotte Mortgage Resources
North Carolina is your ally in the quest for homeownership, offering a wealth of resources and programs tailored to first-time buyers or those with financial constraints. The North Carolina Housing Finance Agency (NCHFA) is a prime example, with the NC Home Advantage Mortgage at the forefront. This initiative presents a 30-year fixed-rate mortgage and up to 3% in down payment assistance. Moreover, the NC 1st Home Advantage down payment assistance program extends a generous $15,000 in down payment help, structured as a 0% interest deferred second mortgage.
Closing Costs in Charlotte
If you’re buying in Charlotte, you can expect to pay between 2% and 5% of the loan amount in closing costs. With the average home value in Charlotte just under $400,000, that’s about $8,000 to $20,000. The final amount will depend on the property’s value and location. It’s important to be aware of these expenses and budget for them, as they can have a big impact on your overall financial commitment. Here’s how some of the costs break down:
• Abstract and recording fees. Related to summarizing the title search.
• Application fee. Some lenders charge to process your loan application.
• Appraisal and survey fees. Usually in the $300 to $600 range, but could be higher, depending on the home, its location, and other factors.
• Credit reporting, underwriting, and origination fees. The lender may charge $10–$100 per applicant to check their credit score. Underwriting fees (often in the $300 to $750 range) may also be added to closing costs. Origination fees can be about 0.5% to 1% of your loan’s value and cover the costs of the lender creating your loan documents.
• Flood certification fee. The lender may require a flood certification, which states the flood zone status of the property.
• Title search and title insurance fees. A title search is done to see if there are any other claims on the property in question; usually in the $75 to $200 range. The lender often requires title insurance as a protection; this one-time fee costs between 0.1% and 2% of the sale price.
The Takeaway
The mortgage landscape in Charlotte, North Carolina is as varied as the neighborhoods you’re considering. By staying informed about current mortgage rates and exploring local assistance programs, you can take the first steps to buying, or refinancing, a home in the Queen City. Whether you’re a first-time buyer or a homeowner looking to refinance, understanding the different types of mortgages available and the various factors that influence mortgage rates in North Carolina can be invaluable in helping you secure the best possible loan terms.
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 Charlotte, North Carolina?
While we can’t predict the future, keeping an eye on economic shifts and the Federal Reserve’s decisions can give you a leg up on what’s to come. When rates on the 10-year U.S. Treasury Note rise, mortgage rates may be headed up as well.
Will mortgage rates ever go back to normal?
Mortgage rates always ebb and flow. While we may not see a return to the rock-bottom rates of the post-2007 era, we can hope for stability. And current predictions are for rates to remain steady through 2025 and into 2026.
Will Charlotte, North Carolina home prices ever drop?
The Charlotte housing market is influenced by a number of factors, including the state of the economy both locally and nationally, and the balance of supply and demand. While it’s difficult to predict the exact direction of home prices due to the inherent volatility of the market, a real estate agent with local knowledge may be able to help you assess where prices are headed.
Is it a good time to buy a house in Charlotte, North Carolina?
Deciding whether to buy a house in Charlotte depends significantly on your personal financial readiness. That said, Charlotte is a prime spot for first-time homebuyers, with a burgeoning economy and a wealth of job prospects. Plus, there are programs like the NC Home Advantage Mortgage to lend a hand.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
*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.
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. 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-Q225-084
More home loan resources.
-
First-Time Homebuyer Guide
-
First-Time Homebuyer Programs and Loans
-
Mortgage Preapproval Process
