You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
• The mortgage rates you’re offered are influenced by a mix of economic conditions and your financial status.
• Fixed-rate mortgages provide the stability of consistent payments, while the size of payments on ARMs can fluctuate.
• FHA and VA loans offer lower down payment options than many conventional loans.
• Working to strengthen your credit and lower your DTI ratio may lead to better rates.
• Mortgage calculators make it easier to estimate monthly payments and total costs on different loan offers.
Introduction to Kansas City Mortgage Interest Rates
Whether you’re in the market for a new home in Missouri or are specifically looking in Kansas City, understanding how mortgage rates work is crucial. This guide will walk you through the ins and outs of mortgage rates, how they’re determined, and what you can do to get the best rate possible. We’ll cover the major economic factors that affect mortgage rates on a national level, as well as the personal financial factors that can affect the mortgage rates you’re offered. Armed with this knowledge, you’ll be better equipped to make informed decisions at every stage of the home-buying process, from the first open house to closing on your new home.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
There are many factors that contribute to the mortgage rates you’re offered when you’re looking for a home. Some are macroeconomic and outside your control, while others relate directly to your financial behavior and situation. In both cases, understanding what goes into your mortgage rate can help you plan how to put yourself in the best position to get a good rate.
Economic Factors Influencing Mortgage Rates
• The bond market has historically provided a strong signal for where mortgage rates are heading. Particularly when the 10-year U.S. Treasury Note goes up, mortgage interest is also likely to rise.
• The strength of the housing market is also key. When there are more houses on the market than buyers who want them, rates may drop as lenders try to encourage customers to buy.
• Inflation and unemployment are factors in determining mortgage rates, too. When the economy is healthy, mortgage rates typically go up, since there’s potential for higher borrowing demand and greater expense for mortgage lenders. Recession, on the other hand, usually brings lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a major factor in the mortgage rate you’ll be offered. The higher your score is, the lower the interest rate you’ll probably get.
• The amount of your down payment is significant as well. You’re likely to get a lower interest rate when you make a larger down payment because homebuyers with more equity in their home are assumed to be less prone to default on their loan.
• Your debt-to-income (DTI) ratio is also critical since most lenders will want to consider your income in relation to your monthly debts. Usually, they prefer to see a DTI ratio of no more than 36%, though that’s not always the maximum they’ll accept.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number..
How Interest Rates Affect Home Affordability
While loan size is also important, mortgage rates are a critical factor in determining home affordability for potential buyers.
For instance, a $400,000 loan at a 6.50% interest rate translates to a monthly payment of $2,528. If that rate were to nudge up to 7.00%, the monthly payment would increase to $2,661.
Over the span of 30 years, the homeowner with the lower rate would save nearly $48,000 in total interest. Seemingly small differences in mortgage rates can have a significant impact on homebuyers over the long term.
Kansas City Mortgage Trends
Understanding how mortgage rates have changed over time, both nationally and locally, can give you perspective on what’s going on now and the rates that you may be offered. While there’s not much you can do to change macroeconomic factors, knowing what the trends are will give you a sense of what’s possible in today’s marketplace.
Historical U.S. Mortgage Rates
The history of mortgage rates in the U.S. reflects the ever-changing landscape of the economy. From the 1970s to the 2020s, average yearly rates for a fixed-rate 30-year mortgage have fluctuated dramatically. During the Great Recession in 2009 and afterward, rates plummeted to below 5.00%. The Covid-19 pandemic also left its mark, with rates hitting 2.96% in 2021. However, they were back to a more historically more typical 6.72% in 2024.
Historical Interest Rates in Kansas City, Missouri
The chart below shows how Kansas City’s mortgage rates have compared to the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this city-level data after 2018.) You can see that historically, Kansas City’s rate has been a little lower than the national average but closely mirrored its ups and downs.
Year
Missouri Rate
U.S. Rate
2000
7.78
8.14
2001
6.89
7.03
2002
6.49
6.62
2003
5.73
5.83
2004
5.73
5.95
2005
5.72
6.00
2006
6.27
6.60
2007
6.23
6.44
2008
5.89
6.09
2009
5.05
5.06
2010
4.92
4.84
2011
4.40
4.66
2012
3.61
3.74
2013
3.71
3.92
2014
4.18
4.24
2015
3.75
3.91
2016
3.69
3.72
2017
4.07
4.03
2018
4.64
4.57
Source: Federal House Finance Agency
See How Kansas City’s Costs Stack Up
Kansas City’s cost of living significantly undercuts the national average, which is good news for homebuyers. Cost of living affects how much homes cost and how much you’ll be able to afford in monthly mortgage payments. See how Kansas City compares to other Missouri cities, bearing in mind that on this index, 100 is the average cost of living in the U.S.
To secure the best mortgage rates in Kansas City, Missouri, you’ll want to focus on two key areas: your credit score and debt-to-income (DTI) ratio.
There are a number of steps you can take to help you make it through the mortgage approval process and secure an interest rate you’re happy with. Start by looking at your credit score before you start filling out loan applications. Typically you’ll need a credit score of 740 or higher to qualify for the lowest mortgage rates. If your score isn’t that high, you may be able to strengthen your creditworthiness by paying your bills on time and reducing your credit card debt.
Lenders often want to see a debt-to-income (DTI) ratio of 36% or less. A low DTI indicates that you’re a responsible borrower. Increasing your down payment might also help convince a lender to offer you a lower interest rate.
Tools & Calculators
Mortgage calculators can be an invaluable help as you consider what you can afford, allowing you to easily estimate monthly payments and understand the total costs associated with purchasing a home. These tools can take into account multiple financial factors, such as the loan amount required for your purchase, the interest rate, and your overall loan term.
Mortgage calculators can also assist you when you’re comparing the different loan options available to you by showing you the impact of making extra payments or choosing a shorter loan term.
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. Amo payments shown depend on the accuracy of the information provided.
Types of Mortgages Available in Kansas City, Missouri
Getting a conventional mortgage in Kansas City typically requires a credit score of 620 or higher. The median credit score of an inhabitant of the city is 618, so quite a few should qualify.
While conventional loans are a popular type of mortgage loan because they often have the best terms, other types of mortgages are also available. These include FHA loans, VA loans, and jumbo loans, each of which has its own benefits and eligibility requirements. By exploring all of your options, you can find the best mortgage rates available for your financial situation.
Fixed-rate mortgages are the bedrock of home financing, and many loan types, conventional and otherwise, have fixed rates. They keep your interest rate steady over the entire term of your loan, ensuring that your monthly payments remain the same. Different terms are typically available, but 15 and 30 years are the most traditional.
If you value the predictability of being able to budget for a consistent payment and want to secure a favorable rate for the long haul, a fixed-rate mortgage is likely a good option for you.
Adjustable-Rate Mortgages (ARM)
Adjustable-rate mortgages (ARMs) are loans that have an interest rate that changes. The loans often start with a lower rate than fixed-rate loans, which can be a plus if you’re thinking of selling your house before your rate is scheduled to change. The appeal is that you get a set period of several years with a low fixed rate. After that comes a regular rate adjustment based on the market.
An ARM could mean lower initial payments, opening the door to a larger loan. But, and it’s a big but, there’s the risk that mortgage rates could climb, taking your monthly payments along with them. Your lender likely caps how high a rate you have to pay, so it’s important to understand the terms of your loan and how they may play out
FHA Loans
With the Federal Housing Administration backing these loans, you’ll find the eligibility requirements are more flexible than those for conventional loans, and the interest rates tend to be more favorable. A credit score of 580 and a minimum down payment of 3.5% are typically needed. (There’s an option for lower credit scores, but that requires a higher down payment.)
VA Loans
VA loans can be a good choice for eligible active-duty military members, veterans, reservists, National Guard members, and many surviving spouses. One of the best things about VA loans is that they don’t require a down payment, which makes homeownership much more accessible. They also have more flexible credit score requirements than conventional loans, which can be helpful if you have a lower credit score. Additionally, VA loans offer very competitive terms and potentially lower rates.
Jumbo Loans
In most areas in the U.S., including Kansas City, the conventional mortgage loan limit for a single-family home in 2025 is $806,500. A jumbo loan, on the other hand, is tailored for a high-value property that surpasses this threshold.
While jumbo loans do tend to have stricter eligibility standards than conventional loans, they also have competitive interest rates and can still be a smart choice for those able to pay higher monthly payments for a pricier home.
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 Kansas City
A competitive mortgage rate is the cornerstone of smart savings over your loan’s lifetime. As we’ve seen, even a half a percentage point can add up to substantial savings.
As you’re sizing up your options, compare the mortgage rates offered in Kansas City by various lenders, and be sure to look at the annual percentage rate (APR), which encompasses fees, closing costs, and any mortgage points. Once you’ve found an offer that suits you, and if you’re concerned about rates rising, consider asking the lender to lock in your rate for up to 90 days (which may require a fee).
Kansas City Mortgage Resources
Missouri provides a number of resources and programs designed to make homebuying more accessible, especially if you have limited financial means or qualify as a first-time homebuyer.
The Missouri Housing Development Commission (MHDC) is a prime example, with its First Place Program offering first-time homebuyers and veterans below-market interest rates and help covering closing costs and down payments.
The Next Step Program takes it up a notch, assisting more well-off first-time homebuyers with increased income and purchase price limits, a mortgage credit certificate, and a 10-year potentially forgivable loan for down payment and closing costs.
Closing Costs in Kansas City
If you’re buying a home in Kansas City, you can expect to pay between 2% and 5% of the loan amount in closing costs. The average value of a house in Kansas City is about $241,000, so that translates to somewhere between $4,820 and $12,050. When you’re comparing mortgage rates, be sure to consider the total cost of closing to get a better idea of what you’ll need to pay.
Common closing costs for Kansas City homebuyers include loan origination fees, appraisal fees, and title insurance, among others. To help manage these costs, you may want to look into state and local down payment assistance programs, which can provide forgivable loans or grants.
The Takeaway
The mortgage market in Kansas City offers many paths to homeownership. By keeping your finger on the pulse of current rates and exploring assistance programs, you can make a more informed decision that aligns with your financial and life goals. Whether you’re a first-time buyer or a seasoned homeowner, understanding the different loan types and the factors that influence mortgage rates in Kansas City, Missouri, can help you secure the best possible deal for you.
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.
What influences mortgage rates in Kansas City, Missouri?
Mortgage rates in Kansas City are influenced by a combination of your personal financial factors and the broader economic landscape. Your credit score, down payment, and DTI ratio all play a part, as do economic indicators such as the strength of the bond market and the current demand for houses in Kansas City.
How can I find the best mortgage rates in Kansas City, Missouri?
To find the best mortgage rates in Kansas CIty, shop around and compare offers from multiple lenders. Consider both fixed-rate and adjustable-rate mortgages, as well as any other loans you might be eligible for, like FHA and VA loans. Investigate local resources available to help potential homebuyers, like the First Place Program and the Next Step Program.
Will mortgage rates drop in Kansas City, Missouri?
Predicting the future of mortgage rates is problematic. That said, Kansas City’s rates have historically followed the national average, but slightly lower. The latest guidance for national rates is that they’re likely to continue to be relatively stable, ending the year at about 6.30% and finishing 2026 at around 6.20%.
How do you lock in a mortgage rate?
Locking in a mortgage rate means getting your lender to hold that rate while you finalize your home purchase arrangements. After you’re preapproved for your mortgage and are ready to close on your property, you may want a rate lock to ensure that the interest rate offered by your lender won’t change for the timeframe you agree on (typically 30, 45, or 60 days). Depending on your lender, a rate lock may be automatic or not (check your loan estimate), and there may be a fee.
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 Mortgages
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.
[third_party_advice]
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-Q225-077
