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• Mortgage rates in Omaha, Nebraska, are influenced by a variety of economic and personal financial factors.
• Fixed-rate and adjustable-rate mortgages are both popular options.
• The higher your credit score and down payment, the more favorable your rate will likely be.
• First-time homebuyer programs can provide valuable financial assistance.
• Comparing offers from multiple lenders is the best way to save.
Introduction to Mortgage Interest Rates
Whether you are buying your first home or you’re a seasoned homeowner, it’s important to understand mortgage rates in Omaha, Nebraska in order to make sound financial decisions. This guide will help you understand how rates are set and how borrowers can get the lowest rate possible in Omaha. The first step in this process is to dig into the many factors that combine to influence the rate a lender will offer you.
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
The rate you’ll get for a home loan in Omaha is influenced by factors both outside your control and within your control. Let’s start with the first group: The bond market, particularly the 10-year U.S. Treasury Note, is a strong indicator of which way rates are headed. The performance of the housing market, inflation, and unemployment levels are also significant. When the overall economy is strong and growing, rates tend to rise. When the economy is slowing, rates tend to fall. Keeping an eye on these economic indicators can help you lock in some of the best mortgage rates in Nebraska.
You’ll also want to watch your credit score and monthly bills. Lenders are typically looking for a credit score of 620 or higher for a conventional mortgage, and a debt-to-income (DTI) ratio of 36% or less. So pull your credit report to check for errors, pay every bill on time, and do your best to reduce debts. Other things that can affect the rate you’re offered? Your down payment amount (more is better, of course) and the steadiness of your income. Lenders like predictable paychecks.
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
It’s worth making a fuss about interest rates because even a fraction of a percentage point can noticeably affect your monthly spending on your home loan, as well as the total interest you’ll pay over the life of the mortgage.
Below, a look at how incremental rate changes would affect a $200,000 home loan in Omaha. As you can see, a single percentage point increase (from 6.00% to 7.00%) means paying roughly $48,000 more for your loan over a 30-year term. One way to reduce interest, regardless of your interest rate, is to choose a shorter term — although doing so means increasing your monthly payment amount.
Interest Rate
Monthly Payment
Total Interest
6.00%
$1,199
$231,677
6.50%
$1,264
$255,085
7.00%
$1,330
$279,021
7.50%
$1,398
$303,403
8.00%
$1,467
$328,309
Omaha, Nebraska Mortgage Rate Trends
Historical U.S. Mortgage Rates
Knowing the historical context of mortgage rates in Omaha, can be helpful during your home-buying journey. While rates have been on the rise in the past few years, they’re still well below the historic highs of the 1980s, as shown in the graphic. The chart shows how Nebraska’s rates have tended to compare to national averages. As you can see, Nebraska tends to be in line with U.S. averages or occasionally just below them.
Year
Nebraska Rate
U.S. Rate
2000
8.07
8.14
2001
6.96
7.03
2002
6.57
6.62
2003
5.79
5.83
2004
5.82
5.95
2005
5.91
6.00
2006
6.47
6.60
2007
6.35
6.44
2008
6.08
6.09
2009
5.14
5.06
2010
4.95
4.84
2011
4.62
4.66
2012
3.68
3.74
2013
3.83
3.92
2014
4.24
4.24
2015
3.92
3.91
2016
3.78
3.72
2017
3.98
4.03
2018
4.61
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Omaha, Nebraska
In Omaha, you have every possible type of mortgage loan to consider, each designed to meet different financial needs and circumstances. By exploring different options during your search for a home loan, you can find the best mortgage rates in Omaha for your homeownership goals.
Fixed-Rate Mortgage
Fixed-rate mortgages keep things simple by offering a consistent interest rate for the entire loan term. This predictability translates to stable, unchanging monthly payments for you. With terms of 10 to 40 years, there are different timelines to fit the borrower’s needs. The 30-year term is a popular choice, as it can mean lower monthly payments, but as noted above, shorter terms usually come with lower interest rates.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) is attractive to many borrowers because these loans typically start with a lower interest rate than fixed loans. But the rate can change after an initial period, and that could mean higher monthly payments. So, before you jump into an ARM, consider your financial stability and the possibility of future rate hikes. Some borrowers start with an ARM assuming they will sell the home or refinance before rate hikes become problematic.
FHA Loan
With the Federal Housing Administration (FHA) backing these loans, you’ll find the eligibility requirements are often more forgiving than those for conventional loans. With a minimum credit score of 580, an FHA borrower can get a loan with a down payment as low as 3.5%. And those with lower scores of 500 or more can qualify with a 10% down payment. FHA loans open the door to homeownership for many first-time buyers and those with limited financial resources.
VA Loan
VA loans are a fantastic option for those who have served our country. They’re available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most significant benefits is the lack of a down payment requirement, which can be a game-changer for those with limited savings. To qualify, you’ll need to meet specific service and credit requirements and obtain a Certificate of Eligibility from the VA.
Jumbo Loan
In most regions of the country, and throughout Nebraska, the conventional mortgage loan limit for 2025 is $806,500 for a single-family home. Jumbo loans are available for homebuyers who are purchasing properties that require a larger loan. These loans often come with a few more hoops to jump through, such as more stringent credit score requirements and a heftier down payment. But if you’re eyeing a high-value property, a jumbo loan could be a useful tool.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Drop?
If you’re thinking about buying a home in Omaha, you might be wondering if you should wait for interest rates to decline. But according to recent economic predictions, rates are expected to stay fairly steady in the near future. According to Fannie Mae’s latest forecast, the average mortgage rate is expected to end 2025 at around 6.30%. So, what does that mean for you? The decision to buy a home depends on a variety of factors beyond mortgage rates, including your income and savings levels and home prices in your area. Are prices expected to rise? If so, this might be time to buy. Do you need to buy because you recently relocated to the area or because your family is growing? If so, mortgage rates may not be the top decision driver.
Remember that if you buy at one rate, you can consider a mortgage refinance if rates drop.
The Cost of Living in Omaha
Omaha beckons with its affordable lifestyle. The cost of living here is 91.9% of the average cost of living in the U.S., which is good news. The median home sale price here is a remarkably reasonable $270,000, according to Redfin, although the market is very competitive and it’s not unusual for homes to receive multiple offers.
To land the most favorable mortgage rate in Omaha, having a good credit score is key. This means checking your credit report, correcting any inaccuracies, and paying bills on time. Reduce your debts as much as possible, aiming for a debt-to-income (DTI) ratio of 36% or less. And consider how large a down payment you can put down without pinching your budget — a larger down payment will help your chances of getting a good rate.
A heftier down payment can also work in your favor. And here’s a tip: Going through the mortgage preapproval process can help you set a solid budget. Don’t be afraid to explore various mortgage types, including government-backed loans which can have attractive rates.
Helpful Tools & Calculators
Using online tools and calculators can help you make more informed decisions. These are three calculators that will come in handy during your home search.
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.
How to Evaluate Loan Offers in Omaha
Once you have mortgage loan offers from multiple lenders in hand, you’ll want to compare them head to head to see which is the best deal. Even a mere half a percentage point can equate to substantial savings over the loan’s lifetime, but you shouldn’t just look at the interest rate. Pay attention to the annual percentage rate (APR), which encompasses fees, closing costs, and mortgage points, and you’ll be on the right track. Worried about rates going up? Once you choose a lender, you can always pay a fee to lock in your rate for up to 90 days.
Omaha Mortgage Resources
Nebraska offers down payment assistance programs and other resources designed to help homebuyers, particularly those who are new to the process or have limited financial means. (Did you know that as long as you haven’t owned a primary residence in the past three years, you could still qualify as a first-time homebuyer?) The Nebraska Investment Finance Authority (NIFA) Homebuyer Assistance Program and the NIFA First Home Loan Program are two great options for those just starting out, offering low down payment and flexible credit requirements.
Closing Costs in Omaha
For those in Omaha planning to purchase a home, it’s smart to budget for closing costs that range from 2% to 5% of the loan amount. These costs can vary based on the property’s value and location. Common expenses include loan origination fees, appraisal fees, and title insurance.
The Takeaway
Omaha’s mortgage landscape and housing market are welcoming to homebuyers, even those who are purchasing their first place. By keeping an eye on current mortgage rates in Omaha and exploring local assistance programs and different mortgage types, you can make the best decisions for your home-buying journey.
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 is considered “normal” for mortgage rates depends on how long you’ve been watching the numbers. Rates topping 6.50% might seem high to some. But if you bought a home in the 1980s, 6.50% could seem modest. Waiting for “normal” rates may be less helpful than asking yourself if you can afford to purchase a home, and if this is the right time to do so based on your personal needs.
Will Omaha, Nebraska home prices ever drop?
Home prices are a reflection of various factors, such as supply and demand, economic conditions, and interest rates. With a relatively reasonable median sale price of $270,000, it’s hard to see Omaha’s housing prices dropping significantly in the near future.
Is it a good time to buy a house in Omaha, Nebraska?
Deciding whether to invest in a home in Omaha, Nebraska involves weighing various factors, from mortgage rates to the current housing market. The market in Omaha is somewhat competitive, but home prices have remained fairly reasonable, so it might be a suitable time to buy if your personal finances are prepared.
How do I lock in a mortgage rate?
Locking in your mortgage rate can help you secure a great deal. You can usually request a rate lock by getting in touch with your chosen lender. It may involve paying a fee, but if forecasts are for rising rates, the decision may be well worth it.
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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.
*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.
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.
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