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• Mortgage rates in Richmond, Virginia, are influenced by a variety of factors, both economic and specific to the borrower.
• Check your credit score before you start mortgage shopping.
• Consider a bigger down payment to secure a lower interest rate.
• Explore fixed-rate and adjustable-rate mortgages to find the best fit for you.
• Once you’ve found the right loan, consider locking in the rate.
Introduction to Mortgage Rates
Getting a handle on mortgage rates is important, especially if you’re a first-time homebuyer in Richmond, Virginia. This comprehensive guide will walk you through the process of how home loan rates are determined in your area. We’ll help you understand how to secure the most favorable rate for your unique situation. By the time you’re through, you’ll be equipped to make savvy decisions during your home-buying journey, potentially saving you a substantial amount over the long term.
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
Economic Factors Influencing Mortgage Rates
• The bond market, particularly the 10-year U.S. Treasury Note, has historically signaled where mortgage rates are headed. When the rates on the note rise, mortgage interest tends to rise too.
• The housing market also plays a role. When the market cools and more homes are available than there are buyers, lenders may lower rates.
• Inflation and unemployment also play a role. When the economy is strong, mortgage rates tend to rise. A recession is usually accompanied by lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a big deal. The higher the score, the lower the rate you’ll likely obtain. Conventional lenders typically look for a score of 620 or higher. Government mortgages are more lenient.
• The amount of your down payment plays a role. Making a larger down payment can result in a lower interest rate.
• Your debt-to-income (DTI) ratio is important. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
How Interest Rates Affect Home Affordability
Even a small change in mortgage rates in Richmond can make a big difference in the affordability of a home for potential buyers. Consider the chart below, which shows costs of a $300,000 loan at different interest rates, 6.00% and 7.00%. The lower rate saves a homebuyer almost $70,000 over the life of a 30-year loan. You can also see how the loan term impacts costs. Shorter terms usually have higher monthly costs than longer terms do — but lower interest expenses in the long term.
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
Richmond, Virginia Mortgage Rate Trends
Historical U.S. Mortgage Rates
Having a sense of the history of mortgage rates can offer valuable perspective on the interest rates you’re currently seeing in Richmond, Virginia. To get some perspective on what “high” and “low” rates have looked like in the U.S. as a whole over the last half-century, consider the graphic. Yes, current rates are higher than they were during the historic lows of 2021. But they are still far from the levels we saw in the 1980s.
The accompanying chart shows how Virginia’s rate has compared to the national average in more recent times — as you can see, the state rate runs very close to the national average. (The Federal Housing Finance Agency stopped compiling this data after 2018.)
Year
Virginia Rate
U.S. Rate
2000
8.03
8.14
2001
7.02
7.03
2002
6.54
6.62
2003
5.82
5.83
2004
5.70
5.95
2005
5.93
6.00
2006
6.54
6.60
2007
6.41
6.44
2008
6.02
6.09
2009
4.97
5.06
2010
4.71
4.84
2011
4.52
4.66
2012
3.67
3.74
2013
3.86
3.92
2014
4.16
4.24
2015
3.96
3.91
2016
3.77
3.72
2017
4.10
4.03
2018
4.59
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Richmond
The kind of mortgage you choose will have an effect on your interest rate, and in Richmond, you have access to every type of mortgage loan. Before you choose the type of loan you think will work for you, familiarize yourself with the more common options available:
Fixed-Rate Mortgage
Fixed-rate mortgages are a popular choice. Buyers like the fact that the interest rate stays the same for the life of the loan, which means monthly payments are predictable. This can make budgeting easier over the loan term, which can range from 10 to 40 years.
Adjustable-Rate Mortgage (ARM)
Now, let’s talk about adjustable-rate mortgages (ARMs). They often start with a lower rate than fixed-rate loans, making them quite appealing. After the initial fixed period, the rate adjusts based on the market — meaning it could go up or down. If you’re considering an ARM, it’s important to weigh the potential for future increases in payments against your financial stability. Some people choose an ARM because they expect to move before the introductory rate ends. Others anticipate that their earnings will increase, keeping pace with any increase in loan costs.
FHA Loan
With the backing of the Federal Housing Administration, FHA loans are known for their more forgiving eligibility requirements when compared to conventional loan options. With a credit score of 580, a qualified borrower may make a down payment as low as 3.5%. And credit scores as low as 500 are acceptable when a borrower qualifies and puts down 10%. This makes FHA loans a fantastic choice, especially for first-time homebuyers in Richmond.
VA Loan
VA loans, backed by the U.S. Department of Veterans Affairs, are a fantastic benefit available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most appealing benefits of VA loans is that they typically do not require a down payment, which makes them an attractive option for those with limited savings. Additionally, VA loans often feature lower interest rates compared to conventional loans, which can significantly reduce the overall long-term cost of homeownership.
Jumbo Loan
In most areas — and throughout Virginia — a conventional mortgage loan is capped at $806,500 for a single-family home. If the property you’re eyeing will require you to request a mortgage that exceeds this figure, a jumbo loan is your ticket to homeownership. While these loans often come with higher interest rates and more stringent qualification criteria, they’re a good option for those looking to invest in high-cost areas of Richmond.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Are You Waiting for Interest Rates to Take a Dive?
If you’re buying a home in Richmond, you might be pondering whether to hold off on your purchase in hopes of a drop in mortgage rates. While it’s always good to be savvy about market trends, the current outlook suggests that rates are likely to hold steady in the coming months. As of March 2025, experts predict that average mortgage rates in Virginia will hover around 6.30% by the year’s end. But here’s the good news: Should rates take a dip down the road, you can always consider a mortgage refinance to capitalize on potential savings.
The Cost of Living in Richmond
When it comes to the cost of living, Richmond is a pretty good deal. Its cost of living index is 6 points below the cost of living in the U.S. (see how it stacks up against other Virginia cities in the chart below). Home prices have been rising, however. The median sale price of a home was $387,000 in early 2025.
Virginia City
Cost of Living
Alexandria
124.1
Arlington
135.1
Blacksburg
93.6
Charlottesville
103.1
Danville City
89.2
Hampton Roads-SE Virginia
94.1
Lynchburg
92.3
Martinsville-Henry County
89.2
Richmond
87.9
Roanoke
90.8
Winchester (VA-WV)
102.5
Get Your Best Possible Rate in Richmond
To get the most favorable mortgage rate in Richmond, there are a few steps to take. As soon as possible, check your credit report and request corrections on any inaccuracies. Pay every bill on time. Next, examine your debts. Is your DTI ratio below 36%? Can you pay down any of what you owe? Lenders will also look at your income, assets, and employment history.
Going through the mortgage preapproval process can help you set a budget and make your offer more attractive to sellers. You may also want to consider different types of mortgage loans, such as adjustable-rate mortgages (ARMs) with lower initial interest rates.
Helpful Tools & Calculators
Using a mortgage payment calculator is a smart move. It helps you see how different mortgage rates in Richmond can impact your monthly payments. But a calculator is only one of the useful tools we have for home-shoppers.
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 Richmond
Given that even half a percentage point reduction in interest rate can add up to substantial savings over the loan’s life, it’s worth your time to secure loan offers from multiple lenders. Once you have these in hand, compare rates and fees. Pay special attention to the annual percentage rate (APR), which encompasses fees, closing costs, and discount points. Found a loan offer that suits you? Consider locking in the rate for up to 90 days by paying a fee to the lender. This can provide peace of mind if you’re concerned about potential rate hikes while you’re finishing up your purchase.
Virginia offers a variety of resources and programs to help you with the buying process, especially if you are buying your first home or are on a tight budget (or both). Virginia Housing provides several options, including a down payment assistance program that offers first-time homebuyers a 1% grant toward expenses and a closing cost assistance grant as well. There are also conventional and government loans through the First Mortgage program.
Closing Costs in Richmond
When it comes to closing costs in Richmond, buyers typically pay between 2% and 5% of the loan value. Several factors can influence how much you’ll pay in closing costs in Richmond, Virginia, including the value of the property and where it’s located. Common closing costs in Richmond include loan origination fees, fees for appraising the property’s value, and title insurance to protect your ownership.
The Takeaway
Richmond’s mortgage landscape presents a diverse set of options for prospective homebuyers in the area. Staying informed regarding current mortgage rates and exploring available assistance programs can help you find a loan that aligns with your financial goals. Whether you’re a first-time buyer navigating the market or a seasoned homeowner considering refinancing options, understanding the various mortgage types and resources that are available can be extremely helpful in securing the best possible rate.
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.
How can I find the best mortgage rates in Virginia?
Shop around for the best rates, compare offers from multiple lenders, and consider paying points to reduce your interest rate. When comparing offers, consider both fixed-rate and adjustable-rate mortgages (ARMs) and use the APR (annual percentage rate) as a point of comparison, which takes into consideration fees as well as interest.
What’s the deal with fixed-rate versus adjustable-rate mortgages?
Fixed-rate mortgages keep things steady with a consistent interest rate over the entire loan term. Adjustable-rate mortgages (ARMs), on the other hand, usually start with a fixed-rate period but then can change, going up or down based on market conditions.
Will mortgage rates drop in Richmond, Virginia?
Predicting future mortgage rates can be challenging. Right now the experts at Fannie Mae are forecasting that rates will end 2025 at an average of 6.30%. Watch the yield on the 10-year Treasury Note to see if their predictions will come through (mortgage rates tend to follow the T note’s lead). If you find a good rate for your home purchase and are worried about rates going up, consider locking it in.
How do mortgage interest rates work?
Mortgage interest rates are the cost of borrowing. The rate is expressed as a percentage. The interest rate you receive is based on your credit score, down payment amount, and other personal financial factors, as well as on economic conditions.
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*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.
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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.
