Apply online or call for a complimentary mortgage consultation.
Compare mortgage rates in Rochester, KY.
Key Points
• Check your credit score before you start looking for mortgage rates since it influences the rates you’ll be offered.
• Making a larger down payment may help you secure lower interest rates.
• Explore fixed-rate and adjustable-rate mortgages. An adjustable rate may make sense if you plan to sell the house before your rates reset.
• Compare rates and terms from multiple lenders in order to find the best loan you can get.
• Investigate your eligibility for local assistance programs, which may offer loans with better terms and lower down payment requirements.
Introduction to Rochester Mortgage Interest Rates
To get the best mortgage rate, you need to understand the factors that determine interest rates. A good credit score, stable income, and a low debt-to-income ratio are important. But there are other things that can affect your rate, such as the type of loan you get, the size of your down payment, and the length of your loan. In this guide, we’ll explain how mortgage rates are determined and what you can do to get the best rate possible in your financial situation. We’ll also give you some tips on how to shop for a mortgage and find the best deal.
Where Mortgage Rates Come From
Mortgage rates are the product of multiple factors, including trends in the economy and your personal financial situation. Understanding how these factors interact can help you find the best possible mortgage rate for you.
Economic Factors Influencing Mortgage Rates
• The bond market, especially the 10-year U.S. Treasury Note, has long been considered a significant indicator of mortgage rates’ direction. When the bond market goes up or down, home loan interest rates tend to do the same.
• The health of the housing market is also a factor. When the housing market heats up and fewer properties are available, lenders may raise rates.
• Inflation and unemployment can also be significant. Mortgage rates tend to go up when the economy is strong, due to the possibility of increased demand for borrowing and potentially elevated costs for lenders that offer consumer loans. Lower mortgage rates generally accompany a recession.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a major predictor of the rate you’re offered. The higher your score is, the more likely you are to be offered a lower rate.
• The amount of your down payment is also significant. If you put down a larger down payment, you may be offered a lower interest rate. That’s because lenders generally consider new homeowners who have more equity in their homes as less likely to default on their mortgage.
• Your debt-to-income (DTI) ratio is still another factor in the interest rate you’ll be offered, as lenders typically review your income in relation to your monthly debts. Generally, mortgage lenders prefer a DTI ratio of 36% or less, though that isn’t invariably the maximum.
How Interest Rates Affect Home Affordability
Even a small change in mortgage rates can make a big difference in how much home you can afford in Rochester. On a $400,000 loan, for instance, a 6.50% rate would translate to a monthly payment of $2,528. If the rate rose to 7.00%, however, the monthly payment would be $2,661. Over a 30 year term, the homeowner with the lower rate would save almost $48,000 in interest. So it can definitely pay off to get the best mortgage rate you can.
The term of your loan also has a strong impact on what you pay. A shorter term may mean higher monthly payments, but also saves you money in interest over the lifetime 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 |
Rochester Mortgage Rate Trends
The historical mortgage rates of Rochester, New York, can offer you a sense of the potential future of its housing market. Although rates have seen an uptick in recent years, they remain comfortably below the peaks of past decades.
Historical U.S. Mortgage Rates
Over the past 50 years, mortgage rates have seen a lot of ups and downs. The yearly average rate for a 30-year fixed mortgage rose as high as 16.63% in 1981. By way of contrast, in 2021, as the world struggled with the Covid-19 pandemic, it dropped to 2.96%.
Historical Interest Rates in Rochester, New York
Rochester is one of the largest cities in New York state by population, so it’s helpful to look at the state’s mortgage interest rates over time. The chart below shows how New York’s interest 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, New York rates have closely mirrored national averages.
| Year | New York Rate | U.S. Rate |
|---|---|---|
| 2000 | 8.10 | 8.14 |
| 2001 | 7.02 | 7.03 |
| 2002 | 6.47 | 6.62 |
| 2003 | 5.63 | 5.83 |
| 2004 | 5.70 | 5.95 |
| 2005 | 5.78 | 6.00 |
| 2006 | 6.44 | 6.60 |
| 2007 | 6.40 | 6.44 |
| 2008 | 6.03 | 6.09 |
| 2009 | 5.06 | 5.06 |
| 2010 | 4.80 | 4.84 |
| 2011 | 4.55 | 4.66 |
| 2012 | 3.62 | 3.74 |
| 2013 | 3.77 | 3.92 |
| 2014 | 4.08 | 4.24 |
| 2015 | 3.81 | 3.91 |
| 2016 | 3.62 | 3.72 |
| 2017 | 3.91 | 4.03 |
| 2018 | 4.37 | 4.57 |
See How Rochester’s Costs Stack Up
The overall cost of living in Rochester, New York, significantly affects the price of your home and how easily you can fit the mortgage payments into your budget. See in the chart below how Rochester stacks up against other cities in New York. Bear in mind that on this index, 100 is the average cost of living in U.S.
| California City | Cost of Living |
|---|---|
| Albany | 104.7 |
| Buffalo | 95.7 |
| Herkimer County | 92.9 |
| Nassau County | 136.0 |
| New York (Brookylyn) | 161.1 |
| New York (Manhattan) | 230.6 |
| New York (Queens) | 149.8 |
| Ostego County | 99.6 |
| Rochester | 99.1 |
| Syracuse | 102.9 |
| Utica-Rome | 95.9 |
How to Get Your Best Possible Rate in Rochester
While you can’t control the economy, there are a number of steps you can take to help you make it through the mortgage preapproval process and secure the best mortgage rates in New York’s gateway to the Finger Lakes that you can. Start by looking at your credit score before you apply for a loan. Typically, lenders are looking for a credit score of 740 or higher to qualify for the lowest mortgage rates. If yours is lower, you may be able to build your creditworthiness by paying your bills on time and reducing your credit card debt.
It might also help to aim for a debt-to-income (DTI) ratio of 36% or less. A low DTI shows lenders that you’re a responsible borrower. And increasing your down payment might also encourage a lender to give you a lower interest rate.
💡 Quick tip: Don’t overpay for your mortgage. Get a competitive rate by shopping around for a home loan.
Helpful Tools & Calculators
Mortgage calculators take into account the loan amount you want, the interest rate, and the term length to give you insights about how changing any of those elements would impact you. Using a mortgage payment calculator can help you understand how different mortgage rates affect your monthly payment. You can also use the calculator to compare different loan options from different lenders. This can help you make a more informed decision when it comes to buying property.
Here are three calculators that may be useful.
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 Rochester, New York
To get a conventional mortgage in Rochester, New York, you typically need a credit score of 620 or higher. The median credit score of an inhabitant of the city is 624.
But while conventional loans are a popular type of mortgage loan because they often have the best terms, there are other types of mortgages available. These include FHA loans, VA loans, and adjustable-rate mortgages, 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 Mortgage
Fixed-rate mortgages are a popular choice among homebuyers. They offer the security of a consistent interest rate over the entire term of the loan, resulting in predictable monthly payments. These mortgages are available in a variety of terms, most commonly 15 and 30 years.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) start off with a set period during which you pay a lower interest rate than with most fixed-rate loans. That’s great if you’re planning to sell your house before the introductory period ends. But after that, your rate adjusts regularly based on the market, meaning that your interest rate will vary. If you’re thinking of moving or refinancing within that time frame, an ARM could be a smart move. Just remember to consider the potential for rate adjustments — and higher monthly payments — should your plans change.
FHA Loans
FHA loans, which are insured by the Federal Housing Administration, often have more lenient eligibility requirements than conventional loans. You may be able to qualify with a credit score as low as 580 and a down payment as low as 3.5% — or a score as low as 500 with a 10% down payment. This can make FHA loans a good option for first-time homebuyers and those with limited financial resources.
VA Loan
For people who have served or are currently serving in the military, VA loans can be a good option. They are available to eligible active-duty military members, veterans, reservists, National Guard members, and some surviving spouses. One of the biggest benefits of a VA loan is that it doesn’t require a down payment, which can be helpful if you don’t have a lot of money saved up. VA loans also typically have lower interest rates than conventional loans and don’t require private mortgage insurance (PMI).
Jumbo Loans
In most parts of the country, including Rochester, New York, a jumbo loan is a mortgage that exceeds $806,500 for a single-family home. Jumbo loans often require higher credit scores and larger down payments than smaller loans, but they can be a good option for people who need to finance a more expensive home. If you’re in the market for a jumbo loan, be sure to compare mortgage rates to find the best terms available to you.
How to Evaluate Loan Offers in Rochester
A competitive mortgage rate can save you a significant amount of money over the long haul. As we’ve seen, even a mere half a percentage point can add up to substantial savings. That’s why it’s important to compare interest rates and terms from various lenders. And don’t forget to look at the annual percentage rate (APR), which includes fees, closing costs, and mortgage points. Once you’ve found an offer that works well for you, you might want to lock in your rate for up to 90 days if you’re concerned about rates going up. This may require a fee, depending on your lender.
Recommended: Average Monthly Expenses for One Person
Rochester Mortgage Resources
The state of New York has resources and programs to support homebuyers, particularly those who are new to the market or have financial constraints. For example, the State of New York Mortgage Association (SONYMA) offers two programs to help low-income first-time homebuyers with mortgage financing at favorable rates with low down payments: the Achieving the Dream Mortgage Program and the Low Interest Rate program. Both provide help with affording down payments, and it’s always worth searching for down payment assistance programs.
The city of Rochester also has a Home Purchase Assistance Program Grant for which you may qualify as a first-time homebuyer if you need help with closing costs or down payments. The program has eligibility requirements for the property (a one- to four-family residence in Rochester) and the applicants (who must have a family income below 120% of the local median income, agree to live in the property for at least five years and attend training sessions, qualify for a loan of at least $25,000, and contribute $1,500 of their own funds).
Closing Costs in Rochester
For those venturing into the home-buying journey in Rochester, New York, a ballpark figure for closing costs hovers between 2% and 5% of the total loan value. The average cost of a home in Rochester is about $221,000, so closing costs are likely to range between $4,420 and $11,050.
You can expect closing costs to include common expenses like loan origination fees, appraisal fees, and title insurance. The exact amount of these costs is influenced by a variety of factors, from the property’s value to its specific location. But here’s a tip: To keep these costs in check, be proactive. Shop around, compare lenders, and don’t hesitate to negotiate fees.
The Takeaway
The Rochester, New York, mortgage market offers plenty of options for people looking to invest in a home in the area. By keeping your finger on the pulse of current mortgage rates in Rochester, understanding what you need from your mortgage, and comparing rates and terms from a variety of lenders, you can meet your financial goals and make your dream of owning a home in Rochester a reality. Whether you’re a first-time homebuyer or a seasoned pro looking to refinance, taking the time to research and compare loan options can save you a lot of money and time in the long run.
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 in Rochester, New York decrease?
Mortgage rates in Rochester, New York, are influenced by a variety of factors, like the strength of the bond market, the health of the general economy, and supply and demand in the local housing market. Because of these many moving parts, it can be difficult to predict the exact direction of mortgage rates. However, many predictions currently expect no dramatic changes in rates before the end of 2025.
Will mortgage rates ever return to the good old days?
Mortgage rates have a history of fluctuation and are influenced by a variety of economic factors, including the strength of the bond market and overall economic conditions. That said, mortgage rates are predicted by a number of experts to remain more or less stable through the end of 2025.
How do you lock in a mortgage rate?
After you’re preapproved for your mortgage and are ready to close on your property, your lender may offer you a rate lock to ensure that the interest rate they’re offering you won’t change for the specified duration (typically 30, 45, or 60 days). Depending on the lender, a rate lock may be automatic or not (check your loan estimate), and there may be a fee.
How do mortgage interest rates function?
Mortgage interest is the fee you pay to your lender for the privilege of your home loan. It’s usually calculated as a percentage of the total loan amount. In the early years of your loan, interest can make up a significant chunk of your monthly payment (which pays back both the interest and the money you borrowed).
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.
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.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.SOHL-Q225-076
More home loan resources.
-
First-Time Homebuyer Guide
-
First-Time Homebuyer Programs and Loans
-
Mortgage Preapproval Process
