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• Mortgage rates in Wichita are influenced by economic conditions and your personal financial history.
• Mortgage rates in Kansas follow the national trends, but tend to be slightly lower.
• Fixed-rate mortgages offer stability, while ARMs come with lower initial rates but can balloon later on.
• First-time homebuyers can often tap into assistance programs for down payments and closing costs.
• Small changes in mortgage rates can have a big impact on your long-term borrowing costs.
Introduction to Mortgage Refinance Rates
Understanding mortgage rates is crucial for anyone looking to buy a home in this Midwestern city. This guide will walk you through how these rates are determined in the Wichita area and provide advice on how to secure the lowest possible rate for your specific situation.
We’ll explore the various factors that influence these rates, including prevailing economic conditions and your individual credit history. Our aim is to provide practical tips to help you navigate the mortgage market effectively and efficiently. The better informed you are, the more you can do to ensure you get the right home loan for you at a rate you’re comfortable with.
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
Multiple factors influence mortgage rates. They can be split into two basic categories: macroeconomic trends in the larger economy and elements relating to your individual financial situation and history. Let’s take a quick look at both kinds.
Economic Factors Influencing Mortgage Rates
• The bond market, particularly the 10-year U.S. Treasury Note, has long been a chief barometer of what’s happening with mortgage rates. Mortgage rates tend to drop when the bond market is low.
• The health of the housing market also plays a key role. Lenders typically lower rates when there are more homes available than there are people interested in buying them.
• Inflation and unemployment also help determine mortgage rates. Typically, mortgage rates go up in a healthy economy, anticipating an increased demand for borrowing. A recession usually signals lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a significant predictor of the rate you’re likely to be offered by lenders. If your score is high, you’ve got a good chance of getting a low rate.
• The size of your down payment is also a factor. A larger down payment means you’ll have more equity in your home, which suggests to lenders that you’ll be less likely to default, so paying more upfront can result in a lower interest rate.
• Your debt-to-income (DTI) ratio is also important. Lenders review your income in relation to your monthly debts to see how difficult payments may be for you. Generally, mortgage lenders like to see a DTI ratio of no more than 36% (though that’s not necessarily the maximum).
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
How Interest Rates Affect Home Affordability
Let’s take a closer look at how even a seemingly small shift in mortgage rates can make a big difference in what you’ll have to pay in both the short and the long term.
Say you’re seeking a $400,000 loan. At a 6.50% rate, your monthly payment would be $2,528. But if the rate nudges up to 7.00%, that monthly payment jumps to $2,661.
Even more striking: Over the life of a 30-year mortgage, the lower rate would save you nearly $48,000 in interest. That’s a significant sum, and that’s why it’s important to understand the impact so you can make the best decisions for your financial future.
Wichita Mortgage Rate Trends
Understanding how mortgage rates have trended in Wichita and the country as a whole historically may help you get perspective on today’s mortgage rates. The charts below can give you a sense of context that may help you make a more confident decision about your home loan.
Historical U.S. Mortgage Rates
If you look at mortgage rates over the last 50 years, you can see they’ve been on a bit of a rollercoaster. From the 1970s to the 2020s, we’ve seen yearly rates for fixed-rate 30-year mortgages as high as 16.63% (in 1981) and as low as 2.96% (in 2012). The Great Recession and the Covid-19 pandemic led to some of the lowest rates in history. But in the past few years, rates have started to climb again, though they’re nowhere near historic highs.
To see just how much rates have fluctuated over the past 50 years, consider the graphic below.
Historical Interest Rates in Wichita, Kansas
As the largest city in Kansas, Wichita is a major contributor to Kansas’s overall mortgage rate figures. And historical data shows that mortgage rates in Kansas run slightly lower than the national average, but share the same patterns of ups and downs. (The Federal Housing Finance Agency stopped compiling this city-level data after 2018.)
Year
Kansas Rate
U.S. Rate
2000
7.90
8.14
2001
6.94
7.03
2002
6.54
6.62
2003
5.69
5.83
2004
5.72
5.95
2005
5.78
6.00
2006
6.27
6.60
2007
6.14
6.44
2008
5.83
6.09
2009
5.03
5.06
2010
4.77
4.84
2011
4.28
4.66
2012
3.58
3.74
2014
4.11
4.24
2013
3.78
3.92
2015
3.77
3.91
2016
3.68
3.72
2017
4.02
4.03
2018
4.64
4.57
Source: Federal House Finance Agency
Should You Wait for Interest Rates to Drop?
As a prospective homebuyer in Wichita, Kansas, you may find yourself wondering if you should wait for a potential mortgage rate drop before making a purchase.
It’s a reasonable question. However, current predictions suggest that mortgage rates are likely to remain relatively stable in the near future, and perhaps even longer. The average rate nationally is expected to end the year 2025 at approximately 6.30% and 2026 at 6.20%, according to recent industry forecasts and analyses.
But remember, if you buy and rates change, you can always look into a mortgage refinance.
See How Wichita’s Costs Stack Up
At 88.8% of the national average, the cost of living in Wichita, Kansas, should be relatively accommodating for anyone looking to put down roots in the Midwest without breaking the bank.
Overall, your town’s cost of living has an impact on home prices as well as how easy it is to fit mortgage payments into your budget.
Here’s how Wichita compares to other Kansas cities on an index where 100 equals the average cost of living in the U.S.
To secure the best mortgage rates in Wichita that you can get, you may want to take these steps.
• Review your credit score, and if necessary, work to strengthen it.
• Lower your debt-to-income (DTI) ratio by paying down as much debt as you can.
• Increase your down payment though savings or gifts from friends and family.
• Compare rates from different lenders so you can see the full range of rates available to you.
• Consider going through the mortgage preapproval process. This will give you a better idea of what you can afford.
Tools & Calculators
Using a mortgage payment calculator can help you see the effect of different mortgage rates on your potential monthly payments. It can also let you assess the impact of a variety of terms and down payments. This can be a significant help as you make decisions about which home to purchase and which loan to accept.
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 Wichita, Kansas
In Wichita, there are many types of mortgage loans to suit different financial profiles. Conventional mortgages, for instance, may be a good option if you have a credit score of 620 or higher, with better rates tending to go to borrowers with higher scores. The average score for residents of Wichita is 624, and FHA and VA loans may work well for many of them, while jumbo loans can accommodate people interested in more expensive homes. By carefully considering these options, you can discover the best mortgage rates in Wichita, Kansas, for different financial situations and needs to find the perfect fit for you.
Fixed-Rate Mortgages
Fixed-rate mortgages are a popular choice, offering stability with a consistent interest rate throughout the entire loan term. These mortgages are available in various terms, 15 and 30 years being the most common, and throughout the entire term monthly payments remain the same. This predictability can be particularly appealing to homebuyers on a budget and those who are carefully planning their finances for years to come.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) start off with an initial rate that’s typically lower than fixed-rate loan rates. After a set period (usually several years) the rate changes, regularly adjusting based on the market. If you’re thinking of selling your house before the fixed period ends, an ARM might be just the ticket. But while an ARM could mean lower payments in the beginning, it does come with the possibility of higher payments down the line, so it’s a good idea to be sure about your future plans before you decide.
FHA Loans
Tailored for those with lower credit scores or smaller down payments, FHA loans are backed by the Federal Housing Administration and offer a more accessible path to home ownership. With a minimum credit score of 580, you could be looking at a down payment as low as 3.5%. And a loan may even be available if your score is as low as 500, though that requires a down payment of 10% or more.
VA Loans
VA loans can be a good choice for those who have served or are currently serving in the military. This includes active-duty personnel, veterans, reservists, National Guard members, and some surviving spouses. One of the most significant benefits of a VA loan is that it allows you to purchase a home without a down payment. This can make homeownership a reality for many who might not have considered it possible. Additionally, VA loans often have competitive mortgage rates and offer flexible terms to meet the needs of different borrowers. If you’ve served your country in the military, a VA loan can be a practical and affordable way to finance your home.
Jumbo Loans
In most areas, including Wichita, the conventional mortgage loan limit is $806,500 for a single-family home. If you’re looking at a property that exceeds this price, you’ll need a jumbo loan to finance the purchase. Jumbo loans are specifically designed for high-value homes and often come with more stringent requirements in terms of credit score, DTI ratio, and down payment as a reflection of the increased risk to lenders. However, if you can present a strong financial profile, you may still be able to secure a competitive mortgage rate.
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 Wichita
Securing a competitive mortgage rate is key to your financial well-being. As we’ve seen, even a seemingly small difference in rate can add up to significant savings over the life of your loan.
As you compare loan offers, be sure to look at the big picture. Consider the annual percentage rate (APR), which encompasses fees, closing costs, and mortgage points, and can give you a more accurate sense of your costs. And if you’re worried about rates creeping up, you can opt to lock in your rate for up to 90 days (for which there may be a small fee).
In Wichita, there are multiple resources and programs designed to help homebuyers, particularly if you’re buying your first home or have limited financial resources.
The Kansas Housing Resources Corporation (KHRC) First-Time Homebuyer Program, for example, is an excellent option to explore. It offers down payment and closing cost assistance, making it easier to secure a mortgage with a competitive rate that fits within your budget. Bear in mind that you may still qualify as a first-time homebuyer if you haven’t owned a primary residence in the last three years.
KHRC has other programs to explore, but be sure to look more locally for financial help and down payment assistance programs, too. For instance, in certain areas of Wichita, the city’s HOMEownership 80 program provides financial help with closing costs and down payments.
Closing Costs in Wichita
For people buying a home in Wichita, the ballpark figure for closing costs is between 2% and 5% of the total loan value. The average cost of a home in Wichita is about $197,000, so closing costs are likely to range between $3,940 and $9,850.
Closing costs typically 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. To keep these costs in check, be proactive. Shop around, compare lenders, and don’t hesitate to negotiate fees.
The Takeaway
The mortgage market in Wichita is rich with options for anyone seeking to make a home in this vibrant community. By staying aware of current mortgage rates and taking advantage of any available assistance programs, you can make informed decisions that will help you reach your financial goals and find the home of your dreams. Whether you’re a first-time buyer or a seasoned homeowner looking to refinance, understanding the resources at your disposal and the trends in the market can help you secure the best possible mortgage rate for your situation.
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.
Many economists predict that mortgage rates in Wichita will remain fairly consistent through 2026. However, it’s impossible to know for sure. Working on your financial readiness for home ownership will give you a leg up when the moment is right. While watching macroeconomic factors like inflation and Treasury bond prices can help you get a sense of how rates might trend, being prepared is just as important, if not more so.
Will mortgage rates ever return to normal?
Although mortgage rates have gone up since the lows of the Covid-19 pandemic, they’re significantly lower than the peaks we saw in earlier decades. That suggests that for experienced homebuyers, today’s rates may be “normal” looked at historically. For most would-be homebuyers, focusing on assessing and improving their financial standing is probably more productive than simply waiting for lower average mortgage rates.
How do I lock in a mortgage rate?
Once you find a favorable rate from a lender you like and are ready to start finalizing your home purchase, you can request a rate lock from the lender. The lock guarantees that your offered rate will not change for a specified period, typically 30 to 60 days. Keep in mind that a small fee may be involved.
How do mortgage interest rates operate?
Mortgage interest is the fee you pay to your lender for loaning you your mortgage. It’s usually calculated as a percentage of your 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). If you have a shorter loan term – 15 years rather than 30, say – you will pay higher monthly premiums but less interest over the life of your loan.
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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.
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.
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.
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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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