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Compare mortgage rates in Winston Salem, North Carolina.
Key Points
• Check your credit report and credit score before you apply for a mortgage.
• Think about a larger down payment to lower your interest rate and avoid private mortgage insurance.
• Explore fixed-rate loans, which have the same monthly payment for the life of the loan, and adjustable-rate mortgages (ARMs), which have rates that can rise or fall with market conditions.
• Keep an eye on the 10-Year Treasury Bond to anticipate interest rate changes and help choose the best time to lock in a mortgage rate.
• Take advantage of local and federal programs for first-time homebuyers to receive help with a down payment and closing costs.
• Compare offers from multiple lenders, and pay attention to the APR (annual percentage rate), which includes fees.
Introduction to Winston Salem Mortgage Interest Rates
Mortgage interest rates are a big deal, as you may gather from their frequent appearance in the news. But why? Because they greatly impact the overall cost of homeownership for buyers like you. This guide is designed to help you understand how mortgage rates in Winston Salem, North Carolina, are determined, and more important, how you can secure the lowest rate available to you. We’ll explore the factors that influence these rates and provide practical tips to get the best deal possible when securing a mortgage for your dream home.
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
Whether buying your first home or a seasoned homeowner, how mortgage rates are set can be a bit of a mystery. Rates are typically influenced by a number of economic factors, along with the borrower’s financial status and credit history. Let’s break it down:
Economic Factors Influencing Mortgage Rates
• The bond market, particularly the 10-year U.S. Treasury Note, has historically been a good indicator of where mortgage rates are headed. When the interest rates on the note rise, mortgage rates tend to head in the same direction.
• The health of the housing market also plays a role. When the housing market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers.
• The overall economy contributes to the mortgage rate you’ll be offered. When the economy is strong, mortgage rates tend to rise, reflecting the potential for increased demand for borrowing and potentially higher costs for lenders providing loans to consumers. A recession is usually accompanied by lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a significant predictor of the rate you’ll be offered. The higher the score, the lower the rate you’ll likely obtain.
• The amount of your down payment plays into lender decisions. Making a larger down payment can result in a lower interest rate because borrowers who have more equity in their newly purchased property are perceived as a lower default risk by the lender.
• Your debt-to-income (DTI) ratio is also important. Lenders will look at your income in relation to your monthly debts. In general, mortgage lenders like to see a DTI ratio of no more than 36%.
How Interest Rates Affect Home Affordability
Interest rates are a big deal when you’re buying a home in today’s market. The median home value in Winston-Salem is $257,000, according to Zillow, so it’s not unusual for a buyer to borrow more than $200,000.
At a 6.50% interest rate, your monthly payment would be $1,264. But if the rate was 7.00%, your payment would jump to $1,330. Over the full 30-year term, the lower rate would save you almost $24,000 in interest. That’s money that could go toward a healthy emergency fund or a car payment. That’s why it’s so important to get the best mortgage rates you possibly can.
| 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 |
Winston Salem Mortgage Rate Trends
Historical U.S. Mortgage Rates
When you’re in the market for a home loan in Winston Salem, it helps to have perspective on historical mortgage rates. The line chart shows how much rates have fluctuated over the last 50 years. The table compares North Carolina’s average fixed rate to the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.)
| Year | North Carolina Rate | U.S. Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.87 | 7.03 |
| 2002 | 6.43 | 6.62 |
| 2003 | 5.72 | 5.83 |
| 2004 | 5.76 | 5.95 |
| 2005 | 5.93 | 6.00 |
| 2006 | 6.49 | 6.60 |
| 2007 | 6.32 | 6.44 |
| 2008 | 5.99 | 6.09 |
| 2009 | 4.96 | 5.06 |
| 2010 | 4.74 | 4.84 |
| 2011 | 4.49 | 4.66 |
| 2012 | 3.61 | 3.74 |
| 2013 | 3.80 | 3.92 |
| 2014 | 4.14 | 4.24 |
| 2015 | 3.90 | 3.91 |
| 2016 | 3.73 | 3.72 |
| 2017 | 4.02 | 4.03 |
| 2018 | 4.58 | 4.57 |
Should You Wait for Interest Rates to Drop?
If you’re looking to purchase your first home in Winston Salem, you might be wondering if you should hold off and wait for interest rates to dip. Predictions point to mortgage rates in North Carolina staying fairly steady in the near future. The average rate for a 30-year fixed mortgage is expected to end 2025 around 6.30%, and the outlook for 2026 doesn’t foresee much change.
For many aspiring homebuyers, waiting several years for a rate drop just isn’t in the cards. Instead, weigh your personal financial goals and readiness to purchase. Plus, remember that you can always consider a mortgage refinance down the line if rates do happen to fall.
Cost of Living in Winston Salem
Winston Salem is a place where your dollar stretches a little further. The average home value is $257,000 — well below the national average of $361,000. The overall cost of living in Winston Salem also contributes to how well you can fit mortgage payments into your budget. At 93.4, the city is more affordable than many other cities in the state, and below the national average.
Here’s how Winston Salem compares to other North Carolina cities on an index where 100 equals the average cost of living in the U.S.
| North Carolina City | Cost of Living |
|---|---|
| Asheville | 102.7 |
| Chapel Hill | 104.4 |
| Charlotte | 98.9 |
| Durham | 98.5 |
| Raleigh | 97.2 |
| Salisbury | 91.2 |
| Winston Salem | 93.4 |
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How to Get Your Best Possible Rate in Winston Salem
To secure the best mortgage rate in Winston Salem, focus on improving your credit score, which plays a vital role in the interest rate you’ll qualify for. Lowering your debt-to-income (DTI) ratio is also beneficial, along with increasing your down payment amount.
Additionally, consider going through the mortgage preapproval process, exploring different types of mortgages available to you, and comparing offers from multiple lenders to find the most favorable mortgage rates in Winston Salem.
Tools & Calculators
Using a mortgage payment calculator is a very helpful way to understand how different mortgage rates in Winston Salem can impact your monthly payments. These online tools consider several key factors, including the loan amount, interest rate, and the repayment term, to provide a clear picture of your financial obligation.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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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 Winston Salem
In Winston Salem, you’re spoiled for choice with many types of mortgage loans. The conventional route typically looks for a credit score of 620 or higher, with the average homebuyer boasting a 758 in 2024. Then there are government-backed loans, each with its own perks. Take the time to sift through these choices, and you’ll be in a good position to land on the one that best aligns with your financial situation and needs.
Fixed-Rate Mortgage
Fixed-rate mortgages are a great option if you want to enjoy the stability of the same interest rate over the life of your loan. Common terms for fixed-rate mortgages include 10, 15, 20, 30, and 40 years. For homebuyers in Winston Salem, a fixed-rate mortgage can offer peace of mind and consistent monthly payments, making it easier to plan your budget.
Adjustable-Rate Mortgage (ARM)
With a lower initial interest rate than fixed-rate mortgages, ARMs can be quite appealing in the short term. The downside, of course, is the potential for increased monthly payments down the line. An ARM can be a strategic choice for those planning to sell before the fixed period concludes. But in case your plans change, you should run the numbers on higher payments to make sure your budget can handle it.
FHA Loan
With the Federal Housing Administration (FHA) standing behind them, FHA loans are crafted to open the doors of homeownership to a broader spectrum of individuals. These loans often feature more flexible eligibility criteria, such as a 580 minimum credit score for a down payment as low as 3.5%. If your credit score is 500-579, you could still qualify with a down payment of 10%. If you’re a first-time homebuyer in Winston Salem, an FHA loan could be just the ticket.
VA Loan
VA loans are a fantastic option for those who have served in the military. They are available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most attractive features of VA loans is that they do not require a down payment. This is a great benefit for those who may have limited savings or who would prefer to use their money for other things. In Winston Salem, VA loans can offer competitive mortgage rates and flexible terms. This can help eligible borrowers to achieve their homeownership goals without the burden of a large initial down payment.
Jumbo Loans
In most areas, you’ll find that a conventional mortgage loan has a 2025 cap of $806,500 for a single-family home. If your needs exceed this limit, you’ll be looking at what’s known as a jumbo loan. These loans often come with higher interest rates and stricter qualification criteria than conventional loans. Exploring jumbo loan options could be the smart move if you’re eyeing a high-value property.
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Get Your Best Possible Rate in Winston Salem
To land the most favorable mortgage rates in Winston Salem, your credit score is key. Aiming for a lower interest rate? Focus on paying your bills on time and avoid opening up new lines of credit. Try to chip away at monthly debts to reduce your DTI ratio. Going through the mortgage preapproval process can help you set a budget, learn how much a lender thinks you can borrow, and help speed the home-buying process once you want to make an offer.
How to Evaluate Loan Offers in Winston Salem
A competitive mortgage rate can save you a bundle over the life of your loan. Even a seemingly small rate difference can add up to thousands in savings. When you’re comparing loan offers in Winston Salem, be sure to look at both the interest rate and fees. The APR (annual percentage rate), which includes fees, closing costs, and discount points, can give you a more complete picture of what each loan will cost.
If you’re worried about rates going up, you can lock in your rate for up to 90 days for a fee. This can give you peace of mind in a market where rates are fluctuating.
Winston Salem Mortgage Resources
North Carolina is brimming with resources and down payment assistance programs to lend a hand to homebuyers, especially those stepping into homeownership for the first time or with limited financial means. The North Carolina Housing Finance Agency (NCHFA) is a prime example, offering initiatives like the NC Home Advantage Mortgage, which can provide a 30-year fixed-rate mortgage with up to 3% down payment assistance.
Closing Costs in Winston Salem
In Winston Salem, you can anticipate closing costs to range between 2% and 5% of your loan value. Your exact costs will be influenced by your property’s value and location. You’ll likely encounter expenses like loan origination fees, appraisal fees, and title insurance. Explore your options and compare the closing costs from multiple lenders. Some may present lower closing costs or the possibility of folding them into your loan (in exchange for a higher interest rate).
The Takeaway
The mortgage market in Winston Salem offers a variety of options to suit different needs. By keeping yourself in the loop with the current mortgage rates in North Carolina and exploring the various assistance programs available, you can make decisions that are not only strategic but also align with your financial goals. Whether you’re a first-time homebuyer or a seasoned homeowner, investing time to research and compare loan offers can lead to significant savings. Consider the benefits of different mortgage types, such as fixed-rate and adjustable-rate mortgages, and make the most of local resources to achieve successful homeownership in Winston Salem.
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 ever be normal again?
The idea of “normal” mortgage rates has certainly shifted. We’ve seen mortgage rates soar to over 18.00% in the 1980s and drop to under 3.00% in 2021.Mortgage rates aren’t expected to dip to that level again in 2025 or 2026, so your best bet is to consider your own financial landscape and the current market when making decisions.
Is it a good time to buy a house in Winston Salem, North Carolina?
The decision to buy is influenced by multiple factors, including mortgage rates, housing inventory, and your financial readiness. Winston Salem’s cost of living is notably more affordable than in many other cities. And home prices aren’t expected to lose significant value. If time is right for you to enter the market, doing so in Winston Salem is a good decision.
How to secure a mortgage rate?
First things first, check your credit score — a higher score can help you snag a lower rate. Then, put down the largest down payment your budget can comfortably handle to reduce your interest rate. Shop around for lenders, and don’t be afraid to ask questions. Be sure to compare fixed-rate and adjustable-rate mortgages, and inquire about points and fees. Doing your homework and taking your time to select the right lender will go a long way to making sure you secure the best available mortgage rate for your situation.
How do mortgage interest rates work?
Mortgage interest rates are the cost of borrowing money to buy a home, expressed as a percentage of the loan amount. Interest rates can be fixed or variable. Fixed rates don’t change over the life of the loan, so you have predictable payments. Variable rates can change over time, and that means your monthly payment can change, too. Knowing how these rates work can help you get the best mortgage terms and manage the cost of homeownership more effectively.
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-Q225-091
More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process
