Compare mortgage rates in Memphis.

Introduction to Mortgage Interest Rates

Where Mortgage Rates Come From

The mortgage interest rates lenders offer can vary a lot from place to place and even from person to person. The economy has a major influence on rates, which are affected by the bond market, especially the rate of the 10-year U.S. Treasury Note. When interest rates on the note go up, home loan rates usually rise as well.

Mortgage rates are also personalized for individual borrowers, based on their finances and credit history. The rates lenders offer you are influenced especially by your credit score. The higher your score, the lower the rate you’re likely to get. Making a larger down payment may decrease your rate since lenders often assume that a homebuyer who has more equity in their home will be less likely to default on their mortgage.

Finally, your debt-to-income (DTI) ratio is considered when a lender is determining your interest rate. Mortgage lenders typically 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.

How Interest Rates Affect Home Affordability

The mortgage rate you get has a significant impact on how affordable homes are. To illustrate, a $400,000 loan obtained at a 6.50% interest rate results in a monthly payment of $2,528. However, at the rate of 7.00%, the payment increases to $2,661.

Let’s look at the long-term impact, too. Over the life of the loan, a borrower with the lower interest rate saves nearly $48,000 in interest payments.

As this example suggests, it’s well worth making the effort to do what you can to get a lower rate, including exploring multiple lender options and comparing offers.

Memphis Mortgage Rate Trends

Understanding the history of mortgage rates can give you perspective and help you anticipate where they might be headed. While mortgage rates have gone up since the lows they experienced during the Covid-19 pandemic, they’re still relatively low compared to historical norms.

Should You Wait for Interest Rates to Drop?

If you’re looking to buy a home in Memphis, you might be wondering if it makes sense to wait for interest rates to go down. While it’s always a good idea to keep an eye on the market, current predictions suggest that mortgage rates in Tennessee are likely to stay fairly stable in the near future. According to Fannie Mae estimates, the average mortgage rate will probably be around 6.30% by the end of 2025.

If rates do decrease after you buy your house, you can always opt for a mortgage refinance down the road.

How Costs Stack Up in Memphis

The cost of living in your city can be a significant factor as you plan your finances, since it has an impact both on home prices and how easily you’ll be able to budget for your monthly mortgage payments.

Here’s how Memphis compares to other towns in Tennessee on an index where 100 equals the average cost of living in the U.S.

Recommended: The Best Affordable Places in the U.S.

How to Get Your Best Possible Rate in Memphis

To help you get your optimal mortgage rates in Memphis, think about making the following smart moves.

•   Evaluate your credit score. If it’s too low to qualify for the rates you want, plan out how to work on building a stronger credit history.

•   Lower your debt-to-income (DTI) ratio. Focus on paying down your debts.

•   Raise the amount of your down payment. Savings and gifts from friends and family can both be used to up the amount.

•   Compare rates from different lenders. Shopping around can help you find the best rate, since lenders have varying qualifications.

•   Consider going through the mortgage preapproval process. This will give you a better sense of what you can afford.

Tools & Calculators

When you’re looking for a home, it’s a good idea to use a mortgage payment calculator. It can give you a realistic sense of what your monthly payments might look like, and it can also calculate the total amount of interest you’ll end up paying during the life of the loan. These tools take into account a number of important variables, such as the loan amount you’re seeking, the interest rate you’re being offered, and the loan term you select. By plugging in different numbers, you’ll get a clear picture of the financial commitments required by different loans.

Here are three calculators that we like.

Types of Mortgages Available in Memphis

In Memphis, you can find many types of mortgage loans, and one is sure to fit your unique financial profile and needs. Conventional mortgages are within reach if you have a credit score of 620 or higher, but for those who don’t meet that criterion, there are other options. Federal Housing Administration (FHA) loans and Veterans Affairs (VA) loans are also available, offering more flexible terms and often lower down payment requirements.

How to Evaluate Loan Offers in Memphis

Let’s talk about the nitty-gritty of comparing and choosing among mortgage rates.

A competitive rate is your ticket to long-term savings. As we’ve seen, even a half a percentage point can add up to substantial cash in your pocket over the life of the loan. Here are some pointers about making your decision.

•   Be sure to compare rates and fees from multiple lenders.

•   Look at each loan’s annual percentage rate (APR), which takes into account fees, closing costs, and mortgage points.

•   If you’re concerned about rates going up, many lenders will let you pay a fee to lock in your rate for up to 90 days.

Recommended: Average Monthly Expenses for One Person

Memphis Mortgage Resources

Tennessee, the Volunteer State, is a goldmine of resources and programs to aid would-be homeowners, particularly first-time homebuyers and those with limited financial means.

The Tennessee Housing Development Agency (THDA) helms the Great Choice Home Loan Program, which offers 30-year fixed-rate loans and options for down payment assistance. The program works in conjunction with conventional loans and many government-backed loans. And you can qualify as a first-time homebuyer or as a repeat buyer.

Memphis’s Office of Down Payment Assistance (DPA) also offers a variety of down payment assistance programs.

Closing Costs in Memphis

If you’re buying a home in Memphis, you can expect to pay between 2% and 5% of your loan amount in closing costs. (The exact amount of these costs can vary based on the home’s value and location.) The average cost of a house in Memphis is about $146,000, so closing costs would probably run between around $2,920 and $7,300.

Closing costs typically include things like loan origination fees, appraisal fees, and title insurance. To help reduce these costs, it’s important to shop around and compare different lenders. By understanding and negotiating these costs, you can potentially make your home-buying process more affordable.

The Takeaway

The mortgage market in Memphis is rich with possibilities, offering something for everyone. By keeping your finger on the pulse of current mortgage rates and exploring various assistance programs, you can make informed decisions that will set you on the path to successful homeownership. Whether you’re a first-time buyer or a seasoned homeowner, the key to a successful purchase is understanding the market and your options.

View your rate

FAQ

Compare mortgage rates in Charleston.

Introduction to Mortgage Interest Rates

If you’re looking to buy a home in Charleston, South Carolina, it’s important to understand interest rates. This guide explains in detail how mortgage rates in Charleston are determined, and offers advice on how to secure the best possible rate for your specific situation. We’ll explore the various factors that can influence mortgage rates, such as credit score and down payment amount, and we’ll provide practical tips to help you optimize your financial profile for lenders.

Where Mortgage Rates Come From

The mortgage interest rates lenders offer vary from place to place and even person to person. The economy is a factor, and rates are significantly affected by the bond market; the primary benchmark for lenders is the 10-year U.S. Treasury Note. When interest rates on the note rise, home loan rates typically go up as well. The housing market also plays a role. A strong housing market, combined with increasing inflation, can cause mortgage rates to rise.

Mortgage rates are also customized for individual borrowers and their finances. The rate you’re offered is influenced by your credit score, in particular. The higher your score is, the lower the rate you’ll probably get. Making a larger down payment may decrease your interest rate, since lenders often think that a borrower who has more equity in their home will be less likely to default on their mortgage.

Your debt-to-income (DTI) ratio is important in determining your interest rate as well. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that’s not necessarily the maximum.

See how your debts may affect your mortgage.

Use SoFi’s debt-to-income calculator to determine your personal DTI number.

How Interest Rates Affect Home Affordability

Let’s look more closely at exactly how much different mortgage rates can influence what you can afford.

Say you take out a $300,000 loan. At 6.50%, your monthly payment would be around $1,896. But if the rate is just half a percentage point higher, at 7.00%, that monthly bill jumps up to $1,996.

How that adds up is even more striking: Over the span of 30 years, that 0.50% difference in interest rates translates to nearly $36,000. That’s a meaningful chunk of change.

The term of your loan also has an impact on what you’ll pay. A shorter term may mean higher monthly payments, but it also saves you money in interest over the duration 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.

Charleston Mortgage Rate Trends

Looking at historical mortgage rates in Charleston can give you a sense of what to expect from lenders. Although rates have increased in recent years, they’re significantly lower than the historical high. In October 1981, for example, weekly rates peaked at a stunning 18.63%. Fortunately, current rates are just a third of that.

Should You Wait for Interest Rates to Drop?

If you’re looking to buy a home in Charleston, you may well be wondering if you should wait for interest rates to fall.

However, predictions from leading financial institutions suggest that mortgage rates will likely remain stable in the near future. Fannie Mae projects that average rates at the end of 2025 will be about 6.30%, and 2026 will likely end at around 6.20%.

It’s also worth noting that if rates drop after you’ve already bought your home, you can consider a mortgage refinance to take advantage of the lower interest opportunities.

See How Charleston’s Costs Stack Up

The cost of living in Charleston is very close to the national average, though some other cities in the state have slightly lower costs. Your town’s cost of living can be important as you plan your budget, since it has an impact on home prices as well as on how easy it is to fit mortgage payments into your monthly bills.

Here’s how Charleston compares to other South Carolina cities on an index where 100 equals the average cost of living in the U.S.

Recommended: The Best Affordable Places in the U.S.

How to Get Your Best Possible Rate in Charleston, South Carolina

To help you get the best mortgage rates in Charleston that you can, consider taking these steps.

•   Review your credit score. If it’s not as high as you’d like, make a plan to work on building a stronger credit history.

•   Lower your debt-to-income (DTI) ratio. Paying down as much debt as you can will help.

•   Increase your down payment. Savings and gifts from friends and family can be used to up the amount.

•   Compare rates from multiple lenders. Different lenders may offer you different rates and terms, so shopping around can be worthwhile.

•   Consider going through the mortgage preapproval process. This will give you a better sense of what you can afford.

Tools & Calculators

If you’re thinking about purchasing a property in Charleston, a mortgage payment calculator can be your best friend. By simply entering your loan amount, anticipated interest rate, and loan term, you can instantly see your estimated monthly payment and the total interest that would be paid over the loan’s life. Armed with this information, you’re far better equipped to make informed decisions about your budget and the loan options that will best suit your needs.

Here are three calculators that can help.

Types of Mortgages Available in Charleston

In Charleston, you have a variety of mortgage options to consider. Conventional mortgages are the most common and typically require a credit score of 620 or higher. The median score for a Charleston resident is 643, which may make this a good type of mortgage loan for many homebuyers.

How to Evaluate Loan Offers in Charleston

A competitive mortgage rate is key to your financial well-being over the life of your loan. As we’ve seen, even a fraction of a percentage point can add up to significant savings.

As you evaluate your home loan options, comparing interest rates and fees from different lenders is a smart move. Look closely at the annual percentage rate (APR), which includes fees, closing costs, and mortgage points. Once you’ve found an offer that works for you, consider locking in your rate for up to 90 days, especially if you’re concerned about rates increasing.

Recommended: Average Monthly Expenses for One Person

Charleston Mortgage Resources

South Carolina is rich with resources like down payment assistance programs, designed to assist homebuyers stepping into the market for the first time and those with financial constraints. (And bear in mind that you may still qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years.)

The SC Housing Homebuyer Program is one such resource, offering highly competitive 30-year, fixed-rate mortgages of many types, complemented by the options for a forgivable second loan to ease the burden of down payments and closing costs. The Palmetto Home Advantage program extends similar support, with the added benefit of no first-time buyer restrictions.

Closing Costs in Charleston

For those of you ready to make your home in Charleston, expect closing costs to hover between 2% and 5% of your total loan value. The average cost of a house there is about $573,000, so closing costs would run between around $11,460 and $28,650.

What these costs cover can vary, but typically they’ll include things like loan origination fees, property appraisal fees, and title insurance coverage. Remember, it’s your right to scrutinize these costs and haggle with lenders to secure the best deal.

The Takeaway

The mortgage market in Charleston, South Carolina features many options for you to explore. By keeping an eye on the latest mortgage rates and taking the time to investigate the various assistance programs available, you can make strategic decisions. Savvy choices will not only help you to meet your financial goals but will also set you on the path to successful and sustainable homeownership in Charleston.

View your rate

FAQ

Will mortgage rates drop in Charleston, South Carolina?

Mortgage rates in Charleston, South Carolina, are influenced by a variety of factors, including changes in the broader economy and the bond market. As a result, it can be challenging to predict the exact direction of mortgage rates. However, by keeping an eye on key economic indicators and staying in touch with local lenders, you can gain a better understanding of potential rate movements. Your personal financial situation also plays into the rates you’re likely to be offered, so if you’re in the market for a new home, it’s a good idea to work on strengthening your credit score, paying down debt, and saving for a down payment so that you’ll be well-positioned when you are ready to buy.

Will mortgage rates ever go back to normal?

While we may not see the record lows we experienced during the Covid-19 pandemic for some time, mortgage rats are now at historically moderate levels. Recent predictions from Fannie Mae suggest that the prevailing rate at the end of 2025 will likely be 6.30%, and 2026 will end with a rate of 6.20%.

How do you lock in a mortgage rate?

After you’ve found 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. A rate lock guarantees that your offered rate will not change for a specified period, typically 30 to 60 days. Keep in mind that there may be a small fee required.

How do mortgage interest rates work?

Mortgage interest rates are the fees you pay to borrow money for a home purchase They’re usually expressed as a percentage of the loan amount. These rates can be fixed or adjustable. Fixed-rate mortgages retain the same interest rate for the entire loan term, which can protect you from rising rates and provide predictable monthly payments. Adjustable-rate mortgages (ARMs) have rates that can change after an initial period. They often come with lower initial rates, but then they adjust at regular intervals, meaning that your monthly payments may be less predictable.

Compare mortgage rates in Austin.

Introduction to Austin Mortgage Interest Rates

Where Mortgage Rates Come From

Mortgage rates are influenced by a number of economic factors, and as these numbers shift and change, rates change as well. The bond market, particularly the 10-year U.S. Treasury Note, is a leading indicator of where mortgage rates are headed. When the T note goes up, mortgage rates generally do the same. The housing market and the level of inflation also influence mortgage rates in Texas. Inflation decreases the value of the dollar and its future purchasing power. With lenders receiving less money in the future, they will charge more for their loans.

But while these large economic trends point rates in a general direction, lenders will set your specific rate based on your credit score, debt-to-income (DTI) ratio, and down payment amount. A score of 620 or better will likely be needed for a conventional loan; some government-backed loans allow lower credit scores for qualifying buyers. By staying informed and understanding these moving parts, you’re better equipped to snag a good rate in Austin.

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 it to spend time understanding mortgage rates and searching for a good one, because over the term of your home loan, the dollars add up. It’s not unusual for buyers in Austin to need a loan of around $400,000. The chart below shows how different interest rates and loan terms affect the amount of the monthly payment and the total interest paid over the life of a $400,000 loan. As you can see, a change of one percentage point, from 7.00% to 6.00% could save a homeowner almost $100,000.

Austin, Texas Mortgage Rate Trends

Historical U.S. Mortgage Rates

Having some sense of the history of mortgage rates can help provide perspective during your home loan search. Though rates have seen an uptick in recent years after bottoming out in 2021, they’re still a far cry from the peaks of the early 1980s. Average rates in Texas, as the chart shows, have often landed below the U.S. average, which may be of some comfort to homebuyers in Austin.

Types of Mortgages Available in Austin, Texas

The type of mortgage you choose will also influence the rate you get, and in Austin, you have many types of mortgage loans to consider. By thoroughly exploring them, you can find the best financing solution for your needs and financial situation. Here are the most common types.

Recommended: The Best Affordable Places in the U.S.

Should You Wait for Interest Rates to Drop?

If you’re looking to buy a home in Austin, you might be wondering if you should hold off on your purchase in hopes of lower interest rates. The answer? If you wait, you might have to wait quite a while. In early 2025, projections from Fannie Mae indicated that rates might hover around 6.30% by the year’s close. And looking ahead to 2026, to the extent anything is visible in such an unsettled financial market, rates are predicted to hold fairly steady.

While a rate drop could mean big savings, remember that you can always refinance down the line. Ask yourself if waiting would have hardships of its own. Look at your current housing costs versus the costs of a mortgage on a home in your price range. And if you are renting, think about the fact that if you buy, you start building equity.

The Cost of Living in Austin

Get Your Best Possible Rate in Austin

To secure the best mortgage rate available to you in Austin, focus on strengthening your credit score as much as possible. Check your credit report and request corrections on any inaccuracies. Pay your bills on time. And look to reduce your overall debts for a better DTI ratio. Examine your budget to see how large a down payment you can afford. And consider going through the mortgage preapproval process with a lender to help you set a budget and make a more competitive offer.

Recommended: Average Monthly Expenses for One Person

Helpful Tools & Calculators

Using a mortgage payment calculator is a great first step to gain a better understanding of the potential impact of different mortgage rates when purchasing property in Austin. In fact, there are calculators for each step of the purchase process.

How to Evaluate Loan Offers in Austin

Securing a competitive mortgage rate means getting competing offers from different lenders and then evaluating them side by side. As you consider loan offers in Austin, be sure to look not just at interest rates but at the annual percentage rate (APR) on each loan. This number factors in fees, closing costs, and discount points. Worried about rates going up? Once you’ve found your winning combination of loan, lender, rate, and fees, consider paying your preferred lender to lock in your rate for up to 90 days, giving you peace of mind while you finalize your home search.

Austin Mortgage Resources

Down payment assistance programs and other government-sponsored programs can help get those with limited resources into a home in Austin. This is especially true if you are buying your first home. (You could qualify as a first-time homebuyer if you haven’t owned a primary residence in the last three years.) The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home and My Choice Texas Home programs, which provide 30-year, low-interest mortgages and up to 5% in down payment assistance. By tapping into resources like these, homebuyers could significantly reduce the financial burden of purchasing a home in Austin.

Closing Costs in Austin

For those ready to make their home purchase in Austin, closing costs are typically around 2% to 5% of the total loan value. These costs aren’t set in stone and can vary based on a number of factors, such as the property’s value and where it’s located within the city. Make sure you budget for this cost properly when you’re considering your home budget in Austin.

The Takeaway

Austin is a great place to buy a home, and the city offers a wide variety of mortgage options for both first-time buyers and repeat purchasers. By staying on top of current mortgage rates in Austin and researching any available assistance programs, you can make the best possible decisions when it comes to your financial future.

View your rate

FAQ

Will mortgage rates ever go back to normal?

Mortgage rates have varied widely over time, so what is “normal” to one cohort of homebuyers may be abnormal to another. While rates have increased in recent years, they are still well below peaks seen in previous decades. So waiting for “normal” to return may be less helpful than examining whether you can afford to purchase a home and asking yourself whether this is the right time to do so based not only on cost but also on your personal situation — for example, whether you are relocating, expecting your first child, or nearing the end of your lease.

Will Austin, Texas home prices ever go down?

The residential real estate market in Austin has already started to decline after highs fueled by a tech boom and population influx in recent years. The median home sale price has declined, although it still tops $500,000.

How to secure a mortgage rate

To secure a favorable mortgage rate in Austin, Texas, you’ll want to ask your lender for a rate lock agreement. You’ll typically pay a fee, and the lender will lock in the rate for up to 90 days.

How do mortgage interest rates function?

Mortgage interest is the fee you pay to borrow money to buy a home. It’s calculated as a percentage of the total loan amount. Mortgage rates can be fixed or variable. Fixed rates stay the same for the entire loan term, which makes your monthly payment consistent. Variable rates can change over time, based on the market rates. The interest rate you get is influenced by your credit score and the size of your down payment, among other factors.