Current Mortgage Rates in Louisville, KY Today
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Compare mortgage rates in Louisville, KY.
Key Points
• Mortgage rates in Louisville, Kentucky are influenced by economic factors.
• Elevate your credit score and reduce your debt-to-income ratio for more favorable rates.
• Fixed-rate mortgages provide a sense of stability with a monthly payment amount that remains constant.
• Adjustable-rate mortgages (ARMs) have rates that may change over time.
• Government-backed loans can be a great option for those who qualify, offering lower down payments and more flexible credit score requirements.
Introduction to Louisville Mortgage Interest Rates
For first-time homebuyers in Louisville, Kentucky, understanding mortgage rates is very important for making sound financial choices. And even if you’ve bought a home before, it’s smart to brush up on the latest mortgage rates.
This guide explains how mortgage rates in Louisville are determined and provides valuable insights into the process of securing a loan. Give us a few minutes, and you’ll learn how to secure the lowest rate possible when purchasing a home, potentially saving you thousands of dollars over the life of the loan. The first step? Understand the macro trends driving mortgage interest rates in Louisville, a city of horse-racing, Bourbon culture, and more than 600,000 people.
Where Mortgage Rates Come From
The interest rate you’re offered for your home loan is influenced by a number of economic factors, including the bond market, which has lately been in a state of flux. The 10-year U.S. Treasury Note is the dominant benchmark for mortgage rates, and when the yield on this particular note increases, rates in Kentucky also tend to rise. The overall housing market, the state of the current economy and the rate of inflation are also factors in determining mortgage rates. Generally, a strong economy and a good job market can lead to higher rates for people looking to buy homes. Understanding these economic factors and industry trends can help you get the best deal on your mortgage.
Of course, your own personal financial metrics will also influence the rate you are offered. The higher the score, the lower the rate you’ll likely obtain. The amount of your down payment plays a role as well. Making a larger down payment can result in a lower interest rate, because borrowers with significant equity are perceived as a lower default risk. Finally, your debt-to-income (DTI) ratio, which measures your monthly debts against your income, is also important. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
How Interest Rates Affect Home Affordability
Mortgage rates play a significant role in determining home affordability for potential buyers, as well as for those considering a mortgage refinance. To illustrate, let’s say you take out a $400,000 loan. At a 6.50% interest rate, your monthly payment would be $2,528. But if the rate were to increase to 7.00%, your payment would go up to $2,661. That might not feel like such a big jump, but over the course of 30 years, that half a percentage point difference would cost you nearly $48,000 in interest. This is why it’s so important to get the best mortgage rates you can.
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Louisville Mortgage Rate Trends
Historical U.S. Mortgage Rates
Looking back can often shed light on the path ahead. After the Great Recession, mortgage rates have been on the rise, but they’re still a far cry from the towering peaks of the past. In Kentucky, rates tend to hover just around the national average, as shown in the chart at right. To get a sense of what a “high” or “low” rate might look, check out the graphic below, which shows a half-century of rates for a 30-year mortgage.
| Year | Kentucky Rate | U.S. Rate |
|---|---|---|
| 2000 | 8.29 | 8.14 |
| 2001 | 7.00 | 7.03 |
| 2002 | 6.49 | 6.62 |
| 2003 | 5.68 | 5.83 |
| 2004 | 5.71 | 5.95 |
| 2005 | 5.94 | 6.00 |
| 2006 | 6.62 | 6.60 |
| 2007 | 6.48 | 6.44 |
| 2008 | 6.12 | 6.09 |
| 2009 | 5.09 | 5.06 |
| 2010 | 4.84 | 4.84 |
| 2011 | 4.53 | 4.66 |
| 2012 | 3.67 | 3.74 |
| 2013 | 3.86 | 3.92 |
| 2014 | 4.18 | 4.24 |
| 2015 | 3.85 | 3.91 |
| 2016 | 3.77 | 3.72 |
| 2017 | 4.00 | 4.03 |
| 2018 | 4.65 | 4.57 |
Types of Mortgages Available in Louisville
In Louisville, you have many types of mortgage loans to choose from. Conventional mortgages typically require a credit score of 620 or higher. In 2024, the average homebuyer credit score was 758, according to Experian®. The types of loans below can have terms anywhere from 10 to 30 years or more, and the term you choose will affect your interest rate and payment amounts.
Those who are buying a first home may qualify for lower down payments. These are the most common types of mortgages available:
Fixed-Rate Mortgage
A fixed-rate mortgage is a home loan with the same interest rate and monthly payment over the entire term of the loan. This structure provides stability and predictability, making it easier for you to plan your budget. Fixed-rate mortgages are available in different terms, such as 10, 15, 20, 30, or 40 years.
Adjustable-Rate Mortgage (ARM)
ARMs kick off with a lower rate than fixed-rate loans, which is great if you’re eyeing a sale before the loan’s initial fixed-rate period wraps up. After that, rates rise or fall depending on the trends. For savvy homebuyers in Louisville, it’s all about weighing the potential for rate shifts against the ability to expand your monthly budget to fit a larger payment.
FHA Loan
With the Federal Housing Administration standing behind them, FHA loans often boast more forgiving eligibility criteria than conventional loans. Borrowers with FICO® credit scores of 580 or more may qualify for a down payment of 3.5% of the sales price or the appraised value, whichever is less. Those with a poor credit score range of 500 to 579 are required to put 10% down. FHA loans open doors to homeownership that might otherwise remain closed with conventional financing.
VA Loan
VA loans, backed by the U.S. Veterans Administration, are a great option for those who have served our country. They are available to eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the primary benefits of VA loans is that they do not require a down payment, making them an attractive option for those with limited savings. Additionally, VA loans often come with lower interest rates, and there is no private mortgage insurance (PMI) requirement. For homebuyers in Louisville, VA loans can be a valuable resource.
Jumbo Loans
Throughout Kentucky, the 2026 conventional mortgage loan limit for a single-family home is $832,750. Jumbo loans, for borrowers who need amounts that surpass this threshold, typically come with more stringent qualification requirements. These loans often necessitate higher credit scores and more substantial down payments. Yet they can be a viable avenue for those seeking to purchase more luxurious homes in Louisville. When contemplating a jumbo loan, it’s crucial to peruse the market for the most competitive mortgage rates in Louisville and to compare terms from various lenders to secure the most favorable deal.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
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Should You Wait for Interest Rates to Drop?
You might be wondering if you should wait for mortgage rates in Louisville to fall. According to Fannie Mae, the average mortgage rate is expected to be around 6.30% at the end of 2025. Whether it makes sense to wait for a drop that may not come depends on your personal situation. If your rental apartment lease is expiring, the timing might be right for a purchase, especially if your monthly costs wouldn’t change a great deal. If rates do drop down the line, you can always refinance your mortgage to take advantage of the lower rates.
Cost of Living in Louisville, Kentucky
Louisville’s cost of living stacks up nicely when compared to the cost of living in the U.S. as a whole. Housing costs, in particular, are relatively affordable, weighing in at about 80% of the national average. In this moderately competitive housing market, the median sale price of a house was $249,000 in early 2025, Redfin reports. Despite an upward trend in home prices over the past year, homeownership is within reach for many residents so long as homebuyers are smart about budgeting and getting the best possible mortgage interest rate.
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How to Get Your Best Possible Rate in Louisville
To land the most favorable mortgage rates in Louisville, you’ll want to focus on two key areas: your credit score and your DTI ratio. The higher your credit score and the lower your DTI, the better the rates you can expect from lenders. Additionally, a larger down payment, a history of steady income, and solid assets can all work in your favor. Going through the mortgage preapproval process can help you fine tune exactly what amount of money a lender will offer you and at what interest rate. And don’t forget to explore different mortgage options, such as ARMs and government-backed loans, which can offer lower mortgage rates in Kentucky.
Tools & Calculators
The three tools below will give you a clear picture of how much house you can afford and what the monthly loan payments might look like with various down payment amounts, interest rates, and loan terms. Use them to make more informed decisions about which loan is the best fit for your particular needs.
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.
How to Evaluate Loan Offers in Louisville
Given that a competitive mortgage rate is your golden ticket to long-term savings, you’ll want to compare interest rates and fees from various lenders before signing on for a mortgage. Don’t just examine a loan’s interest rate. Look at the annual percentage rate (APR) — it takes into account fees, closing costs, and mortgage points. Worried about interest rates shifting after you’ve made a bid on a home? Consider paying a fee to lock in your rate for up to 90 days. This move can ensure you rein in mortgage expenses in Louisville.
Louisville Mortgage Resources
Kentucky has down payment assistance programs and other tools designed to help you achieve your homebuying dreams, particularly if you’re a first-time buyer or have limited financial resources. The Kentucky Housing Corporation (KHC) offers initiatives such as the KHC Conventional Preferred Loan Program, which can get you a 30-year fixed-rate mortgage with just a 3% down payment. The KHC Regular Down Payment Assistance Program (DAP) is another option, providing up to $10,000 for down payment and closing costs, repayable over 10 years at 3.75% interest.
Closing Costs in Louisville
For those of you ready to make a home purchase in Louisville, you can anticipate closing costs that typically range from 2% to 5% of your loan amount. These costs can vary based on the property’s value and where it’s located. Common line items include loan origination fees, appraisal, and title insurance. It’s wise to include these in your financial planning when gearing up to buy a home.
The Takeaway
Louisville’s mortgage landscape is as varied as its neighborhoods. By keeping an eye on current mortgage rates in Louisville and tapping into assistance programs, if you qualify, you can make strategic decisions that align with your financial goals and achieve successful homeownership in Louisville. Whether you’re a first-time homebuyer or a seasoned homeowner, taking the time to research and compare different loan options can lead to significant savings and a smoother homebuying process.
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 drop in Louisville, Kentucky?
History shows that rates are a moving target, influenced by ever-changing economic factors. The forecast is that rates may drop in 2025 — but not very significantly. Here’s the thing: Your current financial situation, current housing expenses, and your long-term goals are important if you’re trying to decide if now is the time to buy. Factor those in and don’t focus solely on rates.
Will mortgage rates ever go back to “normal”?
What is “normal” for mortgage rates is different for each person, as some homebuyers may recall the double-digit rates of the 1980s, and others may only remember the dramatic dip in rates that happened around 2021. Rather than focus on what’s normal, keep your eye on economic factors, such as inflation, bond prices, and housing market conditions. This will help you make strategic decisions about when to lock in a favorable rate.
Will Louisville, Kentucky home prices ever drop?
Louisville, Kentucky’s home prices have been on a fairly steady uptick over the last decade. Although challenges in the larger U.S. economy could cool buyers’ interest this year, the thinking at the moment is that prices in Louisville will remain resilient — good news for sellers, but maybe not such great news for buyers.
Wondering if it’s the right time to buy a house in Louisville, Kentucky?
Despite an increase in home prices over the last year, Louisville, Kentucky is still a budget-friendly place to purchase a home. The Kentucky Housing Corporation (KHC) has loan and down payment programs tailored to first-time buyers and those with limited incomes, which may also help make this a welcoming community.
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.
SoFi Mortgages
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.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q225-083
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
Apply online or call us for a complimentary mortgage consultation.
Current Mortgage Rates in Evansville, IN Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage rates in Evansville, CA.
Key Points
• Check your credit score before you start looking at mortgage rates.
• Boost your down payment to secure a lower mortgage rate.
• Compare fixed-rate and adjustable-rate mortgages.
• Factor in additional costs like points and closing fees.
• Negotiate with lenders for better terms.
• Research local and federal assistance programs for first-time homebuyers.
Introduction to Evansville Mortgage Interest Rates
For those looking to purchase a home in Evansville, Indiana, understanding home loan interest rates is crucial. This guide will walk you through the process of how mortgage rates in Evansville are determined and how you can secure the best rate for your situation. We’ll discuss the various economic indicators that can influence rates, as well as the financial factors that lenders consider when determining the interest rate they offer you. Armed with this information, you’ll be better prepared to make smart decisions when buying a home.
Where Mortgage Rates Come From
Mortgage rates are not arbitrary numbers, although it can sometimes feel that way — particularly if you are buying your first home and have never been through the mortgage process. The primary factor influencing the rate you can obtain is the bond market, particularly the price of the 10-year U.S. Treasury Note. The overall performance of the housing market also has an impact, as do inflation and unemployment rates. Keeping an eye on both the macroeconomic factors (bonds) and the microeconomic ones (your credit score, debt-to-income ratio, and more) can guide your financial decision-making process during a home purchase or mortgage refinance.
More home loan resources.
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First-Time Homebuyer Guide
-
First-Time Homebuyer Programs and Loans
-
Mortgage Preapproval Process
Apply online or call us for a complimentary mortgage consultation.
Current Mortgage Rates in Kansas City, MO Today
Apply online or call for a complimentary mortgage consultation.
Compare mortgage rates in Kansas City.
Key Points
• The mortgage rates you’re offered are influenced by a mix of economic conditions and your financial status.
• Fixed-rate mortgages provide the stability of consistent payments, while the size of payments on ARMs can fluctuate.
• FHA and VA loans offer lower down payment options than many conventional loans.
• Working to strengthen your credit and lower your DTI ratio may lead to better rates.
• Mortgage calculators make it easier to estimate monthly payments and total costs on different loan offers.
Introduction to Kansas City Mortgage Interest Rates
Whether you’re in the market for a new home in Missouri or are specifically looking in Kansas City, understanding how mortgage rates work is crucial. This guide will walk you through the ins and outs of mortgage rates, how they’re determined, and what you can do to get the best rate possible. We’ll cover the major economic factors that affect mortgage rates on a national level, as well as the personal financial factors that can affect the mortgage rates you’re offered. Armed with this knowledge, you’ll be better equipped to make informed decisions at every stage of the home-buying process, from the first open house to closing on your new home.
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
There are many factors that contribute to the mortgage rates you’re offered when you’re looking for a home. Some are macroeconomic and outside your control, while others relate directly to your financial behavior and situation. In both cases, understanding what goes into your mortgage rate can help you plan how to put yourself in the best position to get a good rate.
Economic Factors Influencing Mortgage Rates
• The bond market has historically provided a strong signal for where mortgage rates are heading. Particularly when the 10-year U.S. Treasury Note goes up, mortgage interest is also likely to rise.
• The strength of the housing market is also key. When there are more houses on the market than buyers who want them, rates may drop as lenders try to encourage customers to buy.
• Inflation and unemployment are factors in determining mortgage rates, too. When the economy is healthy, mortgage rates typically go up, since there’s potential for higher borrowing demand and greater expense for mortgage lenders. Recession, on the other hand, usually brings lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a major factor in the mortgage rate you’ll be offered. The higher your score is, the lower the interest rate you’ll probably get.
• The amount of your down payment is significant as well. You’re likely to get a lower interest rate when you make a larger down payment because homebuyers with more equity in their home are assumed to be less prone to default on their loan.
• Your debt-to-income (DTI) ratio is also critical since most lenders will want to consider your income in relation to your monthly debts. Usually, they prefer to see a DTI ratio of no more than 36%, though that’s not always the maximum they’ll accept.
More home loan resources.
-
First-Time Homebuyer Guide
-
First-Time Homebuyer Programs and Loans
-
Mortgage Preapproval Process
Apply online or call us for a complimentary mortgage consultation.
Current Mortgage Rates in Rochester, NY Today
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 $832,750 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.
SoFi Mortgages
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.
Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.
HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.
SoFi Bank, N.A. (NMLS #696891) does not perform any activity that is or could be construed as unlicensed real estate activity, and SoFi is not licensed as a real estate broker. Agents of SoFi are not authorized to perform real estate activity.
If your property is currently listed with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®.
Reward is valid for 18 months from date of enrollment. After 18 months, you must re-enroll to be eligible for a reward.
SoFi loans subject to credit approval. Offer subject to change or cancellation without notice.
The trademarks, logos and names of other companies, products and services are the property of their respective owners.
SOHL-Q225-076
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
Apply online or call us for a complimentary mortgage consultation.
Plus up CMA Fest 2025 with SoFi Plus
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The music was legendary.
So were the perks.
We put our boots up at
the SoFi Plus Lounge.
We took over the Nashville Riverfront Station to give SoFi Plus members a place to cool off with AC, enjoy complimentary drinks (the SoFi Plus Punch was a real hit), and pick up customized swag. Learning the two-step made our shindig even better.
SoFi cardholders scored
25% cash back rewards.1
Members who used their SoFi debit or credit card earned 25% cash back rewards on eligible food, drinks, and merch at the festival. We rewarded members for having a great time and they can stash those points to use for CMA Fest 2026.
SoFi members were surprised with a
private Kelsea Ballerini concert.
A handful of lucky SoFi members sat front row for an exclusive Kelsea Ballerini acoustic performance and a conversation about finance with SoFi CMO Lauren Stafford Webb. Members got to chat with Kelsea, take pics with her, and took home signed vinyls for their collections.
Get ready for CMA Fest 2026—
and so much more with SoFi Plus Experiences.
SoFi Plus members will get exclusive access to CMA Fest 2026 passes. Sound right up your alley? SoFi Plus members get exclusive access to premium live music, sports, and other live events.2 Plus up your entertainment like never before.
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