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Comments Off on Is This the Summer for a Road Trip?
If you’re still working out your summer vacation plans — and like many of us, watching your costs — it could be a good year for a road trip.
Gas prices are lower than they’ve been in years heading into summer. They’re averaging about 40 cents a gallon cheaper than this time last year and are forecast to stay low for the season.
Hotel prices are also on the decline, and averaged 2.4% less in April than a year earlier, according to the latest Consumer Price Index. That may not sound like much, but given the trajectory of inflation generally, it’s actually pretty good news for travelers, according to the U.S. Travel Association.
In fact, the open road seems to be calling more Americans as economic uncertainty makes them more careful about their travel spending, according to a survey by Deloitte.
Between late March and early April, the percentage of travelers planning a road trip rose from 64% to 71% while the share who were planning to fly went down. At the same time, travelers’ budgets for summer trips fell 7.8% to $4,606, on average.
Experiences like travel “remain non-negotiable, even if it means trading restaurants, shopping, and second trips for one meaningful getaway,” analysts at KPMG, the big consulting firm, wrote in a recent report on consumer spending. “We’re seeing a more selective and cost-conscious summer travel season.”
If you do plan to fly, there’s some good news there too. Fewer flyers means lower prices. Airfares are about 8% less expensive than a year ago and the cheapest they’ve been since 2022, according to the CPI.
So what? A road trip is one way to make affordable travel plans without a lot of lead time. But even if you have your heart set on a wheels-up destination, you may be able to find some good deals this year. Here are a few travel tips to help you keep your costs down no matter where you’re going:
• Consider traveling in June or September to avoid peak rates.
• Set a daily spending limit for food, activities and any extras.
1Terms, and conditions apply: This SoFi member benefit is provided by Expedia, not by SoFi or its affiliates. SoFi may be compensated by the benefit provider. Offers are subject to change and may have restrictions, please review the benefit provider’s terms: Travel Services Terms & Conditions.
When you use your SoFi Credit Card to make a purchase on the SoFi Travel Portal, you will earn a number of rewards points equal to 3% of the total amount you spend on the SoFi Travel Portal. Members can save up to 10% or more on eligible bookings.
Eligibility:
You must be a SoFi registered user.
You must agree to SoFi’s privacy consent agreement.
You must book the travel on SoFi’s Travel Portal reached directly through a link on the SoFi website or mobile application. Travel booked directly on Expedia’s website or app, or any other site operated or powered by Expedia is not eligible.
You must pay using your SoFi Credit Card.
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• A good credit score, low debt, and a large down payment can all boost your chances of landing a more attractive interest rate.
• A good credit score, low debt, and a large down payment can all boost your chances of landing a more attractive interest rate.
• Investigate first-time homebuyer programs for financial aid and lower down payment options.
• Mortgage rates are influenced by economic factors like the bond market, inflation, and the housing market.
• Use online mortgage calculators to compare monthly payments and total interest paid for different loan offers.
Introduction to Mortgage Rates
Mortgage rates in Hampton, Virginia, are a key consideration for anyone buying a home in this area. This guide is designed to help you understand how mortgage rates are determined and how you can secure the best rate in Hampton. We’ll cover the economic and personal factors that influence the mortgage rates you’re likely to be offered and provide you with tips on how to get the best deal on your mortgage. The more you know about mortgage rates, the better equipped you will be to make a smart decision.
Where Mortgage Rates Come From
The mortgage interest rates lenders offer you depends on multiple factors. The bond market has a major influence on rates, especially the 10-year U.S. Treasury Note. When interest rates on the note go up, home loan rates usually rise as well. Inflation and the housing market can also play a role.
Mortgage rates are also personalized for individual borrowers, taking into account 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 also decrease your rate since lenders assume that a homebuyer who has more equity in their home will be less likely to default.
Finally, lenders consider your debt-to-income (DTI) ratio when determining your interest rate. They like to see a DTI ratio of 36% or less, ideally.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
How Interest Rates Affect Home Affordability
Mortgage rates in Hampton, Virginia, can have a big impact on the affordability of a home.
Let’s break it down. A $400,000 loan at a 6.50% interest rate would have a monthly payment of $2,528. But if the interest rate is half a percentage point higher, at 7.00%, the monthly payment would increase to $2,661.
Over 30 years, a homeowner with the lower rate would save almost $48,000 in interest.
The moral is that it’s worthwhile to compare offers from multiple lenders, negotiate, and do your best to improve your financial standing. Because getting a better rate can have a big impact on your monthly budget and long-term financial health.
If you want to get the best mortgage rate in Hampton, some historical perspective on rates can be helpful. For example, it’s true that average mortgage rates rose from their all-time low in 2021. But they’re still nowhere near the highs they hit in earlier decades.
The 50-year interest rate graph below illustrates the fluctuating nature of mortgage rates. You’ll see that recent rates remain well below historical highs.
For a local look, the chart below the graph compares Virginia’s average yearly interest rate to the national average. (The Federal Housing Finance Agency stopped compiling this data after 2018.) Note that Virginia’s rates are typically quite close to national rates.
Year
Virginia Rate
U.S. Rate
2000
8.03
8.14
2001
7.02
7.03
2002
6.54
6.62
2003
5.82
5.83
2004
5.70
5.95
2005
5.93
6.00
2006
6.54
6.60
2007
6.41
6.44
2008
6.02
6.09
2009
4.97
5.06
2010
4.71
4.84
2011
4.52
4.66
2012
3.67
3.74
2013
3.86
3.92
2014
4.16
4.24
2015
3.96
3.91
2016
3.77
3.72
2017
4.10
4.03
2018
4.59
4.57
Source: Federal House Finance Agency
Should You Wait for Interest Rates to Take a Dip?
If you’re looking to buy a home in Hampton, there’s a good chance you’re wondering whether you should put your plans on hold to see if interest rates are going to drop. While it’s always smart to keep an eye on the market, current predictions anticipate that mortgage rates are likely to remain relatively stable in the near future. According to Fannie Mae estimates, the average mortgage rate will probably land around 6.30% by the end of 2025, and 6.20% at the close of 2026.
Remember, if rates drop after you’ve bought your home, you can always opt for a mortgage refinance down the road.
How Costs Stack Up in Hampton
The cost of living in your city can be a major factor as you plan your finances, since it has an impact both on home prices and on how easy (or not) it will be for you to budget for your monthly mortgage payments.
Here’s how Hampton compares to other towns in Virginia on an index where 100 equals the average cost of living in the U.S.
To secure the best mortgage rate in Hampton, Virginia, it pays to play the long game. Think about making the following smart moves, even if you’re at the very beginning of your home-buying journey.
• Strength your credit score by making your payments on time and paying down your credit card balances.
• Lower your debt-to-income (DTI) ratio by chipping away at your debts, starting with the highest interest rate.
• Make a larger down payment if you can, using savings and gifts from friends and family.
• Compare rates from multiple lenders to find the best rate and fees, since they vary quite a bit by lender.
• Consider going through the mortgage preapproval process. This can give you a clearer sense of what will be affordable.
Tools & Calculators
When it comes to making the right choices for your home purchase in Hampton, Virginia, online calculators are your friend. A mortgage calculator, for instance, can help you see the big picture by estimating your monthly payments and total costs given different interest rates and loan terms. Comparing offers from different lenders is a smart move, and online tools make it easy to make the most cost-effective choice.
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 Hampton
In Hampton, Virginia, you’ve got many types of mortgage loans to choose from, each tailored to different financial scenarios.
Conventional mortgages are a solid choice if your credit score is 620 or higher. These loans typically have competitive rates and offer a variety of terms and down payment options. But don’t worry if a conventional loan doesn’t seem right for you: There are other possibilities, like FHA and VA loans, which have lower down payment requirements and more forgiving credit requirements.
Fixed-Rate Mortgages
A fixed-rate mortgage provides you with the security of knowing your interest rate will remain the same for the entire loan term. That means your monthly payments will be predictable, which helps you budget more effectively. There are a variety of loan terms, though you’ll probably see 15- and 30-year options most often. While a 30-year term often translates to lower monthly payments, it’s essential to consider the cumulative interest cost over time. If you can afford the payments on a 15-year fixed-rate loan, you’ll pay much less interest over the life of the loan.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) generally start off with a lower rate than fixed-rate loans. After an introductory period of several years, the rate adjusts regularly in accordance with the market. If your initial period is seven years, say, and you know you’ll have to relocate and sell your house in five, getting an ARM can be a smart strategic decision. But if your plans change, make sure you’re well-versed in the cap and adjustment frequency of your loan so that you won’t be completely taken by surprise by fluctuating mortgage payments.
FHA Loans
Backed by the Federal Housing Administration, FHA loans can open the door to homeownership for many people by offering more relaxed eligibility criteria than conventional loans. Typically, a credit score of 580 and a minimum down payment of 3.5% are required, and these loans are very popular with first-time homebuyers. These loans do come with a mortgage insurance premium: 1.75% of the loan amount upfront and then between 0.15% and 0.75% every month.
VA Loans
VA loans are available to those who have served our country. Borrowers who are eligible include active-duty military members, veterans, reservists, National Guard members, and some surviving spouses. One of the primary benefits of VA loans is that they don’t require a down payment, which can make homeownership more accessible. Additionally, VA loans often come with lower interest rates and no private mortgage insurance (PMI). If you’re eligible, exploring VA loans can be a smart financial move.
Jumbo Loans
In most parts of the country, including Hampton, the conventional loan limit for a single-family home is $806,500. If you have to borrow more than this amount to purchase a property, you’ll need a jumbo loan. Jumbo loans typically have more stringent qualification requirements, such as higher credit scores and larger down payments. A jumbo loan could be a smart choice for buying a more expensive property, but be sure to consider the terms and conditions of jumbo loans to ensure they fit your financial goals.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
How to Evaluate Loan Offers in Hampton
A competitive mortgage rate can be key for your financial and life goals. As we’ve seen, even half a percentage point can translate to a significant sum over the life of your loan. Here are some smart steps to take as you consider loan offers.
• Make sure you compare rates and fees from multiple lenders.
• Review each loan’s annual percentage rate (APR), which includes fees, closing costs, and mortgage points to give you a more complete picture of the loan’s costs.
• If you’re concerned about rates rising while you negotiate your closing, many lenders will let you pay a fee to lock in your rate for up to 90 days.
Hampton, Virginia has programs that can help you on your journey to homeownership, especially if you’re buying your first home or have limited financial means.
The Virginia Housing Development Authority is your go-to, offering a variety of low-rate mortgages and programs tailored to different needs. (Note that while for some you can only qualify as a first-time homebuyer, many others are open to repeat buyers.)
Consider the Conventional Home Loan, for instance, a 30-year fixed-rate loan for first-time homebuyers that asks for only a 3% down payment. Or look at the Conventional No Mortgage Insurance loan, which requires a slightly higher credit score but offers the possibility of not having to pay for mortgage insurance.
And let’s not forget down payment assistance programs: The Down Payment Assistance Grant, which provides first-time homebuyers with up to 2.5% of their loan amount to put toward their down payment. These are just a few of the tools at your disposal to make homeownership more attainable.
Closing Costs in Hampton
Closing costs typically range from 2% to 5% of the loan value. These costs could include loan origination fees, appraisal fees, and title insurance, to name just a few.
The average cost of a house in Hampton is about $267,000. Closting costs on a loan of $267,000 would be between $5,340 and $13,350.
When you’re comparing mortgage rates in Hampton, Virginia, make sure to consider closing costs to get a full understanding of your expenses. Shopping around for the best mortgage rates and negotiating terms can help you reduce your overall costs.
The Takeaway
The mortgage market in Hampton, Virginia is full of options, and by keeping an eye on current mortgage rates and exploring the various assistance programs, you can make the best decisions for your financial goals. Whether you’re a first-time homebuyer or an experienced homeowner looking to relocate, understanding the different types of mortgages and the factors that influence rates will enable you to make an informed decision. And comparing rates and terms from a variety of lenders can help you secure the best deal for you.
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.
Predicting the trajectory of mortgage rates is tough, but keeping an eye on the 10-year Treasury Bond can give you an idea of where rates are headed. It may help to know that current predictions are for mortgage rates to stay relatively stable this year, and perhaps into 2026. Rather than looking to mortgage rates to determine the right time to make a move, consider your financial readiness and reason for buying.
Will mortgage rates ever go back to normal?
We may not see the record low mortgage rates of the Covid-19 pandemic again. In fact, rates are currently at what are considered moderate levels, which could be considered “normal.” Fannie Mae predicted early in 2025 that rates would remain relatively stable and end the year at about 6.30%.
Can you tell me how to lock in a mortgage rate?
After you have a loan offer with an interest rate you like, you can ask the lender to lock your rate. A rate lock typically lasts 30 to 60 days. It’s sometimes free but otherwise costs between 0.25% and 0.50% of your loan amount.
How do mortgage interest rates work?
Mortgage interest rates are the fees you pay to borrow money for a home purchase, 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 fixed-rate period, meaning that your monthly payments may become less predictable.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. 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.
• Mortgage rates are influenced by economic conditions and the borrower’s personal financial situation.
• To improve your odds of getting a good mortgage rate, you can focus on strengthening your credit score, paying down debt, and building a hefty down payment.
• Adjustable-rate mortgages (ARMs) have interest rates that change over time, while fixed-rate mortgages have the same rate through the life of the loan.
• There are resources in Texas available to first-time homebuyers, repeat buyers, veterans, civil servants, as well as others.
• Online mortgage calculators can help you figure out and compare the financial implications of different loans.
Introduction to Plano Mortgage Interest Rates
If you’re interested in buying a home in Plano, Texas, you’ve probably been thinking a lot about mortgage rates in Plano. Mortgage interest rates are based on a complex interplay between broad economic indicators and the borrower’s personal financial situation, which lenders review when you apply for a mortgage. This guide will help you understand both kinds of factors and show you how to get the best rate you can. Whether you’re a first-time homebuyer or a seasoned property owner, understanding mortgage rates is crucial for making sound financial decisions about your home and future investments.
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
Mortgage rates in Plano, TX are influenced by a variety of economic factors, and anyone looking to purchase property should be aware of what those are. The bond market, especially the 10-year U.S. Treasury Note, is a key indicator of where mortgage rates are headed. When it’s on the rise, you can expect mortgage rates to follow. The housing market’s performance, inflation, and unemployment levels also impact mortgage rates. When the economy is strong, rates tend to rise; when the economy is cooling, rates tend to fall.
Mortgage rates are also personalized for you, based on your 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 also decrease your rate, since lenders tend to assume that if you have more equity in your home, you will be less likely to default on your mortgage.
Finally, lenders also consider your debt-to-income (DTI) ratio when they’re determining your interest rate. They generally like to see a DTI ratio of no more than 36%, though that’s not necessarily the absolute maximum.
By understanding what causes rates to increase and decrease, you can put yourself in a better position to time your home purchase strategically.
How Interest Rates Affect Home Affordability
To emphasize how much mortgage rates matter, let’s look at the real-world impact your rate can have on your finances.
Imagine you have a $400,000 loan at a 6.50% interest rate. That translates to a monthly payment of $2,528. But nudge that rate up to 7.00%, and suddenly you’re looking at $2,661 a month.
To put it another way, over the life of your home loan, that seemingly small 0.50% difference means that with the lower rate, you’d be saving nearly $48,000 in interest payments.
These minor rate variations are more than just numbers — they could be the difference between the house you want and the house you can afford.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number..
Plano, Texas Mortgage Rate Trends
Historical U.S. Mortgage Rates
If you’re looking for the best mortgage rate in Plano, it can be useful to get some historical perspective on rates in the area.
The 50-year interest rate graph below shows where highs and lows have ranged over the last half-century. You’ll see that rates have fluctuated significantly during the past two decades. While they have clearly risen from the historic lows of 2021, they remain well below historic highs.
For more localized information, the chart below the graph compares Texas’s average yearly interest rate with the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.) You’ll observe that rates in Texas have mirrored national rates closely.
Year
Texas Rate
U.S. Rate
2000
8.03
8.14
2001
7.01
7.03
2002
6.61
6.62
2003
5.81
5.83
2004
5.94
5.95
2005
5.98
6.00
2006
6.71
6.60
2007
6.54
6.44
2008
6.15
6.09
2009
5.04
5.06
2010
4.76
4.84
2011
4.52
4.66
2012
3.59
3.74
2013
3.80
3.92
2014
4.08
4.24
2015
3.79
3.91
2016
3.66
3.72
2017
3.98
4.03
2018
4.57
4.57
Source: Federal House Finance Agency
Wondering If You Should Wait for Interest Rates to Dip?
If you’re contemplating a home purchase in Plano, you might be mulling over whether to wait for interest rates to drop.
As we’ve seen, interest rates are influenced by many factors, so predictions aren’t perfect. However, in early 2025, Fannie Mae forecasts suggested that mortgage rates would hold more or less steady, with an average rate of 6.30% by the year’s close. Fannie Mae’s outlook for 2026 also points to rates that don’t veer too far from what we’re seeing now.
While biding your time for a potential rate cut could eventually save you some cash, it’s worth weighing the benefits of seizing the moment. And remember that if you buy a house and interest rates drop, you can always look into a mortgage refinance.
How Costs Stack Up in Plano, Texas
The cost of living in your city can be a big factor as you plan your finances. After all, cost of living affects both home prices and how easily you’ll be able to afford your monthly mortgage payments.
Here’s how Plano compares to other towns in Texas when it comes to cost of living. The chart below uses an index where 100 equals the average cost of living in the U.S.
There’s a lot you can do to position yourself to get the best mortgage rate in Plano that you can. Consider the following smart moves.
• Strengthen your credit score by making payments on time and paying down your credit card balances.
• Lower your DTI ratio by working to pay off your debts.
• Make a larger down payment if you can, using savings and gifts from friends and family.
• Think about going through the mortgage preapproval process. This can give you a clearer sense of what’s affordable.
It’s also worthwhile to explore different types of mortgages, like adjustable-rate mortgages (ARMs) and government-backed loans, which may offer lower rates.
Tools & Calculators
A mortgage payment calculator is a great resource to help you estimate your monthly mortgage payments. Input the home price, loan term, your down payment, and the interest rate to see how the different elements affect your monthly payment. Being able to see quickly and clearly how affordable the house you want is with different loans is an invaluable aid to making the best mortgage decision.
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. Amo payments shown depend on the accuracy of the information provided.
Types of Mortgages Available in Plano
In Plano, Texas, you’ve got many types of mortgage loans to evaluate in terms of your unique financial needs. For conventional loans, lenders typically look for a credit score of 620 or higher and a substantial down payment. These loans often have competitive rates and a smorgasbord of flexible repayment terms. But don’t worry if a conventional loan doesn’t seem right for you: There are FHA and VA loans that have lower down payment requirements and a more forgiving stance on credit scores.
Fixed-Rate Mortgages
Fixed-rate mortgages are a popular choice among homebuyers in Plano. They offer the security of knowing that your interest rate will remain the same for the life of your loan, which means your monthly payments will always be predictable. Fixed-rate mortgages are available for a variety of terms, the most typical being 15 and 30 years, so you can choose the timeline that works best for your financial situation. If you plan to stay in your home for the long term, a fixed-rate mortgage can provide protection against the possibility of rising mortgage rates, making it easier to budget for the future and plan for the years ahead.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans offer. They generally provide this low initial fixed rate for a set period, such as 5 or 7 years. After that, the rate can adjust based on market conditions. This feature may be advantageous for those with shorter time horizons in the Plano area or who expect to refinance their mortgage. But for people who decide to stay in their home beyond that initial period, it’s important to be aware that rates may well adjust upward so their monthly payments will change.
FHA Loans
With the backing of the Federal Housing Administration, FHA loans are often more accessible than conventional loans. With a minimum credit score of 580, you could be looking at a down payment as low as 3.5%. That’s good news for many first-time homebuyers who might be concerned about their credit history. Just bear in mind that FHA loans do require you to pay a mortgage insurance premium (MIP).
VA Loans
VA loans are a worthwhile option for people who have served in the military, including active-duty members, veterans, reservists, National Guard members, and some surviving spouses. One of the most significant benefits of a VA loan is the opportunity to purchase your home with no down payment. This can be a game changer for those who may not have a large amount of savings. VA loans also typically come with lower interest rates and don’t require private mortgage insurance (PMI).
Jumbo Loans
In most regions, including in Plano, the 2025 limit for a single-family home is $806,500. Jumbo loans, designed for high-value properties that exceed this limit, often come with more stringent qualification requirements. These specialized loans typically require a higher credit score and a larger down payment than conventional loans. Exploring a variety of mortgage lenders can help you find competitive jumbo loan options that fit your budget and overall financial situation.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
How to Evaluate Loan Offers in Plano
A competitive mortgage rate can be your ticket to long-term savings. As we’ve seen, even half a percentage point can add up to a substantial sum over the life of your loan. Here are some smart steps to take as you consider loan offers.
• Be sure to compare rates and fees from multiple lenders.
• Review each loan’s annual percentage rate (APR), which includes fees, closing costs, and mortgage points, to give you a more complete picture of your loan costs.
• If you’re worried about rates going up while you negotiate your closing, many lenders will let you pay a fee to lock in your rate for up to 90 days.
There are multiple resources and programs available in Plano to help you buy a house, especially if you’re buying yhour first home or have limited financial resources.
The Texas Department of Housing and Community Affairs (TDHCA) provides the My First Texas Home (for which you can only qualify as a first-time homebuyer or a veteran) and My Choice Texas Home programs, which offer 30-year, low-interest mortgages and up to 5% in down payment assistance.
The Texas State Affordable Housing Corporation offers the Home Sweet Texas Home Loan Program and the Homes for Texas Heroes Program, extending similar benefits and down payment assitance programs to a wide range of buyers, including veterans and public service professionals.
Closing Costs in Plano
If you’re buying a home in Plano, Texas, you can expect to pay between 2% and 5% of the loan amount in closing costs. The exact amount will depend on the price of the home and its location. Common costs include loan origination fees, appraisal fees, and title insurance.
In Plano, the average cost of a house is $521,000. For a loan that size, closing costs would likely run between $10,420 and $26,050. To keep these costs in check, be sure to shop around and compare loan estimates from different lenders. It can also be a good idea to negotiate with your lender to get the best deal.
The Takeaway
Plano, Texas offers a wide array of mortgage options for potential homebuyers. By keeping yourself informed about current mortgage rates in Plano, Texas and the various assistance programs available, you can make the right decisions to meet your financial goals and become a homeowner. No matter what your level of home-buying experience, understanding the different types of mortgages and resources available to you can help you find the best deal.
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.
The mortgage rates you’re offered are influenced by the economy and by your personal financial situation. The bond market, housing demand, and inflation can all affect rates. Additionally, your credit score, down payment amount, and debt-to-income ratio (DTI) are all considered by lenders when determining what rate to give you.
Will mortgage rates drop in Plano, Texas?
It’s tough to pinpoint the exact trajectory of mortgage rates, but it may be helpful to learn that the prevailing sentiment is that mortgage rates will remain higher for longer. Consulting a real estate agent or mortgage broker can help you lock in a rate at the right time.
Will mortgage rates ever go back to normal?
While we may not see the record low mortgage rates of the Covid-19 pandemic again anytime soon, rates are now at historically moderate levels. Fannie Mae predicted early in 2025 that at the end of the year rates will likely be 6.30% and that 2026 will close with rates of about 6.20%.
How do you lock in a mortgage rate?
After you’ve decided on a loan offer at an interest rate you like, you can ask the lender to lock your rate. A rate lock guarantees the rate you’ve agreed on for a set period, typically 30 to 60 days. The lock is sometimes free but often costs between 0.25% and 0.50% of your loan amount.
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.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. 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-Q225-114
Browse Texas home guides.
Best Affordable Places to Live in Texas
Cost of Living in Texas
Texas First-Time Home Buying Assistance Programs & Grants
• Larger economic factors and your personal financial situation both influence the mortgage interest rates you’re offered.
• Fixed-rate mortgages have the same rate through the life of the loan, while adjustable-rate mortgages (ARMs) have rates that may change.
• Work on your credit score and debt-to-income (DTI) ratio to boost your chances of getting favorable rates.
• Look into state and federal assistance programs for help with down payment and closing costs.
• Use online mortgage calculators to get a rough idea of costs and to compare different offers.
Introduction to Mortgage Rates
If you’re considering purchasing your first home in Auburn, Massachusetts, understanding mortgage rates is key. This guide is designed to demystify mortgage rates and how they work, equipping you with the knowledge to land the most favorable rate possible. We’ll delve into the economic and personal factors in play, empowering you to make savvy decisions during your home-buying journey.
Where Mortgage Rates Come From
Mortgage rates in Massachusetts are influenced by a variety of factors. The mortgage rate you’re offered depends on the general economy and also on your individual financial situation and history.
Economic Factors Influencing Mortgage Rates
• The bond market has historically been the primary indicator of where mortgage rates are headed. That’s particularly true of the 10-year U.S. Treasury Note. When the rates on the note go up, mortgage interest generally rises, too.
• The strength of the housing market is key as well. When the housing market cools and more homes are available than there are buyers, lenders may lower rates to keep attracting customers.
• Inflation and unemployment also play a role in determining mortgage rates. Mortgage rates tend to rise when the economy is strong, reflecting the potential for increased demand for borrowing and potentially higher costs for lenders providing loans to consumers. A recession, on the other hand, usually means lower mortgage rates.
Borrower Factors Influencing Mortgage Rates
• Your credit score is a predictor of the mortgage rate you’ll be offered. The higher the score, the lower the rate you’ll likely get.
• The amount of your down payment plays a role. Making a larger down payment can result in a lower interest rate, since lenders often assume that if you have more equity in your new home, you’ll be less likely to default on your loan.
• Your debt-to-income (DTI) ratio is also important since lenders look at your income in relation to your monthly debts. Typically, mortgage lenders want to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
See what factors impact your mortgage.
See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.
How Interest Rates Affect Home Affordability
Mortgage rates can make a big difference in the overall affordability of buying a home. Even a small difference in your rate can make a big difference in terms of your monthly budget and the total interest you’ll pay.
For example, if you take out a $400,000 fixed-rate 30-year home loan at a 6.50% interest rate, your monthly payment will be $2,528. But if that interest rate were just half a percentage point higher, at 7.00%, your monthly payment would be $2,661.
Looking at the whole life of the loan, over that 30-year mortgage, you would end up paying nearly $48,000 more in interest with the higher interest rate.
Auburn Mortgage Rate Trends
Diving into the historical context of mortgage rates in Auburn can provide valuable insights for people planning for a new home. While rates have seen a gentle rise in recent years, they’re still nowhere near the highest points in history. In fact, they’re currently hovering close to the 50-year average. Understanding the historical context of mortgage rates and the factors that influence them can help you make informed decisions about your home financing.
Historical U.S. Mortgage Rates
The history of mortgage rates in the United States is a story of ups and downs. Over the past 50 years, average yearly rates have fluctuated as low as 2.96% during the Covid-19 pandemic and as high as 16.63% in 1981. The graphic below shows just how volatile rates have been over the last half century.
Historical Interest Rates in Massachusetts
The chart below shows how mortgage interest rates in Massachusetts have compared to the national average during recent decades. (The Federal Housing Finance Agency stopped compiling this city-level data after 2018.)
You can see that rates in Massachusetts have risen and fallen along with national rates, but trend slightly lower.
Year
Massachusetts Rate
U.S. Rate
2000
7.88
8.14
2001
6.93
7.03
2002
6.38
6.62
2003
5.55
5.83
2004
5.38
5.95
2005
5.62
6.00
2006
6.32
6.60
2007
6.30
6.44
2008
5.96
6.09
2009
4.86
5.06
2010
4.76
4.84
2011
4.44
4.66
2012
3.63
3.74
2013
3.71
3.92
2014
3.94
4.24
2015
3.71
3.91
2016
3.54
3.72
2017
3.86
4.03
2018
4.33
4.57
Source: Federal House Finance Agency
Should You Wait for Interest Rates to Drop?
If you’re buying your first home in Auburn, you might be asking yourself if you should wait for mortgage rates in Massachusetts to dip.
Here’s what you should know: As of early 2025, predictions from Fannie Mae indicate that rates will likely hold more or less steady, hovering around 6.30% by the year’s end and about 6.20% when 2026 draws to a close.
Remember, too, that if you buy a house and rates go down in the future, you have the option to get a mortgage refinance to take advantage of the change.
How Costs Stack Up in Auburn
Based on its cost of living, Auburn is among the more affordable cities in Massachusetts, though it’s still a bit above the national average. The cost of living in your city can have a major influence on your financial planning, since it has an impact both on home prices and on how easily you’ll be able to budget for your monthly mortgage payments.
Here’s how Auburn compares to other towns in Massachusetts on an index where 100 equals the average cost of living in the U.S.
Consider taking these steps to help you get the best mortgage rates that you can.
• Check your credit score. If it’s lower than you’d like, plan to work on building a stronger credit history.
• Reduce your debt-to-income (DTI) ratio. Paying down as much debt as you can will help.
• Increase your down payment. You can use savings and gifts contributed by friends and family to boost the amount.
• Coompare rates from multiple lenders. Even before you reach out to lenders, you can look at mortgage rates online in Auburn, MA to focus your search.
• Think about going through the mortgage preapproval process. This will give you a better sense of what you can afford.
Tools & Calculators
Online mortgage calculators are a great way to get an estimate of your monthly payments and total costs. These tools can help you understand the impact of interest rates and loan terms on your budget, and let you see how changing components — like the length of your loan — change your financial commitments.
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 Auburn
In Auburn, you’ll find that lenders provide many types of mortgage loans to homebuyers. Conventional mortgages are the go-to for many, typically requiring a credit score of 620 or above. Like many other home loans, conventional mortgages can be either fixed-rate, with unchanging monthly payments, or adjustable-rate mortgages (ARMs), which have rates that can shift over time.
Additionally, don’t forget about government-backed loans, like FHA and VA loans. These can be game-changers, accepting smaller down payments and lower credit scores.
Fixed-Rate Mortgages
Fixed-rate mortgages provide you with a consistent interest rate throughout the loan term. This structure ensures stable and predictable monthly payments, making it easier to budget. These mortgages are most commonly available in terms of 15 or 30 years, but other terms may be possible, providing a variety of options suited to different financial situations. For first-time homebuyers concerned about avoiding unexpected costs, a fixed-rate mortgage can be particularly beneficial.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) typically start with a lower interest rate than fixed-rate mortgages. After a defined period, however, the interest rate adjusts regularly in accordance with market conditions, so your payments can fluctuate. This could work in your favor if market rates drop, but there’s also the risk of rates rising. For homebuyers who are planning to move before the initial low-interest rate period is over, an ARM can be a strategic choice. But it’s wise to be sure of your plans so you don’t end up facing higher payments than you anticipated down the road.
FHA Loans
Supported by the Federal Housing Administration, FHA loans are known for having less demanding eligibility criteria than conventional loans. With a minimum down payment requirement of just 3.5% and often more flexible credit terms, they’re a popular choice for first-time homebuyers. These loans do require a mortgage insurance premium (MIP). In Auburn, where the cost of living is on the higher side, FHA loans can be the key to unlocking homeownership.
VA Loans
VA loans are available to eligible active-duty military members, veterans, reservists, National Guard members, and some surviving spouses. The most significant advantage of a VA loan is that it doesn’t require a down payment, making it an attractive option for anyone who may not have a large amount of cash to put down. Additionally, VA loans don’t expect borrowers to obtain private mortgage insurance (PMI), which can save you a significant amount of money over the life of the loan.
Jumbo Loans
In most areas, including Auburn, conventional mortgage loans have a 2025 cap of $806,500 for a single-family home. Jumbo loans are designed for properties exceeding this limit, offering flexibility for high-value homes and larger purchases. These loans often come with higher interest rates and stricter qualification criteria; however, they can be a good option for those with strong financial profiles seeking to buy expensive properties.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
How to Evaluate Loan Offers in Auburn
Let’s look at how to make your decision once you’ve got loan offers.
A competitive mortgage rate is your ticket to long-term savings. Even half a percentage point can add up to thousands of dollars over the loan’s life, as we’ve seen.
But rates are not the whole story. Also compare each potential loan’s annual percentage rate (APR), which is an all-in-one number that factors in fees, closing costs, and mortgage points.
Once you’ve decided, if you’re losing sleep over rising interest rates, many lenders will let you pay a fee to lock in your rate for up to 90 days.
Massachusetts has resources and programs to aid house hunters, especially those who are first-time homebuyers or have limited financial means.
The state’s initiatives, such as My Mass Home’s ONE Mortgage (for which you can only qualify as a first-time homebuyer) and MassHousing Loan, are designed to offer low-interest, fixed-rate loans with down payments as minimal as 3% or 5%. They also provide down payment assistance programs.
Federal programs like FHA loans and VA loans are also in the mix, providing low down payments and flexible credit requirements.
Closing Costs in Auburn
If you’re getting ready to settle down in a new home in Auburn, it’s a good idea to be prepared to cover 2% to 5% of your loan amount in closing costs. These costs can vary based on the property’s value and location, and they typically include charges such as loan origination fees, appraisals, and title insurance.
The average cost of a house in Auburn is about $453,000. For a loan of that amount, closing costs typically run between $9,460 and $23,650. To keep these expenses in check, it’s a smart move to explore different lenders and negotiate terms.
The Takeaway
Auburn, Massachusetts’s mortgage landscape features a range of options for prospective homebuyers. By staying informed about current mortgage rates in Massachusetts and exploring available assistance programs, you can make well-informed decisions that align with your financial resources and goals. Whether you’re a first-time buyer, a veteran, or a high-income earner looking to purchase a prestige property, there are resources and loan types available that can help you secure the best possible rate and terms for your mortgage.
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.
Will mortgage rates drop in Auburn, Massachusetts?
While it’s tricky to pinpoint the exact trajectory of mortgage rates, current predictions from Fannie Mae suggest that rates will stay fairly stable through the end of 2026. That said, if you work on strengthening your credit history, paying down your debt, and saving up a larger down payment, you may be offered a better rate by lenders.
Will mortgage rates ever go back to normal?
History shows us that mortgage rates have been all over the map. However, right now they’re actually in the range of the 50-year average, and Fannie Mae has predicted that they will hold relatively steady, ending 2025 at about 6.30%.
How can you secure a mortgage rate?
After you’ve been offered a rate you like but before you’ve closed on your new home, it can be a good move to lock in your mortgage rate. You can ask your lender for a rate lock, which may involve a small fee and guarantees your rate for up to 90 days. That way, even if your closing is delayed a little, your rate won’t go up.
How do mortgage interest rates function?
Mortgage interest rates are essentially the charge you pay your lender in order to borrow money to purchase a home. Interest rates are often expressed as a percentage of the loan amount. You’ll find two main types of rates: fixed and adjustable. Fixed-rate mortgages provide a consistent interest rate over the loan term, while adjustable-rate mortgages (ARMs) can start at a lower fixed rate, but after that initial period, their rates may fluctuate.
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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. 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.
• Mortgage rates in York, Pennsylvania, are influenced by a variety of factors, both economic and specific to the borrower.
• Fixed-rate mortgages mean stable monthly payments; adjustable-rate mortgages (ARMs) often start with lower rates.
• By improving your credit score and reducing your debt-to-income ratio, you can lower your mortgage rate.
• First-time homebuyers in Pennsylvania can take advantage of assistance programs.
• Exploring mortgage rates from multiple lenders can help you find the best option.
Introduction to Mortgage Refinance Rates
Mortgage interest rates are a critical aspect of home financing and significantly impact the overall cost of purchasing a home. This guide aims to help you understand the factors that determine mortgage rates in Pennsylvania, specifically in York, and how you can work toward securing the lowest home loan rate possible. To start, especially if you are buying your first home, it might help to understand how lenders decide on your rate in the first place.
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
The factors that influence mortgage rates are somewhat complex. The bond market, particularly the 10-year U.S. Treasury Note, is a key indicator. When the yield on the T note goes up, rates on mortgages are likely to follow. The housing market also plays a role. If the housing market is slowing down, you might be able to get a better rate. The overall economy and the health of the job market are other factors that can affect the rates lenders offer. When the economy is doing well, rates tend to go up. When the economy is in trouble, rates tend to go down.
Lenders will use these indicators to set a general rate, but to come up with your specific loan offer, they will also examine the following:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a score of 620 or more. The higher the score, the lower the rate you’ll likely obtain.
• Your down payment amount Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is 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
Why spend time studying interest rates and polishing your credit score? Mortgage rates play a pivotal role in the overall affordability of a home. It’s not unusual in York to need to borrow around $200,000 to buy a home. If you obtained that loan with a 30-year term at a 6.50% interest rate, your monthly payment would be $1,264. But if your interest rate was 7.00%, you would be paying $1,330 each month. Over 30 years, that seemingly small difference in interest rate adds up to almost $25,000, as you can see from the chart below.
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
York Mortgage Rate Trends
Historical U.S. Mortgage Rates
Understanding historical mortgage rates can be helpful as you decide when to apply and what kind of rate you might want to lock in. While rates have gone up in the last few years, they are still relatively low compared to significantly higher rates of, say, the 1980s. The graph shows a half-century of average mortgage rates. The chart shows how Pennsylvania has tended to stack up against national averages (the Federal Housing Finance Agency stopped compiling state averages after 2018.)
Year
Pennsylvania Rate
U.S. Rate
2000
7.97
8.14
2001
7.00
7.03
2002
6.53
6.62
2003
5.78
5.83
2004
5.85
5.95
2005
6.02
6.00
2006
6.49
6.60
2007
6.31
6.44
2008
6.04
6.09
2009
5.16
5.06
2010
4.85
4.84
2011
4.59
4.66
2012
3.65
3.74
2013
3.90
3.92
2014
4.20
4.24
2015
3.96
3.91
2016
3.76
3.72
2017
4.07
4.03
2018
4.58
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in York
In York, the type of mortgage loan you choose will also have an impact on your rate. By exploring these common types, you can find the best mortgage rates in York and the repayment plan that works for you.
Fixed-Rate Mortgage
Fixed-rate mortgages are popular, especially with first-time buyers. With this loan type, the interest rate you start with stays the same for the life of the loan. That means your monthly payments remain predictable, which can be a huge relief when you’re planning your budget. You can choose from terms of 10, 15, 20, 30, or even 40 years, tailoring your mortgage to fit your financial goals and your life. Remember that the shorter the term, the higher monthly payments will be — but the less interest you’ll likely pay over the life of the loan.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) typically offer a lower initial rate than fixed-rate loans, which can be a draw for those planning to sell or refinance within a few years. After the introductory fixed-rate period, however, the rate can adjust based on the market. It’s a bit of a gamble — rates could go up, and so could your monthly payments. But for homebuyers in York who can tolerate the uncertainty, an ARM is often a great solution.
FHA Loan
With the backing of the Federal Housing Administration, FHA loans open doors to homeownership with more relaxed eligibility criteria than conventional loans. A minimum credit score of 580 is all you need to secure a 3.5% down payment. And those with scores from 500 to 579 can also potentially qualify for an FHA loan with a 10% down payment.
VA Loan
VA loans are a fantastic opportunity for eligible active-duty military members, veterans, reservists, National Guard members, or surviving spouses. One of the most significant benefits of a VA loan is that it typically doesn’t require a down payment, making it a great option for you if you have limited savings. If you’re in York and you’re looking for competitive mortgage rates, consider whether you might qualify for a VA loan.
Jumbo Loan
In most areas of Pennsylvania, including York, the conventional mortgage loan limit is $806,500 for a single-family home. If you have your eye on a property that will require a mortgage in excess of this amount, you’ll require a jumbo loan to call it home. These specialized loans can come with stricter qualification criteria, but they’re still a great option for purchasing your dream home in York.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Take a Tumble?
If you’re a homebuyer in Pennsylvania, you might be pondering whether to bide your time for a more favorable interest rate. The current outlook suggests that mortgage rates in Pennsylvania are set to hold steady in the near future. Fannie Mae projections point to an average of 6.30% by the close of 2025. While the prospect of waiting might seem alluring, it’s worth noting that buyers who move forward can do a mortgage refinance should rates become more favorable down the line. And buying now means you begin to build equity in the property.
The Cost of Living in York
York is a relatively affordable city, with a cost of living that’s five points below the national average. Food, housing, and health care are all more affordable here than the national average. No wonder York made SoFi’s list of the best affordable places in the U.S. The housing market is very competitive, with many homes getting multiple offers. However the median sale price of a home in York is just $150,000 — that’s less than half of the U.S. average, according to Redfin.
Get Your Best Possible Rate in York
To secure the best possible mortgage rates in York, you’ll want to focus on your credit score, which can have a big impact on the interest rate you qualify for. Check your credit report for errors, and request corrections if necessary. And of course, pay every bill on time. You’ll also want to aim for a low debt-to-income (DTI) ratio, which is the percentage of your monthly gross income that goes toward paying debts. So to the extent possible, try to pay down some debt before applying for a home loan.
If you can make a larger down payment, you may be able to secure a lower rate. Going through the mortgage preapproval process with a lender can give you a clear picture of what size mortgage you might qualify for and what your rate and payments would look like. Having that preapproval letter to show sellers could also be helpful in York’s hot housing market.
Helpful Tools & Calculators
A mortgage payment calculator can give you a good idea of what your monthly payments might be, as well as the total interest costs over the life of the loan. And it’s not the only calculator you’ll find useful during your home search. These are three of our favorites:
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 York
A competitive mortgage rate is a game-changer, potentially saving you thousands. The key to getting one is to compare rates and fees from various lenders, with a focus on the APR, or annual percentage rate, which includes fees and closing costs. (Lenders will disclose the APR in their loan information.) Once you’ve found an offer that shines, consider locking in your rate for up to 90 days, especially if you sense rates are on the upswing.
York Mortgage Resources
York offers several programs to aid homebuyers, especially those who qualify as a first-time homebuyer or who have limited financial means. The Pennsylvania Housing Finance Agency (PHFA) is your best resource, with offerings like the Keystone Advantage Assistance Loan program and the HOMEStead Down Payment and Closing Cost Assistance Loan. Down payment assistance programs and loans with forgiving terms can significantly ease the financial load of purchasing a home. And don’t forget to explore local York programs for added support.
If you’re buying a home in York, you can expect to pay between 2% and 5% of your loan amount in closing costs. These costs can vary based on the price of the home you’re buying and where it’s located. They can include loan origination fees, the cost of an appraisal, and title insurance. To keep your costs down, make sure to shop around for the best rates. In some markets, buyers can negotiate with sellers to help cover some costs, although this might not be feasible in York’s relatively competitive market.
The Takeaway
York, Pennsylvania offers a range of mortgage options for prospective homebuyers in the area. By staying informed about current mortgage rates in York and carefully exploring available assistance programs, you can make a strategic decision about your mortgage type, term, and rate that aligns with your financial goals.
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.
How do Pennsylvania mortgage rates compare to the national average?
Pennsylvania’s mortgage rates are usually on par with the national average, or ever so slightly above it, according to state average data compiled by the Federal Housing Finance Agency.
What sets fixed-rate and adjustable-rate mortgages apart?
Fixed-rate mortgages offer stable interest rates, whereas adjustable-rate mortgages (ARMs) may start with a low introductory rate for a fixed time period, but then begin to adjust at regular intervals according to the market. This means that if you have a fixed-rate mortgage, your monthly payments will stay the same for the life of the loan, whereas if you have an ARM, your monthly payments will change now and then.
Will mortgage rates ever go back to normal?
Historical data suggests rates could return to more stable levels over time. Keep an eye on economic factors and your personal financial needs.
How do mortgage interest rates work?
Mortgage interest rates are the cost of borrowing. The rate is expressed as a percentage. The interest rate you receive is based on your credit score, down payment, and employment history, as well as current economic conditions.
SoFi Loan Products
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SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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.
*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.
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.
