Compare mortgage rates in Washington.

Introduction to Mortgage Interest Rates

Securing a competitive mortgage rate is crucial for saving money over the life of your home loan. Mortgage interest rates drive the amount a lender charges for borrowing money to purchase a home. In Washington state, mortgage rates are influenced by various economic factors and consumer characteristics. This comprehensive guide provides an in-depth look at mortgage rates in Washington, including historical trends, factors affecting rates, type of mortgage loans available, and strategies for securing a competitive rate.

Where Mortgage Rates Come From

The Federal Reserve, also known as the Fed, plays a pivotal role in determining mortgage rates. The Fed sets the short-term interest rates that banks use as a benchmark for setting their own rates. Although home loan rates are not directly tied to Fed rates, they generally follow the same economic trends. When the Fed raises interest rates, mortgage rates generally rise, and when the Fed lowers rates, mortgage rates typically decline.

But there are also consumer factors that influence rates, including the homebuyer’s credit score, down payment, income, and assets.

How Interest Rates Affect Home Affordability

Mortgage rates have a significant impact on home affordability, often playing a more substantial role than the purchase price of the home itself. Even small changes in interest rates can significantly affect the monthly mortgage payments and the overall cost of homeownership.

For instance, a $300,000 loan with a 30-year term and an interest rate of 4.00% would result in monthly payments of $1,432. If the interest rate increases by just 1 percentage point to 5.00%, the monthly payments would jump to $1,610, adding up to a difference of over $64,000 in total interest paid over the life of the loan.

Should Homebuyers Wait for Interest Rates to Drop?

Many homebuyers, especially novices buying a first home, face the dilemma of whether to purchase a home immediately or wait for interest rates to drop. While it is impossible to predict the future of interest rates with certainty, reading the news about the Fed’s potential action on its rates can help homebuyers make an informed decision.

But ultimately, whether to buy or wait may depend on your personal situation. A lease ending or a baby coming can press the issue. And in some markets, home prices may be rising, which could outweigh any savings on a minor interest rate drop.

Homebuyers who are concerned about rising interest rates may consider locking in a rate now and refinancing later if rates decrease. Most lenders offer a rate lock option, which allows borrowers to secure a specific interest rate for a certain period of time, typically ranging from 30 to 90 days. This can provide peace of mind and protect against potential rate increases during the homebuying process.

Recommended: Average Monthly Expenses for One Person

Washington Mortgage Rate Trends

Understanding historical mortgage rate trends can provide perspective on current rates. Below is a look at almost two decades of Washington rates (the Federal Housing Finance Agency stopped tracking states in 2018). As you can see, Washington’s average rate tends to be a little lower than the U.S. average. This is impressive when you consider that the overall cost of living in Washington is above the national average.

Historical U.S. Mortgage Rates

Looking at the U.S. average rate over a few decades offers further insight. Mortgage rates in Washington state are still below the historical highs experienced in the early 1980s, when rates reached over 18%.

Factors Affecting Mortgage Rates in Washington

Numerous factors influence mortgage rates in Washington and nationwide. Rates are determined by a complex combination of factors that can be broadly categorized into two buckets: the state of the economy and the borrower’s financial status. Let’s examine each in more detail:

Economic Factors

Economic factors that affect mortgage rates include the federal funds rate, inflation, and unemployment rate.

•  The Fed: As mentioned earlier, the federal funds rate set by the Federal Reserve is a key determinant of mortgage rates. When the Fed raises the federal funds rate, banks typically increase their interest rates, including those for mortgages. Conversely, when the Fed lowers the federal funds rate, mortgage rates tend to decrease.

•  Inflation: The general increase in prices of goods and services over time may affect mortgage rates. When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. As a result, lenders may increase interest rates.

•  Unemployment: When the unemployment rate (the percentage of the labor force that is unemployed) is high, the Fed may lower its rates to try to stimulate the labor market.

Consumer Factors

Consumer factors that affect mortgage rates include credit score, down payment, income and assets, and the type of mortgage loan.

•  Credit score: This numerical representation of an individual’s credit history and repayment behavior is a key detail lenders examine. A higher credit score indicates a lower risk of default, making borrowers more attractive to lenders. Individuals with higher credit scores typically qualify for lower mortgage interest rates.

•  Down payment: A larger down payment reduces the amount of money that needs to be borrowed, which lowers the risk for the lender. Consequently, borrowers who make a larger down payment often receive lower mortgage interest rates.

•  Income and assets: A steady income and sufficient assets provide assurance to lenders that the borrower can meet their financial obligations. Borrowers with stable employment, a history of consistent income, and a healthy financial cushion are more likely to secure favorable mortgage rates.

•  Type of mortgage loan: Adjustable-rate mortgages (ARMs) often start with lower initial rates compared to fixed-rate mortgages. Government-backed loans, such as VA loans and FHA loans, may offer lower rates than conventional loans. And shorter loan terms generally come with lower interest rates than longer terms.

Types of Mortgages Available in Washington

Various mortgage types — including fixed-rate, adjustable-rate, FHA, VA, and USDA loans — are available to meet the needs of different homebuyers in Washington. Conventional loans are not insured by the government and are offered by banks and credit unions. They are the most popular type of mortgage loan and can be fixed-rate or adjustable-rate.

Fixed-Rate Mortgage

Fixed-rate mortgages maintain the same interest rate throughout the life of the loan, ensuring that the principal and interest payments remain stable and predictable, which protects against fluctuating mortgage interest rates. These mortgages are available in various terms, commonly ranging from 10 to 30 years. The choice of loan term affects the monthly payment amount and the total interest paid over the life of the loan. Shorter loan terms generally have higher monthly payments but lower total interest paid, while longer loan terms have lower monthly payments but higher total interest paid.

Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages (ARMs) start with a lower introductory interest rate, typically fixed for a period of 5, 7, or 10 years. After the introductory period, the interest rate can adjust periodically, usually once a year, based on a specified index. This can result in fluctuations in monthly mortgage payments.

The initial lower interest rate of ARMs can be attractive to borrowers who plan to sell their home or undertake a mortgage refinance before the introductory interest-rate period ends. However, it is important to carefully consider the potential for future interest rate increases and the impact they may have on monthly payments.

FHA Loans

Backed by the Federal Housing Administration, FHA loans are designed to make homeownership more accessible to borrowers with lower credit scores and smaller down payments. FHA loans typically have more flexible credit and income requirements compared to conventional loans, making them a good option for people who qualify as a first-time homebuyer or those with less-than-perfect credit.

The FHA insurance program reduces the risk to lenders by guaranteeing a portion of the loan amount. This allows lenders to offer FHA loans with more favorable terms, including lower down payments and more flexible credit requirements. FHA loans require both an upfront and monthly mortgage insurance premium (MIP), an additional cost which can be rolled into the borrower’s monthly payment. Even with this cost, an FHA loan can put homeownership within reach for many who could not otherwise qualify.

VA Loans

VA loans are offered by the U.S. Department of Veterans Affairs (VA) to eligible veterans, active-duty military personnel, Reserve and National Guard members, and surviving spouses. VA loans provide competitive interest rates and do not require a down payment, making them an attractive option for qualified borrowers.

The first step for anyone interested in a VA loan is to obtain a Certificate of Eligibility
from the VA.

USDA Loans

USDA loans are designed for low-income borrowers looking to purchase a home in a rural area. Provided by the U.S. Department of Agriculture (USDA), these loans are available to borrowers who fall below a defined income threshold. They offer competitive interest rates and do not require a down payment, making them an attractive option for eligible borrowers in rural communities. The USDA guarantees a portion of USDA loans, reducing the risk to lenders and allowing them to offer favorable terms to eligible borrowers.

Jumbo Loans

In most parts of the U.S., conventional mortgage loans have a cap of $832,750 in 2026 for a single-family home. This cap is set by the Federal Housing Finance Agency (FHFA) and is known as the conforming-loan limit. But sometimes buyers need to borrow more, and that’s where jumbo loans come in. These are also known as nonconforming loans.

Conforming loan levels are set by county, and most counties in Washington have the standard $806,500 limit. But in a few higher-priced housing markets, such as King County (Seattle), Pierce County (Tacoma), and Snohomish County, the limit is higher: $1,037,300.

Popular Places to Get a Mortgage in Washington

Securing a mortgage often depends on choosing the right location, where home prices are affordable and mortgage terms are favorable. Some areas in Washington offer more affordable housing options and a lower cost of living, making them an attractive place to purchase a home.

Least Expensive Locations

Here are some of the least expensive locations in Washington to get a mortgage, based on median home prices and cost of living data, benchmarks used in SoFi’s best affordable places in the U.S. guide. Remember, Washington is costlier than the U.S. average. The average home value in the state is $591,888:

•   Port Angeles: The overall cost of living here is 13% below the state average, and the average home value is $447,800.

•   Bellingham: This northern city has a below-average cost of living. The average home value here is $653,330.

•   Olympia: The average home price in this city with easy access to both forests and waterfront is $532,406. Its cost-of-living index is slightly below the state average.

•   Yakima: With an average home value of $347,826 and a very low cost-of-living index, this is one of the least expensive cities in the entire state.

•   Spokane: Its cost of living is 10% below average, and the median home value is $389,697.

Most Expensive Locations

As is often the case, large cities are on the pricier side when it comes to buying a home. Seattle, where the cost of living is the second highest in the state, has an average home value of $851,242 while Redmond, Bellevue, and Bainbridge Island all have home prices well north of $1 million.

Tips for Securing a Competitive Mortgage Rate in Washington

A competitive mortgage rate is crucial for saving money over the life of a loan. As noted above, even a small difference in interest rate can result in thousands of dollars in savings over the life of a mortgage. Here are some ways to securing a competitive mortgage rate in the current environment in Washington:

Compare Interest Rates and Fees

Take the time to compare interest rates and fees from multiple lenders. In addition to the interest rate, it is important to consider any upfront costs or closing fees associated with the loan. These fees can vary between lenders and can add to the overall cost of the mortgage.

Get Preapproved

Getting preapproved for a mortgage strengthens your position as a buyer and allows you to move quickly when you find the right property. Going through the mortgage preapproval process demonstrates to sellers that you are a serious and qualified buyer.

Washington Mortgage Resources

Washington offers various resources and programs to assist homebuyers, particularly first-time buyers and those with limited financial resources. Some programs offer assistance with down payments and closing costs.

First-Time Homebuyer Programs

Washington state offers several programs to assist first-time homebuyers, including:

•   Washington State Housing Finance Commission (WSHFC) Covenant Homeownership Program is for eligible first-time homebuyers. Eligibility criteria include: The homebuyer or a parent/grandparent/great-grandparent must have lived in Washington state before April 1968 and be Black, Hispanic, Native American, Alaska Native, Native Hawaiian or other Pacific Islander*, Korean or Asian Indian.

•   Home Advantage and House Key Opportunity Programs also help homebuyers, who must take an education course to learn more about the homebuying process before working with the program loan officers.

•   USDA, FHA, and VA loans are also available in Washington State.

Down Payment Assistance

In addition to first-time homebuyer programs, Washington state also offers down payment assistance programs to help eligible borrowers:

•   WSHFC Down Payment Assistance Program down payment assistance is for homebuyers who use the agency’s Home Advantage or Opportunity programs. If your household income is under the program limits (up to $180,000), your credit score is at least 620, and you’re otherwise qualified for a home loan, you are probably eligible.

Tools & Calculators

The WSHFC website provides a variety of tools and calculators to help homebuyers estimate their monthly mortgage payments, determine their borrowing power, and compare different loan options.

Refinancing Options in Washington

The FHA Streamline Refinance allows FHA-insured homeowners to refinance into current mortgage rates with minimal hassle. For example, there is rarely the need for a new appraisal or full credit check.

VA loan holders may be eligible for an Interest-Rate Reduction Refinance Loan (IRRRL), which allows them to refinance their existing VA loan into a new loan with a lower interest rate without the need for a new appraisal or full credit check.

Recommended: The Cost of Living in the U.S.

Closing Costs, Taxes, and Fees in Washington

Buyers in Washington can expect to pay between 3%-6% of the home’s purchase price in closing costs.

The Takeaway

Mortgage rates in Washington are influenced by a variety of factors, including the Federal Reserve’s monetary policy and each homebuyer’s personal financial profile. Homebuyers should carefully consider their financial situation and the current mortgage rate environment before making a decision about whether or not to purchase a home. Fortunately, there are a number of resources available to help homebuyers in Washington get the best possible mortgage rate.

FAQ

What is a mortgage rate?

A mortgage rate is the interest rate that you pay on your mortgage loan. It is expressed as a percentage and is added to the principal amount of the loan to determine your monthly payments.

Will mortgage rates drop in Washington?

It is difficult to predict whether or not mortgage rates will drop in Washington. However, there are a number of factors that could affect mortgage rates, including unemployment, inflation, and the Federal Reserve’s monetary policy.

Will mortgage rates ever go back to normal?

It is difficult to say when or if mortgage rates will ever go back to normal because there isn’t really a “normal” rate. Current mortgage rates are due to a number of factors, each of which can change at any time.

Will Washington home prices ever drop?

It is difficult to predict whether or not Washington home prices will ever drop. However, there are a number of factors that could affect home prices, including the overall economy, the supply of homes on the market, and the demand for homes.

Is it a good time to buy a house in Washington?

Whether or not it is a good time to buy a house in Washington depends on your individual financial situation and goals. There are a number of factors to consider, including the current mortgage rate environment, the cost of homes in your desired area, and your long-term plans.

How do I lock in a mortgage rate?

You can lock in a mortgage rate by getting a mortgage rate lock from a lender. A mortgage rate lock guarantees that you will get a certain interest rate for a specified period of time. This can protect you from rising interest rates.

How do mortgage interest rates work?

Mortgage interest rates are determined by a number of factors, including the Federal Reserve’s monetary policy. When the economy is strong and inflation is low, mortgage rates tend to be lower. Conversely, when the economy is weak and inflation is high, mortgage rates tend to be higher.

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 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 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.

†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.

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.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOHL-Q324-102

Compare mortgage rates in New Hampshire.

Introduction to Mortgage Rates

Mortgage rates play a pivotal role in determining home affordability and shaping a homebuyer’s financial future. Understanding the factors that influence mortgage rates in New Hampshire is essential for making informed choices when purchasing a property there, especially given that the cost of living in New Hampshire is already relatively high for the U.S. This article provides a comprehensive overview of mortgage rates in New Hampshire, including historical trends, economic and consumer factors that influence rates, types of mortgages available, and tips for securing a competitive mortgage rate. We’ll start by examining where mortgage rates come from in the first place.

Where Do Mortgage Rates Come From?

The Federal Reserve, often referred to as the Fed, plays a crucial role in determining mortgage rates. The Fed sets short-term interest rates, which serve as a benchmark for other interest rates, including those for home loans. Although mortgage rates are not directly tied to Fed rates, they tend to follow similar economic trends.

When the Fed raises short-term interest rates, banks may increase mortgage rates. But personal factors also influence what rate a borrower might be offered. These include credit score, income and assets, and what type of loan you choose.

How Interest Rates Affect Home Affordability

Mortgage rates have a significant impact on home affordability. The average New Hampshire home value is around $480,000. Someone who buys a home for that amount and makes a down payment of 20% is left with a $384,000 mortgage. If you got a 30-year loan at 5.50%, your monthly payments would be $2,180. The same loan at 6.50% interest would result in a monthly payment of $2,427. An additional $247 per month may not be painful for some buyers, but for others it might make the home unaffordable. And those who could afford the larger payment would pay a whopping $88,860 in additional interest over the life of the loan.

Recommended: Average Monthly Expenses for One Person

Should Homebuyers Wait for Interest Rates to Drop?

Many homebuyers face the dilemma of whether to purchase a home immediately or wait for interest rates to decrease. Bad news: There is simply no guarantee of the timing or extent of such a decline.

Knowing that they can do a mortgage refinance if rates come down significantly in the future might give a potential homebuyer the comfort to move forward in the marketplace. It’s also important to realize that delaying a purchase delays the building of equity in a home, and potentially missing out on a purchase before home prices increase.

New Hampshire Mortgage Rate Trends

Especially if you are buying your first home, you may want to familiarize yourself with the history of average mortgage rates in New Hampshire. As you can see from the table below, the New Hampshire prices tend to be very close to the national average.

Historical U.S. Mortgage Rates

Looking at how the average U.S. mortgage rate has risen and fallen in the last few decades can further put current rates in perspective. If today’s rates feel high, at least they aren’t in the double digits seen in the 1980s. However, home prices today are high as well. (In 1983, a typical new home cost three times an American’s median income, as reported by the U.S. Census Bureau ; today, it’s five times the median income.)

Factors Affecting Mortgage Rates in New Hampshire

Numerous factors influence mortgage rates in New Hampshire and across the nation. Some of these factors are economic, while others, such as the type of mortgage loan you choose, are entirely within your control.

Economic Factors

•   The Fed’s policy: The Federal Reserve’s federal funds rate, which is the interest rate that banks charge each other for overnight loans, serves as a benchmark for other interest rates, including mortgage rates. As noted above, when the Fed raises the federal funds rate, mortgage rates typically follow.

•   Cost of goods and services: Inflation, which refers to a sustained increase in the general price level of goods and services, can impact mortgage rates. When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. Lenders may increase interest rates to compensate.

•   Employment levels: The Fed watches the unemployment rate as a guide for its federal funds rate. If unemployment rises, the Fed might lower its rates to try to stimulate the economy and job creation.

Consumer Factors

•   Credit score: A higher credit score indicates a lower risk of default, making borrowers more attractive to lenders. As a result, individuals with higher credit scores typically qualify for lower mortgage interest rates.

•   Down payment: How much of the home’s price a homebuyer pays up front also affects what mortgage rate they are offered. A larger down payment means the loan is less risky for the lender. As a result, borrowers who make a larger down payment often qualify for lower mortgage interest rates.

•   Income and assets: A steady income and substantial assets can also positively influence mortgage rates. Lenders consider a stable income as an indicator of the borrower’s ability to make regular mortgage payments.

•   Type of mortgage loan: The type of mortgage loan selected can also impact mortgage rates. Adjustable-rate mortgages (ARMs) typically offer lower initial rates compared to fixed-rate mortgages. Government-backed loans, such as VA mortgages and FHA loans, may have lower rates due to government guarantees.

Types of Mortgages Available in New Hampshire

Homebuyers in New Hampshire have access to a variety of mortgage types, each with its own unique characteristics and benefits.

Fixed-Rate Mortgage

Fixed-rate mortgages provide stability and predictability by maintaining the same interest rate for the entire loan term so that the monthly principal and interest payments remain constant.

Fixed-rate mortgages are commonly available in terms of 10, 15, 20, or 30 years. The choice of loan term depends on the borrower’s financial situation and preferences. Shorter loan terms typically come with higher monthly payments. The 30-year term is the most popular one among homebuyers.

Adjustable-Rate Mortgage (ARM)

Adjustable-rate mortgages (ARMs) have an initial period of lower interest rates, followed by periodic adjustments based on a predetermined index. ARMs can be beneficial for borrowers who plan to sell or refinance their home before the fixed-rate period ends and for those who anticipate that their income will grow significantly in the future.

FHA Loans

FHA loans, backed by the Federal Housing Administration, are designed to make homeownership more accessible to borrowers with limited financial resources. FHA loans typically have more lenient eligibility requirements compared to conventional loans, allowing borrowers with lower credit scores and smaller down payments to qualify for a mortgage.

VA Loans

VA loans are exclusively available to eligible veterans , active-duty military members, members of the Reserve and National Guard, and surviving spouses. These loans are backed by the U.S. Department of Veterans Affairs (VA) and offer competitive interest rates and flexible terms.

One of the most significant advantages of VA loans is that they do not require a down payment, (coming up with down payment money is often the biggest barrier to home ownership for first-time homebuyers).

USDA Loans

USDA loans, provided by the U.S. Department of Agriculture (USDA), are specifically designed for borrowers whose income falls below a preset level and who are seeking to purchase a home in a rural area. These loans offer competitive interest rates and do not require a down payment, making homeownership more attainable for eligible individuals.

Jumbo Loans

Conventional mortgage loans have a maximum borrowing limit, known as the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA). For 2026, the conforming loan limit for a single-family home in most of New Hampshire is $832,750. In Rockingham and Strafford Counties, the limit is $962,550.

A jumbo loan is one that exceeds the conforming loan limit. These loans are used to finance higher-priced properties and are offered by many lenders, including banks, credit unions, and mortgage companies. They pose a greater risk for lenders and so often have more stringent application requirements.

Popular Places to Get a Mortgage in New Hampshire

When searching for a mortgage in New Hampshire, one key factor to consider is the cost of living in the desired location. When you compare an area’s cost of living to the cost of living in the U.S. you can see how it might be more or less expensive than average. That can certainly impact housing affordability, which in turn affects your mortgage payment.

Least Expensive Locations

The following areas in New Hampshire have a lower cost of living and may offer more affordable housing options:

•  Berlin has the lowest cost of living of any city in New Hampshire.

•  Claremont has a cost of living that is very close to that of Berlin.

•  Somersworth has a cost of living that is 4 points lower than the New Hampshire state average.

•  Rochester falls on the moderate side for New Hampshire, as well.

Find details about these and other less costly places to call home in SoFi’s list of best affordable places in the U.S.

Most Expensive Locations

Towns within the counties with a higher conforming loan level (Rockingham and Strafford, mentioned above) will tend to have higher housing prices, and many also have a higher cost of living. Case in point: Exeter and Salem. Salem has the state’s highest cost of living and its average home value is $581,678, according to Zillow. The historic seaport of Portsmouth has the second-highest cost of living in the state and an average home value north of $700,000.

Tips for Securing a Competitive Mortgage Rate in New Hampshire

Do your homework (a little math and a lot of reading and writing) and you can significantly reduce the overall cost of borrowing for your home purchase. Here’s how:

Compare Interest Rates and Fees

To secure a competitive mortgage rate, it is essential to compare interest rates from multiple lenders but to also factor in any upfront costs or closing fees associated with a loan. These fees can vary among lenders and can add to the overall cost of borrowing.

Get Preapproved

Obtaining preapproval for a mortgage strengthens a borrower’s position when making an offer on a property. Going through the mortgage preapproval process, which involves answering a number of questions and providing financial information, demonstrates to sellers that the borrower is a serious and qualified buyer, increasing the chances of a successful purchase.

Recommended: Mortgage Prequalification vs Preapproval

New Hampshire Mortgage Resources

New Hampshire provides various resources and programs to support homebuyers, especially first-time buyers and those facing financial challenges.

First-Time Homebuyer Programs

New Hampshire offers programs specifically designed to assist those who qualify as a first-time homebuyer:

•  New Hampshire Housing Finance Authority (NHHFA) offers low- or no-down-payment 30-year mortgages. Most of its programs serve homebuyers with incomes up to $167,800. The mortgage can be paired with down payment assistance (see below).

•   The Homebuyer Tax Credit is a federal Mortgage Credit Certificate (MCC) program designed to provide New Hampshire homeowners with a tax benefit. For as long as you live in the home, an MCC program allows you to claim a tax credit for a portion of the mortgage interest paid per year up to $2,000, for the life of the original mortgage.

Down Payment Assistance

New Hampshire also offers a down payment assistance programs to help borrowers overcome the challenge of saving for a down payment: Buyers with incomes under $167,800 can receive down payment assistance up to $15,000. The assistance can be used toward down payment and closing costs. This loan is secured by a second mortgage, with zero interest and APR, no periodic payments, and a 30-year term. You repay the assistance in 30 years or earlier if you sell, refinance, file for bankruptcy, or no longer occupy the property as your primary residence.

Tools & Calculators

New Hampshire Housing provides a mortgage calculator to help borrowers to estimate their home budget and understand their potential monthly mortgage payments based on different loan amounts, interest rates, and loan terms. Or use the calculators below:

Refinancing Options in New Hampshire: Exploring Your Possibilities

Homeowners in New Hampshire may also explore refinancing options with any lender that makes mortgage loans if they want to take advantage of lower interest rates or adjust their loan terms. FHA-insured homeowners can utilize the FHA Streamline Refinance program, which allows them to refinance into current mortgage rates with minimal documentation and without the need for a new appraisal.

VA loan holders can consider the Interest-Rate Reduction Refinance Loan (IRRRL) to reduce their monthly payments. This program allows eligible veterans and active-duty military members to refinance their VA loans into a lower interest rate without the need for a new appraisal.

Closing Costs and Fees in New Hampshire: What to Expect

When purchasing a home in New Hampshire, buyers can expect to incur closing costs, which typically range from 3% to 6% of the purchase price. These costs may include loan origination fees, appraisal fees, title insurance, and other administrative charges. Higher-priced properties and those located in certain areas may incur higher closing costs.

The Takeaway

The White Mountain State of New Hampshire offers a diverse range of mortgage options for homebuyers, and some attractive homeowner assistance programs, including a mortgage credit certificate. By keeping up to date on current mortgage rates, exploring assistance programs, and tending your personal financial profile, you can make smart moves that will set you up for successful homeownership in New Hampshire.

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 New Hampshire?

Mortgage rate movement is influenced by various economic factors so it’s hard to predict exactly when they might drop. Your best bet is to focus on the personal factors that can influence what rate you’re offered, such as your credit score.

Will mortgage rates ever go back to normal?

What is “normal” for mortgage rates changes from year to year and decade to decade — and is subjective. So it’s hard to say if rates will return to normal any time soon.

Will New Hampshire home prices ever drop?

Real estate market trends, including home price fluctuations, are influenced by a combination of economic, demographic, and local factors. Your best bet is to pose the question about the specific area in New Hampshire where you would like to buy a home, and to ask a local-market expert, such as a real estate agent.

Is it a good time to buy a house in New Hampshire?

Determining the right time to purchase a home depends on individual circumstances, financial readiness, and market conditions. To figure out if it might be a good time to buy, you can talk to local real estate professionals, scout out local home prices using an online site, and then run the numbers on your income and debts in a home affordability calculator to see if you’re set up for success in New Hampshire.

How do you lock in a mortgage rate?

To lock in a mortgage rate, you can work with a lender to secure a specific interest rate for a certain period, typically ranging from 30 to 90 days. This involves paying a fee to the lender, known as a rate lock fee, which ensures that the agreed-upon interest rate will be honored during the lock-in period.

How do mortgage interest rates work?

Mortgage interest rates represent the cost of borrowing money from a lender to finance a home purchase. They are influenced by various factors, including the Federal Reserve’s monetary policy, inflation, unemployment rates, and borrower-specific factors such as credit score, down payment amount, and loan type. Lenders use these factors to assess the risk associated with lending money and determine the interest rate they charge.

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 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 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.

†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.

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.

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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