Compare mortgage rates in Tucson.

Introduction to Mortgage Refinance Rates

Where Mortgage Rates Come From

Mortgage rates are the result of a complex interplay of economic factors and your personal financial standing. Let’s break down the two categories and look at them in more depth:

Discover how your debt level may impact your mortgage.

Try SoFi’s debt-to-income calculator to calculate your DTI number.

How Interest Rates Affect Home Affordability

The impact of mortgage rates on home affordability is significant. Given Tucson’s home prices, it would not be unusual for a buyer to borrow $300,000, so let’s look at how different rates and loan terms play out for a $300,000 mortgage. As the chart below shows, a one-percentage-point difference in rate for a 30-year loan results in about $70,000 in additional interest over the life of the loan. Choosing a shorter loan term usually means higher monthly payments but less interest paid in the long haul.

Tucson Mortgage Rate Trends

Historical U.S. Mortgage Rates

The history of mortgage rates in the U.S. is a bit of a rollercoaster. The 30-year fixed-rate mortgage, for instance, hit an all-time high of 18.63% in 1981, a serious challenge for homebuyers. After the financial crisis of 2007, rates dropped.

To get some perspective on what a “high” and “low” rate have looked like over the last half-century, consider the graphic. The accompanying chart shows how Arizona’s rate has compared to the national average in more recent times — as you can see, the state rate is often just below the national average. (The Federal Housing Finance Agency stopped compiling this data after 2018.)

Types of Mortgages Available in Tucson

In Tucson, Arizona, you have every type of mortgage loans to choose from. To make the best choice for your personal financial needs, it’s important to understand some basic terminology before you start loan-shopping.

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

Should You Wait for Interest Rates to Drop?

If you’re eager to purchase a home in Tucson, you might be pondering whether to hit the pause button and wait for more attractive mortgage rates. Given current economic uncertainties, it’s difficult to say. In early 2025, predictions suggested that interest rates would remain relatively stable through 2025, ending the year at 6.30%. While it’s tempting to bide your time, remember that the sooner you make your purchase, the sooner you begin to build equity (assuming you are buying your first home). And should rates take a dip in the future, refinancing can be an invaluable tool in your homeowner’s kit.

The Cost of Living in Tucson

When it comes to the cost of living, Tucson is a pretty welcoming town. Food and transportation costs here are below average for the U.S. so the average monthly expenses for one person shouldn’t be unmanageable. Here’s how Tucson compares to other Arizona cities on a cost-of-living index where 100 equals the average cost of living in the U.S.

Get Your Best Possible Rate in Tucson

To secure the best mortgage rates in Tucson, there are several key steps to take. First, focus on improving your credit score and lowering your debt-to-income (DTI) ratio. A higher credit score and a DTI below 36% can lead to better rates offered by lenders. Review your credit report for any inaccuracies and pay your bills on time. To the extent possible, pay down debts and don’t incur new ones. Increasing your down payment can also be beneficial.

You’ll also want to explore government-backed loans like VA or FHA mortgages. Consider undertaking the mortgage approval process with a lender to get a pretty solid sense of what you’ll be able to borrow. (Having a mortgage preapproval letter can show sellers that you are serious, so if the market is competitive it can give you an edge.)

Helpful Tools & Calculators

Online mortgage calculators are a great way to get an idea of what you can expect to pay each month, so you can understand how that fits into your overall cost of living. These are three calculators you’ll find useful during your home search.

How to Evaluate Loan Offers in Tucson

Securing a competitive mortgage rate is a smart financial move. Even a seemingly small difference in rates can add up to significant savings over the life of your loan. When comparing loan offers in Tucson, Arizona, be sure to look at the big picture. The annual percentage rate (APR) is an important number, as it factors in fees, closing costs, and discount points. Worried about rates creeping up? For a sense of security, many lenders offer the option to lock in your rate for up to 90 days, for a fee. It’s a small price to pay for peace of mind and financial stability.

Tucson Mortgage Resources

Arizona has programs available for homebuyers who are entering the market for the first time and for those with limited financial means. (As noted above, you could still qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years.)

Home+Plus is a down payment assistance program that offers a 30-year fixed-rate mortgage and up to 4% in down payment assistance. The Pathway to Purchase Homebuyer Assistance Program provides up to $20,000 in down payment assistance, even for those who aren’t first-time buyers.

Closing Costs in Tucson

If you’re buying a home in Tucson, Arizona, you can expect to pay between 2% and 5% of your loan amount in closing costs. The total you’ll pay can vary greatly depending on your home’s purchase price and its location within the city. Common closing costs in Tucson include loan origination fees, appraisal fees, and title insurance. For a home priced at $325,000, the average closing costs could range from $6,500 to $16,250. Knowing what to expect can help you budget for these costs and ensure a smooth closing.

The Takeaway

By keeping your finger on the pulse of current mortgage rates in Tucson and exploring the available homebuyer assistance programs, you can make savvy decisions that align with your financial aspirations and set yourself up for successful homeownership. Whether you’re a first-time buyer or a seasoned homeowner eager for a change, mortgage rates in Arizona can have a significant impact on your overall financial health.

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FAQ

Will mortgage rates ever go back to normal?

What is “normal” to one Tucson homebuyer may be abnormal to another. While rates have increased in recent years, they are still well below peaks seen in previous decades. So waiting for “normal” rates may be less helpful than examining whether you can afford to purchase a home and asking yourself whether this is the right time to do so. If you’re relocating to the area for work or having a baby or really want to build equity vs. rent a home, the answer could be yes.

Will Tucson, Arizona home prices ever drop?

The ebb and flow of home prices in Tucson, Arizona are influenced by a variety of factors. While short-term fluctuations may occur, the overall trend for home prices historically tends to be upward. The Tucson Housing Market has seen steady growth in 2025, fueled by population increases and economic expansion. This would normally bring more competition and higher prices. However Tucson properties remain somewhat more affordable than other major cities in the region.

How do you lock in a mortgage rate?

Locking in your mortgage rate can be wise. Once you have compared mortgage offers from different lenders, determine your preferred rate, term, and lender. Ask the lender if you can lock in the rate — typically for a period of up to 90 days. This will give you time to close without worrying about rising rates. Rate locks are sometimes free but often cost between 0.25% and 0.50% of the loan amount.

How do mortgage interest rates work?

Mortgage interest is the fee you pay to a lender for the privilege of borrowing money to purchase a home. It’s usually expressed as a percentage of the loan amount. Interest is a big part of your total loan cost, so it’s important to get a good rate. Fixed-rate mortgages have the same interest rate for the entire term of the loan, while adjustable-rate mortgages (ARMs) have rates that can change over time.

Compare mortgage rates in Winston Salem, North Carolina.

Introduction to Winston Salem Mortgage Interest Rates

Where Mortgage Rates Come From

Whether buying your first home or a seasoned homeowner, how mortgage rates are set can be a bit of a mystery. Rates are typically influenced by a number of economic factors, along with the borrower’s financial status and credit history. Let’s break it down:

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

Interest rates are a big deal when you’re buying a home in today’s market. The median home value in Winston-Salem is $257,000, according to Zillow, so it’s not unusual for a buyer to borrow more than $200,000.

At a 6.50% interest rate, your monthly payment would be $1,264. But if the rate was 7.00%, your payment would jump to $1,330. Over the full 30-year term, the lower rate would save you almost $24,000 in interest. That’s money that could go toward a healthy emergency fund or a car payment. That’s why it’s so important to get the best mortgage rates you possibly can.

Winston Salem Mortgage Rate Trends

Historical U.S. Mortgage Rates

When you’re in the market for a home loan in Winston Salem, it helps to have perspective on historical mortgage rates. The line chart shows how much rates have fluctuated over the last 50 years. The table compares North Carolina’s average fixed rate to the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.)

Should You Wait for Interest Rates to Drop?

If you’re looking to purchase your first home in Winston Salem, you might be wondering if you should hold off and wait for interest rates to dip. Predictions point to mortgage rates in North Carolina staying fairly steady in the near future. The average rate for a 30-year fixed mortgage is expected to end 2025 around 6.30%, and the outlook for 2026 doesn’t foresee much change.

For many aspiring homebuyers, waiting several years for a rate drop just isn’t in the cards. Instead, weigh your personal financial goals and readiness to purchase. Plus, remember that you can always consider a mortgage refinance down the line if rates do happen to fall.

Cost of Living in Winston Salem

Winston Salem is a place where your dollar stretches a little further. The average home value is $257,000 — well below the national average of $361,000. The overall cost of living in Winston Salem also contributes to how well you can fit mortgage payments into your budget. At 93.4, the city is more affordable than many other cities in the state, and below the national average.

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

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How to Get Your Best Possible Rate in Winston Salem

To secure the best mortgage rate in Winston Salem, focus on improving your credit score, which plays a vital role in the interest rate you’ll qualify for. Lowering your debt-to-income (DTI) ratio is also beneficial, along with increasing your down payment amount.

Additionally, consider going through the mortgage preapproval process, exploring different types of mortgages available to you, and comparing offers from multiple lenders to find the most favorable mortgage rates in Winston Salem.

Tools & Calculators

Using a mortgage payment calculator is a very helpful way to understand how different mortgage rates in Winston Salem can impact your monthly payments. These online tools consider several key factors, including the loan amount, interest rate, and the repayment term, to provide a clear picture of your financial obligation.

Types of Mortgages Available in Winston Salem

In Winston Salem, you’re spoiled for choice with many types of mortgage loans. The conventional route typically looks for a credit score of 620 or higher, with the average homebuyer boasting a 758 in 2024. Then there are government-backed loans, each with its own perks. Take the time to sift through these choices, and you’ll be in a good position to land on the one that best aligns with your financial situation and needs.

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Get Your Best Possible Rate in Winston Salem

To land the most favorable mortgage rates in Winston Salem, your credit score is key. Aiming for a lower interest rate? Focus on paying your bills on time and avoid opening up new lines of credit. Try to chip away at monthly debts to reduce your DTI ratio. Going through the mortgage preapproval process can help you set a budget, learn how much a lender thinks you can borrow, and help speed the home-buying process once you want to make an offer.

How to Evaluate Loan Offers in Winston Salem

A competitive mortgage rate can save you a bundle over the life of your loan. Even a seemingly small rate difference can add up to thousands in savings. When you’re comparing loan offers in Winston Salem, be sure to look at both the interest rate and fees. The APR (annual percentage rate), which includes fees, closing costs, and discount points, can give you a more complete picture of what each loan will cost.

If you’re worried about rates going up, you can lock in your rate for up to 90 days for a fee. This can give you peace of mind in a market where rates are fluctuating.

Winston Salem Mortgage Resources

North Carolina is brimming with resources and down payment assistance programs to lend a hand to homebuyers, especially those stepping into homeownership for the first time or with limited financial means. The North Carolina Housing Finance Agency (NCHFA) is a prime example, offering initiatives like the NC Home Advantage Mortgage, which can provide a 30-year fixed-rate mortgage with up to 3% down payment assistance.

Closing Costs in Winston Salem

In Winston Salem, you can anticipate closing costs to range between 2% and 5% of your loan value. Your exact costs will be influenced by your property’s value and location. You’ll likely encounter expenses like loan origination fees, appraisal fees, and title insurance. Explore your options and compare the closing costs from multiple lenders. Some may present lower closing costs or the possibility of folding them into your loan (in exchange for a higher interest rate).

The Takeaway

The mortgage market in Winston Salem offers a variety of options to suit different needs. By keeping yourself in the loop with the current mortgage rates in North Carolina and exploring the various assistance programs available, you can make decisions that are not only strategic but also align with your financial goals. Whether you’re a first-time homebuyer or a seasoned homeowner, investing time to research and compare loan offers can lead to significant savings. Consider the benefits of different mortgage types, such as fixed-rate and adjustable-rate mortgages, and make the most of local resources to achieve successful homeownership in Winston Salem.

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FAQ

Compare mortgage rates in Nashville.

Introduction to Mortgage Interest Rates

Where Mortgage Rates Come From

Mortgage rates are influenced by a variety of economic factors. The bond market, and particularly rates on the 10-year U.S. Treasury Note, have historically served as a strong predictor of where rates may be headed. The housing market’s overall performance and inflation levels also play crucial roles in determining rates.

These factors are outside of your control, but there are things you can do to influence your own personal mortgage rate. Lenders will look at the following:

•   Credit score The higher the score, the lower the rate you’ll likely obtain. Most conventional lenders will look for a score of 620 or better.

•   Down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.

•   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.

Discover how your debt level may impact your mortgage.

Try SoFi’s debt-to-income calculator to calculate your DTI number.

How Interest Rates Affect Home Affordability

Why take the time to study mortgage rates in such detail? They are a big deal when it comes to the overall cost of your home. Let’s say you’re looking at a $400,000 loan. At a 6.50% interest rate, you’d be shelling out $2,528 each month. But if that rate creeps up to 7.00%, your payment jumps to $2,661. Over 30 years, that’s a nearly $48,000 difference in interest alone. That’s a hefty chunk of change. And that’s why it’s so important to snag the best mortgage rate possible in Nashville.

Nashville Mortgage Rate Trends

Historical U.S. Mortgage Rates

When you view the current mortgage rates in Tennessee through the lens of history, they’re actually quite competitive. While rates have risen in recent years, moving away from record lows seen in 2021, they are still below historical highs observed over the last half-century (as shown in the graphic).

The table shows how average mortgage rates in Tennessee tend to compare to those for the U.S. as a whole. The cost of living in Tennessee is generally below the national average, and the same is true of mortgage rates. (The Federal Housing Finance Agency stopped tracking state averages after 2018.)

Types of Mortgages Available in Nashville, Tennessee

Nashville offers all the usual types of mortgage loans when you’re ready to make that dream home a reality. Take some time to understand the differences, and to consider government-backed loans, which come with more flexible terms and benefits. Here are the most common types you’ll see.

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Should You Wait for Interest Rates to Drop?

Many homebuyers in Nashville find themselves wondering whether they should delay their home purchase until interest rates drop. However, current predictions suggest that these rates will likely remain relatively stable in the near future. According to Fannie Mae’s forecasts, the average mortgage rates in Tennessee are expected to end the year 2025 at around 6.30%. Given this landscape, whether or not to purchase may depend more on your personal budget and housing needs than on rates. The good news is that homeowners always have the option of a mortgage refinance if rates decline in the future.

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The Cost of Living in Nashville

When thinking about what your monthly mortgage payment will be in Nashville, it’s also important to take the city’s overall cost of living into account. Good news: Tennessee as a whole is more affordable than the U.S. average. Even higher-cost Nashville comes in below the country’s norm. That said, home prices are high. The median sale price tops $470,000 and has risen in the last year.

In the Nashville area, a living wage for a single adult without children is $53,090 according to the Massachusetts Institute of Technology’s Living Wage Calculator. Two working adults with two kids will need an income of $91,559 before taxes. Here’s how Nashville compares to other Tennessee cities on a cost-of-living index where 100 equals the average cost of living in the U.S.

Get Your Best Possible Rate in Nashville

To secure the best mortgage rates in Nashville, it’s important to focus on improving your credit score. First step? Check your credit report for errors, and request corrections for any you find. And of course, focus on paying every single bill on time. To the extent possible, you’ll also want to reduce your overall debt. Aim for a DTI ratio below 36% to show financial responsibility. A larger down payment can also substantially reduce your rate, so examine your budget to see what you can afford. Consider going through the mortgage preapproval process. A lender will thoroughly scrutinize your financial stats. Having a preapproval letter will tell you exactly how much you might be able to borrow. (Showing the letter to a seller in a competitive housing market might also improve your chances of landing the property.)

Helpful Tools & Calculators

A mortgage calculator can be a great resource to help you estimate your monthly payments and total costs when it comes to buying a home. You can put in different rates and terms to understand how changing one or both might affect your costs. All three of these calculators will be useful as your home search plays out.

How to Evaluate Loan Offers in Nashville

Once you have loan offers from multiple lenders in hand, you’ll want to look at them closely to determine which one is most advantageous for you. Don’t just compare interest rates. Take into account the annual percentage rate (APR) on each loan, which encompasses fees, closing costs, and discount points. If you’re concerned about potential rate hikes, some lenders offer the option to lock in your rate for up to 90 days for a fee. Congratulations — you’re in the homestretch. By diligently shopping around for the best mortgage rates in Nashville, you’re taking a proactive step toward financial well-being.

Nashville Mortgage Resources

Tennessee, the Volunteer State, offers resources and programs to help those who are first-time buyers or who have limited financial means to purchase a home. The Tennessee Housing Development Agency (THDA) is a go-to for first-time buyers. Its Great Choice Home Loan Program offers 30-year fixed-rate loans and down payment assistance for FHA or USDA (United States Department of Agriculture) loans. Repeat buyers can get down payment assistance through THDA as well. If you’re a hero in our community — active military, a veteran, or a first responder — THDA’s Homeownership for Heroes program has a 30-year loan with a reduced interest rate.

Closing Costs in Nashville

If you’re buying a home in Nashville, you can expect to pay between 2% and 5% of the loan value in closing costs. Several factors influence the amount of closing costs in Nashville, Tennessee, including the property’s value and its location. These costs typically include loan origination fees, property appraisal fees, title insurance premiums, and attorney fees for legal services. To help manage these costs, some buyers may be able to negotiate with the seller to cover some of the costs. Understanding the detailed breakdown of all closing costs and carefully comparing offers from different lenders can help you find the best deal.

The Takeaway

Nashville’s mortgage landscape offers plenty of options for area homebuyers. By staying informed about current mortgage rates in Nashville and researching available assistance programs, you can make strategic decisions that align with your financial goals and help you achieve successful homeownership in Music City.

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FAQ

Will mortgage rates drop in Nashville, Tennessee?

Pinning down the exact future of mortgage rates in Nashville is like trying to predict the weather. Keeping an eye on economic trends and market conditions is the best way to know what will happen to mortgage rates in Nashville. If the 10-year Treasury Bond rate is falling, mortgage interest rates may fall as well. However, the forecast for interest rates through 2025 is one of relative stability, with the national average rate ending the year at 6.30%.

Will Nashville home prices ever drop?

A steady influx of people moving to Nashville means that housing prices will likely continue to increase in the near term, albeit more moderately than in the recent past. New developments on the horizon will help mitigate this increase somewhat, according to local experts.

Is it the right time to buy a home in Nashville?

The decision to purchase a home in Nashville is a multi-faceted one, with mortgage rates being just one piece of the puzzle. Rates have eased up a bit, even if home prices have not. If you are financially ready to purchase property and you find a competitive interest rate, it could be a good time to enter the market and buy a home. However, it’s important to carefully consider your overall financial goals and the current economic climate as a whole before making such a big decision.

How do mortgage interest rates operate?

Mortgage interest is the fee you pay to borrow money to purchase property, typically calculated as a percentage of your total loan. Mortgage rates can be fixed or variable. Fixed mortgage interest rates don’t change over the life of the loan, so you’ll know exactly how much you’ll pay each month. Variable rates can change over time, which can affect the amount of interest you’ll pay. The rate you receive is based on your credit score, down payment, and employment history, as well as current economic conditions.