Compare mortgage rates in Phoenix.

Introduction to Mortgage Refinance Rates

Where Mortgage Rates Come From

Mortgage rates are the result of a complex interplay between various economic factors and your personal financial situation. Let’s look at these closely:

Discover how your debt level may impact your mortgage.

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

Phoenix Mortgage Rate Trends

Historical U.S. Mortgage Rates

Understanding the historical trends of mortgage rates in the Phoenix area can provide some insight into current market conditions. While rates are higher now than in 2021, when they hit historic lows, they remain well below the all-time highs seen in the 1980s. Let’s take a closer look at the past. The graphic shows more than a half-century of rates, while the chart shows how Phoenix’s average rate has compared to these national averages (it is often just below the national level).

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How to Get Your Best Possible Rate in Phoenix

To secure the best mortgage rates in Phoenix that you can get, you may want to take these steps.

•   Review your credit score, and if necessary, work to strengthen it.

•   Lower your debt-to-income (DTI) ratio by paying down as much debt as you can.

•   Increase your down payment though savings or gifts from friends and family.

•   Compare rates from different lenders so you can see the full range of rates available to you.

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

Types of Mortgages Available in Phoenix

In the sunny city of Phoenix, you have many types of mortgage loans available to you — it’s all about finding the right fit for your financial landscape. These are the most common types.

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

Should You Wait for Interest Rates to Drop?

If you’re buying your first home in Phoenix, you might be pondering this question. Fannie Mae’s forecast for interest rates through the end of 2025 hovers around 6.30%. So, what does that mean for you? The decision to buy a home will depend on a variety of factors, including your budget and the current market conditions in your area. Are home prices expected to increase? If so, this might be time to buy. Did you recently relocate to the area, or is your family growing? If so, mortgage rates may not be the primary driver of your decision. (Remember, you can always undertake a mortgage refinance down the line if rates take a dip.)

The Cost of Living in Phoenix

The appeal of Phoenix is undeniable. With an average of 286 sunny days each year, it’s a city that offers a lot. No surprise, then, that its population has been on a steady uptick. Its cost of living is above average for the U.S. as a whole but looks like a bargain when compared to other popular Arizona cities. The median home sale price here is just under $400,000.

Here’s how Phoenix 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 Phoenix

To secure the best available mortgage rates in Phoenix, your task is to focus on improving your credit score and actively lowering your debt-to-income (DTI) ratio. Check your credit report and look for inaccuracies. And pay your bills on time. Avoid taking on new debts that would tip your DTI in the wrong direction. And consider making a larger down payment to the extent you are able. Seek out quotes from multiple lenders and carefully explore government-backed loan options if you are eligible. Going through the mortgage preapproval process can help you fully understand your budget and negotiate the most suitable terms with a lender in Phoenix.

Helpful Tools & Calculators

Online tools can be a huge help during the mortgage process, from aiding you in understanding your home budget to enabling you to see how different mortgage rates in Phoenix might affect your monthly costs. These are our favorite calculators:

How to Evaluate Loan Offers in Phoenix

Once you’ve secured quotes for a home loan from a variety of lenders, it’s time to compare them side by side. Don’t just look at the interest rate — be sure to look at the annual percentage rate (APR), which gives you a comprehensive view of the costs involved. Once you’ve found an offer that suits you, consider requesting to lock in the rate for up to 90 days, especially if you’re concerned about rates increasing. This can provide peace of mind in a fluctuating market.

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Phoenix Mortgage Resources

Arizona offers programs to aid homebuyers who are stepping into the market for the first time and those with limited financial means. Note that 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% down payment assistance. The Pathway to Purchase Homebuyer Assistance Program offers up to $20,000 in down payment assistance, even for those who aren’t first-time buyers.

Closing Costs in Phoenix

If you’re buying a home in Phoenix, plan to set aside between 2% and 5% of your loan amount to cover closing costs. The total you’ll pay can vary based on the property’s value and location. These costs often include loan origination fees, appraisal fees, and title insurance. Remember, too, that some homebuyer assistance programs can help you pay for closing costs.

The Takeaway

By keeping an eye on the Phoenix mortgage market and exploring the various assistance programs available, you can make the right decisions to achieve your dream of homeownership. Whether you’re a first-time buyer or a seasoned homeowner, understanding the different types of mortgages and using online calculators can help you find the best fit for your needs.

View your rate

FAQ

Will mortgage rates drop in Phoenix?

While it’s a bit like gazing into a crystal ball, keeping tabs on economic indicators and maintaining open lines of communication with lenders can help you answer this question. Watch economic factors like inflation and Treasury bond prices. When rates on the 10-year U.S. Treasury Note rise, rates may be headed up as well.

Will Phoenix home prices ever drop?

The Phoenix housing landscape is influenced by many factors, including the overall state of the economy, both locally and nationally, and the balance of supply and demand. While it is difficult to predict the exact direction of home prices due to the inherent volatility of the market, a real estate agent with local knowledge may be able to help you assess where prices are headed.

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

Deciding whether to buy a house in Phoenix depends more on your personal financial readiness than on the prevailing market conditions. Mortgage rates in Phoenix play a role in overall affordability. 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 before making such a significant decision about homeownership.

How do mortgage interest rates function?

Mortgage interest is the fee you pay to a lender for the privilege of borrowing money, typically expressed as a percentage of the total loan. It’s a significant portion of your home expenses, especially in the early years of homeownership. The rate you secure is influenced by a variety of factors, including your financial profile, the state of the economy, and even the local inflation rate in Phoenix.

Compare mortgage rates in Miami.

Introduction to Mortgage Rates

Understanding mortgage rates in Miami is crucial for anyone interested in buying a home there.

This guide will break down how these rates are determined and explain how you can work to secure the best rate possible in your specific situation. Whether you’re a first-time buyer or a seasoned homeowner looking to refinance, knowing more about what influences mortgage rates in Florida can help you make well-informed decisions. Buying a home is a milestone, and the more you know about what you’re doing, the smoother the process is likely to be -– and the happier you’ll probably be with the results.

Where Mortgage Rates Come From

Mortgage interest rates are not the same everywhere or for every individual. They’re strongly influenced by the bond market, with the 10-year U.S. Treasury Note as the primary benchmark for lenders. When interest rates on the note rise, mortgage rates typically go up as well. Unsurprisingly, the housing market also plays a key role. A strong housing market, combined with increasing inflation, can nudge mortgage rates higher.

Mortgage rates are also personalized to the borrower. The rate you are offered is influenced by your credit score, in particular. The higher your score is, the lower the rate you’ll probably be offered. Making a larger down payment can also decrease your interest rate, since lenders often consider borrowers who have more equity in their new home a lower default risk.

Your debt-to-income (DTI) ratio is an important metric as well. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum. In Miami, all these factors play a significant role in the determination of mortgage rates.

See how your debt level may affect your mortgage

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

How Interest Rates Affect Home Affordability

Mortgage rates have a significant impact on your home’s affordability, as they directly influence how much house you can afford.

Let’s look at an example. On a $400,000 loan, a 6.50% interest rate would yield a $2,528 monthly payment. But if the rate jumps to 7.00%, the payment increases to $2,661.

And it’s not just the monthly difference that matters. Over 30 years, the borrower with the lower rate would save almost $48,000 in interest. This is especially important to consider if you’re in the market for a home in Miami, where home prices can be high.

The term of your loan also has an impact on what you pay. A shorter term may mean higher monthly payments, but it also saves you money in interest over the lifetime of the loan. The table below shows how much difference changes in your interest rate and loan term can make on a $300,000 fixed-term loan.

Miami Mortgage Rate Trends

Looking at historical mortgage rates in Miami can help you get a sense of what to expect. Although rates have increased in recent years, they’re still lower than the historical high. In October 1981, for example, weekly rates peaked at 18.63%. Today, rates in Miami are near the 50-year average.

Should You Wait for Interest Rates to Drop?

Many prospective homebuyers wonder if they should postpone their purchase until rates in Miami dip. Current forecasts, however, suggest that rates are likely to remain relatively stable in the near term. According to March 2025 financial commentary, the average mortgage rate is expected to end the year at approximately 6.30%.

It’s worth noting that you can always explore the option to get a mortgage refinance later if rates happen to decline.

See How Miami’s Costs Stack Up

At 120.9% of the national average, the cost of living in this energetic and culturally diverse city is high but still affordable for many homebuyers eager to enjoy the city’s exciting atmosphere and warm weather. It’s important to consider Miami’s cost of living if you’re thinking of buying a home here, since it will have an impact on property prices. It also influences how easy it will be to fit mortgage payments into your budget.

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

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Get Your Best Possible Rate in Miami

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

•   Review your credit score. If it’s not where you’d like it to be, work to build a stronger credit history.

•   Lower your debt-to-income (DTI) ratio. You can do this by paying down as much debt as you can.

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

•   Compare rates from different lenders. There can be variations, so it’s worthwhile to review the full range of rates available to you.

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

Tools & Calculators

Mortgage tools and calculators can help you make well-informed decisions about Miami mortgage rates, especially if you’re buying your first home. For example, a mortgage payment calculator can help you determine what your monthly payments would be for different loan amounts, interest rates, and repayment terms. This can help you understand how various Miami mortgage rates can affect both your monthly budget and your long-term financial goals.

Below are three mortgage calculators that may be useful.

Types of Mortgages Available in Miami, Florida

There are many different kinds of mortgages that would-be homeowners can access in Miami. With conventional home loans, you’ll generally need a credit score of 620 or above. Fortunately, the median score for a resident of Miami is 652.

If your score’s a bit lower, there are other types of mortgage loans, too. FHA loans are a popular choice thanks to their more lenient credit requirements and lower down payments, while VA loans don’t require down payments and offer potentially lower interest rates. Let’s take a closer look at some of your choices.

How to Evaluate Loan Offers in Miami, Florida

A competitive mortgage rate is the cornerstone of smart savings over the life of your loan. Even half a percentage point can add up to substantial savings, as we’ve already seen.

That’s why it’s so critical to compare the different interest rates and terms you’re offered by various lenders. And don’t forget to look at the annual percentage rate (APR), which includes fees, closing costs, and mortgage points.

Once you’ve settled on an offer, you might want to lock in your rate for up to 90 days if you’re concerned about rates going up. This may require a fee, depending on your lender.

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Miami Mortgage Resources

Florida has many resources for aspiring homeowners, particularly if you qualify as a first-time homebuyer or have limited financial means.

The Florida Housing Finance Corporation administers programs such as the Florida Hometown Heroes program, which provides lower than market rates on FHA, VA, and other specified loans as well as assistance with down payments and closing costs for first-time homebuyers who work for Florida-based businesses or are serving in the military. (The program considers you a first-time homebuyer if you haven’t owned a primary residence in the past three years.)

In addition, Florida Housing provides several closing costs and down payment assistance programs, too, including the Florida Assist and the Florida Homeownership Loan Program Second Mortgage, among others. Just note that these are not available as freestanding options and can only be accessed when you get your first mortgage through Florida Housing.

Closing Costs in Miami

If you’re contemplating buying a home in Miami, it’s a good idea to figure closing costs into your budget. You can generally expect these costs to include common expenses like loan origination fees, appraisal fees, and title insurance.

Closing costs typically run between 2% and 5% of your total loan value. The average cost of a home in Miami is about $590,000, so closing costs are likely to range between $11,800 and $29,500.

The exact amount you’ll be charged for these costs is influenced by a variety of factors, from the property’s value to its specific location. To keep these costs in check, be proactive with potential lenders and don’t hesitate to negotiate fees.

The Takeaway

The mortgage market in Miami, Florida, is as diverse as the city itself, offering a multitude of options for anyone looking to make a home purchase. Whether you’re new to the market or a seasoned buyer, understanding the different types of mortgages, such as ARMs, FHA, and VA loans, can help you find the best fit for your needs. Staying in the know about the current mortgage rates in Miami and the available assistance programs can help you make sound financial decisions that will set you up for successful homeownership.

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 Miami, Florida?

Many economists are predicting that mortgage rates will remain fairly consistent through the end of 2026, but it’s impossible to know for sure. Watching where rates are going can be helpful when you want to buy a home. But working on your financial situation -– strengthening your credit score, paying down debt, saving up a down payment -– will help you be ready to act when the moment is right.

Will mortgage rates ever be normal again?

Mortgage rates have certainly risen since the lows of the Covid-19 pandemic, but they’re still significantly lower than the peaks seen in earlier decades. That suggests that, looked at historically, today’s rates may be “normal.” For most would-be homebuyers, focusing on assessing and improving their financial standing is probably more productive than waiting for mortgage rates to drop.

How do I lock in a mortgage rate?

To find the best possible mortgage rate available to you, comparison shop offers from different lenders. After you’ve chosen the offer you like, ask your lender about locking in the rate. Rate locks, which usually last between 30 and 60 days, are sometimes free but often cost between 0.25% and 0.50% of the loan amount.

How do mortgage interest rates function?

Mortgage interest is essentially the fee you pay your lender for the privilege of borrowing money to buy a home. Your mortgage interest rate tells you how much that fee will be. It’s usually expressed as a percentage of your loan amount. With a fixed rate loan, that percentage never changes and you pay the same amount every month for the life of your loan. With a variable or adjustable rate, the percentage can change, so you won’t necessarily know exactly what you will owe each month.

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.

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.

SOHL-Q225-119

Compare mortgage rates in Buffalo, CA.

Introduction to Buffalo, New York Mortgage Interest Rates

Where Mortgage Rates Come From

In New York and throughout the U.S., mortgage rates are influenced by a variety of factors. The bond market, and specifically the 10-year U.S. Treasury Note, often signals where mortgage rates are headed. The housing market and the rate of inflation also have an impact on the direction of rates. When the economy is strong, unemployment is low, and inflation is rising, mortgage rates will move higher. But when the economy is slowing, or if there are signs of inflation in the economy, mortgage rates often fall, making loans more affordable.

Your own personal financial profile also contributes to the mortgage rate you’ll be offered. Lenders will examine the following:

•   Credit score The higher the score, the lower the rate you’ll likely obtain.

•   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.

See how your debt level may affect your mortgage

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

How Interest Rates Affect Home Affordability

Mortgage rates in Buffalo can have a significant impact on home affordability for those looking to buy. A seemingly small change in the interest rate can actually make a surprisingly big difference in the total cost of a home purchase.

For example, consider a $400,000 loan at 6.50% with a 30-year term. It would carry a monthly payment of $2,528. If the rate increases to 7.00%, the monthly payment increases to $2,661. Over the life of the loan, the borrower with the lower rate ultimately saves nearly $48,000 in interest payments, a considerable sum of money. This highlights why even minor fluctuations in mortgage rates are important.

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Buffalo, New York Mortgage Rate Trends

Historical U.S. Mortgage Rates

Understanding historical mortgage rates can help you gain perspective on the current market. 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 chart shows how average mortgage rates in New York state tend to compare to those for the U.S. as a whole. Buffalo and its neighbors fare nicely, with New York rates trending below national averages. (The Federal Housing Finance Agency stopped tracking state averages after 2018.)

Types of Mortgages Available in Buffalo

There are different types of mortgage loans available in Buffalo, and the type you choose will be another factor in the rate you are offered. Conventional mortgages are the most common and typically require a credit score of 620 or higher. Government loans have more flexible credit requirements. Here are the most common types of mortgages:

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Should You Wait for Interest Rates to Drop?

Buffalo homebuyers might be wondering if it’s smart to wait for interest rates to drop before making a purchase. While it’s always nice to get a good deal, current predictions suggest that rates will remain relatively stable. According to Fannie Mae’s latest forecast, the average mortgage rate is expected to end 2025 at around 6.30%. So, what does that mean for you? The decision to buy a home is a personal one and depends on a variety of factors, including your budget and the current market conditions in your area. Are home prices expected to rise? If so, this might be time to buy. Do you need to buy because you recently relocated to the area or find your family growing? If so, mortgage rates may not be the top concern.

Cost of Living in Buffalo

The cost of living in Buffalo, New York, is more manageable than in other parts of the state. The median sale price for a home here is a relatively affordable $179,000, according to Redfin. But the market is somewhat competitive, and multiple offers are not uncommon. Buffalo offers a great quality of life for the money, with a variety of cultural and outdoor activities to enjoy.

Get Your Best Possible Rate in Buffalo

To secure the best possible mortgage rates in Buffalo, focus on caring for your credit score and actively lowering your debt-to-income (DTI) ratio. A higher credit score and a DTI below 36% can potentially lead to better interest rates on your mortgage. This means checking your credit report, correcting any inaccuracies, and paying bills on time. Reduce your debts as much as possible. And consider how large a down payment you can put down without pinching your budget — a larger down payment will help your chances of getting a good rate. Consider going through the mortgage preapproval process with a lender to understand exactly what your borrowing capacity looks like and what rate you’ll qualify for.

Helpful Tools & Calculators

An online mortgage calculator will be a useful tool during the process of budgeting for a new home, as will a home affordability calculator. In fact, you’ll want to keep all three of these useful calculators close at hand:

How to Evaluate Loan Offers in Buffalo

Securing a competitive mortgage rate is a project well worth your time. Even a fraction of a percentage point can add up to significant savings over the life of your loan. You’ll want to compare interest rates and fees from multiple lenders. Don’t just look at interest rates. Pay close attention to the annual percentage rate (APR), which provides a comprehensive view of the costs involved in a loan. Once you’ve found an offer that suits you, consider paying a fee to lock in your rate for up to 90 while you finalize your house hunt. It will protect you against any instability in a mortgage market where rates can be unpredictable.

Buffalo Mortgage Resources

If you’re buying your first home or have limited financial means (or both), New York offers resources and programs to support you on your journey, including down payment assistance programs. (It’s worth noting that you might qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years.) The State of New York Mortgage Agency (SONYMA) is tasked with expanding access to affordable homeownership. Its Down Payment Assistance Loan, for example, is a 0% loan for a down payment that is forgiven after 10 years.

Closing Costs in Buffalo

If you’re buying a home in Buffalo, you can expect to pay between 2% and 5% of the total loan value in closing costs. Several factors can influence your closing costs, including the home’s value and location. Costs can include loan origination fees, property appraisal fees, and title insurance coverage. Examining these costs will be part of your process when shopping around with different lenders.

The Takeaway

Buffalo is a promising spot for those seeking to establish roots in a vibrant city at a relatively affordable price. With a diverse array of mortgage options available, it’s important to stay informed and explore the various assistance programs to make the best financial decisions. Whether you’re a first-time buyer or a seasoned homeowner, carefully choosing a mortgage can significantly impact your financial well-being. Take the time to do your research, and you’ll be well on your way to achieving successful homeownership in Buffalo.

View your rate

FAQ

Will mortgage rates go down in Buffalo, New York?

While it’s hard to pinpoint the future of interest rates, keeping a close eye on economic factors like inflation and Treasury bond prices can help homebuyers get a sense of where mortgage rates in Buffalo may be going. When rates on the 10-year U.S. Treasury Note rise, rates may be headed up as well. If you’re worried about rates climbing, you can always lock in a rate that gives you peace of mind and financial security.

Will Buffalo, New York home prices ever drop?

The real estate market in Buffalo, New York has had its highs and lows, but remained relatively stable in the last few years. And with a median sale price that’s less than $200,000, it’s hard to see Buffalo’s housing prices dropping significantly in the future. (The median sale price in the U.S. as a whole is more than double what Buffalo buyers are paying.) Economic factors — supply and demand, interest rates, and local economic conditions — can significantly sway the market, so keep things like population growth and the health of the job market in Buffalo in sight.

Is it the right time to invest in a home in Buffalo, New York?

Deciding whether to buy a house in Buffalo will depend more on your personal financial readiness than on the prevailing market conditions. Mortgage rates in Buffalo play a role in overall affordability. If you are financially prepared 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 significant decision about homeownership.

How can I lock in a mortgage rate?

To lock in a mortgage rate, you’ll need to assess your finances and shop around to find the loan with the best rate, term, and fees for the budget you have. Once you find your ideal loan, locking it in is just about making a simple call or sending a message to the lender. You’ll pay a fee to lock in your preferred rate for up to 90 days while you finalize your home purchase.

Compare mortgage rates in Dallas.

Introduction to Dallas Mortgage Interest Rates

Where Mortgage Rates Come From

Mortgage rates are a product of various factors, from the larger economic landscape to your personal financial picture. Keep an eye on the bond market, particularly the 10-year U.S. Treasury Note, as it often points to the direction rates might take. If the housing market is cooling off, you might just see a dip in mortgage rates in Texas. (At the moment, the Dallas market is somewhat competitive.) Inflation and unemployment rates can also influence the cost of borrowing.

But while these large economic trends point rates in a certain direction, the rate you are personally offered will be based on your credit score, debt-to-income (DTI) ratio, and down payment amount. A score of 620 or better will likely be needed for a conventional loan, though some government-backed loans allow lower credit scores for qualifying buyers. By staying informed and understanding these moving parts, you’re better equipped to snag the most favorable mortgage rates in Dallas.

See how your debt level may affect your mortgage

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

How Interest Rates Affect Home Affordability

Mortgage rates are a big factor in how much home you can afford. The median sale price of a home in Dallas is $419,000, according to Redfin. So it’s not unusual to need a loan in the neighborhood of $400,000. The chart below shows how different interest rates and loan terms affect the amount of a borrower’s mortgage payment and the total interest paid over the life of a $400,000 loan.

Dallas, Texas Mortgage Rate Trends

Historical U.S. Mortgage Rates

Taking a look at the history of U.S. mortgage rates can help put current rates into perspective. From the 1970s to the 2020s, we’ve seen rates soar to a staggering 18.63% in 1981 and then plummet to 2.77% in 2021. Rates have risen since then, but are still nowhere near the highs we have seen in the past.

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The chart below shows how Dallas mortgage rates have compared to the national average rate in the past. As you can see, there is no fixed pattern, but Dallas numbers have not deviated dramatically from the national norm. (The Federal Housing Finance agency stopped tracking city-level averages in 2018.)

Types of Mortgages Available in Dallas, Texas

In Dallas, the type of mortgage you choose will contribute to the interest rate you’re able to obtain, so it pays to become familiar with the more common types.

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What to Do if You’re Waiting for Interest Rates to Drop

Many homebuyers in Dallas may wonder if they should postpone their purchase and wait for interest rates to drop in the future. However, current analyses suggest that mortgage rates will likely remain relatively stable for the foreseeable future. The average rate is expected to end 2025 at approximately 6.30%, according to projections from Fannie Mae. Fortunately, refinancing your mortgage is always a viable option to explore if interest rates decline at a later date.

Cost of Living in Dallas

Get Your Best Possible Rate in Dallas

To secure the best mortgage rates in Dallas, there are a few things you can do before you begin your home-shopping in earnest. Focus first on taking good care of your credit score. Check your credit report and look for any errors. Pay your bills on time. And to any extent possible, try to reduce your debts, especially if your DTI ratio exceeds 36%. Take a good look at your budget to see how large a down payment you feel comfortable making. Consider going through the mortgage preapproval process and looking into different types of mortgage loan, such as ARMs and government-backed loans, that may offer lower mortgage rates in the Dallas area.

Helpful Tools & Calculators

Using a mortgage calculator is a savvy step as you’re thinking about your budget. In fact, all three of the helpful calculators below could be useful to you on your journey to homeownership.

How to Evaluate Loan Offers in Dallas

Once you’ve shopped around a bit and have loan offers from various lenders in hand, you’ll want to sit down and compare them, since even a fraction of a percentage point lower interest rate can save you substantial dollars over the life of a home loan.

Don’t just examine interest rates, though. Study each loan’s annual percentage rate, or APR, which is a more accurate picture of total cost because it includes fees. Once you’ve found an offer that fits, consider paying a small sum to the lender to lock in your rate for up to 90 days.

Recommended: Average Monthly Expenses for One Person

Dallas Mortgage Resources

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

Closing Costs in Dallas

If you’re buying a home in Dallas, you can expect to pay between 2% and 5% of your loan amount in closing costs. Closing costs can vary based on your home’s value and location. They typically include fees for services like the loan origination, appraisal, and title insurance.

The Takeaway

The mortgage market in Dallas is rich with opportunity for those who are ready to take the leap into homeownership. By keeping an eye on current mortgage rates in Dallas and investigating the various assistance programs available, you can make a smart decision that aligns with your financial goals and sets you up for long-term success. Whether you’re a first-time buyer or a seasoned homeowner, understanding the different types of mortgages and resources available to you can be a huge help as you shop around for the best rate.

View your rate

FAQ

Is it the right time to invest in a Dallas, Texas home?

Deciding whether to buy a house in Dallas depends on many factors, some of which are unique to your situation. It’s a somewhat competitive housing market that might be difficult for shoppers on a limited budget. Mortgage rates are higher than 2021 lows, but show no sign of heading southward in the near future. And Dallas does have programs like My First Texas Home and My Choice Texas Home that offer low-interest mortgages and down payment assistance, enhancing affordability. Now can be a good time to enter the Dallas market if you have a solid financial plan.

How do you lock in a mortgage rate?

Locking in a mortgage rate is fairly simple. Shop around and compare offers from various lenders — banks, credit unions, and online lenders included. Once you’ve found a rate that speaks to you, ask the lender to lock it in for a set period, typically up to 90 days. You’ll pay a small fee in most cases, but it will guard you against rate hikes during the closing process.

How do mortgage interest rates operate?

Mortgage interest rates are the cost of borrowing money to purchase a home, and are typically expressed as a percentage of the loan amount. These rates are influenced by both the borrower’s financial profile and the current economic climate. Rates can be fixed or variable. When you make a mortgage payment, a portion of the payment goes toward the principal that you owe and a portion of it is interest. To see how much of each month’s bill is one vs. the other, a borrower can review the amortization schedule for their loan.