Mortgage Rates New Hampshire: Options For New Homebuyers
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Rising demands and falling supply means you may face stiff competition for your New Hampshire home. If you’re looking to call New Hampshire home, knowing the local mortgage rates & APR can help you get a leg up on the competition.
To help you get the most affordable housing in New Hampshire, we’ve compiled this guide. We provide insider access to the most current mortgage rates in New Hampshire and share top tips to reduce your rates.
Home Loan Options In New Hampshire
Mortgage loans in America are divided into three types, each with its distinctive rates and features. In this section, we break each down:
Conventional Home Loan
Conventional mortgages are typically offered by banks and other private lenders. A vast majority of these loans must adhere to limits set by the Federal Housing Finance Agency (FHFA).
Most counties in New Hampshire follow the national average loan limit of $548,250. However, Rockingham and Strafford have higher loan limits at $724,500.
Fixed-rate mortgages are popular because of their constant interest rates & APR. Regardless of market conditions, your interest rate and monthly payment amount on a fixed-rate loan will stay the same. Due to this stability, fixed-rate loans are best for new homebuyers and long-term financial planners.
Fixed-rate loans are most commonly offered in a 30-year loan term. However, 15-year and 20-year fixed-rate mortgages are available – trading a lower interest rate & APR in exchange for higher monthly payments.
Adjustable-Rate Mortgages (ARM)
The mortgage rate on an ARM changes annually based on a market index. ARM loans have a lower rate & APR during the introductory period, which is why it’s a popular choice for short-term savings.
The introductory fixed-rate period on an ARM is indicated in its name. For example, a 5/1 adjustable-rate mortgage offers a 5-year introductory period. The average ARM offers an introductory period anywhere between 3 and 10 years.
Some homes – especially those in competitive markets – are priced above the average state loan limits. To help you buy a higher-priced property, lenders offer jumbo mortgages. These allow you to exceed conforming loan limits, but keep in mind that they come with higher interest rates & APR.
Several government bodies offer loans to boost the homeownership rate in certain demographics. These targeted home loans tend to have more affordable mortgage rates and relaxed income/credit score requirements. However, you need to meet specific criteria to qualify for these home loans.
The three major government loan types are:
FHA loans: An FHA loan allows you to enjoy an affordable mortgage rate with low down payment and credit score requirements. However, this loan requires you to pay private mortgage insurance (PMI) fees for its entire life.
VA loans: These loans are only available for military members. VA loans have no down payment or credit rating requirements, but you have to pay a funding fee at closing to replace PMI fees. USDA loans: A USDA loan is only available for homes in eligible rural areas. If you qualify for this loan, you don’t have to pay down payment and lender fees. This loan also has lower PMI fees compared to other mortgages.
In a refinance, you take out a new loan to pay off your current one. A refinance can help you accomplish one of two things:
Modify your mortgage: A rate and term refinance allows you to change your loan type and length. You can use this to get a lower rate or pay off your loan faster.
Leverage your home equity: If you’ve built enough home equity, cash-out refinancing allows you to convert it into cash. This type of refinance provides a loan larger than your existing balance. Once you pay off the current loan, any money left over can be used for other needs.
Compare New Hampshire Mortgage Rates
Historically, mortgage rate trends in New Hampshire are on par with or slightly below the national average. Here we provide access to the most current New Hampshire mortgage and refinance rates.
We take this data from a survey of America’s major mortgage lenders.
Today’s Mortgage Rates in New Hampshire
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Keep in mind that your actual rate & APR may vary depending on your financial circumstances. The listed mortgage and refinance rates may also change without prior notice.
If you want personalized New Hampshire mortgage rates & APR, we also have a rate tool at the top of this page. Input your personal and financial information, and we’ll calculate a custom New Hampshire mortgage rate & APR estimate just for you!
First-Time Homebuyer Programs In New Hampshire
New Hampshire Housing provides several state-backed loan programs to help new homeowners purchase homes more affordably.
To qualify for New Hampshire Housing’s program, you must:
Buy a primary residence in New Hampshire
Have a credit score of at least 620
Complete a homebuyer education course
Not exceed the eligible income limit of $135,300
Home Flex Plus
Home Flex Plus is one of the state’s main mortgage programs. This program provides FHA, USDA, and VA borrowers with state-sponsored down payment, lender fees, and closing cost assistance in the form of a loan. This loan can be worth up to 4% of your mortgage amount and is forgivable after four years if you stay in the same property.
Home Preferred Plus
This program provides you with a state-backed conventional mortgage for as little as 3% down. Moreover, this loan has discounted mortgage insurance fees and down payment assistance for up to 3% of your loan amount.
Similar to the Home Flex Plus, the down payment & closing cost assistance is forgivable after four years as long as you don’t sell or refinance the house.
The Purchase Rehab program is best if you’re looking to make major home improvements. If you qualify, you can add $35,000 to your loan amount for repairs and upgrades. This money can be used for all kinds of home upgrades except for structural alterations.
Buying A Home In New Hampshire
Navigating the competitive market in this state can be challenging if you don’t know what you’re doing. To make the journey easier, we break down the six steps of your home buying journey.
Step 1: Apply For A Mortgage
Before searching for homes, you need to know your budget. One of the best ways to do so is to apply for a mortgage.
After you apply for a loan, the bank will examine your finances. If you’re eligible for a loan, you’ll receive a pre-approval letter containing your mortgage information.
In addition to informing you of your mortgage ceiling, a pre-approval letter helps you when making an offer. Getting pre-approved demonstrates to the seller that you’re financially capable of purchasing their property.
Step 2: Recruit A Realtor
Real estate agents with local experience can help you throughout the homebuying process. While their primary job is to show you homes and help make offers, they can also provide expert advice on local home values, tax rates, and other important details.
Step 3: Research Local Listings
Most good house hunts start at the neighborhood level. First, choose a neighborhood that fits your budget and lifestyle. Once you have a neighborhood, it’s best to choose the most affordable home there that fulfills your needs. Any money you save from a cheaper purchase can be put towards home improvements.
Step 4: Make An Offer
In a competitive housing market, you may not be the only one looking to buy the same house. To make your offer stand out, try offering above the listed home price so you can beat out other bids.
Step 5: Schedule Appraisals & Inspections
Due diligence ensures that you’re getting what you paid for. Appraisals estimate your home value so you don’t overpay, while inspections can pinpoint issues with the house that may need addressing.
Step 6: Close On The Loan
On closing day, you’ll need to sign lots of paperwork. To clear up any confusion, be sure to have your real estate agent when you sign. Make sure you already have the money for your closing cost and lender fees.
As soon as the documents are signed, you’re ready to make moving arrangements.
How To Get A Better Mortgage Rate
Mortgages can take up to 30 years to pay off – so, you’re in it for the long haul. Being stuck with a high rate can be a burden on your finances. To make the journey easier on your wallet, here’s some advice on how to lower mortgage interest rates & APR.
Compare Offers From Several Lenders
Mortgage lenders are always looking for new borrowers. To sweeten the deal, they may offer you a lower rate or more lenient qualification requirements. Comparing offers from at least three lenders can be a good way to find a better interest rate & APR.
Lenders are required to provide you a loan estimate. This document contains details about your loan offer – mainly rates, APR, and terms. They also provide you information on their closing cost and lender fees. By going over these documents, you can pinpoint the ones that provide the best value for you.
Work With Independent Mortgage Brokers
Even with loan estimates, researching for mortgage information can be too much work. That’s where a mortgage broker comes in. With their experience, they can show you which lenders have the best rates and help you make informed decisions.
Opt For Shorter Loan Terms
Since lenders take fewer risks on shorter loan terms, they’re more likely to give you a lower rate & APR. However, before you apply for a short-term loan, be sure that you can afford the more expensive mortgage payments.
To get your dream New Hampshire house, you may need to face some competition. To gain an advantage in this challenging market, knowing the local rates and understanding what options you have are essential. With that knowledge, you can find the best deals for your new home.
Wesley LLC is here to help you find the best mortgage for your New Hampshire home. Contact us today for more mortgage resources and a personal consultation!