Mortgage Rates Wyoming: Finding The Best-Valued Mortgages
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As a basic human need, housing demand will always increase across the United – the State of Wyoming isn’t exempt from this fact. This can make house hunting a very challenging affair, especially if you’re a new homebuyer. However, knowing the local mortgage and refinance rates can put you at an advantage and increase your chances of finding better housing deals.
In this guide, we cover all the essential information about mortgage rates in Wyoming. You can find the latest mortgage and refinance rates in the state as well as learn how to reduce your mortgage rates.
Mortgage Options In Wyoming
The average American homebuyer has three loan types to choose from, each with its own features, pros/cons, and qualification requirements:
Conventional Home Loan
Conventional home loans make up the majority of America’s mortgage offerings. These have loan amount limits set by the Federal Housing Finance Agency (FHFA) – the conforming loan limit for most Wyoming counties is set at the national average of $548,250, except Teton County where limits are set at $822,375 because of the area’s higher median home value.
We can break down conventional mortgages into three subtypes, each with its own rate schemes and features.
A fixed-rate mortgage features static interest rates that won’t change with market fluctuations. These constant rates mean your monthly payment amounts will stay the same until the end of the loan.
Fixed-rate loans are popular with new homebuyers and long-term financial planners due to their predictability. However, their rates tend to be higher compared to other mortgages.
30-year fixed-rate mortgages are the most common loan offered by most lenders. You can also opt for 15-year or 20-year fixed loans that feature lower rates, with the tradeoff of higher monthly payments.
Adjustable-Rate Mortgage (ARM)
Unlike fixed-rate mortgages, the interest rate on adjustable-rate mortgages fluctuates according to a market index. This ARM rate adjustment happens annually, but it’s controlled by caps to protect borrowers from sudden rate jumps.
Most ARMs also feature a short introductory period with lower, fixed interest rates. This makes an ARM a good choice for short-term savings, but these loans will become more unpredictable in their adjustable phase.
An ARM’s introductory period usually lasts 3 to 10 years. To find out how long your ARM’s period is, you can check its name. For instance, a 5/1 ARM has a five-year introductory period.
A jumbo loan is the best option if you’re looking for homes that are priced above local loan limits. Jumbo loans provide a larger loan balance, with the caveat of higher rates and stricter qualification requirements.
Government-Backed Loan Programs
The United States provides several loan programs to boost the homeownership rate in select demographics, like rural communities and military veterans. Most government-sponsored loans feature affordable down payment requirements and competitive rates.
The main government loan options are:
FHA loans: These loans feature a 3% down payment and 620 credit score requirements for low-income borrowers. However, you need to pay mortgage insurance fees for the entire loan. FHA loan limits are also lower than conventional mortgages.
USDA loans: This loan type is designed to promote rural community development, which is why it has area restrictions. If you and your desired property qualify for a USDA loan, you’ll get a zero-down mortgage with low mortgage insurance premiums.
VA loans: Only military members are qualified to receive these zero-down mortgages. All VA loan borrowers must pay funding fees to replace mortgage insurance premiums.
Refinancing entails getting a new loan to pay off your old one. This can accomplish one of two things:
Modify your loan terms: Rate and term refinancing helps you modify your loan’s duration or change its terms. For example, you can modify your 30-year fixed-rate loan into a 15-year one to pay it off faster at lower refinance rates.
Liquidate home equity: You can convert home equity into cash using a cash-out refinance. This loan provides you with more funds than your current mortgage balance. Any money remaining after your mortgage is paid off can be used for other needs.
Compare Mortgage Rates In Wyoming
Average mortgage rates in Wyoming tend to fluctuate, trending either lower or higher than the national average rates depending on the year. Find out the latest Wyoming mortgage rates using the table below. All the data in this table is taken from America’s top lenders.
Today’s Mortgage Rates in Wyoming
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All mortgage and refinance rates listed here are subject to change without prior notice. Your actual rates may vary depending on your financial circumstances and other factors.
Input your financial details into the rate tool at the top of this page for a personalized look at your Wyoming mortgage rates!
First-Time Homebuyer Programs In Wyoming
The Cowboy State offers assistance programs to first-time homebuyers through the Wyoming Community Development Authority (WCDA). If you’re looking to qualify for them, you need to fulfill these requirements:
Meet the county’s purchase price limit
Have not owned a home in the last three years
Complete a homebuyer education course
WCDA Standard First-Time Homebuyer Program
The state’s main first-time buyer program for Wyoming residents offers 30-year fixed mortgages with low monthly payments. WCDA Standard borrowers can choose between an FHA, VA, and a USDA loan to buy their primary residence. You may also qualify for reduced-rate mortgages if you buy WCDA-owned properties.
WCDA Spruce Up Program
This mortgage program combines a mortgage and home rehabilitation into one package. Expenses covered by the Spruce Up loan include non-structural repairs, accessibility renovations, and HVAC replacements.
HFA Preferred Loans
The WCDA offers Fannie Mae 30-year mortgages with lower insurance premiums and no purchase price limits. Moreover, an HFA Preferred loan can be combined with a mortgage credit certificate if you want to take advantage of tax credits.
WCDA Homestretch DPA
WCDA' offers up to $10,000 in down payment and closing cost assistance through the Homestretch down payment assistance program. This assistance comes as a no-interest deferred loan that must be paid off when you sell, refinance, or pay off your home.
To qualify for WCDA’s DPA programs, you must contribute $1,500 to the purchase and meet the minimum credit score of 620.
Buying A Home In Wyoming
Buying a home is a big financial commitment that involves a lot of work, time, and patience. Read this guide to help you make the right moves and avoid costly mistakes during your home buying journey.
Step 1: Seek Pre-Approval
Begin your home buying process by getting pre-approved for a mortgage. To receive a pre-approval letter, you must start a mortgage process and pass the lender’s financial checks.
Your pre-approval letter contains key details of your loan like its type, maximum loan amount, and mortgage interest rate. Most sellers will ask for this letter to ensure that you’re financially capable to buy a house.
Step 2: Recruit A Real Estate Agent
Find a realtor well-versed in the area you’re eyeing – they’ll know all the best homes and can answer all your questions about the area. Pick their brain about key details on the area, like average home prices and commute times.
Step 3: Start House Hunting
The best way to house hunt is to start at the neighborhood level and work your way down. Pick a neighborhood with a median home value within your budget and research local listings. Then, choose the most affordable home that meets your needs. It’s okay if you don’t find any fitting homes within your budget. Consider buying a fixer-upper and use the money you saved for home improvements instead.
Step 4: Make A Bid
You’re likely not the only one who wants to buy the house you’re bidding on. Sweeten the deal and catch the seller’s eye by offering more than the asking price. Consult with your realtor so that you know how much above the property value to offer.
Step 5: Do Your Due Diligence
Your journey isn’t over when the seller accepts your offer! Schedule Inspections and appraisals afterward. If they find that the house is overvalued or has property defects, you can go back to the seller to negotiate a new deal.
Step 6: Finalize The Purchase Transaction
Set aside money to pay your closing costs and origination fees before closing day. Have your realtor present during paperwork signing to make sure all the details are sorted before you close the deal.
How To Get Better Wyoming Mortgage Rates
Mortgages last a long time and any small savings will add up – lowering your mortgage rates can save you thousands of dollars in the future. Take these three steps to reduce your Wyoming mortgage rates!
Shorten Your Loan Terms
Lenders usually give lower rates to less-risky borrowers. Since lenders bear more risk on longer mortgages, consider applying for a shorter loan term. Shorter loans have lower rates and fewer payments, which reduces your overall interest expenses.
Buy Mortgage Points
You can buy discount points to drive your rates down. Most mortgage lenders charge 1% of the mortgage for each point for a 0.5% rate reduction. For example, if you buy two points on a $300,000 loan with a 4% rate, you’ll pay $6,000 to reduce your rate to 3%.
Consult With Mortgage Brokers
It’s tough to compare mortgage and refinance options from multiple lenders, especially if you don’t have any experience dealing with mortgage loans. This may make it hard to pick which one offers the best value.
Mortgage brokers can assist you in picking the right lender for your situation. Moreover, their experience enables them to find good mortgage deals that you may not be able to find yourself.
As housing demands increase across the United States, so will the difficulty of getting a good home deal. Understanding how to find the best mortgage rates can help you better navigate the challenging housing market in Wyoming.
We’re ready to help with all your mortgage needs in Wyoming. Contact Wesley LLC today for more mortgage resources and advice!