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Mortgage rates in Alaska
Alaska mortgage rates hover slightly below the national average.
Rates in the Land of the Midnight Sun average 4.451% for 30-year mortgages and should remain steady under 4% in the coming year.
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How much do Alaska rates vary by loan?
Average mortgage rates for a 30-year home loan in Alaska range from 4.354% to 4.631% in 2018, with an average of 4.451%. Many factors can impact your interest rate, with conventional loans generally with higher rates than USDA loans, but fewer qualification requirements.
2018 average rates in Alaska by loan type
|Loan type||15-year average rate||30-year average rate|
Based on data from ffiec.cfpb.gov.
To help put this into perspective, let’s say you borrow $235,000, with a 30-year mortgage. A conventional loan with the average interest rate of 4.631% could get you monthly payments of $1,210, excluding taxes, fees and other charges specific to your mortgage. A USDA loan with the same amount with the average interest rate of 4.379% could cost $1,170 a month.
The monthly difference of $35 a month means a savings of $12,670 over the course of 30 years.
Which way are rates trending in Alaska?
Alaska rates should remain steady in 2020, similar to where they ended in 2019 at 3.86% for 30-year loans, according to the Alaska Housing Finance Corporation. Historically, its rates have either been equal to or slightly under the national average.
Nationwide housing agencies, including the Mortgage Bankers Association, Fannie Mae and Freddie Mac, expect national mortgage rates to remain steady in 2020. Alaska rates will likely react similarly.
Compare mortgage rates throughout Alaska
Interest rates in both metropolitan areas — Anchorage and Fairbanks — are closely aligned, with home values slightly higher in Anchorage.
We analyzed data from the Home Mortgage Disclosure Act to calculate what you might pay for a 30-year fixed-rate mortgage in Alaska. The estimated costs don’t include taxes and miscellaneous charges specific to your mortgage.
|Metropolitan statistical area||Average mortgage rate||Median loan amount||Estimated monthly cost|
Based on data from ffiec.cfpb.gov
How to get the best mortgage rate in Alaska
Not every borrower qualifies for the lender’s advertised mortgage rate. A few steps to try to get the best rate possible:
- Compare loan products. The right loan with the right lender can help you get the financing you need. Compare the best loan terms for your homeownership goals.
- Work on your borrowing profile. Boosting your credit score and lowering your debt-to-income ratio makes you a more attractive borrower.
- Calculate closing costs. Closing costs are the fees you pay to secure your mortgage and transfer the property, which can vary significantly from lender to lender. Closing costs in Alaska typically run about 0.94% to 1.25% of the final purchase price.
Historical mortgage interest rates in Alaska
Lenders in Alaska charge a range of mortgage rates for different borrowers and loan programs. Compare mortgages and lenders to find a program with the best rate for you.
Frequently asked questions
How can first-time homebuyers get lower mortgage rates in Alaska?
The Alaska Housing Finance Corporation (AHFC), offers state programs to help first-time homebuyers get lower mortgage rates and offer closing cost assistance. For example, the Tax-Exempt First-Time Homebuyer Program offers a reduced interest rate, but has income limits and purchase amount limits. For more information, visit AHFC’s website.
What is HomeChoice?
HomeChoice is a free six-hour class that the Alaska Housing Finance Corporation offers to help prospective homebuyers prepare for homeownership and learn about local and federal programs.
Where can I find an Alaska Housing-Approved lender?
On the Alaska Housing Finance Corporation’s website, click the tab Buy a Home. Click See All in the box titled Find a Lender. You’ll see a list of featured lenders that closed the most Alaska Housing loans in the past year. Click Approved Lenders on the menu on the left-hand side to view all approved lenders.
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