Mortgage rates during the coronavirus
As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.
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.
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