If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Alaska home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Alaska by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 4.250% | 4.250% | 4.250% | 4.188% |
| 640-659 | 4.125% | 4.125% | 4.125% | 4.000% |
| 660-679 | 4.000% | 4.000% | 4.000% | 3.938% |
| 680-699 | 3.750% | 3.750% | 3.750% | 3.750% |
| 700-719 | 3.750% | 3.688% | 3.625% | 3.625% |
| 720-739 | 3.625% | 3.563% | 3.500% | 3.500% |
| 740-759 | 3.500% | 3.500% | 3.500% | 3.500% |
| 760-779 | 3.500% | 3.500% | 3.500% | 3.500% |
| 780-799 | 3.500% | 3.500% | 3.500% | 3.500% |
| 800+ | 3.500% | 3.500% | 3.500% | 3.500% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Alaska home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 2.875% | 2.750% | 2.688% | 2.688% |
| 30-year conventional | 3.750% | 3.688% | 3.625% | 3.625% |
| 15-year FHA | 3.000% | 2.875% | Not eligible | Not eligible |
| 30-year FHA | 3.500% | 3.500% | Not eligible | Not eligible |
| 15-year VA | 3.188% | 3.000% | 3.000% | 3.000% |
| 30-year VA | 3.625% | 3.625% | 3.625% | 3.625% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
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.
Home values in Alaska are forecast to increase
After a small pullback in 2020, Alaska’s home values are back on the rise. Average home values in Alaska currently sit at $301,673, a 4% increase over the past year according to Zillow. This positive trend is projected to pick up through June 2022.
While much of the state will see average home value increases of between 5% and 6%, homeowners in Willow and Talkeetna — two small, neighboring towns just north of Anchorage — can expect to see over an 11% jump.
Like much of the country, a mix of low interest rates and lack of inventory is raising home values in Alaska. So if you’re a buyer looking to take advantage of such historic low rates over the next year or two, there’s a good chance you’ll be paying an inflated price for your next home. On the other hand, high demand and a steady increase in home values should play in your favor if you’re planning to sell in the near term.
5 fast facts about the Alaska housing market
Whether you’re a buyer or a seller, consider these facts if you’re gearing up to enter Alaska’s real estate market:
- Alaska’s average home sales prices are at decade highs. The average sales price of a single-family home in Alaska was $371,671 at the close of the first quarter of 2021. That’s up over 32% from the first quarter of 2011.
- Despite rising demand for homes, Alaska is seeing a continuing trend of population decline. According to estimates released by the state’s Department of Labor and Workforce Development, Alaska’s population decreased by nearly 4,000 people from July 2019 to July 2020. This is the fourth straight year of decline for the state’s population.
- Alaska’s property taxes are higher than the national average. Many cities in Alaska don’t levy property taxes. But those that do bring the state’s average property tax to around 1.19%, which is 0.11% higher than the national average of 1.08%.
- Alaska Housing offers two first-time homebuyer programs. Alaska Housing’s First Home and First Home Limited programs provide eligible first-time homebuyers with reduced-rate mortgages. These programs consider a first-time homebuyer someone who hasn’t owned a primary residence in the last three years.
- Alaska Housing offers closing cost and down payment assistance. Alaska Housing’s Closing Cost Assistance loan provides assistance of either 3% or 4% of the loan amount that can be used toward a down payment and closing costs. Eligible loans include FHA, VA and USDA, and a minimum credit score of 640 is required.
Bottom line
Mortgage rates in Alaska vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
More guides on Finder
-
Compare car insurance in Stockton
Compare car insurance rates and features that serve Stockton.
-
Guaranteed Rate vs. Rocket Mortgage
How Guaranteed Rate and Rocket Mortgage stack up against each other.
-
New American Funding vs. Rocket Mortgage
How New American Funding and Rocket Mortgage stack up against each other.
-
SoFi vs. Rocket Mortgage
How SoFi and Rocket Mortgage stack up against each other.
-
Rocket Mortgage vs. Bank of America
Bank of America has more loan options, but Rocket Mortgage has left a better overall impression on customers. We compare the key features between these two established lenders.
-
Small business loan interest rates are low — but will it last?
Business loan interest rates dropped in 2020 and are likely to stay low. Here’s why.
-
Third Federal Savings & Loan home equity review
Get a low rate guarantee, but you won’t know if you’re eligible until you apply.
-
BECU home equity review
Get fixed- and variable-rate options in a HELOC, if you qualify for membership.
-
Bank of the West home equity review
Offers reduced-rate, no-closing-cost HELOCs, but only in specific states.
Ask an Expert
