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Mortgage rates in Delaware

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.500%

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 Delaware 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 Delaware 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% 4.188% 4.125%
640-659 4.125% 4.000% 4.000% 4.000%
660-679 4.000% 3.938% 3.875% 3.875%
680-699 3.750% 3.750% 3.688% 3.625%
700-719 3.688% 3.625% 3.625% 3.625%
720-739 3.563% 3.500% 3.500% 3.500%
740-759 3.500% 3.500% 3.500% 3.375%
760-779 3.500% 3.500% 3.500% 3.375%
780-799 3.500% 3.500% 3.500% 3.375%
800+ 3.500% 3.500% 3.500% 3.375%

*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.

Name Product Loan products offered State availability Min. credit score
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
AmeriSave
(NMLS #1168)
AmeriSave
Conventional, Jumbo, FHA, VA, USDA, Refinance
Not available in: NY
620
Great customer reviews and customized rate quotes in three minutes with no SSN needed.
Veterans United
(NMLS #1907)
Veterans United
Conventional, FHA, VA, USDA, Jumbo, Refinance
Available in all states
620
Veterans United stands out from other lenders for its focus on serving the military community.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
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Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Delaware 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 2.750% 2.625% 2.625% 2.625%
30-year conventional 3.688% 3.625% 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% 2.938% 2.875%
30-year VA 3.500% 3.500% 3.500% 3.438%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

Lenders weigh a few criteria when calculating your mortgage rate. Here are some things you can do to get the best rate on your home loan:

  1. Explore different loan types. Comparing loan programs, their terms, rates and what you need to qualify can help you find the best deal.
  2. Build up your borrowing profile. Lenders want to see good credit scores and low debt-to-income ratios.
  3. Weigh the closing costs. Similar to interest rates, lenders also set their own closing costs in the state, which may run 4.43% to 6.65% of the purchase price. Shop around and compare fees.

Home values in Delaware are predicted to continue increasing

Across the US, home prices are trending north — and Delaware is no exception. According to Zillow, the average home price in Delaware rose by 15.3% in the 12 months prior to June 2021, with the typical home now selling for an average of $313,018.

However, these price increases vary across the First State. In Salisbury, home prices are expected to jump by 12.1% by next June — the highest increase of all cities in Delaware surveyed by Zillow. Meanwhile, in Kenton, prices are forecast to rise by only 5% according to the same survey.

As prices in Delaware increase, you could end up paying more for a home if you wait a year or two, especially if mortgage rates leave behind their current 2021 lows.

6 fast facts about Delaware’s housing market

If you’re thinking of buying a house in Delaware, here are six key facts to know:

    The average home price in Delaware is $313,018 as of August 2021, which is around 5% higher than the US average home price of $298,933.

  1. Delaware has some of the highest closing costs in the nation, with buyers paying an average of 5.9% of their total mortgage’s value in closing costs.
  2. Delaware’s property tax rate is .74% — the seventh-lowest in the US, according to SmartAsset.
  3. The average monthly ownership cost of a home with a mortgage in Delaware is $1,587, which is on par with the national average.
  4. 71.2% of Delaware residents own their home, which is higher than the national homeownership average of 64%.
  5. The most popular cities for homebuyers in Delaware are Wilmington, Rehoboth Beach and Old Newark.

Bottom line

Mortgage rates in Delaware 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.

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