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Mortgage rates in Delaware

Delaware mortgage rates hover slightly above the national average.

Updated

Fact checked

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.

Compare mortgage lenders in Delaware

Conventional and government-insured 30-year mortgages average 4.781% in the First State. Mortgage rates should dance around the 4% mark in the next year.

How much do Delaware rates vary?

Average Delaware mortgage rates for a 30-year loan ranged from 4.714% to 4.988% in 2018. But a number of variables affect your rate including your credit, loan type and term. For example, a longer loan term generally comes with a higher interest rate.

2018 average rates in Delaware by loan type

Loan type15-year average rate30-year average rate
Conventional4.247%4.761%
FHA3.625%4.988%
VA3.950%4.660%
USDANot available4.714%

Based on data from ffiec.cfpb.gov

To illustrate, let’s say you have a 30-year $225,000 FHA loan. With an interest rate of 4.988% your mortgage could cost $1,206 a month, excluding taxes and other fees specific to your loan. However, with a 15-year loan at a rate of 3.625%, your monthly payment could jump to $1,622.

If you can afford higher monthly payment with a shorter loan term, you could save $142,211 in interest over the course of the loan.

Delaware rates will likely stay around 4% into 2020.

Historically, Delaware rates have moved in tandem with the national average — although they’ve started coming in around 0.06% higher than the rest of the country in 2013.

Several national housing agencies, including Fannie Mae and Freddie Mac, expect national mortgage rates to stay around or below 4% for 2020. That means that Delaware rates are likely to follow suit.

Compare mortgage rates throughout Delaware

Mortgage rates and home values vary depending on the geographic area — affecting your monthly payments.

We crunched numbers from the Home Mortgage Disclosure Act to give you an example of what the average 30-year fixed-rate mortgage may cost in various metropolitan areas in Delaware. Actual payment amounts vary depending on taxes, fees, PMI and other costs specific to your mortgage.

Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly payment
Dover4.870%$205,000$1,080
Salisbury (Sussex County, DE)4.717%$245,000$1,270
Philadelphia MSA (New Castle County, DE)4.854%$225,000$1,190

Based on data from ffiec.cfpb.gov

How to get the best mortgage rate in Delaware

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.

Historical mortgage interest rates in Delaware

Bottom line

Lenders determine their own mortgage rates and fees. Shop around to compare mortgages and lenders to make sure you’re getting the best deal possible.

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