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Mortgage rates in North Carolina
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 North Carolina 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 North Carolina 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% | 4.125% | 4.125% |
| 640-659 | 4.125% | 4.000% | 4.000% | 4.000% |
| 660-679 | 3.938% | 4.000% | 3.875% | 3.875% |
| 680-699 | 3.750% | 3.750% | 3.750% | 3.688% |
| 700-719 | 3.750% | 3.625% | 3.625% | 3.625% |
| 720-739 | 3.625% | 3.500% | 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 North Carolina 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 | 2.688% | 2.625% | 2.625% | 2.625% |
| 30-year conventional | 3.750% | 3.625% | 3.625% | 3.625% |
| 15-year FHA | 3.125% | 2.875% | Not elegible | Not elegible |
| 30-year FHA | 3.375% | 3.500% | Not elegible | Not elegible |
| 15-year VA | 3.250% | 3.000% | 3.000% | 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
Follow these steps so you can qualify for a better rate on your next mortgage:
- Compare loan products. Lenders typically offer a variety of loan programs, each with specific criteria and rates. Thoroughly research each program to see what rates and products you qualify for.
- Boost your credit. Strong credit profiles tend to receive the best rates from lenders. Before applying for a loan, take the time to pay off outstanding debts and improve your credit score. This increases your chances of qualifying for a better rate.
- Plan for closing costs. Lenders in North Carolina usually charge between 0.79% and 1.18% of the total purchase price of a home in closing costs. Some lenders exchange lower rates for higher closing costs. Consider your closing costs and interest rate together when choosing your lender.
Home values in North Carolina are projected to rise
The price of a typical home in North Carolina increased by 17.4% in the 12 months prior to June 2021, according to Zillow. And thanks to strong buyer demand, it doesn’t look like the trend will slow anytime soon.
Popular, in-demand areas will see the biggest price jumps. For example, in Charlotte, Raleigh, Durham and Boone, prices are projected to rise by 15.5%, 15.4%, 14.6% and 14%, respectively, by June 2022. As for the rest of the Old North State, prices are expected to rise anywhere between 2% and 14% during the same period.
The average home price in North Carolina currently stands at $254,625. But in the popular cities, average prices are closer to the $400K to $500K range.
5 fast facts about North Carolina’s housing market
If you’re looking to a buy a home in North Carolina, here are five facts you should know:
- The average price of a home in North Carolina is $254,625 as of June 2021, which is 17.4% less than the national average.
- The average monthly homeownership cost in North Carolina is $1,314 with a mortgage — $281 less than the national average according to the US Census Bureau.
- Closing costs in North Carolina run about 1.05% with taxes, with buyers paying an average of $2,802 to $2,260 for a typically priced home.
- North Carolinians pay an average of 0.77% in property taxes, which is well below the national average, according to SmartAsset.
- North Carolina has first-time homebuyer programs, like the NC Home Advantage Mortgage, which offers up to 5% down payment assistance, as well as grants and tax credits worth thousands of dollars.
Bottom line
Mortgage rates in North Carolina 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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