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Mortgage rates in North Dakota

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.188% 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 Dakota home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on October 6 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 Dakota 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 3.875% 3.875% 3.750% 3.750%
640-659 3.750% 3.750% 3.625% 3.625%
660-679 3.500% 3.500% 3.500% 3.500%
680-699 3.250% 3.250% 3.250% 3.250%
700-719 3.250% 3.250% 3.125% 3.125%
720-739 3.125% 3.125% 3.125% 3.125%
740-759 3.125% 3.125% 3.000% 3.000%
760-779 3.125% 3.125% 3.000% 3.000%
780-799 3.125% 3.125% 3.000% 3.000%
800+ 3.125% 3.125% 3.000% 3.000%

*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
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
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.
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.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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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 North Dakota 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 2.500% 2.438% 2.375% 2.375%
30-year conventional 3.250% 3.250% 3.125% 3.125%
15-year FHA 2.500% 2.375% Not elegible Not elegible
30-year FHA 3.000% 3.000% Not elegible Not elegible
15-year VA 2.813% 2.625% 2.500% 2.500%
30-year VA 3.188% 3.188% 3.125% 3.125%

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

Research ahead of time to get the best rates

Here are three tips to help you qualify for a better rate on your next loan:

  1. Compare loan products. Lenders generally offer several different loan programs, each with a specific interest rate. Research each loan type and accompanying rate to see what you may qualify for.
  2. Spruce up your credit. Borrowers with good to excellent credit usually get the most competitive rates from lenders. Take time to pay off debts and increase your credit score to become a more attractive borrower.
  3. Count on closing costs. Lenders in North Dakota generally charge between 0.87% and 1.31% of the sale price for closing costs. These fees could add a significant amount to the overall cost of the home. Weigh the closing costs in conjunction with your interest rate to get the best deal.

Home values in North Dakota are rising, but mostly in the single digits

According to Zillow, the price of a typical home in North Dakota increased by 4.9% in the 12 months prior to June 2021. While that doesn’t sound like much, prices in select areas are expected to jump by 10% to 14% by next June.

While the cities of Strasburg, Driscoll, Dunseith and Baldwin are expected to see the biggest jumps by next June, the rest of the state is predicted to see increases below 9%. However, homes in the sparsely populated Peace Garden State don’t necessarily come cheap.

The average price of a home in North Dakota currently sits at $246,588, but homes for less than $200,000, or even under $100,000, can be found in McKenzie county and other areas, depending on the quality and type of home.

5 fast facts about North Dakota’s housing market

If you’re looking to buy a home in North Dakota, here are five facts to know:

  1. The typical home price in North Dakota is $246,588 as of June 2021, which is 15.94% less than the national average.
  2. North Dakotans pay an average of $1,426 a month in homeownership costs with a mortgage, which is slightly less than the national average of $1,595 — according to the 2019 US Census.
  3. North Dakota’s closing costs run about 1.08% of a home’s sales price, ranking it 45th out of 50 states in average closing costs paid.
  4. According to SmartAsset, the average property tax rate in North Dakota is 0.99%, which is slightly lower than the national average and significantly lower than in South Dakota.
  5. North Dakotans can choose from several first-time homebuyer programs, including down payment assistance and low down payment loans.

Bottom line

Mortgage rates in North Dakota 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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