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Mortgage rates in South 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 South 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 South 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 South 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 2.563% 2.438% Not elegible Not elegible
30-year FHA 3.000% 3.000% Not elegible Not elegible
15-year VA 3.000% 2.625% 2.500% 2.500%
30-year VA 3.125% 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

Three strategies to help you score the best rate:

  1. Explore loan programs. Lenders assign different interest rates for their loan programs. Find out what loan products you qualify for to compare interest rates.
  2. Polish your borrowing profile. Pay off as much debt as possible to up your credit score before applying for a mortgage. Lenders give the best mortgage rates to borrowers with lower debt-to-income ratios and higher credit scores.
  3. Weigh the closing costs. You can expect closing costs in South Dakota to run you about 1.47% to 2.93% of the final purchase price. Consider these charges against your interest rate to calculate the total cost of your home loan.

Home values in South Dakota are forecast to increase

Home values have increased across the state of South Dakota for the past decade, and the next year looks to be no exception, according to Zillow. Since August 2011, home values have increased 59.74%. They’ve gone up more than 11% in the past year alone.

While small towns like Blunt and Wall aren’t expected to see much growth, other small towns like Roscoe and Turton can expect their home values to increase by around 17% and 14.4%, respectively. Homeowners in major cities like Sioux Falls and Rapid City can also expect to see steady growth.

Between historically low interest rates, limited inventory and a rush of out-of-staters, South Dakota is proving that it isn’t immune to the frenzied real estate market. It is very much a seller’s market here too.

5 fast facts about the South Dakota housing market

Here are five facts you need to know if you’re gearing up to enter the South Dakota real estate market:

  1. Though South Dakota doesn’t collect personal income tax, its average property tax rate is slightly higher than the national average.
  2. Rapid City was ranked fourth among the hottest real estate markets in the country for July 2021.
  3. For those with a mortgage, the monthly costs of owning a home in South Dakota is $1,340, which is nearly 16% cheaper than the national average of $1,595.
  4. The median sales price for homes in Sioux Falls has gone up 10.8% to $244,900 since August 2020.
  5. South Dakota has one of the lowest tax burdens in the country. Residents benefit from:
    • No corporate income tax
    • No personal income tax
    • No personal property tax
    • No business inventory tax
    • No inheritance tax

Bottom line

Mortgage rates in South 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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