Delaware Mortgage Rates
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Mortgage in Delaware: Top Lenders in 2024
If you're looking to purchase a home in Delaware State, utilizing a mortgage loan is a convenient and effective option, regardless of the type of property you're seeking, be it a residential estate or an apartment. However, it's essential to note that the terms and conditions of home loans can vary significantly among different mortgage lenders. To estimate your future expenses, you can utilize our mortgage calculator. In this guide, we will examine and assess some of the highly regarded lenders to determine which ones are worth considering.
DE Mortgage Lenders Comparison
All the lenders that have been reviewed are reputable companies with solid track records and competitive rates. To provide you with comprehensive information, we will compare them based on several key criteria, including the APR (Annual Percentage Rate), the minimum down payment, minimum requirements, and other relevant factors. This comparison will help you make an informed decision and choose the lender that best suits your needs.
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. appeared in 2016. Its headquarters are located in New York City, and it provides coverage across most of the nation, excluding four states (Hawaii, Massachusetts, Missouri, and Nevada).
Morty offers a range of mortgage options, including fixed-rate and variable-rate conventional mortgages, jumbo mortgages, and FHA-insured loans. However, their refinancing services are limited to loans initially obtained through Morty.
For a 30-year fixed-rate mortgage, the APR is 6.667%. The rates are lower for 20-year and 10-year loans, standing at 6.425% and 5.452% respectively. Morty sets a minimum credit score requirement of 600 for applicants and a maximum debt-to-income (DTI) ratio of 45%. The minimum down payment varies based on the size of the property.
| Pros: | Cons: |
|---|---|
| Wide coverage. Morty, Inc has close-to-nationwide coverage, allowing borrowers in Delaware to access their services. | Limited refinancing scope. Morty, Inc only offers refinancing loans made through their platform. Borrowers with existing mortgages from other lenders may not be able to take advantage of Morty's refinancing services. |
| Variety of options. Morty, Inc offers a range of mortgage options, including fixed-rate and variable-rate conventional mortgages, jumbo mortgages, and FHA-insured loans. This provides borrowers with flexibility in choosing a loan that suits their needs. | Credit score requirement. Morty, Inc sets a minimum credit score requirement of 600 for borrowers. This may pose a challenge for individuals with lower credit scores. |
| Refinancing services. Morty, Inc provides refinancing options for loans originally obtained through their platform, allowing borrowers to potentially secure better terms or lower interest rates | Down payment variability. The minimum down payment required by Morty. Inc can vary depending on the size of the property. Borrowers should be aware of the specific down payment requirements before applying for a mortgage. |
| Competitive rates. Morty, Inc offers competitive rates on their mortgages, making it potentially more affordable for borrowers. |
NBKC Bank
NBKC is a well-established bank originating from Kansas, with a history dating back to 1999. It provides a wide range of mortgage options, including conventional, FHA, VA, fixed-rate, and adjustable-rate mortgages across the nation.
The minimum credit score required by NBKC is 620, ensuring accessibility for a broader range of borrowers. As of the current time, the advertised base rates through their online calculator are as follows: 6.625% for a 30-year fixed mortgage, 6.990% for a 25-year fixed mortgage, 6.250% for a 20-year fixed mortgage, and 6.000% for a 15-year fixed mortgage. These rates provide borrowers with a glimpse into the available options when considering a mortgage through NBKC.
| Pros: | Cons: |
|---|---|
| Wide range of mortgage options. NBKC offers various mortgage programs, including conventional, FHA, VA, fixed-rate, and adjustable-rate mortgages, providing borrowers with flexibility and choice. | Limited physical presence. NBKC is primarily an online bank, which means that face-to-face interactions may be limited for borrowers who prefer in-person banking services. |
| Accessibility. With a minimum credit score requirement of 620, NBKC makes homeownership more accessible to a broader range of borrowers. | Limited geographic coverage. While the bank offers mortgage services nationwide, it's important to note that their coverage may not be available in all areas, including certain states or regions. |
| Competitive rates. NBKC's advertised rates are competitive, allowing borrowers to potentially secure a mortgage at a favorable interest rate. | Other fees and requirements. While the advertised rates may seem attractive, borrowers should also consider additional fees, closing costs, and specific eligibility criteria associated with NBKC's mortgage products. |
| Online calculator. The availability of an online calculator enables borrowers to estimate their mortgage costs and explore different loan scenarios conveniently. |
PenFed Credit Union
Pentagon Federal Credit Union has expanded its eligibility criteria to include everyone. This inclusivity allows a broader range of individuals to apply for their mortgage services.
For borrowers with a good credit score ranging from 700 to 739 and a 20% down payment, Pentagon Federal Credit Union offers competitive APR values. These rates stand at 5.596% for a conventional 15-year mortgage, 6.078% for a 20-year mortgage, and 6.548% for a 30-year mortgage.
The Credit Union's mortgage offerings provide borrowers with various options and terms to meet their specific needs and preferences.
| Pros: | Cons: |
|---|---|
| Established history. The Pentagon Federal Credit Union has a long-standing history since 1935, indicating stability and experience in the lending industry. | Limited physical presence. The Credit Union may have limited physical branches or offices in Delaware, which could impact in-person customer service for some borrowers who prefer face-to-face interactions. |
| Inclusive eligibility. While initially aimed at service members, the Pentagon Federal Credit Union now accepts applications from everyone, providing accessibility to a wider range of borrowers. | Membership requirement. While eligibility has been expanded to include everyone, becoming a member of the Pentagon Federal Credit Union may still require meeting certain criteria, such as joining an eligible organization or association. |
| Competitive APR. The Credit Union offers competitive APR values, allowing borrowers to secure a mortgage at a favorable interest rate, potentially saving them money over the life of the loan. | Potential eligibility requirements. Depending on the specific loan product and borrower's creditworthiness, there may be minimum credit score requirements, down payment obligations, and other qualifying criteria that borrowers need to meet, which could pose challenges for some individuals. |
| Various mortgage options. The Credit Union provides a variety of mortgage options, including conventional loans with different terms (15-year, 20-year, and 30-year), allowing borrowers to choose the option that best suits their financial goals and preferences. | Limited product offerings. Compared to larger banks, this credit union may have a narrower range of mortgage products or specialized offerings, which may limit the options available to borrowers with unique needs or preferences. |
| FHA options available. For borrowers with a credit score of around 620, the Pentagon Federal Credit Union offers FHA options, which typically have more lenient credit score requirements, making homeownership more accessible. |
Average Mortgage Rate in Delaware from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Delaware.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Delaware
| Criteria | Amount, $ |
|---|---|
| The median home value in Delaware | $320,400 |
| The income required to buy the median priced home in Delaware | $52,496 |
| The monthly mortgage payment required to buy the median priced home in Delaware | $1,216 |
| The median household income for Delaware | $75,857 |
Things to Consider When Choosing a Mortgage Lender
Acquiring a mortgage loan involves a significant long-term commitment spanning 15 to 30 years. Therefore, it is crucial to carefully consider your options before finalizing an agreement with a specific lender. Several key factors should be taken into account when selecting a lending institution.
Type of Lender
In general, there are two popular choices when it comes to obtaining a mortgage: traditional banks and online mortgage lenders. Banks often provide competitive interest rates, but they typically conduct rigorous credit checks. The approval process may take longer, and meeting their eligibility criteria can be challenging. On the other hand, online lenders operate more efficiently, offering faster processing times. They tend to have more lenient requirements for homebuyers.
APR and Fees
Like any loan, a mortgage comes with various costs beyond just the interest rate. These expenses encompass additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. Currently, in Delaware, the average mortgage rate for a fixed-rate 30-year loan is 6.58%. It's important to consider all these factors when assessing the overall cost of a mortgage.
Terms and Conditions
In this context, it's crucial to take into account the minimum down payment requirement, which can range from 0% to 20% depending on factors such as loan type and personal circumstances (e.g., military, employed, self-employed, etc.). Another significant factor to consider is the loan term, which determines the total length of the mortgage. The most common choices are 15 and 30 years.
What Mortgage Lender is the best in Delaware?
Due to the extensive list of reliable mortgage lenders in Delaware, providing a definitive answer to this question is challenging. The choice ultimately depends on individual preferences and circumstances. One prominent industry leader to consider is Rocket Mortgage, which reported a loan volume of $11.5 billion in 2021. To make an informed decision, it is advisable to review our list of recommended lenders and carefully evaluate your options.
First-Time Homebuyer Programs in Delaware
Buying a home for the first time can be challenging, but residents of Delaware have access to government programs that aim to increase mortgage affordability. Here are some programs available:
- Federal Housing Administration loan program. This program provides insurance from the federal government to the buyer. The insurance fee is included in the total loan cost. In return, homebuyers enjoy benefits such as low-interest rates and minimal credit requirements. With an FHA loan, individuals with a FICO score as low as 500 and a debt-to-income ratio of 50% can qualify.
- USDA loan program. Designed for those living in rural areas, this program offers mortgage loans with a zero down payment requirement. However, participants must ensure that their annual income does not exceed 115% of the average income in the region.
- VA loan programs. These mortgage options are insured by the Veteran Affairs Department and are available to former military personnel and their spouses. VA loans often provide favorable terms and benefits tailored to the unique needs of veterans.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility and assures home sellers that lenders are prepared to approve a mortgage loan for the buyer. To obtain a pre-approval, certain documentary evidence of the buyer's paying capacity is required. A typical set of documents includes earning statements, account statements, a W2 form, or alternative proof of income for a minimum of two years. Additionally, filling out the Uniform Residential Loan Application form is necessary to complete the pre-approval process.