Missouri Mortgage Rates
Compare Missouri mortgage rates and choose the best option for your needs.
- Premier resource for one-stop lender shopping
- Get personalized purchase & refinance options
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- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
- $0 down payment for Veterans homebuying with a VA Loan
- Secure preapproval quickly with 24/7 access
- Tap into a network of 9,000+ Veteran-friendly real estate agents
- 350,000+ verified customer reviews, 4.8/5 average rating
Mortgage in Missouri: Top Lenders in 2024
Are you looking to buy a home in the state of Missouri? Opting for a mortgage loan is often the most convenient route, regardless of whether you're eyeing a residential property or an apartment. However, it's crucial to understand that the terms of home loans can vary significantly among different mortgage lenders (use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.
MO Mortgage Lenders Comparison
All the lenders we've evaluated are reputable companies known for their competitive rates and strong track records. To provide you with comprehensive information, we'll compare them based on several key criteria, including APR, minimum down payment, minimal requirements, and more.
Paddio®
Paddio® is a mortgage lender based in Springfield, Missouri, offering various loan options such as purchase, refinance, FHA, VA, and USDA loans. With Paddio, you may qualify for a down payment as low as 3.5% with Home Ready, Home Possible, or FHA loans. Conventional loans, another popular financing choice, typically require a down payment ranging from 3 to 20%. It's important to note that Paddio's mortgage services are not accessible in NY, NV, NJ, or UT.
| Pros: | Cons: |
|---|---|
| Low down payment options. | Not available nationwide. |
| Variety of loan types offered. |
First Citizens Bank
First Citizens Bank , one of the oldest and largest banks in the United States catering to retail customers, provides a range of mortgage options.
Their mortgages come with both fixed and adjustable (increasing) interest rates. Under ideal circumstances, the fixed APR stands at 6.289% for a 15-year mortgage, 6.256% for a 20-year mortgage, and 6.602% for a 30-year mortgage.
You have the option to reduce the APR by purchasing points, which are upfront payments equivalent to 1% of the principal amount. However, the bank stipulates certain requirements for eligibility, including a minimum of two years of employment, a credit score of 620 or higher, and a debt-to-income ratio (DTI) of no more than 43%.
| Pros: | Cons: |
|---|---|
| Extremely well-established. The bank has been around since forever, engaging in a broad variety of financial services. | The website is scanty concerning lender fees (e.g., an underwriting fee can be expected). |
| Offers variable-rate mortgages. These can be especially handy if you plan on selling or refinancing. |
AmeriSave
AmeriSave has established itself as a nationwide lender since its foundation in 2002. Nonetheless, the lender originates from Georgia. Consequently, residents of this state often receive some of the most enticing offers. The lender's credibility is underscored by its excellent ratings from BBB (A+) and Trustpilot (4.3/5).
The advertised rate of 4.899% requires a FICO score as high as 740 and a 20% down payment. However, it's important to note that your actual rate is likely to exceed what's advertised. For conventional loans, a credit score of 620 is needed, while government-insured plans are available starting from 600.
| Pros: | Cons: |
|---|---|
| Highly lucrative mortgage rates. | Not all of the lender fees included in the closing costs are transparently disclosed at the lender’s website. |
| Diversity of loan types offered. This includes purchase and refinancing with fixed and adjustable rates, as well as the three main kinds of government-backed loans (FHA, VA and USDA). | |
| Easy and convenient, mobile-friendly application process. |
Average Mortgage Rate in Missouri from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Missouri.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Missouri
| Criteria | Amount, $ |
|---|---|
| The median home value in Missouri | $199,039 |
| The income required to buy the median priced home in Missouri | $32,612 |
| The monthly mortgage payment required to buy the median priced home in Missouri | $755 |
| The median household income for Missouri | $62,648 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan entails a significant commitment spanning 15 to 30 years, so it's crucial to carefully weigh your options before committing to any lender. Several key factors should be considered when selecting a lending institution.
Type of Lender
Essentially, there are two main options: traditional banks and online mortgage lenders. Banks often provide competitive rates, albeit with stringent credit checks. However, their approval process tends to be slower, and meeting their eligibility criteria can be challenging. On the other hand, online lenders operate more swiftly, with less stringent requirements for homebuyers.
APR and Fees
Every loan, including mortgages, comes with costs beyond just the interest rate. These additional expenses may include fees like the origination fee, mortgage insurance fee, closing costs, and more. As of the current writing, in Missouri, the average mortgage rate for a fixed-rate 30-year loan stands at 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Missouri?
The list of reliable MO mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Missouri
Purchasing a home for the first time can be daunting. Fortunately, residents of Missouri can benefit from various government programs aimed at increasing mortgage affordability.
- The Federal Housing Administration (FHA) loan program provides buyers with insurance from the federal government. The fee for this insurance is incorporated into the overall cost of the loan. In exchange, homebuyers receive significant benefits, including a low interest rate and minimal credit requirements. With FHA loans, individuals with a FICO score as low as 500 and a debt-to-income ratio of just 50% can qualify.
- The USDA loan program is designed for individuals residing in rural areas. Participants in this program have the opportunity to secure a mortgage loan without any down payment required. However, to qualify, their annual income must not exceed 115% of the average income in their region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.