North Carolina Mortgage Rates
Compare North Carolina mortgage rates and choose the best option for your needs.
Purchase
Purchase
Purchase
- Attention Wells Fargo customers: Special benefits and discounts available
- Get a custom mortgage rate quote in minutes with no credit impact
- As low as 3% down on a fixed-rate mortgage
- Fed finally cuts rates!
- Down payments as low as 1%
- Explore Your Options
- Calculate a Payment for $0
- 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 VA Loans for Veterans & Military
- Secure preapproval quickly with 24/7 access
- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
- Rates have fallen, the time is now to move on your home purchase.
- Complete our Digital Mortgage experience for painless pre-approvals.
- Understand your home affordability options today with our mortgage experts.
- See personalized rates and loan options for your next home purchase.
Mortgage in North Carolina: Top Lenders in 2024
Willing to buy a home in North Carolina State? A mortgage loan is the most convenient way, regardless of whether you are counting on a residential house or an apartment. Nevertheless, the terms and conditions of home loans from different mortgage lenders can vary significantly (use our mortgage calculator to estimate your future expenses). Additionally, we'll provide insights into navigating the application process and securing the best possible terms for your mortgage.
NC Mortgage Lenders Comparison
Each of the lenders under review boasts a reputable status, offering competitive rates and a proven history of reliability. To furnish you with comprehensive insights, we'll evaluate them based on several crucial criteria, including APR, minimum down payment, minimal requirements, and more.
Northpointe Bank Mortgage
Northpointe Bank is based in Grand Rapids, Michigan, where it was founded back in 1999. Its mortgage services, however, are offered throughout the country, both online and through loan offices in 25 states. Its offerings encompass fixed- and variable-rate loans, available privately and government-insured, including FHA, VA, and USDA options. Services cater to various purposes such as purchase, refinancing, and construction. Under optimal conditions - 740+ credit score and a 25% down payment - the APR for a 30-year loan stands at 6.607%, while for a 15-year term, it's 6.464%. The minimum acceptable credit score starts at 620.
| Pros: | Cons: |
|---|---|
| Full spectrum of loan offerings, including unique offers with $0 down payment. | The official website lacks transparency on any lender fees. |
| Extensive physical network. | The average rates are not as low. |
AmeriSave
AmeriSave has established itself as a nationwide lender since its foundation in 2002. Nonetheless, the lender originates from Georgia. As such, the state always gets some of the most tempting offers. The lender's credibility is underscored by its outstanding ratings from BBB (A+) and Trustpilot (4.3/5).
The advertised rate of 4.899% necessitates a FICO score as high as 740 and a 20% down payment. Typically, actual rates may surpass the advertised ones. For conventional loans, a credit score of 620 is required, while government-insured plans are accessible 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. |
Quicken Loans Mortgage
Quicken Loans is the previous brand name of Rocket Mortgage, the US-wide leader in capitalization across consumer lenders, adopted in 1999. Under its previous brand, you can expect identical options, terms, and services. These encompass a wide array of mortgage options, ranging from simple conventional mortgages (offering fixed or adjustable rates) to jumbo loans, home equity loans, HELOCs, and federal-insured programs such as FHA and VA loans, catering to both purchase and refinancing needs.
To qualify for conventional loans, a minimum credit score of 620 is required. The advertised APR for a 30-year fixed-rate mortgage stands at 7.199%, which falls on the higher end compared to similar offerings. Operating in all states as well as Washington D.C., Quicken Loans/Rocket Mortgage ensures nationwide accessibility for its services.
| Pros: | Cons: |
|---|---|
| High availability. | No construction loans. |
| Easy application process. | Rates above the market average. |
| Plethora of experience. |
Average Mortgage Rate in North Carolina from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in North Carolina.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in North Carolina
| Criteria | Amount, $ |
|---|---|
| The median home value in North Carolina | $257,299 |
| The income required to buy the median priced home in North Carolina | $42,157 |
| The monthly mortgage payment required to buy the median priced home in North Carolina | $976 |
| The median household income for North Carolina | $63,702 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan entails a significant commitment spanning 15 to 30 years, prompting careful consideration before finalizing any agreement with a lender. Several crucial aspects warrant thoughtful deliberation when selecting a lending institution.
Type of Lender
In essence, two popular options for obtaining a mortgage are traditional banks and online mortgage lenders. Banks often present appealing rates, although they typically enforce rigorous credit checks. The approval process may be lengthier, and meeting eligibility criteria can prove challenging. Conversely, online lenders operate with greater speed, and their requirements for homebuyers tend to be less stringent.
APR and Fees
Every loan incurs costs, and a mortgage is no exception. These costs extend beyond the interest rate and may encompass additional fees such as the origination fee, mortgage insurance fee, closing costs, and more. As of the current writing, for a fixed-rate 30-year loan, the average mortgage rate in North Carolina stands at 6.58%.
Terms and Conditions
Here, it's essential to contemplate the minimum down payment required, which can range from 0% to 20% depending on factors such as the loan type and your current status (military, employed, self-employed, etc.). Another crucial parameter is the lifespan of the loan, which denotes its total length. Common options typically include 15 and 30 years.
What Mortgage Lender is the Number One in North Carolina?
The list of reliable NC 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 North Carolina
Navigating the process of buying a home for the first time can be daunting. Fortunately, residents of North Carolina can leverage various government programs aimed at enhancing mortgage affordability.
- Federal Housing Administration (FHA) loan program. Under this initiative, buyers receive insurance from the federal government, with the insurance fee incorporated into the total loan cost. In return, homebuyers benefit from a low interest rate and minimal credit requirements. With FHA loans, FICO scores can be as low as 500, and the debt-to-income ratio can be as high as 50%.
- USDA loan program. Geared towards those residing in rural areas, this program offers participants the opportunity to secure a mortgage loan with no down payment required. However, eligibility hinges on ensuring that annual income does not exceed 115% of the average income in the designated region.
- VA loan programs. Insured by the Department of Veteran Affairs, these mortgage options cater to former military personnel or their spouses, providing them with accessible financing opportunities.
Pre-Approval: What Does It Mean?
Preliminary approval serves as a confirmation of a prospective homebuyer's credibility, signaling to home sellers that lenders are prepared to greenlight a mortgage loan for the buyer. To obtain pre-approval, individuals must furnish documentary evidence of their financial capacity. A standard document set typically comprises earning statements, account statements, a W2 form, or alternative proof of income spanning at least two years. Additionally, completing the Uniform Residential Loan Application form is necessary to initiate the pre-approval process.