New York Mortgage Rates
Compare New York mortgage rates and choose the best option for your needs.
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Mortgage in New York: Top Lenders in 2024
Willing to buy a home in New York State? Opting for a mortgage loan is the most convenient route, regardless of whether you're eyeing a residential estate or an apartment. However, it's important to note that the terms of home loans can significantly differ among various mortgage lenders (use our mortgage calculator to estimate your future expenses). In this guide, we'll evaluate some of the top-rated lenders, aiming to identify those worth considering for your homebuying journey.
NY Mortgage Lenders Comparison
Each of the lenders under review is a reputable company with competitive rates and a proven track record of reliability. To provide you with comprehensive insights, we will compare them based on several key criteria, including APR, minimum down payment, minimal requirements, and more. This detailed comparison will empower you to make an informed decision that aligns with your specific needs and preferences.
First Citizens Bank
First Citizens Bank stands as one of the oldest and largest banks in the United States catering to retail customers.
Mortgages offered by First Citizens Bank come with the option of fixed or adjustable (increasing) interest rates. Under ideal conditions, the fixed APR stands at 6.289% for a 15-year term, 6.256% for a 20-year term, and 6.602% for a 30-year term. It's worth noting that borrowers can potentially lower their APR by purchasing points, which are upfront payments equivalent to 1% of the principal amount.
To qualify for a mortgage from First Citizens Bank, applicants must have a minimum of two years of employment history, a credit score of 620 or higher, and a debt-to-income (DTI) ratio of no more than 43%. These criteria help ensure responsible lending practices and aid in determining a borrower's eligibility for the loan.
| 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. |
Morty, Inc. Mortgage
Not a lender by itself, but a mortgage broker, Morty, Inc. appeared in 2016. It is physically headquartered in New York City, but has close-to-nationwide coverage, with the exception of four states (Hawaii, Massachusetts, Missouri and Nevada).
The range of mortgage options offered by Morty includes fixed- and variable-rate conventional and jumbo mortgages, along with FHA-insured loans. Notably, refinancing services are exclusively available for loans initially procured through Morty.
For instance, a 30-year fixed-rate mortgage through Morty carries a 6.667% APR. Rates for 20- and 10-year loans are comparatively lower, at 6.425% and 5.452%, respectively. To qualify for a mortgage through Morty, applicants must possess a credit score of at least 600 and maintain a debt-to-income (DTI) ratio equal to or less than 45%. The minimum down payment requirement varies based on the size of the property.
| Pros: | Cons: |
|---|---|
| A closing date guarantee. | No general refinancing. |
| Large partner network. | No VA or USDA plans. |
Rocket Mortgage
Since its founding in 1985, Rocket Mortgage has established itself as the single most popular mortgage lender (and most successful lender overall) in the United States. For most of its existence Rocket Mortgage was known as Quicken Loans, a trademark it still retains. It was one of the first centralized lenders to offer its services online across the entire country. The rates are well above the average: for a fixed-rate 30-year mortgage, the APR ends up amounting to 7.199% even under near-perfect conditions.
Other options include adjustable-rate mortgages, refinancing, FHA- and VA-backed plans, etc. Like all lenders, it has a set of minimum requirements for borrowers, chief among them being a credit score no less than 620 (580 for FHA loans).
| Pros: | Cons: |
|---|---|
| Available nationwide. | Relatively high rates. |
| Abundance of third-party information. | Lack of USDA loans. |
Average Mortgage Rate in New York from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in New York.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in New York
| Criteria | Amount, $ |
|---|---|
| The median home value in New York | $572,449 |
| The income required to buy the median priced home in New York | $93,793 |
| The monthly mortgage payment required to buy the median priced home in New York | $2,172 |
| The median household income for New York | $82,392 |
Things to Consider When Choosing a Mortgage Lender
Taking out a mortgage loan entails a significant commitment spanning anywhere from 15 to 30 years. Therefore, it's crucial to carefully weigh your options before finalizing an agreement with any lender. When selecting a lending entity, there are several key aspects to consider.
Type of Lender
Essentially, there are two primary options: traditional banks and online mortgage lenders. Banks often present enticing rates, but they typically conduct rigorous credit checks. Consequently, the approval process may take longer, and meeting eligibility criteria can be challenging. On the other hand, online lenders operate with greater speed, and their requirements for prospective homebuyers are generally less stringent.
APR and Fees
Every mortgage loan incurs costs beyond just the interest rate. These additional expenses encompass various fees, including the origination fee, mortgage insurance fee, closing costs, and more. As of the current writing, in New York, the average mortgage rate for a fixed-rate 30-year loan stands at 6.58%.
Terms and Conditions
In this context, it's important to take into account the minimum size of a down payment, which frequently ranges from 0% to 20%, depending on factors such as the loan type and your current status (e.g., military, employed, self-employed, etc.). Another crucial parameter to consider is the lifespan of the loan, representing its total length. Common options include 15 and 30 years.
What Mortgage Lender is the Number One in New York?
The list of reliable NY 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 New York
Buying a home for the first time is quite challenging. Happily, residents of New York can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this 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.