North Dakota Mortgage Rates
Compare North Dakota mortgage rates and choose the best option for your needs.
Purchase
- 0% Down VA Loans for Veterans & Military
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- Competitively low VA rates, no PMI required
- Over 300,000 verified 5-star reviews
- Top 3 Lender: Trusted and established.
- 19K+ 5-star reviews: Proven customer satisfaction.
- Wide mortgage selection: Tailored solutions.
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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
Mortgage in North Dakota: Top Lenders in 2024
Considering purchasing a home in North Dakota State? Opting for a mortgage loan is the most straightforward route, whether you're eyeing a residential estate or an apartment. However, it's important to note that home loan terms can vary significantly among different mortgage lenders. Utilize our mortgage calculator to estimate your future expenses accurately. Within this guide, we'll evaluate some of the top-rated lenders to determine which ones are worth considering.
ND Mortgage Lenders Comparison
Each of the lenders reviewed is a reputable company with reasonable rates and a proven track record. To provide you with comprehensive information, we will compare them based on several key criteria, including APR, minimum down payment, minimal requirements, and other relevant factors.
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. Originally known as Quicken Loans, a trademark it still maintains, Rocket Mortgage was among the pioneering centralized lenders to offer its services nationwide via the internet. However, its rates tend to be higher than the average, with the APR for a fixed-rate 30-year mortgage reaching 7.199% even under nearly optimal conditions.
Rocket Mortgage provides various options, including adjustable-rate mortgages, refinancing, and FHA- and VA-backed plans. Like all lenders, it imposes minimum requirements for borrowers, with a credit score of no less than 620 (580 for FHA loans) being among the primary criteria.
| Pros: | Cons: |
|---|---|
| Available nationwide. | Relatively high rates. |
| Abundance of third-party information. | Lack of USDA loans. |
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. As such, customers can expect the same range of options, terms, and services. These include conventional mortgages with fixed or adjustable rates, jumbo loans, home equity loans, HELOCs, and federally-insured programs such as FHA and VA loans, catering to both purchase and refinancing needs.
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 may be considered relatively high compared to similar offerings. Quicken Loans operates in all states, as well as Washington D.C., ensuring nationwide accessibility for its services.
| Pros: | Cons: |
|---|---|
| High availability. | No construction loans. |
| Easy application process. | Rates above the market average. |
| Plethora of experience. |
PenFed Credit Union
Pentagon Federal Credit Union started in 1935 and was at first aimed exclusively at service members. Nowadays, however, everyone can apply.
For those with a credit score between 700 and 739 and a 20% down payment, the APR values are 5.596% for a conventional 15-year mortgage, 6.078% for a 20-year mortgage, and 6.548% for a 30-year mortgage. The minimum acceptable credit score is 650 for a conventional loan and 700 for a non-conforming jumbo loan. For FHA options, a credit score of 620 is typically sufficient.
| Pros: | Cons: |
|---|---|
| Doesn’t charge lender fees. | The lender does not support USDA-insured plans. |
| Allows calculating rates on the spot – without filling out any annoying forms. | The mortgage application process requires a preliminarily completed online form and a deposit of $5 into a savings account. |
| The lender provides nationwide coverage. |
Average Mortgage Rate in North Dakota from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in North Dakota.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in North Dakota
| Criteria | Amount, $ |
|---|---|
| The median home value in North Dakota | $231,114 |
| The income required to buy the median priced home in North Dakota | $37,867 |
| The monthly mortgage payment required to buy the median priced home in North Dakota | $877 |
| The median household income for North Dakota | $70,934 |
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 signing an agreement with any lender. Several crucial aspects warrant thoughtful deliberation when selecting a lending entity.
Type of Lender
Essentially, there are two primary options: banks and online mortgage lenders. Banks often present appealing rates, but they typically conduct rigorous credit checks. Approval processes may be lengthier, and eligibility criteria can be demanding. On the other hand, online lenders operate with greater speed, and their requirements for homebuyers tend to be less stringent.
APR and Fees
Every loan comes with costs beyond just the interest rate. Mortgage expenses 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 Dakota stands at 6.58%.
Terms and Conditions
Here, it's essential to consider the minimum down payment required, which often ranges 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 refers to its total length. Common options typically include 15 and 30 years.
What Mortgage Lender is the Number One in North Dakota?
The list of reliable mortgage lenders in ND is extensive, making it challenging to provide a definitive answer to this question. It all depends on various factors. For instance, one industry leader is Rocket Mortgage, boasting a loan volume of $11.5 billion for the year 2021. To make an informed choice, consider checking our list of recommended lenders.
First-Time Homebuyer Programs in North Dakota
First-time homebuying can be daunting, but residents of North Dakota can benefit from various governmental 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 included in the total loan cost. In exchange, homebuyers enjoy significant benefits such as a low interest rate and minimal credit requirements. As a result, a FICO score as low as 500 and a debt-to-income ratio of just 50% are acceptable.
- 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 Veterans Affairs, these mortgage options cater to former military personnel or their spouses, providing 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 approve a mortgage loan for the buyer. To obtain pre-approval, individuals must provide documentary evidence of their paying capacity. A typical document set includes earning statements, account statements, a W2 form, or alternative proof of income spanning at least two years. Additionally, filling out the Uniform Residential Loan Application form is necessary to initiate the pre-approval process.