What Are the Least Expensive States to Get a Home Loan?
When it comes to getting a mortgage, some states are simply more expensive than others. And, while you might not want to move to a completely different state simply to get a better interest rate, if you’re considering making a big move (and buying a home in your new home state), it doesn’t hurt to know which states are more affordable than others.
Why are home loans in some states more expensive than others?
Risk is the major factor that makes some states more expensive to get a mortgage than others. Specifically, the risk of foreclosure, and what happens afterward, can make a big difference. For example, states that have lengthy foreclosure processes (i.e. judicial foreclosure) often have higher home loan interest rates.
Which states have the lowest interest rates?
As of 2017, the states with the lowest mortgage interest rates include:
How much of a difference do lower interest rates make?
Even a few points lower on an interest rate can make a huge difference on the amount you pay over time. For example, a 0.25% difference on a $200,000, 30-year fixed-rate mortgage can amount to $10,000 or more over the life of the loan. That’s a serious chunk of change -- and that’s why it always makes sense to take a close look at the interest rate you’re paying.