North Carolina Mortgage and Refinance Rates

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North Carolina Mortgage Rates

Thinking about moving to North Carolina? Getting a mortgage or refinancing a home loan in the state of North Carolina may save you a significant amount of money thanks to low interest rates, which are currently below the national average.

If you’re on the market for a new home or want to refinance your home loan in the state of North Carolina, you may be able to save quite a bit of money right now thanks to the low interest rates in this state. The mortgage rates for most lending products in North Carolina are currently below the national average. You can also expect property taxes, average ownership costs and median home prices to be well below the national average in this state. So, if you want to invest in property in the Tar Heel State, it may have some great savings awaiting your arrival. Compare national mortgage rates to see how they stack up against North Carolina’s; rates.

 

Current North Carolina Mortgage Rates

Product Rate Rate Last Week
30-Year Fixed Rate3.060%3.150%
30-Year FHA Rate2.630%2.630%
30-Year VA Rate2.380%2.500%
30-Year Fixed Jumbo Rate2.980%3.100%
20-Year Fixed Rate3.130%3.130%
15-Year Fixed Rate2.690%2.740%
15-Year Fixed Jumbo Rate2.740%2.780%
5/1 ARM Rate3.310%3.280%
5/1 ARM Jumbo RateN/AN/A
7/1 ARM Rate3.370%3.380%
10/1 ARM Rate3.460%3.460%

Rates data based on Raleigh, North Carolina as of 8/3/2020

Getting a mortgage in North Carolina

North Carolina offers some great savings on cost of living and other savings that could be to the advantage of future homeowners. First, the median home price in the state is nearly $40,000 lower than the national average. The median monthly ownership costs in North Carolina are $1,290, which are almost $300 lower than the national average as well. This alone should be attractive to prospective buyers.

But the good news doesn’t stop there. Homeowner’s insurance in North Carolina is, on average, the 12th least expensive in the nation, which offers more potential savings. When you look at the overall cost of living, the World Population cost of living index ranks North Carolina as the 22nd least expensive state in the nation. That number jumps to 18th when you look at housing metrics exclusively.

  • Median home price: $165,900
  • Average 30-year fixed rate: 3.55%
  • Median monthly ownership cost: $1,290
  • Homeownership rate: 65%

*Rates and data as of May 5, 2020. Assuming 3.72% APR national average on a 30-year fixed-rate mortgage.

North Carolina state mortgage rate trends

Mortgage and refinance rates in North Carolina have been steadily dropping since late 2018 and early 2019. Rates briefly spiked — as they did across the country — just before the start of that downward trend. The spike was not as pronounced as it was in some other states, though.

As a benchmark, interest rates in May 2018 were about 4.25% for 30-year fixed-rate loans. During the late 2018 spike, those interest rates climbed near the 4.8% mark before dropping to where they are now, which is about 3.50% currently. Interest rates on 5/1 and 7/1 adjustable-rate mortgages followed suit, but started and ended lower. In May of 2018, rates on these lending products were around the 4% mark, and now both sit around 3%.

North Carolina state current mortgage rates

Interest rates on 30-year fixed-rate mortgages in North Carolina are, on average, about 3.55% currently, assuming 20% down and excellent credit. Interest rates on 20-year loans are closer to the 3.5% mark currently, and interest rates on 15-year and 10-year loans are even lower, with both near 3% currently.

Refinance rates in the state are currently lower than traditional mortgage rates across most lending products. Interest rates on 10- and 15-year refinances are below 3%, and 30-year refinance rates are about 3.45% right now. 3/1 ARM interest rates are currently holding steady at about 3.7%, while 5/1 and 7/1 ARMs have taken a sharp dive to an average 3% interest rate.

Most and least expensive places to live in North Carolina

Least expensive places to live in North Carolina

1. Rocky Point, NCAt 18% below the national average for cost of living, people looking to buy in Rocky Point are in for some significant savings. The biggest area of savings is on housing, which is 61% below the national average in the area. The median home price in the area is $134,932 and renters should expect to pay about $422.66 per month.

2. Lexington, NCAt an impressive 12% below the national average, residents of this city should expect deep savings in housing, utilities and transportation. The current average cost of a gallon of gas is slightly below $2.00. The median price of a home is $267,190 and the median rent is $836.99.

3. Thomasville, NC — The cost of living in Thomasville comes in at 12% below the national average, and the median price of a home and rent are the same as in Lexington: $267,190 for the median home price and $836.99 for the median rent price.

4. Graham, NCHousing in Graham, North Carolina, is 29% below the national average. The current median home price is $247,758 and the median rent is $776.12 per month. Utility and transportation costs all come in well below the national average.

5. Hendersonville, NC — With an overall cost of living that is 10% below the national average, Hendersonville is one of the least expensive cities to live in the state of North Carolina. Housing is 25% below the national average, with the median home price at $261,336 and the median rent at $818.65 per month.

Most expensive places to live in North Carolina

1. Asheville, NC — While most costs in the city of Asheville fall below the national average, the city is still expensive when you weigh it against the rest of the state. The median home price in the area is $318,199 and the median rent is $996.78. Grocery costs are 4% below the national average, with a loaf of bread costing about $3.20.

2. Charlotte, NC — Charlotte is also slightly below the national average, but still expensive for the state of North Carolina. This city is the hub for Bank of America and has a median home price of $296,685 and a median rent of $929.39.

3. Wilmington, NC — While you’ll save significantly on housing in Wilmington, you’ll pay for it in higher than the average utility, grocery and transportation costs. The median home price in Wilmington is only $280,723, but grocery costs are 3% above the national average. Expect to pay about $3.43 for a loaf of bread.

4. Fayetteville, NCMedian home prices in Fayetteville are $247,758 and median rent in the city is $776.12. Utility and grocery costs in Fayetteville are below the national average but higher than what you will find in the rest of the state. The average energy bill is $158.94.

5. Gastonia, NC — The median home price in Gastonia is $218,127 and the median rent is $683.30, which is higher than what you’ll find in most of North Carolina. Utility costs in the city are only about 8% below the national average, with an average energy bill of $153.91 per month.

*Data source: PayScale

North Carolina state mortgage resources and intricacies

There are plenty of great resources available for people who are looking to buy a home in the state of North Carolina. Two websites to consider visiting are the state HUD website for homeowner’s assistance programs and the state’s first-time homebuyer help website. By using these websites and reaching out to licensed mortgage brokers and realtors, you can get all the information you need to get through the application process, refinancing or mortgage process in North Carolina.

It’s also important to note that property taxes in the state of North Carolina ranked 36th in the country with an effective property tax rate of 0.78%.

The final word

When it comes to buying a home in the Tar Heel State, there’s a lot to be excited about. Mortgage rates are below the national average, homeownership costs are nearly $300 below the national average and property taxes are in the bottom half of the highest rates in the country. Add in the fact that average homeownership insurance rates are low and you’ve got a great recipe to save on your next home in NC.

Jason Lee

Personal Finance Contributor

Jason Lee is a seasoned copywriter with a passion for writing about banking, tech, personal growth, and personal finance. As a business owner, relationship strategist, and officer in the U.S. military, Jason enjoys sharing his unique knowledge base and skill set with the rest of the world.