Best Rhode Island Mortgage and Refinance Rates for April 2021

The COVID-19 pandemic has upended almost every aspect of daily life in the U.S, including the mortgage rates in Rhode Island. Though volatility exists with the state’s mortgage rates, there’s plenty of home buying opportunity with the rates at historic lows.

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Current Rhode Island Mortgage Rates

Compare today’s average mortgage rates in the state of Rhode Island, based on an aggregated pool of rates from multiple sources.

Product Rate Rate Last Week
30-Year Fixed Rate3.200%3.260%
15-Year Fixed Rate2.400%2.480%
5/1 ARM RateN/AN/A
30-Year Jumbo Mortgage Rate3.240%3.310%
30-Year Fixed Refinance Rate3.280%3.350%

Rates data based on Providence, Rhode Island as of 4/13/2021

Mortgage Rates Trends

In this graph:

On , the APR was for the 30-year fixed rate, for the 15-year fixed rate, and for the 5/1 adjustable-rate mortgage rate. These rates are updated almost every day based on Bankrate’s national survey of mortgage lenders. Toggle between the three rates on the graph and compare today’s rates to what they looked like in the past days.

Note: Not sure how much house you can afford? Use our mortgage calculator to find out.

Steeped in history, Rhode Island often lands at the top of lists touting the most desirable places to live in New England. Despite its small size and dense population numbers, the state is home to a diverse housing inventory, including dynamic neighborhoods in urban, suburban and rural settings. These sought-after perks often push Rhode Island real estate costs above national averages. Current average mortgage rates in the Ocean State sit at 2.97% for a 30-year fixed loan and 2.63% for 15-year fixed loan, both of which are below the national average.

Getting a mortgage in Rhode Island

With assistance from the historically low interest rates, entry into the Rhode Island housing market is relatively straightforward and affordable. While ranking higher across several metrics when looking at the nation as a whole, Rhode Island mortgage rates offer a better value than its two neighboring states.

Compared to the rest of the United States, Rhode Island trends upward in several key categories, including median home price and mortgage costs. The neighboring states of Connecticut and Massachusetts are considerably higher, making the Ocean State an attractive alternative within New England.

Homeownership rates, however, are lower in this state than elsewhere in the country. Much of the disparity is attributable to Rhode Island being a densely populated cityscape, where almost 90% of the population lives in an urban or urban-suburban setting.

  1. Median home price: $249,800
  2. Average 30-year fixed rate: 2.97%
  3. Median monthly mortgage cost: $1,838
  4. Homeownership rate: 60.3%

Rhode Island state mortgage rate trends

Historically speaking, while Rhode Island state mortgage rates have tracked higher than the national average, they have followed a downward trend of recent years. Over the past two years, Rhode Island has experienced a steady decline in its mortgage and refinance rates.

For a 30-year fixed loan, the numbers decreased from a starting point of over 4.22% in 2018 to recent lows of nearly 3.5%. In between, there were two separate highs in late 2018 and early 2020 approaching 4.9%. With 15-year fixed loans, rates were well over 3.5% in 2018 and reached highs of almost 4% on two occasions. Now, the entry point hovers near the 3% mark.

Rhode Island state current mortgage rates

Current Rhode Island mortgage rates are attractive across the board. For those seeking the low monthly payments of a 30-year fixed mortgage, current Ocean State rates in August 2020 are at 2.97%. If your goal is to lessen your interest burden (and pay off the home sooner), the current 15-year fixed mortgage rate in Rhode Island is even lower at 2.63%. Refinance rates in Rhode Island are at 3.4%, and the 30-year fixed jumbo is at 3.00%. For a 5/1 ARM, the rate in August was about 3.13%.

Most and least expensive places to live in Rhode Island

Where you live in Rhode Island is just as important as what you pay. As noted previously, the state’s predominantly urban setting hides a diversity often associated with areas boasting considerably more square miles. Although the state has only five counties, it is home to 39 incorporated municipalities, which comprise eight cities and 31 towns.

5 most expensive

  1. East Greenwich — This suburb of Providence, with a population of 13,073, has a median home value of $429,600.
  2. Newport — Another of Providence’s suburbs, the town of Newport has a population of 24,762 and a median home value of $425,400.
  3. Barrington — This suburb of Providence is one of the state’s top places to live. The population is 16,178, and the median home value is $418,900.
  4. Narragansett — The coastal town of Narragansett is one of the state’s most scenic places to call home, with a population of 15,550 and a median home value of $418,600.
  5. North Kingston — Located in Washington County and a top spot for families, the population of North Kingston is 26,207, and the median home value is $340,600.

5 least expensive

  1. Central Falls — A suburb of Providence with a population of 19,382, Central Falls has a median home value is $147,800.
  2. Woonsocket — The state’s sixth-largest city has a population of 41,539 and a median home value of $164,600.
  3. Pawtucket: — The state’s fourth-largest city with a population of 71,756, the median home value in Pawtucket is $181,900.
  4. West Warwick — A suburb of Providence with a population of 28,955, the median home value in West Warwick is $189,000.
  5. Providence: Rhode Island’s largest city with a population of 179,435, the median home value in Providence is $192,100.

Rhode Island state mortgage resources and intricacies

Mortgage rates are just one piece of the homebuying puzzle. Thanks in large part to its size, the state of Rhode Island is akin to an outsized village or hamlet.

Before relocating to Rhode Island, it’s essential to understand your future tax burden. Percentage-wise, Rhode Island ranks in the top half of the nation for state income taxes. The top income tax rate in the state is 5.99%. Property taxes are also higher than most other states. The effective rate of 1.43% ranks as the 10th highest overall in property tax burden in the country.

The final word

Rhode Island’s housing prices and mortgage rates trend higher than the national average, but considering its unique location and history, buying a home in the small state of Rhode Island is a relative bargain. This proves especially true when compared to neighboring states. With a lot of housing diversity for its size, including plenty of opportunities to live on or near the water, Rhode Island is an attractive real estate haven for new homeowners.

Stephen Altrogge

Personal Finance Contributor

Stephen Altrogge is a business and marketing writer from Ashland, Ohio. His writing has been published in Fast Company, Zapier, Entrepreneur, Forbes, and a host of other publications. He has a degree in Management Information Systems from Indiana University of Pennsylvania. Before launching his own business, he worked as an auditor at a bank.