Get the Best Mortgage Rates in North Carolina

Whether you’re looking to purchase a new home or refinance your existing property, there are a few important factors you should consider. One of the driving elements behind the mortgage and refinance rates in North Carolina is the overall performance of the housing market.

According to data obtained from NeighborhoodScout, the median value of North Carolina homes stands at $167,269. Although the median value of NC homes is lower than the national median of $220,100, the market has been showing signs of steady improvement. 

Zillow reports that North Carolina home values increased by 8.6 percent over the past year, and predicts this trend is likely to continue moving forward. The upward movement of North Carolina’s housing market suggests that it may be a good time to purchase or refinance a home.

While this trend may be opening up new opportunities for homebuyers, it’s important to note that mortgage and refinance rates are impacted by more than just local market performance.

Lenders often base their offered interest rates on how the wider national marketplace is performing, along with a host of other factors like foreclosure rates, state laws, and lender competition.

Keep in mind, lenders also factor in personal information like credit score, credit history, and income when negotiating mortgage rates.  If you want to secure the best rate on your mortgage or refinance loan, the first step is to gather as much preliminary information as possible.

In this article, we’ll explain some of the key elements you should consider while shopping around and offer advice about how you can secure the best mortgage rates in NC.

4 Elements That Affect Mortgage Rates & Refinance Rates in North Carolina

To find the best mortgage and refinance rates in NC, it’s important to consider all the critical elements that impact how those rates are formulated. Getting the best deal relies on your knowledge of different loan options and how your personal finances will influence the negotiating process.

Credit Score

One of the first things a lender will consider when calculating mortgage rates is your overall credit score. Homebuyers with low credit scores are usually considered high risk, resulting in higher mortgage and refinance rate offers.

If your credit score is sturdy and consistent, lenders will be more likely to negotiate a lower rate. Buyers with low credit scores often have fewer options, but there’s still a chance you can qualify for a mortgage at a decent rate.

Credit History

Another qualifying factor for a mortgage and refinance rates involves your general credit history. In the case of mortgages, no credit is sometimes just as troubling to a lender as bad credit. Without a robust credit history, lenders have no basis to determine whether or not you’ll be able to make the monthly payments on time.

While you can still qualify for a mortgage without a lengthy credit history, you should expect a more difficult negotiation process to land a rate you can afford.

Loan Type

A major factor for determining your mortgage or refinance rate is the type of loan you’re able to secure. Different lending institutions offer different types of loans, each with unique eligibility guidelines to contend with. Doing a bit of research on the loan types you’re eligible for can help you understand all your options before meeting with lenders.

Some of the more common loan types include conventional, USDA, FHA, and VA loans. Since rates can vary significantly based on the type of loan you select, it’s considered the best practice to speak with a number of different lenders before settling on any one option.

Loan Term

Once you’ve determined all the loan types you’re eligible for, the next step should be to consider the length of the loan term. Lenders take into account the expected duration of the loan when determining eligibility and interest rates.

Generally, loans with shorter terms come with lower interest rates but more expensive monthly payments. The loan term you select should depend on your income and how much you have tucked away in savings.

By taking these key factors into consideration, you can efficiently narrow down your search and increase your chances of landing the best mortgage or refinance rate possible. But how do you transform research into results?

How to Get the Best Mortgage & Refinancing Rates in North Carolina

Securing the best available mortgage or refinance rate in North Carolina usually boils down to whether you’re willing to do the legwork. While some homebuyers go with the first-rate they’re offered, the only way to ensure you’re getting the best possible deal is through comparative shopping.

In the realm of mortgages and refinancing, information is everything. The more options you can compare, the better equipped you’ll be to negotiate a favorable mortgage or refinance rate. Every homebuyer has different financial needs, and finding the perfect mortgage is more of a personal journey than an industrial average.

If you’re hoping to secure an affordable mortgage or refinance rate, consider these important rate-hunting tips:

Understand your financial situation

Before you step into negotiations with a lender, it’s crucial to understand the full scope of your financial situation. Lenders will be prepared with a long list of questions concerning your finances, income, savings, and credit history.

As such, negotiating effectively will rely on your ability to confidently provide answers to all of the lender’s questions. The loan type and term you select should align with your overall financial standing, as taking on too much can jeopardize your economic well-being.

Investigate your mortgage and refinance options

After you’ve combed through your finances, the next step should be to gather information on the range of mortgage and refinance options available to you. It’s important to first consider what type of payment schedule you can afford, as doing so will help to narrow your search.

The best loan type is the one that conforms to your specific needs, so be sure to research the benefits and limitations of each one before you sign the paperwork. Keep in mind, the cheapest option isn’t always the best choice in the long term.

Shop around to different lenders

Every lender has different criteria when it comes to formulating mortgage and refinance rates. By casting a wide net, you can maximize your chances of securing a favorable outcome, while also avoiding inflated loan rates during the negotiation process.

Speaking with multiple loan officers from different lending institutions can give you a good idea of the pros and cons of each lender. Comparative shopping helps to narrow your options, allowing the best deals to rise to the top of the pile.

Once you’ve pruned out all of the undesirable choices, be sure to ask your loan officer about the extra benefits of doing business with their institution, as many are willing to waive some of the back-end fees you might not have considered.

Don’t forget to take advantage of free online resources when compiling your information, as narrowing down your options will likely depend on the specific qualifications and eligibility guidelines of each lender.

Recommended Companies in North Carolina

There are a number of reputable lending institutions throughout North Carolina, so it can be overwhelming to start searching for deals on your mortgage and refinance loan. The best pathway forward is to contact multiple lenders with a laundry list of questions about their rates and services.

Asking questions is always commitment-free, so don’t be afraid to shop around. Some of the top mortgage lenders in North Carolina include:

Quicken Loans

This nationally recognized lender is considered one of the best choices for a mortgage and refinance loans. They offer a popular 90-Day rate protection service that guarantees quoted loan prices will not fluctuate during the negotiation process, even if the market stumbles.

New American Funding

One of the best options for homebuyers with less-than-perfect credit. This lender consistently works to help borrowers with credit scores as low as 620 secure conventional mortgages.

CrossCountry Mortgage

This full-service mortgage lender offers a range of financing options, from traditional loans to niche programs. They are an FHA-Approved Lending Institution recognized for their outstanding customer-focused approach.

Ally Bank

A leader in digital financial services, this banking institution provides products and services that meet their customers’ unique needs. They offer competitive rates and long-term support through their Exclusive Ally Home Team.

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