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North Carolina Mortgage and Refinance Rates
Current mortgage rates in North Carolina
As of Tuesday, May 14, 2024, current interest rates in North Carolina are 7.29% for a 30-year fixed mortgage and 6.60% for a 15-year fixed mortgage.
The median home sale price in the state was up 9.4 percent year-over-year as of January 2024, according to NC Realtors, the state’s Realtor group. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge.
Refinance rates in North Carolina
While mortgage refinance rates have more than doubled since the pandemic, many North Carolina homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.
Learn more: Why and how to do a cash-out refinance
North Carolina mortgage rate trends
While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in North Carolina.
Learn more: Latest mortgage rate forecast
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.21% | 7.26% |
| 15-Year Fixed Rate | 6.71% | 6.79% |
| 5-1 ARM | 6.87% | 8.06% |
| 30-Year Fixed Rate FHA | 7.01% | 7.05% |
| 30-Year Fixed Rate VA | 7.14% | 7.17% |
| 30-Year Fixed Rate Jumbo | 7.35% | 7.41% |
Rates as of Tuesday, May 14, 2024 at 6:30 AM
Mortgage statistics for North Carolina
North Carolina’s housing markets and home values vary widely, from the metro areas of Charlotte and Raleigh-Durham to the coastal vibe of the Outer Banks to the mountainous region around Asheville. Here are some statistics about mortgages and the housing market in The Tar Heel State:
- Median home sales price, Jan. 2024: $306,705
- Housing inventory, Jan. 2024: 13.9% higher YoY
- Homeownership rate, Q4 2023: 65.8%
Sources: NC Realtors, U.S. Census Bureau
Mortgage options in North Carolina
Known for its warm weather and diverse economy, North Carolina is attracting new residents at a dizzying pace. If you’re looking to get a mortgage in North Carolina, there are several options:
- North Carolina conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- North Carolina FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- North Carolina VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.
Learn more: Types of home loans
First-time homebuyer programs in North Carolina
The North Carolina Housing Finance Agency (NCHFA) helps connect first-time homebuyers to low-interest mortgages and no-interest down payment assistance loans, including:
- NC Home Advantage Mortgage and down payment assistance: A fixed-rate mortgage for borrowers with a credit score of at least 640 and an income of no more than $134,000; can be used for single-family homes or duplexes, or condos or townhomes; can be coupled with forgivable down payment assistance up to $15,000
- NC Home Advantage Tax Credit: A mortgage credit certificate (MCC) that allows borrowers to claim a federal tax credit for 30 percent of the mortgage interest every year, up to $2,000.
How to find the best mortgage rate in North Carolina
- Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
- Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
- Step 3: Know your mortgage options - There are a few different types of mortgages.
- Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
- Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Learn more: How to get a mortgage
Lender compare
Compare mortgage lenders side by side
Mortgage rates and fees can vary widely across lenders. To help you find the right one for your needs, use this tool to compare lenders based on a variety of factors. Bankrate has reviewed and partners with these lenders, and the two lenders shown first have the highest combined Bankrate Score and customer ratings. You can use the drop downs to explore beyond these lenders and find the best option for you.
Garden State Home Loans
NMLS: 473163
|
State License: MB-473163
3.6
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
5.0
Homefinity
NMLS: 2289
|
State License: 4965
4.5
Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.
Recent Customer Reviews
4.9
Additional North Carolina mortgage resources
- North Carolina loan limits by county: Learn the conforming loan limit for your city or town.
- North Carolina mortgage lenders: Explore mortgage lenders in your state.
- North Carolina housing market overview: Know what to expect as a homebuyer or seller in North Carolina.
- How to buy a house in North Carolina: Understand the process of buying a home in your state.
- Homeowners insurance in North Carolina: Compare policies from a variety of providers.
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Suzanne De Vita, Senior Editor, Home Lending
I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.