Today’s Utah Mortgage Rate

A mortgage is a loan that helps you buy real estate, and its rate determines the interest you'll pay on that loan. Think of this rate as the price tag of borrowing money: The lower it is, the less you'll end up paying. While mortgage rates in Utah are slightly higher than the national average, comparing offers from multiple lenders can help you secure an affordable loan.

According to FRED Economic Data, the national homeownership rate in 2022 was 65.9%; in Utah, the homeownership rate was 71.2% during the same year.

The average rate for 30-year fixed-rate mortgages in Utah is slightly lower than the national average at 7%, compared to 7.05% in the U.S. However, the state's 15-year fixed rate is 6.42%, slightly higher than the national average of 6.34% nationally. Utah's five-year adjustable-rate mortgage is 7.51%, compared to 7.34% across the U.S.

Remember, these rates can change due to economic conditions, Federal Reserve policies and the current housing demand. Staying updated on current rates can help you secure better loan terms.

Mortgage rates are pivotal in determining how much you'll pay for your home over the long term. A lower figure can save you thousands of dollars, boost your financial flexibility and even help you build home equity faster. Taking the following steps can help you secure a lower rate over the life of your loan.

Information is power, especially when hunting for the best mortgage rates in Utah. By using these tips, you can secure a rate that suits your current financial situation and sets you up for a stable financial future.

The average home value in Utah is about $510,173 — that’s distinctly higher than the national average of $349,770. Knowing this helps you understand how much you might need to borrow and underscores the importance of securing a good mortgage, especially in a state where homes are pricier. Fortunately, several mortgage options in Utah are available to suit your needs, budget and circumstances: View the comparison table below for an explanation of each.

Knowing about mortgage types is just one piece of the puzzle; another factor that's also important to consider is your mortgage's rate structure. Typically, rate structures come in one of two varieties:

• Fixed-Rate Mortgages: Your interest rate stays the same throughout the loan term. It's predictable, so you'll know exactly what your monthly payments will be. This type is ideal if you plan on staying in the home for a long time.

• Adjustable-Rate Mortgages (ARMs): Your interest rate can change after a certain period, usually five, seven or 10 years. This structure type could work in your favor if rates drop, but it can be risky if they rise. ARMs are better suited to those who plan to sell or refinance before the rate adjusts.

Knowing what to expect at each stage of getting a mortgage can help you negotiate better terms, potentially saving you thousands of dollars over the life of the loan. Below, MoneyGeek breaks down each step to securing a mortgage to help you find the best deal available:

In addition to your mortgage, owning a home comes with other hidden costs. Over time, things like repairs and property taxes can add up and stretch your budget. Mortgage programs can make your home loan mortgage more manageable, leaving you more financially flexible. For example, the Utah Housing Corporation (UHC) offers programs that can assist with down payments and closing costs, allowing you to keep some cash on hand for any unexpected expenses. Understanding what programs are available to you can help make buying a home easier and help you save money in the long run.

Utah's Down Payment Assistance program can help if you're considering buying a home but are short on initial funds. First, you'll need to get a primary home loan through a UHC-approved participating lender. They’ll determine how much you need for your down payment and closing costs. Then, you can borrow through a separate 30-year fixed-rate second mortgage.

Are you looking to buy but need help determining what kind of home loan suits you? UHC offers multiple loan programs, and they're for more than just traditional single-family homes. You can also get loans for condos and manufactured homes. Your loan options may vary depending on your credit score, monthly income and home price.

For instance, you could qualify for a loan if you have a credit score of 620 or more and a household income of up to $8,900 a month. Contact an approved lender to see which Utah Housing Loan makes the most sense for your situation.

If you're a first-time homebuyer eyeing a newly built home in Utah, the First-Time Homebuyers Assistance Program can provide up to a $20,000 loan with 0% interest and no monthly payments. You must qualify for a Utah Housing Mortgage through a participating lender to obtain this loan.

If needed, you can also pair this assistance with Utah Housing's down payment help. Remember that you'll have to repay this assistance when you sell or refinance the home. Additionally, you must be a Utah resident for at least a year to qualify.

If you're working as a law enforcement or correctional officer in Utah, the state has set aside $5 million to aid in paying your mortgage costs. This grant can cover up to 3.5% of your home's purchase price, with a maximum limit of $25,000. The best part is the Law Enforcement Grant is a no-payment, no-interest grant. The only requirement is that you must continue working in Utah for at least five years after receiving it.

The grant's usage is flexible — you can use it for your down payment, closing costs or paying down your mortgage rate. To get started, connect with an approved Utah Housing Lender and be ready to make the purchased home your primary residence within 30 days of closing.

Utah offers a $2,500 grant to help veterans or those currently serving in the military buy a home. This grant is forgivable, meaning you don't have to pay it back, and it is available to veterans discharged in the last five years or first-time homebuyers who haven't owned a home in Utah for the past seven years.

You can combine the Veterans Grant with other loan programs like VA, FHA or conventional loans, as well as with Utah Housing Corporation's down payment assistance. The only catch is that these funds are limited, so make sure to close your home loan before the grant reservation expires. Use the money for your down payment or closing costs, and remember, you'll need to move into your new home within 30 days of closing.

We answered some questions borrowers typically have about mortgage rates in Utah. That way, you get reliable information on how these rates compare to the national average, what elements affect them and more.