Today’s Wisconsin Mortgage Rate

In Wisconsin, mortgage rates generally align with the national average. If you’re searching for a mortgage to fit your needs, it’s essential to focus on its rate. A lower figure could save you thousands of dollars over your loan’s lifetime. By shopping around for the best mortgage rates in Wisconsin, you set yourself up for a more affordable and manageable homeownership journey. So, before sealing the deal on your dream home, take some time to explore and compare rates from various lenders.

The national homeownership rate for 2022 stood at 65.9%, according to FRED Economic Data. In the Badger State, the rate was at 70%. Potential homebuyers can take it as a sign of encouragement — it shows that a mortgage is a proven pathway to owning a home in Wisconsin.

In general, mortgage rates in Wisconsin closely mirror the national averages. For a 30-year fixed-rate mortgage, the average rate in Wisconsin is 7.12% compared to 7.14% nationwide. For a 15-year fixed rate, you’ll notice a similar trend, with an average rate of 6.48% in the state versus 6.47% in the U.S. However, the five-year ARM stands out, with an average rate of 7.0%, which is half a percent lower than the national average of 7.51%.

It's important to remember that rates can change due to various factors like economic conditions, Federal Reserve policies and housing market trends. Keeping up with their movement ensures you'll find the best mortgage rates in Wisconsin when you're ready to buy.

Different mortgage types available in the state also affect the rates you'll see. So, whether you're eyeing a mortgage with a fixed or adjustable rate, a conventional loan or government-backed loan, remember that they all come with their own set of rates.

Your mortgage rate can have a ripple effect on your long-term financial well-being. Lower rates can save you thousands over the life of your loan and reduce your monthly payments, making room for other financial goals, while higher rates can strain your budget. Here's how to find the best mortgage rates in Wisconsin:

Navigating mortgage interest rates in Wisconsin isn't just about snagging the first offer. Think strategically about your loan term, consult experts like mortgage brokers and be proactive about locking in rates when they dip. These small yet effective steps can help you lock in a rate that pays off in big ways down the line.

The average home value in the U.S. stands at $349,770, while in Wisconsin, it's approximately $293,610. This lower average home value in Wisconsin means more affordable options for you. However, even with more budget-friendly prices, a solid mortgage can help you make the move to homeownership more manageable. Rest assured, you've got a variety of mortgage options in Wisconsin to choose from, including:

• Conventional Mortgages: These are the standard option for many borrowers and are not backed by a government agency. Conventional mortgages are ideal if you have a good credit score of 620 or above. Down payments can be as low as 3%, but paying less upfront means you'll need private mortgage insurance until you reach 20% equity.

• Fixed-Rate Mortgages: With this option, you'll have the same interest rate for the life of the loan, whether it's 10, 15, 20 or 30 years. Fixed-rate mortgages are excellent for long-term planning as your monthly payments remain consistent. However, you might start with a slightly higher rate compared to adjustable-rate mortgages.

• Adjustable-Rate Mortgages (ARMs): With this mortgage type, your interest rate will be fixed for an initial period (often five, seven or 10 years), then adjusted periodically based on market rates. An ARM could be a good choice if you plan to sell or refinance your home before the fixed-rate period begins.

• FHA Loans: These are backed by the Federal Housing Administration (FHA) and are a favorite among first-time homebuyers. They allow for lower credit scores and down payments as small as 3.5%. However, keep in mind that you'll need to pay for mortgage insurance, which adds to your monthly costs.

• VA Loans: Exclusively for veterans, active-duty military and some eligible spouses, these loans are backed by the Department of Veterans Affairs. The main advantage they offer is the potential for zero down payment and no private mortgage insurance. A decent credit score is usually required.

• USDA Loans: If you're buying in a rural area, this loan, backed by the United States Department of Agriculture (USDA), might be for you. It offers you the chance for no down payment and lower mortgage insurance costs, but income and property location restrictions apply.

Knowing how to secure a mortgage in Wisconsin puts you in the driver's seat of your home-buying journey. It allows you to plan, prepare and take decisive actions to get favorable loan terms. Let’s walk through the steps to make your Wisconsin homeownership dream a reality.

Securing a mortgage in Wisconsin is a process that requires planning and attention to detail. Following these steps and shopping around for the best mortgage rates in Wisconsin can help you set yourself up for a smoother, more affordable home-buying experience.

Owning a home isn't just about making monthly payments — costs like repairs or utility bills can also add up. Some mortgage programs, particularly those offered by the Wisconsin Housing and Economic Development Authority (WHEDA), can help make homeownership more budget-friendly. These can help you secure lower mortgage rates in Wisconsin or down payment assistance, freeing up your funds for other expenses.

WHEDA offers two helpful programs for first mortgages and down payment assistance: the WHEDA Advantage Conventional program and WHEDA Advantage FHA.

The WHEDA Advantage Conventional program is flexible: You don't need to be a first-time buyer to qualify, it works for various property types and it only requires a minimum 620 credit score. On the other hand, WHEDA Advantage FHA requires a 640 credit score but mandates a 3.5% down payment, which you can cover using WHEDA's down payment assistance.

Both programs come with 30-year fixed-rate options and require you to meet certain income limits. If you're eyeing rural counties like Ashland or Burnett, you might qualify for reduced rates. Education courses are a must if you're a first-time buyer or buying a multi-unit property. It’s best to check with a WHEDA-approved lender for all the specifics.

WHEDA's Advantage Home Improvement Loan Program (HILP) helps current homeowners make needed repairs or upgrades. Using this program, you can borrow between $10,000 and $50,000 with a 15-year fixed-rate home loan; once you're approved, WHEDA will even provide a $500 closing cost credit. To qualify, you must live in the property — a single-family home, a condo or even a double-wide manufactured home — meet certain income limits and complete your project within six months.

The WHEDA Advantage Conventional HomeStyle® Renovation program is an extension of the WHEDA Advantage Conventional First Mortgage Program; it stands out because it allows you to purchase and renovate a home using a single mortgage simultaneously. That means you can finance everything from a new kitchen to six months' worth of mortgage payments, assuming you have to move out during the remodel. After your loan closes, you'll have six months to finish the work. If you qualify, you can get up to 100% financing when adding a WHEDA down payment assistance loan.

The WHEDA Easy Close Down Payment Assistance (DPA) program offers a second loan to cover down payment costs. The minimum loan amount starts at $1,000, and the maximum can be up to 6% of your home's purchase price. This loan comes as a second mortgage with a 10-year fixed-rate term and a monthly payment. The interest rate will match your first mortgage, making budgeting simpler. This program has income limits and can work alongside other financing options if they meet specific guidelines.

The WHEDA Capital Access DPA is a unique program offering a $7,500 loan for your down payment, whether you secure a Conventional or FHA mortgage. What sets it apart is a 30-year fixed rate at 0% interest and no monthly payments. The income limits for this program are typically lower, making it an excellent option for those on a tighter budget. You can also combine it with other financing if it meets specific criteria.

You can use our answers to some commonly asked questions as your go-to resource for additional information on Wisconsin’s mortgage rates. Whether you're a first-time homebuyer or considering refinancing, these can equip you for a smarter home financing journey.