Today’s Idaho Mortgage Rates

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ByChristopher Boston
Edited byJonathan Ramos

Updated: October 29, 2023

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Idaho, known as the Gem State, has a higher homeownership rate than the national average. Mortgages are loans designed to help you buy a home; they might play a key role in this equation. Among the many factors to consider when choosing one, the interest rate you'll pay is a big one. Staying informed about current mortgage rates in Idaho can make your mortgage journey smoother because a better rate could mean more affordable payments over the life of the loan.

Current Mortgage Rates in Idaho

In 2022, FRED Economic Data revealed that 71.3% of people in the Gem State owned their homes, which is higher than the national average of 65.9%. One reason for this could be Idaho's relatively attractive mortgage rates, which can make homeownership more accessible and financially manageable for residents.

Now, let's look at some specifics. A 30-year fixed-rate mortgage in Idaho averages 6.53%, which is lower than the U.S. average of 6.97%. The average mortgage rate for a 15-year fixed-rate loan is almost neck-and-neck with the national average, standing at 6.25% and 6.23%, respectively. For a five-year adjustable rate mortgage, Idaho again has a more appealing rate of 6.56% compared to 6.97% nationally.

Keep in mind that mortgage rates can shift due to factors like economic conditions and government policy. Because they're ever-changing, keeping up to date with mortgage rates in Idaho can offer you an advantage. Moreover, Idaho offers different types of mortgages, each with its own rates, so you'll want to explore your options carefully.

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Finding the Best Mortgage Rates in Idaho

When you're looking to finance a home, the interest rate on your mortgage is more than just a number. It's a financial lever that dictates how much you'll end up paying for your home over time. Securing competitive ones doesn't just give you immediate savings — it impacts your financial health for years to come. Here are some tried and tested techniques to help secure the best possible mortgage rates in Idaho:

  • Rate Locks: A rate lock guarantees a specific interest rate for a set time, often between 30 to 60 days. This means you'll be protected from rate hikes that could occur while you're finalizing your mortgage. Locking in a low rate in a fluctuating market could save you a significant amount over the life of your loan.

  • Studying Market Trends: Keeping an eye on mortgage rate trends can offer a timing advantage. Sometimes, even a slight dip in interest rates can translate into substantial savings over the term of your mortgage. Use reliable financial news sources and talk to local experts to gather your data.

  • Discount Points: Buying mortgage points involves an upfront payment during closing in exchange for a lower interest rate. For example, one point typically costs 1% of your loan amount but could reduce your rate by 0.25%. Over time, it can lead to thousands of dollars in savings.

  • Avoiding New Debts Before Closing: Acquiring new debts, like an auto loan or a new credit card, can affect your debt-to-income ratio and potentially raise your mortgage rate. Hold off on significant financial moves until your mortgage is finalized to lock in your rate.

  • Leverage an Existing Banking Relationship: If you have an established relationship with a bank, you might have some room to negotiate for a lower rate. Banks often provide rate reductions as a customer retention strategy. It's especially true if you have significant savings or investments with them.

Securing the best mortgage rates in Idaho doesn't happen accidentally — it results from well-informed choices and strategic moves. Researching, exploring all your options and making thoughtful decisions can set you up for long-term financial stability.

Mortgage Types in Idaho

In Idaho, the average home value stands at $440,864, which is higher than the national average of $348,126. It brings into focus the crucial role of mortgages. With a higher home value, selecting the right mortgage can become the key to making your homeownership dream achievable while staying financially sound. Fortunately, there’s no lack of mortgage options for Idaho residents. Here are some you can consider:

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While the mortgage type you choose sets the basic terms of your loan, its structure further fine-tunes how your mortgage behaves over time. This is no minor detail — it directly impacts your monthly payments and overall interest costs. So, after you've weighed the pros and cons of different mortgage types, turn your attention to loan structures. Here are your main options:

  • Fixed-Rate Mortgages: Your interest rate remains the same throughout the life of the loan, making it easier for you to budget and plan. It's ideal for long-term homeowners who appreciate the stability of fixed monthly payments.

  • Adjustable-Rate Mortgages (ARMs): Your rate isn't set in stone and can fluctuate according to market conditions. It can be a good option if you plan to sell your home or refinance your mortgage within a few years, although the unpredictability can be a downside.

Knowing your options and how they apply to your financial situation can guide you toward making an informed decision. That puts you in a great position to secure the best mortgage rates in Idaho.

USING MORTGAGE CALCULATORS IN IDAHO

Mortgage calculators are excellent tools during the home-buying process. You can get a glimpse of your potential monthly payments by inputting key figures like home price, down payment and your search results for current mortgage rates in Idaho.

But it doesn’t stop there. You can also experiment with different scenarios to see how making a larger down payment or opting for a different loan type can affect your costs. Check out MoneyGeek’s mortgage calculator to get a clearer picture of what your mortgage could look like. Playing around with these numbers can guide you towards making more informed choices and lead you to a mortgage that best suits your needs.

How to Get a Mortgage in Idaho

Securing a mortgage in Idaho isn't just about signing papers and shaking hands — it's a calculated journey that begins with meticulous planning. Knowing the steps involved is like having a roadmap for your home-buying journey. It removes the guesswork and helps you determine your tasks better. Here are the seven steps to prepare for:

1

Preparation

Get your credit report from all three major credit bureaus. Inspect it carefully and clear up any discrepancies or inaccuracies. A clean credit report gives lenders more confidence, potentially earning you better terms.

2

Budgeting

Use your income and existing debts to calculate how much you can realistically afford to borrow. Tools like mortgage calculators can be handy here. It sets the foundation for your home-buying budget and helps you filter your loan options.

3

Pre-approval

Reach out to multiple lenders in Idaho for pre-approval letters. These confirm your eligibility and offer insights into how much a lender is willing to loan you. Having multiple pre-approvals can give you leverage when negotiating terms.

4

Loan Type

Armed with your budget and pre-approvals, dive into the various loan options — conventional, FHA, VA or others — to find the one that meets your needs. Each has its pros and cons, so consider your long-term financial picture.

5

Lender

While rates and APRs are important, they shouldn't be your only consideration when choosing a mortgage lender. Look at customer service reviews, lender reputation and additional costs like origination fees. Make a well-rounded decision that aligns with your needs and comfort level.

6

Loan Application

Complete the formal loan application. Speed up the process by promptly submitting all the necessary documentation, including proof of income, employment record and financial history.

7

Closing

The final step involves a thorough review of your loan terms, followed by signing the contract. You'll also need to make your down payment and cover any remaining closing costs to seal the deal.

Knowing what each step entails removes much of the guesswork. Keeping tabs on mortgage rates in Idaho and understanding your options turns you into a well-informed borrower, poised to make a significant financial decision with full confidence.

Mortgage Programs in Idaho

The Idaho Housing and Finance Association provides a range of programs to help you navigate the complex world of homeownership. From mortgage support to down payment assistance, these initiatives can make it easier to manage ongoing costs alongside your mortgage payments. Although its popular Homebuyer Tax Credit is temporarily suspended, don't be discouraged. There are still other programs designed to take advantage of current mortgage rates in Idaho and help you meet the other financial demands of owning a home.

Idaho Housing

Idaho Housing offers a suite of home loan options that suit a variety of needs. Whether you're entering the market for the first time or looking to refinance, this program has got you covered. Options range from conventional loans and Rural Housing development to FHA and VA loans. Here’s what you can expect:

  • Competitive Rates: They offer some of the lowest financing rates in Idaho.
  • Assistance Galore: Get help with down payments and closing costs.
  • Life-long Support: From homebuyer education to loan life support, it's there with you every step of the way.

Eligibility isn't a bottleneck either. If you're making up to $150,000 annually, you could qualify for one of its mortgage products. They support various property types: single-family homes, townhouses, condos and even manufactured housing. This makes it easier to lock in favorable mortgage rates in Idaho and pave your path to homeownership.

Down Payment Assistance

So you've found the home of your dreams in Idaho, but that initial down payment is looking daunting, right? Enter Idaho Housing's Down Payment Assistance Program. This program chips in up to 10% of the home's sales price, earmarked for the down payment or closing costs. The best part? You only need to contribute as little as 0.5% of the home’s sales price from your own funds.

You have two options for getting the extra funds: Second Mortgages and Forgivable Loans. Both have their unique perks, so let's break them down:

Second Mortgages: These are paid back along with your primary mortgage. These monthly payments are offered at a fixed 7% interest rate over 15 years, which is both affordable and predictable.

Forgivable Loans: This zero-interest loan gradually forgives over time. The interest rate on your primary mortgage will inch up slightly (0.125% increase for every 0.5% of forgivable loan used), but it offers significant upfront savings.

Let's say you're interested in a $300,000 home. Typically, you'd have to make a down payment of $9,000 (3.0% of $300,000). But if you take advantage of Idaho Housing's Down Payment Assistance, you would only need to contribute $1,500 of your own funds (0.5% of $300,000). The program takes care of the rest.

Whether you opt for a Second Mortgage or a Forgivable Loan, this program can significantly lighten your initial financial load while putting you on track for some of the best mortgage rates in Idaho. Reduced upfront costs and long-term savings — sounds like a win-win, right?

Frequently Asked Questions

Get more insights about mortgage rates in Idaho, from how they compare nationally to local factors that might affect them, by reading through these common queries. Whether you're a first-time homebuyer or a seasoned investor, these can guide you in locking in a favorable rate.

The current mortgage rates in Idaho vary depending on the type of loan you choose. A 30-year fixed-rate mortgage is at 6.53%, a 15-year fixed-rate mortgage sits at 6.25% and a five-year adjustable-rate mortgage is available at 6.56%. These rates provide a snapshot of what you might expect when securing a home loan in the state.

Idaho’s mortgage rates aren’t that far off from the nation’s average. The average rates for 30-year fixed-rate mortgages and five-year ARMs are slightly lower, while that for a 15-year fixed-rate loan is higher. However, none of the differences reach 1%.

Various factors can influence mortgage rates in Idaho, such as the state's economic condition, demand for housing and the Federal Reserve's monetary policy. Lender-specific variables like your loan type, loan amount and down payment can also come into play.

Yes, a higher credit score usually gets you a more favorable mortgage rate. Lenders view a good credit score as a sign of financial responsibility, reducing their risk.

Mortgage rates can fluctuate daily due to a variety of economic factors, market demand and changes in Federal Reserve policy. It's smart to monitor these rates, especially during your home-buying process.

Shopping around can help you find a better rate and save thousands over the life of your loan. Different lenders might offer different rates and terms, so it's worth the effort to compare.

Generally, mortgage rates don't vary much between rural and urban areas, but the availability of specific loan types might differ. Always consult multiple sources for the most accurate information.

Yes, the Idaho Housing and Finance Association offers programs that might secure you a lower mortgage rate. Eligibility conditions apply, so check to see if you qualify.

Pre-qualification gives you an estimate of how much you can borrow based on the basic financial information you provide. Pre-approval goes a step further: it's a conditional commitment from a lender after they've verified your financial details. Pre-approval is more robust and can give you a clearer picture of your mortgage rate.

About Christopher Boston


Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.


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