Today’s Missouri Mortgage Rate

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ByChristopher Boston
Edited byBenjamar Gabawa

Updated: October 29, 2023

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Missouri has a higher homeownership rate than the national average, making it a hotspot for aspiring homeowners. Mortgages, loans you take out specifically for buying property, are one way to enter the housing market in the state. There are several factors to consider when choosing a home loan in the Show-Me State, including the interest rate. Current mortgage rates in Missouri can significantly affect how much you pay over time. Shopping around for the best rate will help you secure a mortgage that suits your financial needs.

Current Mortgage Rates in Missouri

According to FRED Economic Data, Missouri's homeownership rate in 2022 stood at 70.6%, compared to the national average of 65.9%. It suggests that mortgages may be helping more people in the Show-Me State become homeowners.

Overall, mortgage rates in Missouri are slightly higher than the national averages, making rate-shopping particularly valuable here. For instance, the 30-year fixed-rate mortgage is at 7.28% in Missouri, compared to 6.97% in the U.S. The 15-year fixed rate in Missouri is 6.42%, just above the U.S. average of 6.29%. The 5-year adjustable-rate mortgage in the state is 7.52% compared to the 7.22% national rate.

Remember, keeping an eye on mortgage rates in Missouri is a wise move since these can change due to factors like economic conditions and housing demand. There are also different mortgage types that come with varying rates, so it’s best to explore all your options before choosing a loan.

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Finding the Best Mortgage Rates in Missouri

Mortgage rates directly influence how much you'll pay throughout your loan. Locking in a competitive rate could mean saving thousands of dollars, so here are some tips to help you find the best mortgage rates in Missouri.

  • Consider a shorter loan term: Opting for a 15-year fixed-rate mortgage could land you a better rate than a 30-year loan. For example, Missouri's current 15-year fixed rate mortgage is 6.42%, while the 30-year rate is 7.28%. Although your monthly payments would be higher, the total interest paid over the loan would be significantly less.

  • Use a mortgage broker: A mortgage broker can do the heavy lifting for you by comparing rates from multiple lenders. While brokers typically charge a fee, their service could help you find a rate lower than you could on your own, which translates into long-term savings.

  • Time your lock-in: Mortgage rates constantly change based on economic indicators. By keeping an eye on these factors, you can lock in your rate when rates are at their lowest, potentially saving you money over the loan duration.

  • Opt for mortgage points: If you have some extra cash, purchasing mortgage points can lower your interest rate. Each point typically costs 1% of the loan amount and could reduce your rate by around 0.25%.

  • Track market trends: Understanding the factors that influence interest rates, like Federal Reserve decisions or economic data releases, can help you anticipate rate changes. It’ll give you an edge when locking in your mortgage rate.

Using these unique tips and keeping an eye on mortgage rates in Missouri can help you position yourself for significant financial savings over the life of your loan. Mortgage rates are critical to your home-buying experience, but they're not set in stone. With the right strategies, you can find a rate that works for you.

Mortgage Types in Missouri

Knowing the average home value in Missouri, which stands at $238,760 — significantly lower than the U.S. average of $348,126 — can be a game-changer for borrowers. It equips you to negotiate a fair deal, estimate your down payment and better plan your budget. Now, let's explore the types of mortgages available to you:

  • Conventional Mortgages: Ideal for those with strong credit, these loans offer lower interest rates and straightforward terms. However, you typically need a down payment of at least 20%. Knowing the average home value can help you calculate this more accurately.

  • Jumbo Mortgages: Jumbo mortgages come into play for homes exceeding conventional loan limits. While they offer the ability to purchase a higher-value property, they often require a larger down payment and come with higher interest rates.

  • VA Mortgages: Specifically for veterans, these loans are backed by the Department of Veterans Affairs. The zero-down payment is an attractive feature, but eligibility hinges on meeting service criteria.

  • FHA Mortgages: These are tailored for first-time buyers or those with lower credit scores. With the possibility of a low down payment, they provide an accessible entry into homeownership. However, the trade-off is often higher mortgage interest rates.

  • USDA Mortgages: These loans offer zero down payment for rural homebuyers but come with location and income restrictions. Knowing Missouri's average home value can help determine if this option is viable for you.

  • Fixed-Rate Mortgages: These mortgages lock in your interest rate for the duration of the loan, offering you predictability in your payments. It can be especially beneficial if you plan on staying in the home long-term. However, you might start with a slightly higher rate than adjustable-rate options.

  • Adjustable-Rate Mortgages (ARMs): ARMs offer a lower initial rate that adjusts after a set period. This could be advantageous if you plan to sell or refinance before the rate increases. But be prepared: your rate — and payment — can go up, sometimes significantly.

You have various mortgage options in Missouri to suit different needs and situations. Knowing the average home value in the state gives you a leg up in finding a mortgage that aligns with your financial goals. This collective mortgage information equips you to make an educated choice, whether you're looking for stability with a fixed-rate or willing to take a gamble with an adjustable rate.

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HOW A MORTGAGE CALCULATOR CAN GUIDE YOUR DECISION-MAKING

A mortgage calculator can be your compass. With just a few clicks, you can see how different rates, down payments and loan types would impact your monthly budget. MoneyGeek’s mortgage calculator allows you to experiment with different variables to find what aligns best with your financial landscape. Checking different scenarios saves you time and lets you find the best mortgage rates in Missouri that work with your unique financial situation.

How to Get a Mortgage in Missouri

Understanding how to navigate the mortgage landscape in Missouri can drastically impact your homeownership journey. Not only does it help you secure a home, but it also ensures you do so under terms that align with your financial goals. Our step-by-step guide gives you the know-how to efficiently secure a mortgage that suits your needs.

1

Check Your Financial Health

Before jumping into the mortgage application process, assess your credit score, existing debts and your debt-to-income ratio. A better credit standing may lead to lower mortgage rates, so it's worth checking it at the start.

2

Set Your Budget

Determining your budget isn't just about figuring out how much you can afford to borrow. Factor in other costs such as property taxes, homeowners insurance and potential homeowner association (HOA) fees. Use these numbers to set a realistic budget for your mortgage.

3

Gather Documents

Prepare documents like tax returns, bank statements, proof of income and employment verification. Having all the documents ready can expedite the application and approval process.

4

Get Pre-Approved

A pre-approval letter from a lender gives you a competitive edge when house-hunting. It tells sellers you’re a serious buyer with finances in order. To get pre-approved, you’ll need to provide personal and financial information.

5

Compare Offers

After receiving pre-approval, it's time to compare offers from different mortgage lenders. Look at the loan terms, interest rates and any fees to make an informed decision. Take note of current mortgage rates in Missouri to ensure you're getting a competitive offer.

6

Finalize Loan

Once you've selected a lender, you'll undergo a more in-depth financial review. The lender will appraise the home you’re buying and finalize the loan terms. You'll lock in your rate during this phase and once approved, you'll proceed to the closing process, where you'll sign documents and receive the keys to your new home.

Armed with this comprehensive guide, you're now better equipped to navigate the mortgage process. Ample preparation and a thorough understanding of each step can streamline the experience and position you to take advantage of the best current mortgage rates in Missouri. Your path to homeownership just got a whole lot clearer.

Mortgage Programs in Missouri

Owning a home means considering costs like property taxes and homeowner's insurance, not just mortgage payments. The good news is the Missouri Housing Development Corporation offers programs to make these expenses more manageable. They provide down payment assistance and competitive mortgage interest rates in the state for qualified borrowers.

First Place

The First Place program offers mortgage rates in Missouri that are often lower than standard market rates, making your monthly payments more manageable. If you need help with the initial costs, Cash Assistance is available to cover your down payment and closing costs.

Qualified homebuyers can even opt for a 100% forgivable second loan that equals 4% of their total mortgage. Imagine not worrying about that additional financial burden if you stay in the house and maintain your original loan for a decade. After five years, this second mortgage starts shrinking by 1/60 each month until it's entirely forgiven at year 10.

Eligibility includes a minimum credit score of 640 and a debt-to-income ratio less than 45%. It could be your ticket to homeownership if you've been financially responsible. And don't worry if you're not a first-time homebuyer — there are exceptions for specific areas and veterans, broadening your chances for a low-cost home loan.

Next Step

The Next Step program takes the guesswork out of current mortgage rates in Missouri by offering lower rates and even cash assistance for those initial hefty costs like down payment and closing fees. You can opt for a 100% forgivable second loan that makes up 4% of your total mortgage amount. Stick with your original loan for 10 years, and that second loan fades away, starting to reduce in value after just five years.

If you have some savings and want a better rate, you can choose the Next Step Without Down Payment Assistance. Typically, you'll enjoy rates of .25% to .50% lower than those with assistance, leaving more money in your pocket each month.

Consider pairing your Next Step Loan with a Mortgage Credit Certificate (MCC) for extra savings. This offers a federal tax credit on a portion of your mortgage interest, potentially putting up to $2,000 a year back into your wallet.

Eligibility criteria include a minimum credit score of 640 and meeting certain income and debt-to-income ratio thresholds. The program is flexible and works with multiple types of loans, making it an excellent fit for various financial situations.

Mortgage Credit Certificate (MCC)

Buying a home comes with its own set of financial hurdles. Still, Mortgage Credit Certificate (MCC) program is here to ease the way. Using this program, you can earn a tax credit on your federal return for a chunk of the mortgage interest you pay over a year. Imagine paying less tax and lowering your overall borrowing cost; that's what MCC does for you.

You get to choose from 25%, 35% or 45% tax credits, capped at a maximum of $2,000 per year. This isn't a one-time thing; you'll enjoy these tax benefits as long as you live in the home and have the mortgage. Considering the current mortgage rates in Missouri, this program gives you a valuable advantage in making homeownership more affordable.

Frequently Asked Questions

We're here to help clarify some of the most commonly asked questions about mortgage rates in Missouri — from understanding current rates to exploring various loan options and special programs. Consider these answers as you make decisions about your homeownership journey.

As of the latest data, the average rates in Missouri are 7.28% for a 30-year fixed-rate mortgage, 6.42% for a 15-year fixed-rate and 7.52% for a 5-year adjustable-rate mortgage. For comparison, nationwide averages are 6.97%, 6.29% and 7.22%, respectively.

Yes, local economic conditions like employment rates, cost of living and housing demand can affect mortgage rates in Missouri. Lenders also consider state-specific risks such as natural disasters. For example, regions prone to flooding may have slightly higher rates.

Your credit score is crucial. A higher score can get you a lower mortgage rate, which means you pay less over the loan duration. In Missouri, a good credit score could help you capitalize on competitive rates, saving you money in the long run.

Missouri offers various loan options, including FHA, VA, USDA and conventional loans. Rates can vary significantly based on the type of loan you choose. Government-backed loans like FHA often have lower rates but require mortgage insurance, whereas conventional loans might offer better rates for buyers with excellent credit.

Yes, programs like the First Place Program offer reduced mortgage rates and down payment assistance for eligible first-time homebuyers and veterans. These programs can make homeownership more accessible and affordable.

Mortgage rates can change frequently, influenced by factors like Federal Reserve decisions, economic indicators and market demand. Rates can even vary from day to day, so it's a good idea to monitor them closely during your homebuying process.

A larger down payment can often secure you a lower mortgage rate because it reduces the lender's risk. For example, a down payment of 20% or more can help you avoid mortgage insurance, which can also impact your overall rate.

Yes, rates are often negotiable. Some lenders may lower the rate if you agree to higher upfront costs or if you have a strong financial profile. Always shop around and don't hesitate to negotiate for a rate that fits your budget.

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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