Overview of Delaware Mortgages
It may be the second-smallest state in the nation, but there is big potential for homeowners in Delaware. From historic Georgetown to Wilmington, this tiny state packs in plenty of charm, character and seaside beauty. In recent years, Delaware mortgage rates have been close to the national average.
Delaware is made up of only three counties, and each of those have average, uniform conforming limits but different FHA loan limits.
National Mortgage Rates
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Delaware Mortgage Rates Quick Facts
Historical Mortgage Rates in Delaware
The mortgage rates in Delaware follow suit with the national average rates. That trend is continuing in 2016.
Delaware Historic Mortgage Rates
|Year||Delaware Rate||U.S. Rate|
Delaware Mortgages Overview
Delaware home prices are relatively close to the U.S. average. The national average falls at $229,737, according to Zillow, and Delaware is at $204,250.
Delaware Mortgage Rates
|Percentage of Homes||81.90%|
|Average Property Value||$134,166.13|
|Percentage of Homes||8.80%|
|Average Property Value||$165,657.83|
|Percentage of Homes||5.70%|
|Average Property Value||$117,252.60|
|Percentage of Homes||3.60%|
|Average Property Value||$80,639.46|
The conforming loan limit for each of Delaware’s counties hits average at $417,000. Variations come in for the FHA loan limits, where Kent is average at $271,050, New Castle is above average at $379,500 and Sussex is at $316,250.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
When you’re going through the buying process, transparency about the property is key. Delaware has a form specifically for the seller to list structural, termite, plumbing, roofing, heating, environmental and air conditioning problems. While that step protects the buyer, it’s still best to add on a home inspection to uncover any major issues before the house becomes yours.
30-Year Fixed Mortgage Rates in Delaware
Are you looking to purchase a mortgage in the First State? If you plan to stay in your new home for the long haul, a fixed-rate mortgage might be the best choice for you. The most common type of home loan is a 30-year fixed-rate mortgage, in which the interest rate remains the same for the duration of the loan. 15-year fixed-rate mortgages are also available and have lower interest rates, but you can expect to have higher monthly payments. The average Delaware mortgage rate for fixed-rate 30-year mortgages is 4.53%.
Delaware Jumbo Loan Rates
If you’re buying in Delaware, “jumbo loan” limits are at the standard $417,000 loan limit in every county. If a loans exceeds that limit, it becomes a jumbo loan. If you are considering a jumbo loan for your mortgage, be aware that they come with higher interest rates to cover the increased risk on the part of the lender. The average jumbo loan rate in Delaware is 4.54%.
Delaware ARM Loan Rates
There is less certainty with an ARM or adjustable-rate mortgage as compared to a fixed-rate mortgage. An ARM offers an introductory period that may last anywhere from one to 10 years, depending on the mortgage’s terms. A lower interest rate is available during that time. Once the initial period ends, the rate may change and typically that means it will rise.
The interest rate is capped at a certain level, however, which is laid out in the loan’s terms. Before choosing an ARM, it is key to make sure that the highest possible interest rate is one that you can afford to pay.
The average rate for an ARM in Delaware is 5.11%.
Delaware Mortgage Resources
Need financing help in Delaware? There are programs available for homebuyers and homeowners looking for assistance.
If you’re just getting started, the Interfaith Community Housing of Delaware hosts courses via the NeighborWorks® HomeOwnership Center. In addition to classes focusing on finances and avoiding foreclosure, there is also an extensive 11-week homebuying course to prepare you for homeownership.
Similarly, the Delaware First Time Homebuyer Seminars cover all the basics of buying your first home in Delaware, plus other assistance options out there. These seminars are free and are located in Newark and Dover every couple weeks.
The Delaware State Housing Authority has programs for people looking to buy a home, repair their current home or get mortgage counseling. Depending on your situation, there are a variety of programs that could benefit you. It offers homeownership loan programs, first-time homebuyer tax credits and emergency mortgage assistance. There is also the Neighborhood Stabilization Program, which purchases foreclosed or abandoned homes and sells them to low- or moderate-income homebuyers throughout the state.
|Resource||Problem or Issue||Who Qualifies||Website|
|Interfaith Community Housing of Delaware||Provides education for homebuyers - Hosts courses via the NeighborWorks® HomeOwnership Center on finances, avoiding foreclosure, and homeownership.||Lower income families looking to buy a home or learn about managing their home finances.||http://www.ichde.org/|
|Delaware First Time Homebuyer Seminars||Provides education for first-time homebuyers.||Anyone who is buying a house for the first time in Delaware.||http://delawarehomebuyerseminars.com/|
|Delaware State Housing Authority||Provides programs for people looking to buy a home, repair their current home, or looking for mortgage counseling.||Anyone seeking mortgage or homebuying assistance who qualifies at their income levels.||http://www.destatehousing.com/|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; and not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
In Delaware, you may also qualify for assistance from the United States Department of Agriculture Rural Development. The program helps rural communities by offering aid in obtaining affordable housing. Loans in Delaware are available to qualified applicants looking to purchase a new home or repair their current one.
Delaware Mortgage Taxes
Homeowners are allowed to deduct the mortgage interest they pay, up to $1,000,000, when filing their federal income taxes. This applies for Delaware state income taxes as well. You can double your deductions for the qualifying mortgage interest payments you have made in the tax year by including it on both state and federal filings.
Another item to keep in mind: In Delaware, there is a 2% real estate transfer tax on the value of property unless there is also a local transfer tax, in which case the maximum rate becomes 1.5%. There is also a 1% transfer fee rate for construction projects that are over $10,000. These fees are generally split between the buyer and seller.
Delaware Mortgage Refinance
Refinancing in the First State? Check with your state Home Affordable Refinance Program. It can help qualifying applicants gain access to interest and principal payment reductions and low closing costs. Typically, the program accepts single family homes and condos.
If you don’t qualify for HARP or a similar program, you can work with the lender who issued you your original mortgage or with other lenders to find the best rate for you.
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2016 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset