Overview of Nebraska Mortgages
Nebraska is the only state in the Union with a unicameral legislature and residents of the state pride themselves on their centrism and hospitality. If you’re hoping to buy a home in Nebraska, mortgage rates here have mostly been slightly higher than the national average. Nebraska counties’ conforming loan limits are steady at the national average.
|30 year fixed||3.25%||3.21%||+0.04|
|15 year fixed||2.38%||2.34%||+0.03|
|30 yr fixed mtg refi||3.00%||3.05%||-0.05|
|15 yr fixed mtg refi||2.25%||2.23%||+0.02|
|7/1 ARM refi||3.63%||3.63%||0.00|
|15 yr jumbo fixed mtg refi||2.47%||2.46%||+0.01|
National Mortgage Rates
Historical Mortgage Rates in Nebraska
Nebraska Mortgage Rates Quick Facts
- Median Home Value: $172,700 (U.S. Census Bureau)
- Loan Funding Rate: 60.23% (CFPB)
- Homeownership Rate: 68.2% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,386 (U.S. Census Bureau)
Nebraska isn’t short on stunning landscapes. You can find the Great Plains and sand dunes, as well as impressive panhandle rock formations in this state. The cities offer plenty to do as well. Lincoln is a lively college town and Omaha boasts pioneer history and cultural centers. Valentine is an outdoor adventurer’s dream.
Looking at the mortgage market, Nebraska’s mortgage rates have historically been slightly higher than the national average.
A financial advisor in Nebraska can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Nebraska Historic Mortgage Rates*
|Year||Nebraska Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Nebraska Mortgages Overview
In Nebraska, you can expect homes that are on the more affordable side. If you’re just beginning the home buying process, it’s wise to work out a budget from the get-go. You may also want to consider getting preapproved for a loan from a lender which can help to streamline the entire process.
Every county in Nebraska has a standard conforming loan limit of $548,250. However, FHA loan limits get as high as $433,550 in Lincoln, Logan and McPherson counties. All other counties remain at the standard limit of $356,362, indicating homes tend to be affordable in the Cornhusker State.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Nebraska requires disclosure statements of its sellers. That means the seller must disclose what defects they know about the property, which is good news for buyers. Regardless of the laws, it’s still best to opt for a home inspection before officially closing on a home. This helps to protect buyers from uncovering unpleasant surprises about the property after they’ve already acquired it.
It’s worth noting that Nebraska is a “deed of trust” state. When you buy a home in Nebraska, assuming that you aren’t paying cash, you will likely be issued a deed of trust instead of a mortgage. This means that if in the future, if your home were to go into foreclosure, your lender does not have to go through the court system to auction off your house. Instead, the lender can initiate what is called a “power of sale” foreclosure by hiring a third party to auction your home. While you probably don’t plan to have your house foreclosed, it’s still good to know where you stand if your circumstances were to change unexpectedly.
30-Year Fixed Mortgage Rates in Nebraska
Planning on becoming a homeowner? Unless you can pony up the cash to pay for your dream home, you’re going to need a mortgage. The most common type of home loan is a 30-year fixed-rate mortgage. This is a loan that you have three decades to pay off, unless you refinance or make prepayments. As its name indicates, the interest rate remains unchanged for the entirety of this loan’s lifespan. This means that you can easily budget for your monthly payments because they will not change (again, unless you plan to refinance).
There are also fixed-rate mortgages that give you more or less time to pay off your loan. 40-year fixed-rate loans are less popular because people tend to think that’s too long a time period and you will end up paying more in interest. A 15-year loan is another option and comes with a lower interest rate, but your monthly payments will be higher.
The average Nebraska rate for a fixed 30-year mortgage is 2.54% (Zillow, Jan. 2021).
Nebraska Jumbo Loan Rates
Conforming loan limits exist because issuing a loan beyond that price is riskier for lenders. Loans that exceed the conforming loan limit in a given county are known as jumbo loans and they come with a higher interest rate to make up for the added risk to lenders. However, jumbo loan rates in Nebraska are currently lower than fixed rates.
Homes in the Cornhusker State are cheaper overall than the national average, and the loan limits reflect that. Every county in Nebraska has the standard conforming limit of $548,250. Most homes in the state should fall within that limit.
The average 30-year fixed jumbo loan rate in Nebraska is 2.49% (Zillow, Jan. 2021).
Nebraska ARM Loan Rates
Another home loan option available for Nebraska buyers is an adjustable-rate mortgage, or ARM. Usually, an ARM offers a lower interest rate for an introductory period that lasts for one, three, five, seven or 10 years. At the end of that time, the interest rate can change once a year and will usually increase. The loan’s terms will specify how many times the interest rate can go up. Similarly, it will state the maximum potential level that the interest can jump to. It is a good idea to double check the interest cap on your loan and ensure that it is one that would be able to pay. ARM rates in Nebraska are currently quite high.
The average rate for an ARM in Nebraska is 3.21% (Zillow, Jan. 2021).
Nebraska Mortgage Resources
There is assistance for certain Nebraska homebuyers. The Nebraska Investment Finance Authority offers a couple different programs for first-time buyers, including the First Home Plus Program, which offers low-interest mortgage rates to Nebraska buyers. It also provides a first mortgage loan, plus a second mortgage loan for down payment and closing cost assistance via the Homebuyer Assistance Program.
|Resource||Problem or Issue||Who Qualifies|
|Nebraska Investment Finance Authority||Homebuying mortgage loan assistance, down payment assistance and lower interest rates depending on area.||First-time homebuyers and homebuyers shopping in a federally designated area. You’ll need to put down a minimum $1,000 for the Homebuyer Assistance Program.|
|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; Not be suspended or debarred from participation in federal programs.|
The United States Department of Agriculture Rural Development program also offers loan help and mortgage grants throughout the entire country. The program aims to help develop more rural areas of a state while offering safe housing for residents. Nebraska has grants and loans available for home repairs as well as loan assistance programs for those who qualify.
Nebraska Mortgage Taxes
Nebraska charges taxes on real estate property title transfers. The state real estate transfer tax for Nebraska is $2.25/$1,000, or 0.225%. In Nebraska, the seller typically pays this fee.
Homeowners in Nebraska who itemize deductions on their income taxes, are allowed to deduct the mortgage interest they pay from their taxable income on both their federal and state taxes.
Nebraska Mortgage Refinance
Refinancing can help cut money from your overall mortgage balance. If you’re refinancing in Nebraska, Fannie Mae's High Loan-to-Value Refinance Option is an option. This came about to replace the Home Affordable Refinance Program (HARP).
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for 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 mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of 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, 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 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset