Overview of North Dakota Mortgages
With its diverse terrain of large open spaces and its rich heritage and history, North Dakota is a fine place for many to call home. North Dakota mortgage rates are lower, sometimes significantly, than the national average rates. The state counties’ conforming loan and FHA limits are mostly standard, with just a few exceptions.
National Mortgage Rates
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North Dakota Mortgage Rates Quick Facts
Historical Mortgage Rates in North Dakota
The Great Plains state of North Dakota is home to sprawling fields and the enchanting badlands of Theodore Roosevelt National Park. Fargo and capital city Bismarck are the two most populous cities in the state. It is also the fourth least populous state in the nation.
North Dakota mortgage rates are below the national average. Current 2016 mortgage rates are also below the national average.
North Dakota Historic Mortgage Rates
|Year||North Dakota Rate||U.S. Rate|
North Dakota Mortgages Overview
Homes in the Peace Garden State have average prices compared the rest of the nation. Before you begin your home search, it is a good idea to determine a budget. You may also want to consider getting preapproved for a home loan from a lender which can help the home buying process go more smoothly.
North Dakota Mortgage Rates
|Percentage of Homes||94.60%|
|Average Property Value||$135,360.59|
|Percentage of Homes||3.30%|
|Average Property Value||$105,321.25|
|Percentage of Homes||0.20%|
|Average Property Value||$151,756.35|
|Percentage of Homes||1.90%|
|Average Property Value||$103,917.56|
The conforming limits for North Dakota counties are all at the standard $417,000, which reflects the average prices across the state. There is more variation across FHA limits. Nine counties – Billings, Burleigh, McIntosh, McKenzie, Morton, Oliver, Sioux, Stark and Williams – have FHA limits above the typical $271,050.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Keep in mind that some states are “recourse” states, where a lender is allowed to go after your assets or savings for a deficiency in the event of a foreclosure. That deficiency refers to the difference between your home’s worth and the amount still owed on a mortgage. North Dakota is a “non-recourse” state, meaning you generally would not be liable for the deficiency in a foreclosure.
North Dakota state law requires home sellers to provide buyers with a disclosure form listing details on the property. This list should include information on wiring and electrical, water damage and any environmental hazards. Most North Dakota sellers use the North Dakota Residential Real Estate Disclosure Statement. The purpose of these disclosures is to protect buyers, but a home inspection is always a smart idea to protect the integrity of the sale. A quality home inspection will help you avoid uncovering big problems down the line.
30-Year Fixed Mortgage Rates in North Dakota
If you are looking to obtain a mortgage in North Dakota, you will probably land on a 30-year fixed-rate mortgage. This home loan is considered extremely dependable because your interest rate remains the same for the loan’s lifespan (unless you refinance) which makes it easier to budget for your monthly payments. Unless you make prepayments or you decide to refinance, you will have three decades to pay off this loan.
The average North Dakota mortgage rate for fixed-rate 30-year mortgages is 4.22%.
North Dakota Jumbo Loan Rates
North Dakota county conforming loan limits are all at $417,000. This means that if you are buying a house anywhere in the state and you take out a loan that is greater than $417,000, you will have what is considered a jumbo loan. Loans that are equal to or lesser than the conforming limit in a particular county are considered “conforming” loans and are eligible for normal interest rates and can be resold on the secondary mortgage market. If you are thinking about taking out a jumbo loan for your mortgage, you should be aware that they come with higher interest rates. That might be reason to select a home that fits more comfortably within your budget.
The average jumbo loan rate in North Dakota is 4%.
North Dakota ARM Loan Rates
An adjustable-rate mortgage (ARM) is a home loan that generally offers a lower interest rate than a fixed-rate mortgage for a specific period of time. That rate is available for an introductory period that lasts somewhere between one and 10 years. Once that period ends, the interest rate is free to change, and it usually goes up. One key component of an ARM is that the interest rate is capped at a specific level which is detailed in the loan’s terms. It is important to check that maximum possible rate to ensure that it is one that fits within your budget.
The average rate for an ARM in North Dakota is 2.88%.
North Dakota Mortgage Resources
There are programs available for North Dakotans who need home-buying assistance.
The North Dakota Housing Finance Agency provides affordable mortgage loans, down payment and closing cost assistance and home-buying education for qualifying buyers. The NDHFA can cut down on out-of-pocket costs, enabling homebuyers to achieve ownership sooner. Rehab costs can also be included in a NDHFA mortgage loan.
|Resource||Problem or Issue||Who Qualifies||Website|
|North Dakota Housing Finance Agency||Homebuyer education, down payment and closing cost assistance and affordable mortgage loans.||Qualifying North Dakotan homebuyers.||https://www.ndhfa.org/Homeownership/Intro.html|
|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.||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/|
The United States Department of Agriculture Rural Development offers programs in rural areas of North Dakota which help qualifying residents find housing. Loans are also available for residents who need to repair their current home.
North Dakota Mortgage Taxes
Homeowners in North Dakota who make itemized deductions on their taxes can deduct the mortgage interest they pay throughout the year from their taxable income when they are filing both their federal and state income taxes.
It’s also important to note that North Dakota does not charge real estate transfer taxes.
North Dakota Mortgage Refinance
Refinancing your mortgage can save you thousands a month. If you have decided it is time to refinance in North Dakota, you should look into the Home Affordable Refinance Program which helps qualifying homeowners in lowering their monthly principal and interest payments.
See Mortgage Rates in These Other States
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 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset