Overview of South Carolina Mortgages
From historic properties cloaked in live oaks to waterfront beach houses, South Carolina certainly boasts charm and diversity. Mortgage rates in the Palmetto State have historically been close to the national average. South Carolina counties’ conforming loan limits are uniform, but FHA limits are not as standard.
|30 year fixed||2.82%||2.86%||-0.04|
|15 year fixed||2.08%||2.09%||-0.02|
|30 yr fixed mtg refi||2.86%||2.86%||0.00|
|15 yr fixed mtg refi||2.17%||2.18%||-0.01|
|7/1 ARM refi||2.13%||2.13%||0.00|
|15 yr jumbo fixed mtg refi||2.41%||2.43%||-0.02|
National Mortgage Rates
Historical Mortgage Rates in South Carolina
South Carolina Mortgage Rates Quick Facts
- Median Home Value: $179,800 (U.S. Census Bureau)
- Loan Funding Rate: 52.27% (CFPB)
- Homeownership Rate: 72.6% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,246 (U.S. Census Bureau)
Known for its gorgeous coastline, historic towns and hotspot destinations like Charleston and Myrtle Beach, South Carolina can be a dream location to call home. Furthermore, South Carolina mortgage rates are typically close to national averages.
A financial advisor in South Carolina 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.
South Carolina Historic Mortgage Rates*
|Year||South Carolina Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
South Carolina Mortgages Overview
The conforming loan limit for all South Carolina counties is $548,250. This is an indication of the relatively low cost of homes in the state. FHA loan limits are more varied, though, ranging from $356,362 to $414,000.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
The South Carolina disclosure law mandates that a seller must provide a buyer with a disclosure form. In this case, it is the Residential Property Condition Disclosure Statement from the South Carolina Real Estate Commission. This form includes details on known defects, items included in the sale, environmental hazards like mold, structural damage and even neighborhood noise problems. These disclosures certainly help buyers, but you shouldn’t stop there; always schedule a home inspection to uncover any hidden defects.
30-Year Fixed Mortgage Rates in South Carolina
Buying your forever home in South Carolina? A 30-year fixed-rate mortgage is likely going to be your best option. This home loan gives buyers a long time to pay off the loan – three decades – and the interest rate remains the same for the duration of the loan, unless the owner decides to refinance. Since you know exactly how much your monthly payments are going to be, as they don’t change, it is slightly easier to budget for them.
You can also select a fixed-rate mortgage with a 15-year term. You will pay less interest with this option and you will pay off the loan in half the time, but your monthly payments will be higher.
The average South Carolina rate for a fixed 30-year mortgage is 2.63% (Zillow, Jan. 2021).
South Carolina Jumbo Loan Rates
The conforming loan limit in every South Carolina county is $548,250, which is an indication to the overall affordability of buying real estate in the Palmetto State. This means that if you take out a home loan anywhere in the state that exceeds that, you will have what is known as a “jumbo loan.” It’s important to note that jumbo loans are accompanied by higher interest rates as compared to conforming loans (those at or below $548,250). Jumbo loan rates in South Carolina are currently lower than fixed rates.
The average 30-year fixed jumbo loan rate in South Carolina is 2.48% (Zillow, Jan. 2021).
South Carolina ARM Loan Rates
Adjustable-rate mortgages (ARMs) are sometimes preferred to a fixed-rate loan because they offer a lower initial interest rate. The lower rate is given for an introductory period lasting for one, three, five, seven or 10 years, depending on the loan’s terms. After that time, the interest rate can change and usually it increases. That does not mean, however, that the rate can jump to a scarily high level overnight. The rate is capped at a certain level that is specified in the loan’s terms, so you are aware upfront of exactly how high it can reach. It is key to make sure that the maximum potential interest rate is something that you can actually afford to pay. Note that ARM rates are currently higher than both jumbo rates and fixed rates in South Carolina.
The average rate for a 5/1 ARM in South Carolina is 2.94% (Zillow, Jan. 2021).
South Carolina Mortgage Resources
Palmetto State buyers have resources when it comes to securing additional funding or lower rates on their mortgages.
The South Carolina Housing Finance Authority provides low- and moderate-income buyers with fixed interest rate mortgage loans, down payment assistance and a mortgage tax credit program, which provides a federal income tax credit of up to $2,000 per year to qualified homebuyers.
|Resource||Problem or Issue||Who Qualifies|
|South Carolina Housing Finance Authority||Provides affordable loans and down payment assistance for South Carolina buyers.||First-time, repeat and military homebuyers who fit the qualifications.|
|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.|
Check at the start of your home search to see if you qualify for an offer from the United States Department of Agriculture Rural Development. The USDA offers programs in rural areas across the country which help residents secure affordable housing. Loan and grants are available for qualifying participants who are buying a new home or repairing their current home.
South Carolina Mortgage Taxes
In South Carolina, there is a deed recording fee for real estate transfers. In total, it comes out to $1.85 per $500, or 0.37%. This rate is divided into $1.30 for the state and $0.55 for the county. Sellers typically pay this fee in South Carolina.
South Carolina homeowners are allowed to deduct their mortgage interest from their taxable income when they file federal and state income taxes.
South Carolina Mortgage Refinance
The best option for refinancing is the High Loan-to-Value Refinance Option from Fannie Mae. The Home Affordable Refinance Program (HARP), which was a mainstay of the refinance market up until the end of 2018, is no longer available. Another option is to refinance through your current lender or through another lender offering better rates or terms.
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