Overview of South Carolina Mortgages
From historic properties cloaked in live oaks to waterfront beach houses, South Carolina is certainly boasts charm and diversity as a place to live. Mortgage rates in the Palmetto State have historically been below the national average. South Carolina counties’ conforming limits are uniform, but the FHA loan limits have more variation.
National Mortgage Rates
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South Carolina Mortgage Rates Quick Facts
Historical Mortgage Rates in South Carolina
Known for its gorgeous coastline, historic towns and hotspot destinations like Charleston and Myrtle Beach, South Carolina is a dream location to call home. South Carolina mortgage rates are typically fairly well below the national average rates. Current rates for 2016 are just slightly below the national average.
South Carolina Historic Mortgage Rates
|Year||South Carolina Rate||U.S. Rate|
South Carolina Mortgages Overview
Compared to the rest of the nation, homes in South Carolina are affordable. The average South Carolina home costs $178,762, while the average cost for the U.S. is $236,450, according to Zillow.
South Carolina Mortgage Rates
|Percentage of Homes||82.20%|
|Average Property Value||$132,271.83|
|Percentage of Homes||8.60%|
|Average Property Value||$134,762.86|
|Percentage of Homes||5.90%|
|Average Property Value||$134,998.62|
|Percentage of Homes||3.20%|
|Average Property Value||$97,854.13|
The conforming loan limit for all South Carolina counties is $417,000. This is an indication of the relatively low cost of homes in the state. The FHA loan limits are more varied, ranging from $271,050 to $350,750.
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 mortgage rate for fixed-rate 30-year mortgages is 4.22%.
South Carolina Jumbo Loan Rates
The conforming loan limit in every South Carolina county is $417,000, 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 $417,000).
The average jumbo loan rate in South Carolina is 4.19%.
South Carolina ARM Loan Rates
Adjustable-rate mortgages 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.
The average rate for an ARM in South Carolina is 2.88%.
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||Website|
|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.||http://www.schousing.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; 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/|
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. It comes to $1.85/$500 or 0.37%. That breaks down into $1.30 for the state and $0.55 for the county. Sellers typically pay that fee.
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
Refinancing in the Palmetto State? Contact the state’s Home Affordable Refinance Program. Qualifying owners in single family homes or condos can access payment reductions and low closing costs.
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