| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | N/A | N/A |
| 15-year fixed | N/A | N/A |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | N/A | N/A |
New Hampshire offers New England charm and a wealth of economic opportunities. Whether you’re buying your first home in the Granite State or refinancing your current home, knowing the mortgage rates in New Hampshire can help you make an informed decision. Here’s Benzinga’s guide to everything you need to know.
What is a Mortgage Rate?
You pay for more than just your home when you get a home loan. You also pay your lender for lending you money and administering your loan. Those costs are reflected in your mortgage rate.
As you decide on a lender, you’ll typically see 2 mortgage rates. The 1st rate is your interest rate. The 2nd is your annual percentage rate (APR). The APR includes points, fees and other charges. The APR is typically higher since it includes all the fees associated with your home loan.
Keep both numbers in mind as you compare loan estimates and be sure to compare apples to apples. In other words, comparing 1 lender’s interest rate with another lender’s APR wouldn’t be an accurate comparison. You want to compare interest rate to interest rate and APR to APR.
5 Best Mortgage Lenders in New Hampshire
Where should you start looking for mortgage rates? Here are Benzinga’s picks for the best mortgage companies in New Hampshire.
- Online Service
1. Best Overall: Quicken Loans®
Your mortgage may be the largest investment you ever make.
Quicken Loans offers exceptional customer service that makes you feel valued.
It also provides educational resources on its website to ensure that you understand every step of the process.
You can start the mortgage process by phone or online by using Rocket Mortgage® by Quicken Loans®.
Quicken Loans offers conventional home loans, FHA loans, VA loans and proprietary mortgage products.
2. Best for Veterans: Veterans United
If you’re planning to get a VA home loan, it makes sense to go with a lender that works with those loans every day. Veterans United focuses exclusively on VA loans and it earns rave reviews from its customers.
You can start the loan process online or by phone. Customer service representatives are available 24/7 to answer any questions you have along the way.
Veterans United’s advisors come from every military branch to ensure it’s meeting the needs of service members. It also has educational materials to help you make informed decisions about homeownership.
3. Best for Online Lender: Better.com
Better.com offers more than just an online mortgage application.
It uses technology to streamline the entire process so you can close sooner.
It also doesn’t charge any lender fees, which is a significant savings. If you need assistance, you can email or call a representative 7 days per week.
Better.com gives you a basic preapproval in just a few minutes.
It offers fixed- and adjustable-rate conventional loans and fixed-rate FHA loans.
- Self-employed Borrowers
4. Best for Self Employed Individuals: Luxury Mortgage
Luxury Mortgage offers a variety of mortgage products for every borrower. Its bank statement qualifier mortgage is an especially good fit for self-employed borrowers. You can qualify based on your actual income as shown on your bank statements. You can use your personal or business bank statements.
To qualify for the bank statement mortgage, you’ll need a credit score of 580 or higher and a down payment of at least 20%. Luxury Mortgage offers other mortgage options include an asset qualifier mortgage and conventional, FHA and investment mortgages.
What Factors Impact Your Mortgage Rate?
How do lenders decide on your interest rate? They look at several factors, including:
- Credit history: Lenders don’t have crystal balls, but they do try to predict the future by looking at your past. If you’ve been responsible with your credit and debt in the past, there’s a good chance you will be in the future. If you’ve struggled with making payments on time or carrying high balances, lenders are concerned with how you’ll handle your mortgage in the future. If lenders view you as a risky borrower, they may offer you a higher interest rate.
- Down payment: If you make a larger down payment, it’s harder for you to walk away from your home. There’s less risk for the lender and they may offer you a lower interest rate.
- Points and credits: You can buy points upfront when you take out a mortgage. Points lower your interest rate. On the other side, your lender may offer you credits to cover your closing costs. In exchange for the help, your lender may charge a higher interest rate.
What is a Mortgage Type?
Your mortgage type can also impact your mortgage rate. Your mortgage type refers to whether your mortgage is part of a government program. Here are the most common types.
- Conventional mortgages aren’t part of a government program. These mortgages may require a higher credit score than other types of mortgages.
- FHA loans are backed by the Federal Housing Administration. These loans have low down payment and credit score requirements and are a popular choice for first-time home buyers.
- USDA loans are backed by the U.S. Department of Agriculture. These loans help low- and moderate-income home buyers purchase homes in rural areas. These loans are worth considering if you’re not attached to living in the middle of a city. You might be surprised by how many areas qualify.
- VA loans are guaranteed by the Department of Veterans Affairs. Qualifying veterans and service members can buy a home with no down payment. These loans also have flexible credit requirements and a streamlined refinancing process.
What is a Mortgage Term?
Your mortgage term refers to how your lender structures your mortgage. Here are a few common terms.
- 30-year fixed mortgages are based on 30 years of payments. Your interest rate is fixed, which means it never changes. This means your monthly payments will always be the same unless you choose to pay more or refinance your mortgage.
- 15-year fixed mortgages have higher monthly payments than a comparable 30-year fixed-rate mortgage. This means your home will be paid off sooner and you’ll pay less in interest. Your interest rate and your monthly payments will stay the same for the entire term.
- 5/1 ARMs are adjustable-rate mortgages. This means your lender can change the interest rate of your loan. Your mortgage will have rules about how much and how often the rate can change. With a 5/1 ARM, you will have the same interest rate for the first 5 years. After that, your lender can change your interest rate once each year.
Current New Hampshire Mortgage Rates
Lenders change mortgage rates to reflect what’s happening in the economy and in the housing market. When the economy is sluggish, lenders often lower rates to encourage people to take out home loans. When the economy picks up, lenders increase rates since there’s more competition. At Benzinga, we update our rates frequently so you can make informed decisions about home loans.
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | N/A | N/A |
| 15-year fixed | N/A | N/A |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | N/A | N/A |
Calculating Interest in New Hampshire
Your monthly payment is divided up between taxes, insurance, your loan interest and your loan balance. Each month you pay a little more toward your loan balance and a little less in interest. This process is called amortization. Here’s how much you’ll pay in interest for homes in 4 New Hampshire cities.
| City | Average Home Value | Loan Term | Current Rate | Downpayment (20%) | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|---|
| Manchester | $419,000 | 30-year fixed | 6.551% | $83,800 | $2,129.95 | $431,582.00 |
| Nashua | $292,100 | 30-year fixed | 6.551% | $58,420 | $1,484.86 | $300,869.60 |
| Concord | $237,600 | 30-year fixed | 6.551% | $47,520 | $1,207.82 | $244,735.20 |
| Derry | $293,400 | 30-year fixed | 6.551% | $58,680 | $1,491.47 | $302,209.20 |
Lender Credit Score Minimums in New Hampshire
Your credit score is a computer-generated number that lenders review. Lenders use it to decide on your interest rate. They also use it to decide whether you’re eligible for a mortgage. If you’re below the minimum score, you may need to improve your score before the lender will approve you for a home loan. Here are the minimum credit scores for several New Hampshire lenders.
| Lender | Minimum Credit Score Required |
|---|---|
| Quicken Loans | 620 |
| better.com | 620 |
| Veterans United | 660 |
| Luxury Mortgage | 620 |
Get the Best Mortgage Rate in New Hampshire
To find the best mortgage rate, contact multiple lenders. Ask each lender for information about the same type of loan so you can make accurate comparisons. Look at the interest rate and fees for each lender and choose the lender that provides outstanding service and a great value.
Get Ready for Take Off
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