Mortgage Rates in Idaho

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Contributor, Benzinga
October 21, 2021
Loan TypeRateAPR
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
Rates based on an average home price of $225,000 and a down payment of 20%.
See more mortgage rates on Zillow

Idaho’s thriving job market and plenty of scenic landscapes serve up a perfect location to buy a house. But finding a low-interest rate can give you an incentive to move. Whether you’re looking for a refinance quote or you’re ready to buy, it’s important to shop various lenders before you make a decision.

Best Mortgage Lenders in Idaho

Whether you live in Twin Falls, Boise or one of the many other towns throughout Idaho, you have plenty of options. Here are some of the best lenders that service homebuyers in Idaho.

What is a Mortgage Rate?

You’ll probably need a loan to help pay for your home purchase. The agreement you’ll make with a lender requires you to pay back that loan over a specific period of time. The price of borrowing money is interest, which is charged to you based on a mortgage rate set by the lender. The good news is, you can research various lenders and the interest rates they offer before you settle on one.

What Factors Impact Your Mortgage Rate?

Mortgage rates Idaho residents pay are based on a variety of factors, starting with the general economic environment. Yes, those factors can influence the minimum interest rate a lender offers. But there are also factors specific to you, the borrower, that will determine the rate you’re quoted:

  • Economic factors: Economic performance — both nationally and locally — has an impact on the interest rates lenders will quote you. Here are a few economic factors that influence interest rates:
    • Economic growth rate
    • Consumer confidence
    • Inflation
    • Unemployment
  • Your credit history: Lenders take a look at your credit score before quoting an interest rate. This score tells them about your dependability as a bill payer. Each lender sets the guidelines for minimum credit scores. In general, though, the higher your score, the better you’ll fare.
  • Your financial status: At the time of application, your finances will come into play. Lenders look at the amount you earn each month, compared to the amount you owe, known as your debt-to-income (DTI) ratio. They’ll also pay close attention to the funds you have set aside in savings to cover your mortgage if you suddenly lose your income.
  • Your contribution: When you request a loan for a home purchase, you’ll probably have to put down a certain percentage as a down payment. The more you put down, the more likely you’ll get a deal on your interest rate.
  • Type of lender: As you search for a mortgage lender, you’ll notice a few types, and each has different factors to determine how they set interest rates:
    • Large corporate lender: Although you may know them by name, corporate lenders won’t always have the best deal on interest rates. They tend to follow directives issued by the corporate office regarding credit score requirements and individual rate quotes.
    • Credit union: Unlike larger lenders, credit unions don’t report to a group of shareholders. They work for you, the borrower, along with other members. That means they set rules based on what their customer base requests — and that gives them more flexibility.
    • Local lender: Sometimes the small bank with one or a few branches is the best option. They’re closely connected to the community and can set their own interest rates and restrictions.
    • Online lender: Virtual lending has grown in popularity in recent years. Sometimes you’ll get a more competitive rate by going this route. They don’t have brick-and-mortar locations to maintain, which allows them to operate on slimmer profit margins.
  • Lender preferences: All things considered, lenders set their own rates, although they may base this decision on what competitors are charging. Some smaller lenders may choose to keep their rates low despite that competition to support the local community.

What is a Mortgage Type?

Before you request your first purchase quote, know your options. Those include the following 4 major mortgage types:

  • Conventional: When you think of a home loan, this may be the one that comes to mind. A conventional loan means that a lender directly lends money to the consumer, with no government protection if you fail to pay.
  • FHA: This is the most common government-backed loan. The Federal Housing Authority insures loans between lenders and homebuyers, which in turn increases lender confidence levels as they consider applications.
  • USDA: The U.S. Department of Agriculture stimulates home buying in areas that need it by backing loans. You’ll need to buy in a qualifying area and go through an eligibility screening process.
  • VA: If you are currently in the military or have served in the past, you may qualify for VA backing for part of your loan — you’ll also get other benefits like bypassing a down payment.

What is a Mortgage Term?

You’ll need to choose exactly how long you pay back a mortgage when you borrow money. Here are the 3 most popular options:

  • 30-year fixed: You may not stay in your home for a full 30 years but the 30-year fixed loan has its benefits. Your payments will be stretched over 30 years, which means your payment will be lower each month. Expect to pay a higher interest rate for that benefit.
  • 15-year fixed: Your monthly rates may be higher, but if you can afford it, there are good reasons to choose this option. You’ll pay less in interest each month and, if you stay 15 years, the home will be paid off.
  • 5/1 ARM: A 5/1 adjustable-rate mortgage gives you 5 years at a fixed interest rate and adjusts to the current rate at the 5-year mark. This is a good alternative for homebuyers who need a little time for their finances to catch up.

Current Mortgage Rates in Idaho

The best mortgage companies in Idaho know that to remain competitive they need to stay within range of what others in the area charge. For that reason, it can help to know average interest rates across the state. Interest rates can change from day to day due to the economy and housing market.

Loan TypeRateAPR
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
Rates based on an average home price of $225,000 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in Idaho

Once you’ve agreed to an interest rate and the loan has closed, the lender will use a process called amortization to determine how much you owe in interest. This means your interest is recalculated at the end of each month based on the remaining amount due. Your lender can give you a schedule that shows how much you’ll pay. Here are some examples of how interest can vary by city and loan amount.

CityAverage Home ValueLoan TermCurrent RateDownpayment (20%)Monthly PaymentTotal Interest Paid
Boise $304,00030-year fixed6.789%$60,800$1,583.70$326,932.00
Coeur d'Alene $313,50030-year fixed6.789%$62,700$1,633.19$337,148.40
Idaho Falls $208,80030-year fixed6.789%$41,760$1,087.75$224,550.00
Twin Falls $213,50030-year fixed6.789%$42,700$1,112.24$229,606.40
See more mortgage rates on Zillow

Lender Credit Score Minimums in Idaho

Before you can be approved for a loan, your credit score will need to meet a lender’s minimum. This can vary from one lender to another, but generally, you’ll need a score in the 600s or greater to qualify for a conventional loan. Lenders for first time buyers will often steer buyers toward FHA loans, which have more flexible credit score requirements. Below is a sample of some Idaho lenders and their credit score minimums.

LenderMinimum Credit Score Required
Discover Home Equity620
Citibank620
Rocket Mortgage®620
Figure Home Equity600

Living the Good Life in Idaho

Idaho has plenty to offer home buyers, which is why it continues to attract new residents. It’s important to shop around so you make sure you get the right lender. Look not only at the interest rate you’re offered, but also the service you get during the application process to make your decision.

Get Ready for Take Off

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