Current Mortgage Rates in Nebraska

Are you ready to buy a home in Nebraska? You probably have a lot of questions — from finding the right house to choosing the best mortgage lender. Before you dive in, make sure you understand how mortgage rates are determined so you can find the lender that best suits your financial needs.

Best Mortgage Lenders in Nebraska

It’s time to take a look at some of the top lenders in Nebraska. We’ve reviewed the most popular choices in the state and compiled a list of the top 5 mortgage providers that you should look into.

What Is a Mortgage Rate?

Before you can choose the right mortgage lender, you’ll need to understand mortgage rates. Your mortgage rate is the rate of interest you’ll pay on your loan. Let’s say your mortgage is for $200,000. You’ll be responsible for paying back the full amount, plus interest. 

In general, the lower your mortgage rate, the more money you’ll save in interest over the duration of your loan. You’ll need to know what factors are used to determine your rate to get the lowest rate possible.

What Factors Impact Your Mortgage Rate?

You can pull up general mortgage rates for specific lenders or regions and there are a variety of different factors that will determine your individual mortgage rate. Find out more about how to improve your odds of locking in a low rate below.

Credit Score

Most homebuyers know their credit score is important when applying for a home, but few know why. Your credit score will have a huge impact on how high or low your mortgage rate is. Generally, the higher your score, the lower your rate.

Loan-to-Value (LTV) Ratio

LTV ratio is another important factor lenders consider when setting your mortgage rate. LTV refers to how much you’re borrowing compared to the value of your home. 

You can figure out your LTV by dividing the amount you’re financing by your home’s value. Let’s say you’re putting $20,000 down on a $200,000 home and you borrow the remaining $180,000. Your LTV would be $180,000 divided by $200,000. This gives you an LTV of 0.9, or 90%. Your loan could be considered riskier and set at a higher interest rate if your LTV is high. You’ll want to shoot for an LTV of 80% or lower.

Lender

Every mortgage lender has its own policies for determining mortgage rates. That’s why it’s a good idea to apply with a few different lenders to compare the various rates you’re offered.

Location

Where you’re buying your home could impact your mortgage rate. Housing markets fluctuate, so the time of year and the health of the local market can cause rates to move. Rates tend to be lower in a healthy economy and market. When the market is weak, rates tend to rise. Gauge the market to determine what type of mortgage rate you could get.

Mortgage Type and Term

The other factors that can impact your mortgage rate include the mortgage type and term. Different mortgage products tend to have different rates — some rates are even managed on a federal level. The length of time of your mortgage, or term, can also affect your rate.

Find out more about how mortgage types can impact your rate below.

What Is a Mortgage Type?

There are several types of mortgages you can pick from when you buy a home in Nebraska. Four of the most common mortgage types include conventional, FHA, USDA and VA mortgages.

Conventional Loans

Conventional mortgages are financed by banks or credit unions, rather than the government. These mortgages often have slightly higher interest rates, since they’re not backed by the federal government.

FHA Loans

FHA loans, also known as first-time homebuyer mortgages, are secured through the Federal Housing Administration. They have lower interest rates since they’re backed by the government because the risk to the lender is lower with an FHA loan. Many lenders offer FHA loans, including banks who also offer conventional mortgages.

FHA mortgages offer incentives such as 3% down payment options and a low credit score requirement of 580. Let’s say you do pay under 20% for your down payment — you’ll need to purchase private mortgage insurance (PMI), which protects your lender if you default on your loan.

USDA Loans

USDA mortgages are financed by the United States Department of Agriculture and can be used if you’re purchasing a home in a rural area. Most homes in the country outside of cities are considered to be in rural areas, but you can see if your address qualifies on the USDA website.
You can enjoy low or no down payment options, low mortgage rates and flexible credit eligibility. You’ll need mortgage insurance if your down payment is less than 20%. USDA mortgages are well-known for their low mortgage insurance rates.

VA Loans

VA loans make it easy for current or former military members to receive housing funding. These loans are financed through the Department of Veterans Affairs and offer a variety of incentives to eligible members.

You’ll benefit from a no down payment requirement, no mortgage insurance requirement, flexible credit eligibility and low mortgage rates. Be prepared to pay an origination fee of around 1% to cover the loan processing charges — but you can also roll this cost into your loan.

What Is a Mortgage Term?

Your mortgage term, or the length of time of your mortgage, will play a key role in determining your rate. We’ll review the 3 most common mortgage terms to help you understand how the term you choose could impact your rate.

30-Year Fixed

The 30-year fixed-rate mortgage is the standard mortgage on the market. You’ll pay a set interest rate for the duration of 30 years for this mortgage term. You can expect to pay lower monthly payments, but will often pay more interest over time. These mortgages have higher interest rates even though they’re more affordable month-to-month.

15-Year Fixed

The 15-year fixed-rate mortgage is the second type of fixed-rate mortgage you can purchase. Like its 30-year counterpart, you’ll pay a set interest rate for 15 years. Expect to pay more per month, since your loan term is 50% shorter. You’ll actually pay less in interest and often have a lower interest rate.

5/1 Adjustable Rate

The 5/1 adjustable-rate mortgage is a loan that does not have a fixed rate. Adjustable-rate mortgages (ARMs) have rates that change over time. The 5/1 ARM guarantees you’ll pay the same rate for 5 years, before the rate changes. You might be able to lock in a low introductory rate with a 5/1 ARM — which will benefit you if you want to sell your home in a short amount of time.

Current Mortgage Rates in Nebraska

Looking at current mortgage rates in Nebraska will help you prepare for what to expect when financing your home. It’s important to note that rates change as the market fluctuates, but Benzinga strives to provide you with the most up-to-date rates.

Calculating Interest in Nebraska

The total interest on mortgages in Nebraska is calculated by looking at average home values, loan terms and the average mortgage rate. We calculated these numbers to show you how much interest you can expect to pay for a typical home in the Sooner State.

Lender Credit Score Minimums in Nebraska

Knowing your credit score will help you decide what lenders are most likely to approve you for a mortgage. Here’s a list of some of the top mortgage lenders in Nebraska and their minimum credit scores.

Buy Your Dream Home in Nebraska

Purchasing a home in Nebraska is a huge decision — and many small decisions show up along the way. Know how to reduce your mortgage rate and interest so you can secure your financial future. Be sure to compare rates and incentives to find the best mortgage for your budget.

Frequently Asked Questions