Current Mortgage Rates in Utah

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Contributor, Benzinga
October 22, 2021
Loan TypeRateAPR
30-year fixed 6.555% 6.639%
15-year fixed 6.069% 6.217%
7/1 ARM (adjustable rate) 6.521% 7.363%
5/1 ARM (adjustable rate) 7.225% 7.913%
Rates based on an average home price of $348,376 and a down payment of 20%.
See more mortgage rates on Zillow

Utah has a little bit of everything: desert landscapes, mountains, Salt Lake City and the Great Salt Lake. It’s important to know what interest rates to expect If you’re planning to buy or refinance a home in Utah. Here’s how you can make an informed decision. 

Best Mortgage Lenders in Utah

Benzinga pulled out all the stops to research the best mortgage companies in Utah. Here’s our roundup.

What is a Mortgage Rate?

A mortgage is a loan that you use to purchase or refinance a home. Lenders need to pay for the costs of servicing your mortgage, so they charge interest. The interest a lender charges is your mortgage rate. 

Lenders offer fixed mortgage rates, which means that the interest rate stays the same throughout the life of the loan. Lenders also offer adjustable rates, which means that interest rates can change. 

What Factors Impact Your Mortgage Rate?

Your mortgage rate depends on several factors. For example, when the economy is strong and unemployment is low, mortgage rates tend to go up. This is because there’s more competition for mortgages since more people can afford to buy. 

Your financial status also influences your mortgage rate and includes these factors:

  • Your income: Lenders want to ensure that you have enough income to pay a mortgage. Note: You may need to provide additional documentation to show you have steady long-term income if you’re self-employed. 
  • Your debt: Lenders want to make sure you have enough income to pay your debts, your mortgage, your homeowners insurance and other costs that come with homeownership. Lenders consider your debt-to-income (DTI) ratio, which is your total debt payments compared to your pre-tax income. Lenders prefer a DTI ratio of 43% or less, according to the Consumer Financial Protection Bureau. 
  • Your credit history: Lenders review your credit history to get a sense of whether you repay your debts. They look for items like late payments, missed payments and accounts you have in collections. Lenders will offer you a lower rate if you have a good credit history

Make sure to contact multiple lenders for a refinance or purchase quote to get the best rate, regardless of your financial background. 

What is a Mortgage Type?

You’ll find a variety of mortgage types. Each type has its pros and cons. They include:

  • FHA mortgages: The Federal Housing Administration insures FHA mortgages. Since these mortgages are government-backed, they’re less of a risk to the lender. This means lenders can offer them to borrowers with lower credit scores. A disadvantage of FHA mortgages is that they may have slightly higher interest rates. 
  • USDA mortgages: The Department of Agriculture backs USDA mortgages. They’re designed for borrowers with low or moderate incomes, so higher-income households may not qualify. You also need to purchase a home in an eligible rural area to use a USDA loan. 
  • VA mortgages: The Veterans Administration insures VA mortgages, which are extended to those who have served our country in the armed forces. Dependents of veterans may also qualify. VA mortgages have low fees and may not require a down payment. 
  • Conventional mortgages: The government does not insure conventional mortgages. This means that lenders may be pickier about who qualifies for these mortgages. On the plus side, conventional loans may have lower interest rates than government-backed loans.

You may qualify for more than 1 type of mortgage. An experienced lender can help you decide which kind of mortgage is best for you. 

What is a Mortgage Term?

Your mortgage term is the length of time your mortgage lasts. At the end of your mortgage term, you will own your home outright if you don’t sell your home before your mortgage term is up.

Longer terms have lower monthly payments and higher interest rates. Shorter terms have lower interest rates but higher monthly payments. Here are a few of the most common mortgage terms: 

  • 30-year fixed: 30-year fixed-rate mortgages are a popular choice because monthly payments are lower. Interest rates are higher for a 30-year fixed-rate mortgage compared to 15-year fixed mortgages. 
  • 15-year fixed: A 15-year fixed-rate mortgage has a lower interest rate, so you’ll pay less in interest over the life of the loan. The interest rate stays the same for 15 years.
  • 5/1 ARM: A 5/1 ARM is a mortgage with a 5-year fixed-rate period. After that, the mortgage rate adjusts each year. ARM stands for adjustable-rate mortgage, and the rate may go up or down, depending on market conditions. 

Lenders offer other mortgage terms as well. You can find ARMs with a longer introductory period, for example. 

Current Mortgage Rates in Utah

Mortgage rates change daily. Lenders change mortgage rates based on market conditions. The changes might be small, like 0.05%. Mortgages are large loans so a small interest rate change can make a big difference. That’s why locking in a low rate with a lender is so important. 

Benzinga updates Utah mortgage rates frequently to ensure you have the most up-to-date information possible. 

Loan TypeRateAPR
30-year fixed 6.555% 6.639%
15-year fixed 6.069% 6.217%
7/1 ARM (adjustable rate) 6.521% 7.363%
5/1 ARM (adjustable rate) 7.225% 7.913%
Rates based on an average home price of $348,376 and a down payment of 20%.
See more mortgage rates on Zillow

Calculating Interest in Utah

Mortgage interest isn’t straightforward. It’s calculated each month based on your mortgage balance. Part of your monthly mortgage payment goes toward paying down your principal, or the full mortgage amount. The rest goes to your mortgage interest and insurance. 

You pay more in interest during the beginning of your mortgage. As you pay down your balance, you pay less in interest and more on your loan. This process is called amortization. 

Here’s the amount you might pay in interest over the life of a Utah mortgage. 

CityAverage Home ValueLoan TermCurrent RateDownpayment (20%)Monthly PaymentTotal Interest Paid
Salt Lake City $399,40030-year fixed6.408%$79,880$2,000.29$400,584.40
West Valley City $310,80030-year fixed6.408%$62,160$1,556.56$311,721.60
Provo $308,10030-year fixed6.408%$61,620$1,543.04$309,014.40
West Jordan $364,90030-year fixed6.408%$72,980$1,827.51$365,983.60
See more mortgage rates on Zillow

Lender Credit Score Minimums in Utah

Credit scores range from 300–850. Higher credit scores indicate a better credit history. Lower credit scores indicate you may be more of a risk to a lender.

Your credit score reflects the information on your credit report. Missed payments, opening multiple accounts quickly and running up high balances on credit cards can all lower your credit score. 

LenderMinimum Credit Score Required
Axos Bank620
Guaranteed Rate620

Get Your Own Utah Mortgage

Utah recognizes that purchasing a home can be a challenge. The Utah Housing Corporation offers several programs for home buyers. You may be able to qualify for down payment assistance through a loan or grant — depending on your household income. 

Regardless of whether you qualify for assistance, it’s essential to take the time to shop around for a mortgage. Get multiple quotes and review each one carefully. Look for origination fees and closing costs so you have a sense of your total costs. Once you’ve found the right lender, you’ll be ready to purchase your new Utah home. 

Get Ready for Take Off

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You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.