Current South Dakota Mortgage and Refinance Rates
Mortgage interest rates currently average 6.06% for 30-year fixed loans and 5.22% for 15-year fixed loans.
Refinance rates in South Dakota
30-year FIXED
Current refinance rates are averaging:
6.48%
15-year FIXED
Current refinance rates are averaging:
6.06%
- Rate-and-term refinances allow homeowners to get a new mortgage that better suits their financial goals. Lengthening your loan term or lowering your interest rate (or even both), for example, can reduce your monthly mortgage payment. In South Dakota today, refinance rates may be a little higher than purchase mortgage rates.
- Cash-out refinances give you a chance to replace your current home loan with a new one and, at the same time, convert some of your home equity to cash. They usually come with higher rates than regular refinances.
- Conventional refinances are defined by the fact that they’re not part of a government loan program. You can expect them to come with higher rates than government-backed refinances.
- FHA refinances are insured by the Federal Housing Administration (FHA), and are usually easier to qualify for than conventional loans. FHA loan rates are typically lower than conventional refinance rates — in South Dakota, you may see a difference of about 0.45 percentage points.
- VA refinances, which are backed by the U.S. Department of Veterans Affairs (VA), come with low VA rates and some great perks, including very flexible VA loan requirements. However, in the vast majority of cases if you haven’t served in the military you won’t be eligible.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
Potential homebuyers should expect 30-year rates to remain around 6% in early 2026, according to LendingTree’s current mortgage interest rates predictions. Home affordability isn’t likely to change dramatically in the near future, so homebuyers should focus on improving their financial eligibility to snag the best rates and get the lowest monthly payment on their South Dakota home loan.
How do I get the best mortgage rate for my South Dakota home loan?
If you want to get the best mortgage rate, your first job is to influence the key factors determining your mortgage rate that you can control. Here are a few steps you can take today to get a great rate:
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Boost your credit
Your credit score helps determine the mortgage rates lenders can offer you. In general, a higher credit score will mean better rate offers. And if you need to check your credit score or learn more about the factors that may be bringing it down, try LendingTree Spring. -
Lower your debt-to-income (DTI) ratio
Your DTI ratio tells lenders whether your debt load is heavy or light, and how much more you can take on. If you want to lower your DTI, try increasing your income, paying off some debts or getting a cosigner. -
Buy a single-family, site-built home
If you’re buying a manufactured home, multifamily home, vacation home or investment property, you’ll likely pay higher rates. -
Pay for mortgage points
If you have extra cash on hand, you may want to consider purchasing mortgage points. One point usually costs 1% of your loan amount and reduces your rate by up to 0.25 percentage points. -
Compare offers from multiple lenders
A simple strategy for getting a great rate is comparison shopping. Gather loan estimates from three to five lenders and compare the rates they offer you. This can save you thousands of dollars over the life of your loan, according to LendingTree data.
Read more about our picks for the best mortgage lenders.
Once you have both a house and a loan offer you want to move forward with, you can request a mortgage rate lock. A lock ensures that your interest rate won’t increase before you make it to closing. Rate locks are tied to a specific property’s address, so if you decide not to purchase the house you had your eye on, you’ll have to request a new rate lock later on down the line.
South Dakota home loan programs
SD Housing First-Time Homebuyer Programs
The South Dakota Housing Development Authority (SD Housing) has a loan program tailored to first-time homebuyers that can allow you to lock in a low interest rate on a conventional, FHA, VA or USDA loan.
Who qualifies
Borrowers must:
- Be a first-time homebuyer
- Earn within the program’s income limits, which vary depending on location and household size
- Purchase a home for no more than $385,000
Who qualifies as a first-time homebuyer?
- People who have never owned a home
- People who haven’t owned a home in the last three years*
- Qualified veterans, regardless of their actual history owning real estate
*Certain types of mobile homes may not count as previous homeownership
SD Housing Repeat Homebuyer Loan Program
Repeat homebuyers also have a great option through SD Housing. This program gives borrowers access to low interest rates, down payment assistance, closing cost assistance and discounted mortgage insurance rates.
Who qualifies
Borrowers must:
- Earn less than $111,120 for a one- to two-person household, or less than $$129,640 for households with three or more members
- Purchase a home for no more than $460,000
- Have a minimum 620 credit score
SD Housing Fixed Rate Plus Program
Borrowers with an SD Housing loan may qualify for additional down payment assistance funds through this program, which offers up to 5% of the first mortgage amount. The assistance will come in the form of a second mortgage with no interest and no monthly payments. You won’t have to worry about repaying the money until you sell the home or pay off your first mortgage.
Who qualifies
To see if you qualify, reach out to an approved SD Housing lender.
Get the full details about each program at SD Housing’s website.
Learn about different types of SD mortgage loans
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South Dakota conventional loans
Conventional loans are a popular choice and can offer good value on a home purchase. You’ll have to meet the minimum requirements, though, which means that anyone without at least a 620 credit score won’t be eligible. -
South Dakota FHA loans
FHA loan requirements are more accessible than conventional loan requirements, and you can qualify with a credit score as low as 500. But, in order to do so, you’ll have to make a 10% down payment. If you’re looking to make a smaller down payment, you can put down as little as 3.5% — as long as your score is 580 or above. -
South Dakota VA loans
VA loan requirements are the most flexible among common loan types, and there’s no credit score minimum set by the VA. You will, however, need to have a qualifying military service record. -
South Dakota streamline refinances
are for homeowners who want to refinance from an FHA loan into a new FHA loan, or from a VA loan into a new VA loan. The loans available to make this happen are FHA streamline refinance loans or VA interest rate reduction refinance loans (IRRRLs). The “streamline” name comes from the fact that these loans will require less paperwork and less hassle than other refinance types.