Mortgage Rates in North Carolina — Plus Stats, First-Time Homebuyer Programs and Mortgage Refinancing
Rebecca, a freelance editor for LendingTree, is a marketing and content specialist who has worked in the personal finance space since 2017. A graduate of Millersville University of Pennsylvania, she received a degree in English with a minor in journalism. As a Taurus, Rebecca struggles with budgeting and tends to live by a “treat yourself” mindset. She’s working on it.
Why use LendingTree?
The average mortgage interest rate in North Carolina is 3.39%, just 0.7% above the average rate of 3.37% across the U.S. That means that when it comes time to buy a home, residents know mortgage rates in North Carolina are on par with the national average.
Meanwhile, the median home value in the Tar Heel State is $190,600, compared to $239,100 across the U.S.
Let’s take a closer look at other key mortgage facts around buying a home in North Carolina’s biggest cities and towns, plus what their first-time homebuyer programs look like.
Mortgage rates in North Carolina, plus more stats on the Tar Heel State
| How North Carolina mortgages compare to the rest of the U.S. | |||||
| U.S. | North Carolina | Difference | Difference % | Rank among states | |
| Average borrower credit score | 734 | 735 | 1 | 0.1% | 17 |
| Average mortgage size | $284,152 | $251,310 | -$32,842 | -11.6% | 24 |
| Average mortgage monthly payment | $1,252 | $1,112 | -$140 | -11.2% | 24 |
| Average mortgage interest rate | 3.37% | 3.39% | 0.02% | 0.7% | 18 |
| Average mortgage APR | 3.61% | 3.65% | 0.04% | 1.1% | 21 |
Source: LendingTree internal data.
Note: Includes 30-year mortgages closed in 2020. State rankings go from high (1) to low (50) for credit score, mortgage size and monthly payment. State rankings go from low (1) to high (50) for interest rate and APR.
| How North Carolina mortgage-holders compare to the rest of the U.S. | |||||
| U.S. | North Carolina | Difference | Difference % | Rank among states | |
| Median home value | $239,100 | $190,600 | -$48,500 | -20.3% | 32 |
| Median household income | $93,884 | $82,493 | -$11,391 | -12.1% | 37 |
| Median monthly housing costs | $1,595 | $1,314 | -$281 | -17.6% | 35 |
| Median real estate taxes (annual) | $2,750 | $1,623 | -$1,127 | -41.0% | 36 |
Source: American Community Survey (2019 5-Year Estimates), U.S. Census Bureau.
Note: Real estate taxes are for homes with active mortgages. Home values are estimated by surveyed owners. State rankings go from high (1) to low (50).
While mortgage rates in North Carolina are nearly identical to the national average, the median income of households with a mortgage in the state is $82,493, significantly lower than the $93,884 across the U.S.
If you decide to move to the state’s next-door neighbor — South Carolina — you’ll generally need a smaller mortgage. The average mortgage size in South Carolina is $241,612, compared with $251,310 in North Carolina.
Either way, the average mortgage size in North Carolina is still $32,842 less than the national average, so there are still good deals out there.
Mortgage facts in North Carolina’s biggest cities and towns, from Apex to Winston-Salem
The homebuying experience in North Carolina can vary depending on the city or town in which you’re shopping. LendingTree researchers reviewed North Carolina’s biggest cities and towns (with at least 50,000 residents) to understand better what it would look like to purchase a home across the state.
In North Carolina’s two largest cities — Charlotte and Raleigh — more than half of residents have an active mortgage. Both cities have some similar characteristics, though median homeowner costs are $1,446 in Charlotte, compared with $1,510 in Raleigh.
Top 5 — and bottom 5 — in North Carolina
If you move from the two largest cities in North Carolina, you can find even higher rates of active mortgages in places including Huntersville, Apex and Cary.
Here’s a closer look at active mortgage rates in those biggest towns and cities, as well as lowest and highest median property taxes.
3 first-time homebuyer programs in North Carolina
There are several programs specifically designed for first-time homebuyers in North Carolina. Let’s take a closer look at three of these programs — and how to qualify.
NC 1st Home Advantage Down Payment
The NC Home Advantage Mortgage program provides eligible applicants with $8,000 in down payment assistance through the NC 1st Home Advantage Down Payment.
This assistance is provided as a 0% deferred second mortgage. Once you reach years 11 to 15 of the second mortgage, 20% will be forgiven at the end of each year each year.
Who qualifies?
Eligible applicants include:
- First-time homebuyers purchasing a home in North Carolina who haven’t owned a home as their principal residence in the past three years
- Military veterans who are buying in a targeted census tract
Eligible applicants must:
- Meet income and sales price limits
- Occupy the home as their principal residence within 60 days of closing
- Have a credit score of 640 or higher
- Be a legal U.S. resident
NC Home Advantage Mortgage
Both first-time and “move-up” (those selling their home and looking to buy another) homebuyers can qualify for the NC Home Advantage Mortgage program, which provides fixed-rate mortgages and down payment assistance of up to 5%.
Borrowers do not have to repay this down payment assistance unless they sell, refinance or transfer their home before owning the home for 15 years. As with the NC 1st Home Advantage Down Payment, 20% of the down payment is forgiven each year between years 11 and 15.
Who qualifies?
First-time and move-up homebuyers purchasing a home in North Carolina must:
- Occupy the home as their principal residence within 60 days of closing
- Have an annual income that doesn’t exceed $92,000
- Have a credit score of 640 or higher
- Be a legal U.S. resident
NC Home Advantage Tax Credit
The NC Home Advantage Tax Credit aids first-time buyers who haven’t owned a home as their principal residence in the past three years and military veterans.
The program allows eligible participants to save up to $2,000 a year in federal taxes through a Mortgage Credit Certificate (MCC). Those who qualify can claim a federal tax credit for 30% to 50% (for newly built homes) of the interest they pay on an existing home.
Who qualifies?
Eligible applicants include first-time homebuyers purchasing a home in North Carolina who haven’t owned a home as their principal residence in the past three years and military veterans who are buying in a targeted census tract.
Eligible applicants must:
- Meet the income and sales price limits
- Apply for and be approved for the MCC before their purchase
- Occupy the home as their principal residence within 60 days of closing
- Be a legal resident of the U.S.
The North Carolina Housing Finance Agency will review your application before closing.
How to refinance your mortgage in North Carolina
If you’re a homeowner hoping to get more favorable mortgage rates in North Carolina, refinancing your mortgage could be appealing.
When someone refinances a mortgage, they replace their current mortgage with a new loan. Ideally, you’ll only consider this if you can replace your mortgage with a new loan with more favorable terms, such as a lower interest rate or monthly payment amount.
The goal and outcome of refinancing can vary and may include:
- Shortening your loan term
- Eliminating private mortgage insurance
- Going from an adjustable interest rate to a fixed interest rate
Identifying your refinancing goals before you start shopping for a new mortgage is key to helping you compare offers more effectively.
You can shop around for a mortgage refinance lender on a national or local level. Which lender you choose will depend on your unique situation and the offered terms.
If you want to keep things local, some lenders specialize in refinancing mortgages in North Carolina, including AlphaMortgage.
Reporters: Looking for further breakdowns? We also have the following maps:
Sources
- LendingTree proprietary and anonymized 2020 customer data
- U.S. Census Bureau American Community Survey, 2019 5-year estimates (latest available)