Alaska Mortgage Rates

December 3, 2016 06:38 AM Eastern

Refinance rates now in Anchorage, AK [Change this]

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    Home Price (Purchase)
    When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
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    Home Value (Refinance)
    This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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    Down Payment
    The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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Are you thinking about buying a home in Alaska? You can find useful information on this page, as well as links to additional information about purchasing a  home in Alaska and obtaining a mortgage.

Alaska Mortgage Rates

Mortgage rates in Alaska vary from those in other states. Factors that influence mortgage rates include the state of the local economy, laws affecting lenders in that state and competition for your business among lenders. The State of Alaska Department Division of Banking and Securities oversees and regulates mortgage  lenders.

Buying a Home in Alaska

The Alaska housing market held firm throughout the recession and prices are on the rise. Anchorage median home sales prices are $276,000, and for  households with median incomes of $87,800 nearly 78 percent of homes in that metropolitan area are affordable. Homebuyers in Fairbanks find the median  price of homes at $239,000 even more affordable. With a median household income of $78,400 in Fairbanks, more than 92 percent of Fairbanks homes are within reach financially to median income earners.

When it comes to buying a home in Alaska, you can expect to pay more in closing costs than in 48 other states. Alaska ranks behind only Hawaii in closing costs-- $2,675 for a $200,000 home compared to a nationwide average of $2,402. Still, given the historically robust health of the housing market in Alaska,  you should not let a few hundred dollars in closing costs deter you.

For additional sources of assistance buying a home in Alaska you can contact the following agencies:

  • Alaska Housing Finance Corporation (AHFC) - homebuyer programs that provide safe, affordable housing and assistance with down payments and closing costs.
  • Habitat for Humanity  – a volunteer program that rehabs and builds housing for those in financial need
  • USDA Rural Development Office  – help for home buyers in rural Alaska

Alaska FHA Mortgages

If you qualify for an FHA mortgage, you will find that FHA lending limits in Alaska vary quite a bit from one county to another. The highest limits are found  in SitkaCounty, $431,250. The standard basic limit for an FHA-insured mortgage in Alaska is $271,050.

VA Home Mortgages in Alaska

VA mortgage amounts are not limited by the government. However, most lenders cap 100 percent financing at four times the amount of your VA guaranty. This means most lenders in Alaska cap VA home loans at $625,500.