Delaware Mortgage Rates

December 6, 2016 03:11 AM Eastern

Refinance rates now in Wilmington, DE [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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Delaware Mortgage Rates and Loans for Homeowners
Despite its small land area, the first state in the country, Delaware, ranks high in population density, especially in the metropolitan Wilmington area.  

Delaware does not have a local or state tax for corporations, and has become known as one of the best states in the country for doing business. Many large companies make Delaware their home, including pharmaceutical giant AstraZeneca and global bio-tech firm DuPont. Delaware is also politically active state, with its largest employers being the federal and local governments; and the state's capital city, Dover, is home to one of the largest Air Force bases in the country.  

Loan Options and Mortgage Interest Rates in Delaware
The Delaware State Housing Authority and the Wilmington Department of Real Estate and Housing (DRH) have many available loan options and mortgage programs at market rate or at interest rates lower than current DE mortgage rates.  

These include programs for the renovation and rehabilitation of existing homes and limited construction of new homes in strategically selected areas. For Delaware residents with low to moderate income, the elderly, and the handicapped, The DRH, through its lending partners, also offers low DE mortgage interest rates to rehabilitate single family, owner-occupied homes.

Other Delaware loan options include the following:

• CDBG Home Repair Program: Owner occupants can access funds for installation of safety systems and repair of hazardous conditions.
• New Development Initiatives: A non-profit program to help oversee construction projects and provide low interest rate construction loans to revitalize certain neighborhoods. 

Foreclosures in Delaware
Through its neighborhood stabilization program, Delaware is assisting communities that have been-or are likely to be affected by,-foreclosures, while providing affordable homeownership opportunities to households at or below 120 percent of area median income.

DE Mortgage Rates and FHA Insured Loans
FHA loans make up the largest percentage of loans used by first time homebuyer—and for good reason.  They offer market-rate interest rates and a low down payment—which can be gifted to the buyer by a family member, employer, or charitable organization with relatively relaxed underwriting requirements.

For loans made through conventional lenders for Fannie Mae or Freddie Mac, there are certain limits throughout the state of Delaware. For information about current loan limits in Delaware, please visit: https://entp.hud.gov/idapp/html/hicostlook.cfm

Most lenders require the borrower to submit a credit report and income verification.  Prior to applying for a loan, those aiming to purchase a home or refinance a loan should check with each lender for their particular documentation checklist. Also, look at our daily mortgage rate lock recommendations here: https://www.lendingtree.com/mortgage-rates.