Idaho Mortgage Rates

April 19, 2015 03:55 AM Eastern

Refinance rates now in BOISE, ID [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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For questions regarding mortgages, lenders or lending practices in Idaho, you can contact the Idaho Department of Finance, which regulates mortgage lenders in the state.

Idaho Mortgage Rates

If you’re looking at Idaho mortgages and comparing them to rates you’ve seen elsewhere, you might notice variations from one state to another. State lending laws and the particular state’s economy, as well as how competitive the lenders are in each state can affect the mortgage rates you see.

Buying a Home in Idaho

According to the House Price Index, home prices in Idaho tumbled more than 23% from an all time high in the first quarter of 2008 through the third quarter of 2012. Indications, however, are that the housing market in Idaho has been coming back since 2012 and is forecast to appreciate another 0.17% over the next year.

The majority of homes -- 71.6% in the Boise area and 91.4% in Pocatello--are affordable for families with median household incomes. The median price of a Boise home is $196,000; for Pocatello it’s $145,000. Median closing costs of $2,407 for a $200,000 mortgage rank Idaho’s closing costs 23rd highest in the nation.

Idaho also has numerous community and federal programs available to help home buyers overcome hurdles to home ownership. The following is a partial list:

FHA Home Loans

Cost-conscious home buyers might want to consider a home that qualifies for an FHA-insured mortgage. FHA mortgages typically require a smaller down payment than conventional mortgages, which can make the initial costs of buying a home more affordable.

The standard loan limit for FHA mortgages is $271,050 in most Idaho counties. In some parts of Idaho the limit is higher. In Boise, for example, the cap is $303,750, and in Teton County the cap is $693,750. Homes in the Sun Valley ski resort area of Blaine County may qualify for an FHA mortgage of as much as $729,750.

VA Mortgages

If you are eligible, a VA loan is another affordable loan option. Most VA lenders in Idaho limit loan amounts to $417,000 (although the VA does not impose maximum loan amounts) with the exception of Teton County, where they are capped at $635,000.