Getting the Best Mortgage Rates in Rhode Island (10-15-30-Year Fixed, 5/1, 7/1 ARM)
With low Rhode Island mortgage rates and high demand, young homeowners are driving the force of the RI real estate industry, pushing for smaller, move-in ready homes.
In an interview with The Valley Breeze, Joe Luca, president-elect of the R.I. Association of Realtors with RE/MAX Preferred, says:
The number one thing young millennials, age 24 to 35, are looking for is a move-in ready home. They want to walk in, drop the luggage, and start living.
In addition, to pent-up demand for homeownership from younger buyers, Rhode Island real estate is also benefiting from older adults looking to downsize and purchase smaller homes, capitalizing on favorable RI mortgage rates and affordable listings.
Which Rhode Island City Are You Located in?
When it comes to finding the best RI mortgage rates, there are plenty of factors to consider, especially for a first-time home buyer in Rhode Island.
For many Rhode Island mortgage lenders in Providence, Warwick, Cumberland, Cranston, Johnston, and other cities in Rhode Island, the location of your home will play a large role in determining RI mortgage rates.
This means that homes across the state could have varying RI mortgage rates based on the individual city, neighborhood, and the condition of the home itself.
While you are searching for the best mortgage rates in Rhode Island, it may be worthwhile to check the rates for neighboring cities to explore other RI mortgage rates that could potentially be more affordable over the long run.
See the table below for a list of some of the largest cities in the state offering competitive Rhode Island mortgages.
|Top Rhode Island Cities||Population (2010-2016)|
Various Rhode Island Mortgage Options
Lenders that provide competitive mortgage rates in Rhode Island provide a wide range of conventional and adjustable rate loan types, including those listed below.
Conventional Rhode Island mortgages include:
- 10-year mortgage loans
- 15-year mortgage loans
- 20-year mortgage loans
- 30-year mortgage loans
A conventional RI mortgage has a fixed-interest rate that won’t change throughout the life of the loan.
These types of Rhode Island mortgage rates conform to established industry and regulatory guidelines based on size of the loan and your financial situation. Terms for conventional Rhode Island mortgages typically range between 10 to 30 years.
RI mortgage rates with shorter terms (10, 15, or 20 years) tend to have lower interest rates than Rhode Island mortgages with 30-year timespans.
These shorter-termed Rhode Island mortgages can help you pay off your home faster and build equity more quickly.
However, your monthly payments (interest and principal) will be higher than with a 30-year loan. The 10-, 15-, and 20-year mortgage rates in Rhode Island with fixed terms are especially popular for their favorable Rhode Island refinance rates.
Mortgages with an adjustable Rhode Island mortgage rate include:
- 5/1 ARM
- 7/1 ARM
- 3/1 ARM
Additional Considerations for Rhode Island Mortgage Rates
When searching for the best RI mortgage rate for you, there are a few additional pieces of information to keep in mind.
If you have a good, great, or excellent credit history and you are seeking a Rhode Island mortgage rate for a loan totaling over $424,100, some lenders may be able to provide different RI mortgage rates and terms.
For this reason, it’s important to confirm any RI mortgage rates and terms for specific amounts before making a commitment.
Additionally, it’s also important to keep in mind that APR and payment info does not include state-specific taxes or required insurance premiums.
As such, you should expect that your monthly Rhode Island mortgage payment will be greater when taxes and insurance products are added.
Conclusion – Finding the Best Rates & Terms for Rhode Island Home Loans
Once you know what type of Rhode Island mortgage you are interested in, your next step is to start evaluating lenders to find the best RI mortgage rates and terms.
Just as with any other shopping experience, it’s important to weigh in your options and compare offers from multiple Rhode Island mortgage lenders to ensure that you are getting the best deal possible.
Affordable, manageable Rhode Island home loans are determined not just by your monthly payments, but also by interest rates and mortgage terms.
As such, don’t be afraid to shop around until you find the best RI mortgage rate for your financial needs.
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