Compare Current Mortgage Rates in Idaho

Interest rates have a huge impact on how much you’ll pay for your mortgage — especially if you take into account how much interest you’ll pay over the long term. 

Mortgage rates in Idaho aren’t that different from other places in the U.S., according to data compiled twice a week by the Consumer Financial Protection Bureau from lenders across the country. 

These interest rates lenders can offer you are affected by the following factors:

• Federal funds rate: Many lenders base their prime rate on the target federal funds rate set by the Federal Reserve. The federal funds rate is set by policymakers on the Federal Reserve Board who make decisions based on economic conditions, inflation, and other economic indicators. 
• Market conditions: The more demand there is for mortgages, the more a lender can charge. 

The above are based on factors beyond your control. However, the interest rate you qualify for is also based on several factors that are within your control: 

• Your credit: The higher your credit score, the better rate you’ll be likely to qualify for. 
• Loan-to-value ratio (LTV): The larger your down payment, the lower your LTV is. Lenders tend to see less risk if you have more stake in your property. If you put down more than 20%, you’ll also avoid paying for private mortgage insurance (PMI). 
• Loan term: Shorter loan terms (such as a 15- or 20-year mortgage) generally come with lower interest rates. 
• Interest rate type: You’ll get a different annual percentage rate (APR) when you’re looking at fixed vs. variable interest rates. Keep in mind: If you opt for a lower APR that’s variable or an interest rate that has an introductory offer for a lower APR, that interest rate is likely to change over the course of the loan. 
• Loan type: Your interest rate will also vary based on what type of loan you get (conventional, USDA, VA, FHA, or jumbo). 

In addition to national first-time homebuyer programs, Idaho has first-time homebuyer programs that offer competitive rates, down payment assistance, and more: 

• Homeownership Opportunity Program (HOP): Boise, the largest city in the state, offers qualified buyers a mortgage program for homes bought within city limits. To be eligible, households must have an income between 50% and 80% of the area’s median income. 
• Idaho Housing HFA loans: These types of mortgages are available only through state housing authorities and administered by approved lenders. They include specific loans such as Freddie Mac HFA Advantage, Fannie Mae HFA Preferred, conventional, FHA/USDA, VA, and FHA 203K Streamline. To be eligible, household incomes must be $150,000 or less. 
• Idaho Housing down payment assistance: Idaho offers down payment assistance through the Idaho Housing and Finance Association. The program offers forgivable loans up to 3% of the purchase price and second mortgages up to 7% of the sales price. Borrowers must contribute 0.5% of their own funds. 
• Idaho mortgage credit certificate: This is a tax credit that reduces the amount of federal taxes you owe. The amount ranges between 10% and 50% of the annual interest paid, up to $2,000. You must meet the program’s requirements to qualify.
• Idaho Heroes: The Idaho Heroes program offers up to 7% in down payment and closing cost assistance for teachers, nurses, and first responders. It can be used by first-time homebuyers and repeat homebuyers alike, as long as they meet the eligibility criteria. You must earn no more than $150,000, meet credit score and debt-to-income requirements, complete a homebuyer education course, and meet other requirements set forth by the lender. 

Getting the best mortgage rate in Idaho depends more on your personal qualifications than any other factor. Here’s what you can do to get the best mortgage rate in Idaho: 

• Improve your credit score: Take a look at your credit score and make moves to improve it. Decrease your credit utilization by paying off debt, taking care of any accounts that are in collections, and setting up autopay to make sure your payment history is pristine. A better credit score will get you a better interest rate. 
• Put down a higher amount: When you make a higher down payment, you can typically expect to see a lower interest rate from the lender. The lender takes on less risk when you decrease the LTV ratio on your mortgage. 
• Consider a different loan type. It’s possible to decrease your APR by using a different loan type (conventional, FHA, VA, USDA, jumbo). Your lender will be able to compare options to see which one has the best APR for your situation. Your APR will typically reflect your mortgage interest rate plus other fees. 
• Opt for a shorter loan term: A shorter loan term (such as a 15- or 20-year loan) usually comes with a better interest rate. 
• Shop around: You may see different lenders offer different rates for the same loan type. You might be able to score a better interest rate simply by shopping around.

The most common mortgage types in Idaho are conventional, FHA, USDA, VA, and jumbo. The details of each are outlined below, including loan amounts, down payment and credit requirements, and who the loan is best for.

Conventional

• Loan amounts: $766,550 for most counties, and $1,149,825 for high-cost areas.
• Down payment: At least 3%.
• Credit requirement: 620
• Best for: Borrowers with good credit scores and at least a 3% down payment.

FHA

• Loan amounts: $498,257 for most counties, and $1,149,825 for high-cost areas.
• Down payment: At least 3.5%.
• Credit requirement: 580 if you put 3.5% down; score can be as low as 500 if you put 10% down.
• Best for: Borrowers with low credit scores.

USDA

• Loan amounts: Varies by county; ranges from $398,600 to $919,800.
• Down payment: 0%
• Credit requirement: Typically 640.
• Best for: Those who buy in qualifying rural areas.

VA

• Loan amounts: $766,550 for most counties, and $1,149,825 for high-cost areas.
• Down payment: 0%
• Credit requirement: None.
• Best for: Veterans and service members.

Jumbo

• Loan amounts: Varies by lender.
• Down payment: 10%
• Credit requirement: 680 or higher.
• Best for: Borrowers who need higher loan amounts.