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Compare Current Mortgage Rates in North Dakota

North Dakota mortgage lenders base their mortgage rates on many different factors. Knowing what they are can help you score the lowest rate.

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    Of all the factors that impact your monthly mortgage payment, your loan size is most important and the interest rate is a close second.

    The average North Dakota homebuyer can expect to borrow about $237,000 to buy their home. To see how much rates matter, consider this:

    The payment for a $237,000 loan at 6.75% interest is $1,537. With a 7% interest rate, the payment goes up by $40 per month to $1,577. That $40 might not seem like much of a difference, but it adds up to $480 per year and $14,400 over a 30-year loan term.


    How are mortgage rates determined in North Dakota?

    Each North Dakota mortgage lender sets its own rates based on economic and business-related factors, so the rates you see published online may differ from one lender to the next. In addition, the rate a particular lender offers you might be different from the rate it posts online. That’s because lenders customize rates according to your financial qualifications.

    Economic factors

    Lenders base their mortgage rates in part on federal interest rates like the federal funds rate and prime rate.

    The federal funds rate is one tool the Federal Reserve uses to rev up or slow down the economy as needed to promote maximum employment, stable prices, and moderate long-term interest rates. 

    When inflation is high, the Fed can increase the federal funds rate to discourage people from spending which helps drive prices down. When the country is in a recession, the Fed can lower the federal funds rate to encourage them to borrow and spend to get the economy growing again. 

    The prime rate also influences the rates lenders set. The prime rate is a baseline lenders use to set rates on some types of loans, including adjustable-rate mortgages

    Each lender sets its own, but prime rates from the nation’s largest banks are averaged, and that average is published each day as the prime rate. It’s usually about 3% higher than the federal funds rate.

    These federal rates impact mortgage rates through their effects on supply and demand. Other factors, such as employment and home prices, also impact supply and demand. High demand and low supply tend to lead to higher interest rates. Low demand and high supply can drive rates down.

     Business-related factors

    Whereas retailers use sale prices to encourage shoppers to buy certain products, mortgage lenders use low rates to entice borrowers. 

    It’s important to understand that promotional rates can have hidden costs. For example, the lender might have increased loan fees to make up the difference. That’s why it’s important to compare all loan costs, not just rates when you’re shopping for a mortgage loan.

    Lenders might also use rates to discourage borrowers. As the Consumer Finance Protection Bureau points out, a lender might increase rates to “ration” excessive demand for a particular loan.

    Borrower qualifications

    If you read the fine print on the rates page of a mortgage lender’s website, you’ll likely see that it explains the assumptions the lender made in calculating the rate — for example, a stellar credit score, 20% down payment, and a loan of a certain size. The fine print might also assume the borrower paid mortgage points, each of which represents 1% of the loan amount in prepaid interest. 

    Your mortgage rate could differ from the lender’s published rates due to factors such as: 

    • Credit score
    • Down payment
    • Loan type
    • Loan amount
    • Loan term
    • Home type
    • Home location

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    Does North Dakota have a first-time homebuyer program?

    North Dakota has a first-time homebuyer program called FirstHome. You might qualify for this mortgage program if you’ve not owned a home as your primary residence within the past three years, and your income and purchase price fall within program limits.

    The income limit is $100,400 for a family of less than three ($115,460 for a family of three or more) in most of North Dakota’s 53 counties. Burleigh, Cass, McKenzie, Mercer, Morton, Oliver, Williams, and Stark counties have their own limits.

    The purchase price limit is $481,176 for a single-family home, whether you purchase an existing home or a new construction.

    First-time homebuyers who participate in FirstHome can receive a 3% credit toward down payment and closing cost assistance through two programs: DCA and Start. 

    All programs require that homebuyers invest at least $500 of their own funds into their home purchase.


    National mortgage rates by loan term

    Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.

    ProductInterest rateAPR

    Last updated on Jun 17, 2024. These rates are based on the assumptions shown here. Actual rates may vary.

    How do I get the best mortgage rate in North Dakota?

    Finding the best rate in North Dakota becomes easier once you know what lenders look for and take steps to strengthen your application:

    • Increase your credit score: A conventional loan typically only requires a credit score of 620, but you’ll need a higher score for the best rate. According to MyFICO, raising your score from the 620 to 639 range to 640 to 659 will save you over $32,000 on a 30-year, $237,000 mortgage loan in North Dakota. 
    • Make a 20% down payment: You don’t need a large down payment to buy, and you can even buy with zero down with some loan types. But most borrowers will get a better rate and avoid having to pay mortgage insurance if they put down 20% or more. 
    • Get a 15- or 20-year mortgage: Short-term loans are less risky to lenders, so you’ll get a better rate with a 15- or 20-year loan than with a 30-year loan. Although a shorter-term mortgage will have higher payments, it could save you hundreds of thousands of dollars in interest.
    • Buy down your interest rate: A discount point is 1% of your loan amount that you prepay to get a lower interest rate. Keep in mind you’ll have to own the home for a number of years to break even. A mortgage calculator can help you figure out whether this is a realistic strategy for you.
    • Don’t lock in your rate too quickly: Locking in your rate can save you money if rates are climbing. If they’re dropping, locking in could leave you paying more than you need. 
    • Compare rates from multiple lenders: After taking all the steps you can to qualify for the lowest rate, request quotes from a few different lenders to find out which offers the lowest rate on the loan type and term you prefer.

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    What type of mortgage can I get in North Dakota?

    You can get any of the major types of mortgage loans in North Dakota. Not every lender offers every type of loan, however — another good reason to shop around. 


    • Description: Most common loan type. Meets standards for purchase by Fannie Mae and Freddie Mac. Available with fixed or adjustable rate.
    • Minimum credit score: 620
    • Minimum down payment: 3%
    • Terms available: 10 to 30 years.


    • Description: Government-insured loan for creditworthy borrowers who don’t qualify for a conventional loan. Available with fixed or adjustable rates.
    • Minimum credit score: 500
    • Minimum down payment: 3.5% for buyers with a credit score of 580 or higher; and 10% for buyers with a credit score of 500-579.
    • Terms available: 15 to 30 years.


    • Description: Veterans Affairs-guaranteed loan for veterans, active-duty military, and their eligible family members. Available with fixed or adjustable rates.
    • Minimum credit score: Varies by lender but typically 620.
    • Minimum down payment: A down payment is not required.
    • Terms available: 15 or 30 years.


    • Description: Loan backed by the United States Department of Agriculture for low-income borrowers purchasing in rural-designated areas. Fixed rates only.
    • Minimum credit score: No USDA-mandated minimum, but it may be easier to qualify if your score is above 640.
    • Minimum down payment: A down payment is not required.
    • Terms available: 30 years.


    • Description: Large loan that exceeds the conforming limit for conventional loans. Available with fixed or adjustable rates.
    • Minimum credit score: Varies by lender, but typically at least 700.
    • Minimum down payment: Varies by lender, but typically 20% or more.
    • Terms available: Up to 30 years.


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