Current Mortgage Rates In New York

Current Mortgage Rates In New York
Getty

New York—if you can make it here, you’ll make it anywhere. But if you need a mortgage to make it to New York, you’ll first need to calculate how much a home loan will cost you, including the interest rate.

Here are the latest home loan rate trends to help you buy a home in the state of New York, plus tax information and where to find homebuyer financial assistance.

What Are New York’s Mortgage Rates?

As of Thursday, August 18, 2022, mortgage rates in New York were 5.38% for a 30-year fixed-rate mortgage, 4.73% for a 15-year fixed, and 2.75% for a 5/1 adjustable-rate mortgage (ARM), according to Bankrate.

Types of Mortgages Offered in New York

You can expect to find all kinds of mortgages in New York, including conventional loans, which are backed by Fannie Mae and Freddie Mac, and mortgages backed by the Federal Housing Administration (FHA) and Veterans Affairs (VA) Office, which may be more accessible to borrowers with lower credit scores or need down payment assistance.

Because New York home prices tend to be above the national average, you may also need a jumbo mortgage. A home loan is typically considered jumbo when the amount exceeds the $647,200 cap that Fannie and Freddie considers a conventional loan limit in 2022, but there are areas in New York with higher limits.

How Much Does a House Cost in New York?

The median sale price for a home in New York was $428,825 as of June 2022, according to the New York State Association of Realtors. That compares to a nationwide median of $416,000, according to the National Association of Realtors.

First-time Homebuyer Programs in New York

Even though homes in New York tend to be higher than the national average, there are all kinds of mortgage programs available to help first-time buyers. Here are a few common ones to get you started.

SONYMA

The State of New York Mortgage Agency (SONYMA) offers two main mortgage programs steered at a lower interest rate and minimal down payment requirement. The programs can also be combined with grants and subsidies to further lower your mortgage costs.

HomeFirst Down Payment Assistance Program

This program allows qualified buyers to receive a loan of up to $100,000 toward a down payment or closing costs on a home within New York City. The money is forgivable after the buyer lives in the home for several years—precise terms depend on how much was borrowed.

Belmont Housing Resources

This western-New York based agency aggregates local programs for first-time homebuyers on its website. Most offer grants toward down payments and closing costs, but some principal reduction may be available as well.

Community Development Corporation of Long Island (CDCLI)

CDCLI offers qualified applicants grants for down payments, closing costs and post-closing home repairs. They also have two programs that offer 20-year loans that act as deferred second mortgages.

HomeOwnershipCenter

This agency offers down payment assistance and money for housing rehabilitation to qualified buyers and homeowners in upstate New York.

Albany County Rural Housing Alliance

This midstate housing agency offers forgivable loans to assist with purchasing and repairing a home. Another housing agency in the city of Albany offers a similar program that’s eligible in certain neighborhoods.

Troy Rehabilitation and Improvement Program

The city of Troy offers grants of $15,000 and $20,000 to eligible borrowers for down payment and/or closing cost assistance.

Federal Home Loan Bank of New York Homebuyer Dream Program

The Homebuyer Dream Program provides grants of up to $10,000 to be used towards down payment and closing cost assistance to first-time homebuyers who earn at or below 80% of the area median income (AMI) and purchase a home in New York, New Jersey, Puerto Rico or the U.S. Virgin Islands.

Related: Housing Down Payment Assistance Programs By State

How to Get a Mortgage in New York

To get a mortgage in New York, it helps to be as prepared as possible. Start by checking your credit profile, correcting any mistakes and identifying any weak spots. Polish up your credit wherever possible, and avoid taking out any new loans or making any other big financial moves while you’re getting ready to buy a home.

It’s always a good idea to try to gauge roughly how much house you can afford before you start applying for a mortgage. You can use an affordability calculator to help determine how much you can pay for a home.

Educate yourself on the types of mortgages available and which one might be best for you, and start keeping an eye on mortgage rates, which fluctuate frequently, to get a sense of what current market conditions are like.

Finally, gather up all the documents you’ll need to actually apply: income verification, list of assets and liabilities, and so on. If you plan to work with one of the financial assistance programs noted above, you may have little choice about the lender you use, but if not, make sure you shop around and get multiple quotes—for interest rates and closing costs alike.

Related: Best Mortgage Lenders

What Are the Property Taxes in New York?

In 2020, the median property tax bill for a New York homeowner was $5,590, according to the Tax Foundation. That’s roughly double the national average of $2,584.

Refinancing Rates for a New York Property

As of Thursday, August 18, 2022, mortgage refinance rates in New York started at 3.68% for a 15-year fixed-rate mortgage and 5% for a 30-year fixed, according to Bankrate.

More from Forbes Advisor