North Carolina Mortgage and Refinance Rates

Current mortgage rates in North Carolina

As of Wednesday, July 10, 2024, current interest rates in North Carolina are 7.00% for a 30-year fixed mortgage and 6.56% for a 15-year fixed mortgage.

The median home sale price in the state was up 7.1 percent year-over-year as of March 2024, according to NC Realtors, the state’s Realtor group. Popular cities like Raleigh and Charlotte have also seen more active sales markets. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge.

Refinance rates in North Carolina

Mortgage refinance rates have more than doubled since the pandemic, making knowing when to refinance a tough call for many North Carolinians. However, many North Carolina homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

North Carolina mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in North Carolina.

National mortgage rates by loan type

Mortgage statistics for North Carolina

North Carolina’s housing markets and home values vary widely, from the metro areas of Charlotte and Raleigh-Durham to the coastal vibe of the Outer Banks to the mountainous region around Asheville. Here are some statistics about mortgages and the housing market in The Tar Heel State:

• Median home sales price, March 2024: $312,881
• Housing inventory, March 2024: 22.1% higher YoY
• Homeownership rate, Q4 2023: 65.8% 
• Average primary mortgage amount (2023): $307,510

Sources: NC Realtors, U.S. Census Bureau, HMDA

Mortgage options in North Carolina

Known for its warm weather and diverse economy, North Carolina is attracting new residents at a dizzying pace. If you’re looking to get a mortgage in North Carolina, there are several options:

• North Carolina conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• North Carolina FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580. 
• North Carolina VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent at first.

First-time homebuyer programs in North Carolina

The North Carolina Housing Finance Agency (NCHFA) helps connect first-time homebuyers to low-interest mortgages and no-interest down payment assistance loans, including:

• NC Home Advantage Mortgage and down payment assistance: A fixed-rate mortgage for borrowers with a credit score of at least 640 and an income of no more than $134,000; can be used for single-family homes or duplexes, or condos or townhomes; can be coupled with forgivable down payment assistance up to $15,000
• NC Home Advantage Tax Credit: A mortgage credit certificate (MCC) that allows borrowers to claim a federal tax credit for 30 percent of the mortgage interest every year, up to $2,000.

How to find the best mortgage rate in North Carolina

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies to find the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional North Carolina mortgage resources

• North Carolina loan limits by county: Learn the conforming loan limit for your city or town.
• North Carolina mortgage lenders: Explore mortgage lenders in your state.
• North Carolina housing market overview: Know what to expect as a homebuyer or seller in North Carolina.
• How to buy a house in North Carolina: Understand the process of buying a home in your state.
• Homeowners insurance in North Carolina: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Dupnock, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Dupnock