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Compare mortgage rates in New Hampshire.
Key Points
• Mortgage rates in New Hampshire tend to stay very close to the national average.
• Mortgage rates are influenced by inflation, unemployment rates, and the Federal Reserve’s monetary policy.
• Personal factors such as income, credit score, and type of mortgage chosen also influence the rate offered.
• Higher interest rates make homes less affordable, while lower rates make them more affordable.
• FHA loans, VA loans, USDA loans, and jumbo loans are available in New Hampshire.
Introduction to Mortgage Rates
Mortgage rates play a pivotal role in determining home affordability and shaping a homebuyer’s financial future. Understanding the factors that influence mortgage rates in New Hampshire is essential for making informed choices when purchasing a property there, especially given that the cost of living in New Hampshire is already relatively high for the U.S. This article provides a comprehensive overview of mortgage rates in New Hampshire, including historical trends, economic and consumer factors that influence rates, types of mortgages available, and tips for securing a competitive mortgage rate. We’ll start by examining where mortgage rates come from in the first place.
Where Do Mortgage Rates Come From?
The Federal Reserve, often referred to as the Fed, plays a crucial role in determining mortgage rates. The Fed sets short-term interest rates, which serve as a benchmark for other interest rates, including those for home loans. Although mortgage rates are not directly tied to Fed rates, they tend to follow similar economic trends.
When the Fed raises short-term interest rates, banks may increase mortgage rates. But personal factors also influence what rate a borrower might be offered. These include credit score, income and assets, and what type of loan you choose.
How Interest Rates Affect Home Affordability
Mortgage rates have a significant impact on home affordability. The average New Hampshire home value is around $480,000. Someone who buys a home for that amount and makes a down payment of 20% is left with a $384,000 mortgage. If you got a 30-year loan at 5.50%, your monthly payments would be $2,180. The same loan at 6.50% interest would result in a monthly payment of $2,427. An additional $247 per month may not be painful for some buyers, but for others it might make the home unaffordable. And those who could afford the larger payment would pay a whopping $88,860 in additional interest over the life of the loan.
Recommended: Average Monthly Expenses for One Person
Should Homebuyers Wait for Interest Rates to Drop?
Many homebuyers face the dilemma of whether to purchase a home immediately or wait for interest rates to decrease. Bad news: There is simply no guarantee of the timing or extent of such a decline.
Knowing that they can do a mortgage refinance if rates come down significantly in the future might give a potential homebuyer the comfort to move forward in the marketplace. It’s also important to realize that delaying a purchase delays the building of equity in a home, and potentially missing out on a purchase before home prices increase.
New Hampshire Mortgage Rate Trends
Especially if you are buying your first home, you may want to familiarize yourself with the history of average mortgage rates in New Hampshire. As you can see from the table below, the New Hampshire prices tend to be very close to the national average.
| Year | Utah Rate | U.S. Rate |
|---|---|---|
| 2000 | 8.17 | 8.14 |
| 2001 | 7.07 | 7.03 |
| 2002 | 6.60 | 6.62 |
| 2003 | 5.74 | 5.83 |
| 2004 | 5.55 | 5.95 |
| 2005 | 5.75 | 6.00 |
| 2006 | 6.39 | 6.60 |
| 2007 | 6.44 | 6.44 |
| 2008 | 6.05 | 6.09 |
| 2009 | 4.87 | 5.06 |
| 2010 | 4.65 | 4.84 |
| 2011 | 3.96 | 4.66 |
| 2012 | 3.70 | 3.74 |
| 2013 | 3.79 | 3.92 |
| 2014 | 4.01 | 4.24 |
| 2015 | 3.83 | 3.91 |
| 2016 | 3.72 | 3.72 |
| 2017 | 3.97 | 4.03 |
| 2018 | 4.59 | 4.57 |
Historical U.S. Mortgage Rates
Looking at how the average U.S. mortgage rate has risen and fallen in the last few decades can further put current rates in perspective. If today’s rates feel high, at least they aren’t in the double digits seen in the 1980s. However, home prices today are high as well. (In 1983, a typical new home cost three times an American’s median income, as reported by the U.S. Census Bureau ; today, it’s five times the median income.)
Factors Affecting Mortgage Rates in New Hampshire
Numerous factors influence mortgage rates in New Hampshire and across the nation. Some of these factors are economic, while others, such as the type of mortgage loan you choose, are entirely within your control.
Economic Factors
• The Fed’s policy: The Federal Reserve’s federal funds rate, which is the interest rate that banks charge each other for overnight loans, serves as a benchmark for other interest rates, including mortgage rates. As noted above, when the Fed raises the federal funds rate, mortgage rates typically follow.
• Cost of goods and services: Inflation, which refers to a sustained increase in the general price level of goods and services, can impact mortgage rates. When inflation rises, the purchasing power of money decreases, making it more expensive for lenders to lend money. Lenders may increase interest rates to compensate.
• Employment levels: The Fed watches the unemployment rate as a guide for its federal funds rate. If unemployment rises, the Fed might lower its rates to try to stimulate the economy and job creation.
Consumer Factors
• Credit score: A higher credit score indicates a lower risk of default, making borrowers more attractive to lenders. As a result, individuals with higher credit scores typically qualify for lower mortgage interest rates.
• Down payment: How much of the home’s price a homebuyer pays up front also affects what mortgage rate they are offered. A larger down payment means the loan is less risky for the lender. As a result, borrowers who make a larger down payment often qualify for lower mortgage interest rates.
• Income and assets: A steady income and substantial assets can also positively influence mortgage rates. Lenders consider a stable income as an indicator of the borrower’s ability to make regular mortgage payments.
• Type of mortgage loan: The type of mortgage loan selected can also impact mortgage rates. Adjustable-rate mortgages (ARMs) typically offer lower initial rates compared to fixed-rate mortgages. Government-backed loans, such as VA mortgages and FHA loans, may have lower rates due to government guarantees.
Types of Mortgages Available in New Hampshire
Homebuyers in New Hampshire have access to a variety of mortgage types, each with its own unique characteristics and benefits.
Fixed-Rate Mortgage
Fixed-rate mortgages provide stability and predictability by maintaining the same interest rate for the entire loan term so that the monthly principal and interest payments remain constant.
Fixed-rate mortgages are commonly available in terms of 10, 15, 20, or 30 years. The choice of loan term depends on the borrower’s financial situation and preferences. Shorter loan terms typically come with higher monthly payments. The 30-year term is the most popular one among homebuyers.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) have an initial period of lower interest rates, followed by periodic adjustments based on a predetermined index. ARMs can be beneficial for borrowers who plan to sell or refinance their home before the fixed-rate period ends and for those who anticipate that their income will grow significantly in the future.
FHA Loans
FHA loans, backed by the Federal Housing Administration, are designed to make homeownership more accessible to borrowers with limited financial resources. FHA loans typically have more lenient eligibility requirements compared to conventional loans, allowing borrowers with lower credit scores and smaller down payments to qualify for a mortgage.
VA Loans
VA loans are exclusively available to eligible veterans , active-duty military members, members of the Reserve and National Guard, and surviving spouses. These loans are backed by the U.S. Department of Veterans Affairs (VA) and offer competitive interest rates and flexible terms.
One of the most significant advantages of VA loans is that they do not require a down payment, (coming up with down payment money is often the biggest barrier to home ownership for first-time homebuyers).
USDA Loans
USDA loans, provided by the U.S. Department of Agriculture (USDA), are specifically designed for borrowers whose income falls below a preset level and who are seeking to purchase a home in a rural area. These loans offer competitive interest rates and do not require a down payment, making homeownership more attainable for eligible individuals.
Jumbo Loans
Conventional mortgage loans have a maximum borrowing limit, known as the conforming loan limit, which is set by the Federal Housing Finance Agency (FHFA). For 2025, the conforming loan limit for a single-family home in most of New Hampshire is $806,500. In Rockingham and Strafford Counties, the limit is $914,250.
A jumbo loan is one that exceeds the conforming loan limit. These loans are used to finance higher-priced properties and are offered by many lenders, including banks, credit unions, and mortgage companies. They pose a greater risk for lenders and so often have more stringent application requirements.
Popular Places to Get a Mortgage in New Hampshire
When searching for a mortgage in New Hampshire, one key factor to consider is the cost of living in the desired location. When you compare an area’s cost of living to the cost of living in the U.S. you can see how it might be more or less expensive than average. That can certainly impact housing affordability, which in turn affects your mortgage payment.
Least Expensive Locations
The following areas in New Hampshire have a lower cost of living and may offer more affordable housing options:
• Berlin has the lowest cost of living of any city in New Hampshire.
• Claremont has a cost of living that is very close to that of Berlin.
• Somersworth has a cost of living that is 4 points lower than the New Hampshire state average.
• Rochester falls on the moderate side for New Hampshire, as well.
Find details about these and other less costly places to call home in SoFi’s list of best affordable places in the U.S.
Most Expensive Locations
Towns within the counties with a higher conforming loan level (Rockingham and Strafford, mentioned above) will tend to have higher housing prices, and many also have a higher cost of living. Case in point: Exeter and Salem. Salem has the state’s highest cost of living and its average home value is $581,678, according to Zillow. The historic seaport of Portsmouth has the second-highest cost of living in the state and an average home value north of $700,000.
Tips for Securing a Competitive Mortgage Rate in New Hampshire
Do your homework (a little math and a lot of reading and writing) and you can significantly reduce the overall cost of borrowing for your home purchase. Here’s how:
Compare Interest Rates and Fees
To secure a competitive mortgage rate, it is essential to compare interest rates from multiple lenders but to also factor in any upfront costs or closing fees associated with a loan. These fees can vary among lenders and can add to the overall cost of borrowing.
Get Preapproved
Obtaining preapproval for a mortgage strengthens a borrower’s position when making an offer on a property. Going through the mortgage preapproval process, which involves answering a number of questions and providing financial information, demonstrates to sellers that the borrower is a serious and qualified buyer, increasing the chances of a successful purchase.
Recommended: Mortgage Prequalification vs Preapproval
New Hampshire Mortgage Resources
New Hampshire provides various resources and programs to support homebuyers, especially first-time buyers and those facing financial challenges.
First-Time Homebuyer Programs
New Hampshire offers programs specifically designed to assist those who qualify as a first-time homebuyer:
• New Hampshire Housing Finance Authority (NHHFA) offers low- or no-down-payment 30-year mortgages. Most of its programs serve homebuyers with incomes up to $167,800. The mortgage can be paired with down payment assistance (see below).
• The Homebuyer Tax Credit is a federal Mortgage Credit Certificate (MCC) program designed to provide New Hampshire homeowners with a tax benefit. For as long as you live in the home, an MCC program allows you to claim a tax credit for a portion of the mortgage interest paid per year up to $2,000, for the life of the original mortgage.
Down Payment Assistance
New Hampshire also offers a down payment assistance programs to help borrowers overcome the challenge of saving for a down payment: Buyers with incomes under $167,800 can receive down payment assistance up to $15,000. The assistance can be used toward down payment and closing costs. This loan is secured by a second mortgage, with zero interest and APR, no periodic payments, and a 30-year term. You repay the assistance in 30 years or earlier if you sell, refinance, file for bankruptcy, or no longer occupy the property as your primary residence.
Tools & Calculators
New Hampshire Housing provides a mortgage calculator to help borrowers to estimate their home budget and understand their potential monthly mortgage payments based on different loan amounts, interest rates, and loan terms. Or use the calculators below:
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Refinancing Options in New Hampshire: Exploring Your Possibilities
Homeowners in New Hampshire may also explore refinancing options with any lender that makes mortgage loans if they want to take advantage of lower interest rates or adjust their loan terms. FHA-insured homeowners can utilize the FHA Streamline Refinance program, which allows them to refinance into current mortgage rates with minimal documentation and without the need for a new appraisal.
VA loan holders can consider the Interest-Rate Reduction Refinance Loan (IRRRL) to reduce their monthly payments. This program allows eligible veterans and active-duty military members to refinance their VA loans into a lower interest rate without the need for a new appraisal.
Closing Costs and Fees in New Hampshire: What to Expect
When purchasing a home in New Hampshire, buyers can expect to incur closing costs, which typically range from 3% to 6% of the purchase price. These costs may include loan origination fees, appraisal fees, title insurance, and other administrative charges. Higher-priced properties and those located in certain areas may incur higher closing costs.
The Takeaway
The White Mountain State of New Hampshire offers a diverse range of mortgage options for homebuyers, and some attractive homeowner assistance programs, including a mortgage credit certificate. By keeping up to date on current mortgage rates, exploring assistance programs, and tending your personal financial profile, you can make smart moves that will set you up for successful homeownership in New Hampshire.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
Will mortgage rates drop in New Hampshire?
Mortgage rate movement is influenced by various economic factors so it’s hard to predict exactly when they might drop. Your best bet is to focus on the personal factors that can influence what rate you’re offered, such as your credit score.
Will mortgage rates ever go back to normal?
What is “normal” for mortgage rates changes from year to year and decade to decade — and is subjective. So it’s hard to say if rates will return to normal any time soon.
Will New Hampshire home prices ever drop?
Real estate market trends, including home price fluctuations, are influenced by a combination of economic, demographic, and local factors. Your best bet is to pose the question about the specific area in New Hampshire where you would like to buy a home, and to ask a local-market expert, such as a real estate agent.
Is it a good time to buy a house in New Hampshire?
Determining the right time to purchase a home depends on individual circumstances, financial readiness, and market conditions. To figure out if it might be a good time to buy, you can talk to local real estate professionals, scout out local home prices using an online site, and then run the numbers on your income and debts in a home affordability calculator to see if you’re set up for success in New Hampshire.
How do you lock in a mortgage rate?
To lock in a mortgage rate, you can work with a lender to secure a specific interest rate for a certain period, typically ranging from 30 to 90 days. This involves paying a fee to the lender, known as a rate lock fee, which ensures that the agreed-upon interest rate will be honored during the lock-in period.
How do mortgage interest rates work?
Mortgage interest rates represent the cost of borrowing money from a lender to finance a home purchase. They are influenced by various factors, including the Federal Reserve’s monetary policy, inflation, unemployment rates, and borrower-specific factors such as credit score, down payment amount, and loan type. Lenders use these factors to assess the risk associated with lending money and determine the interest rate they charge.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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More home loan resources.
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First-Time Homebuyer Guide
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First-Time Homebuyer Programs and Loans
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Mortgage Preapproval Process