Rhode Island Mortgage and Refinance Rates
Current mortgage rates in Rhode Island
As of Tuesday, March 25, 2025, current mortgage interest rates in Rhode Island are 0.00% for a 30-year fixed mortgage and 0.00% for a 15-year fixed mortgage. If you’re thinking about buying a home in Rhode Island this year, keep an eye on rate trends, but avoid trying to time your purchase. While some economists expect the 30-year mortgage rate to fall to the 6.5 percent range in 2025, rates fluctuate so often that it's impossible to make a firm prediction. Ultimately, your decision to lock your rate should be based on your needs and readiness.
Refinance rates in Rhode Island
More homeowners in Rhode Island have been refinancing to new mortgages in 2025, and if rates continue to fall, that trend could steadily pick up. Refinancing is not just about lowering your payment, though. Rhode Island homeowners have seen the largest increase in equity in the U.S. – an average of $43,000 as of the third quarter of 2024, according to CoreLogic. If you’ve been in your home for a long time, tapping this equity in a cash-out refinance could help you tackle other financial goals, like a home renovation or consolidating debt.
Rhode Island mortgage rate trends
The Rhode Island housing market remains mostly a seller's market due to limited inventory — just 1.5 months of supply as of January 2025, according to the Rhode Island Association of Realtors. That's well short of the six months that typically reflect a balanced market. As of January, the median home sales price in the state is $465,000.
National mortgage rates by loan type
If you’re looking to borrow money to purchase a home in Rhode Island, you have many loan options. Here’s a look at how any rate quotes you receive compare with the national averages.
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 6.58% | 6.64% |
| 15-Year Fixed Rate | 5.77% | 5.87% |
| 5-1 ARM | 6.55% | 7.01% |
| 30-Year Fixed Rate FHA | 6.07% | 6.15% |
| 30-Year Fixed Rate VA | 6.49% | 6.53% |
| 30-Year Fixed Rate Jumbo | 6.80% | 6.86% |
Rates as of Tuesday, March 25, 2025 at 6:30 AM
Mortgage statistics for Rhode Island
Rhode Island is a small state, but there can be a big difference in what it takes to buy a home there depending on where you’re looking. In Woonsocket, for example, the median home sale price was $397,500 as of January 2025, while homes in Newport had a median price tag of $1.4 million, according to the Rhode Island Association of Realtors. As you begin your house-hunting journey, here are some stats to help inform your search:
- Median sales price for a single-family home, Jan. 2025: $465,000
- Average days on market, Jan. 2025: 39
- Median down payment, Dec. 2024: $83,864
- Most affordable county, Dec. 2024: Kent
Sources: ATTOM, Rhode Island Association of Realtors
Mortgage options in Rhode Island
- Rhode Island conventional mortgages: To qualify for a conventional mortgage, you’ll generally need a minimum 620 credit score and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment below 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
- Rhode Island FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to secure a loan insured by the Federal Housing Administration (FHA). A credit score of at least 580 can help you get an FHA loan with a down payment of just 3.5 percent. You can still get an FHA loan with a credit score of 500, but that requires a 10 percent down payment.
- Rhode Island VA loans: If you’re a veteran or active-duty member of the military, you may 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 for the first use.
- Rhode Island jumbo loans: The closer you get to the water, the higher the price tags become in Rhode Island. And if you need to borrow a large sum for a mansion with a view of the ocean, you may need to compare jumbo loan rates from multiple lenders, many of which will ask you for a down payment of at least 10 percent.
First-time homebuyer programs in Rhode Island
Through the agency RIHousing, Rhode Island has first-time homebuyer programs to help consumers who are ready to purchase their first home.
- First-Time Homebuyer Loans: By getting their first mortgage through RIHousing, first-time homebuyers in Rhode Island can combine that first mortgage with down payment assistance to avoid paying any money out of pocket upfront. The maximum purchase price is $838,592, and income limits apply. You’ll need to earn less than $134,320 if you are single or live in a two-person household and less than $154,468 if your household has three or more people.
- 15kDPA: If your credit score is at least 660 and you meet income and purchase price limits, you may be able to qualify for up to $15,000 of down payment assistance. It’s a zero percent deferred loan that you’ll need to repay when the home is no longer your primary residence, you sell the home or refinance the mortgage.
- FirstGenHomeRI: If you’re a first-generation homebuyer with a credit score of at least 660, you may be eligible for up to $25,000 of down payment and closing cost assistance. Better yet, the loan is forgivable after five years of living in the home. The program is a pilot program with limited funds and is only available to first-generation buyers in Central Falls, Pawtucket, Woonsocket and certain parts of Providence and Newport.
- Extra Assistance: RIHousing’s Extra Assistance has a lower credit score requirement — just 620 — and offers eligible buyers up to 6 percent of the purchase price or $20,000 (whichever is lower) to help cover down payment and closing costs. The interest rate for this loan is the same as the rate on the first mortgage.
How to find the best mortgage rate in Rhode Island
-
Step 1: Strengthen your credit score
The higher your credit score, the better rate offers you will receive. Before you start thinking about buying a home, focus on boosting your credit score, if needed.
-
Step 2: Determine your budget
Get a handle on how much house you can afford before starting the home buying process.
-
Step 3: Know your mortgage options
There are a few different types of mortgages. Consider each to make sure you’re picking the option that meets your needs best.
-
Step 4: Compare rates and terms from multiple lenders
Rate-shop with at least three different banks, credit unions and/or mortgage companies to get the best deal. Keep in mind that each lender has a different fee structure, so ask for a full rundown of the costs you’ll be expected to pay upfront. Think about more than costs, too. Read reviews of Rhode Island mortgage lenders to see what other borrowers have to say about their experience.
-
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 Rhode Island mortgage resources
- Rhode Island conforming loan limits: Learn the maximum amount you can borrow for a conforming loan in the state.
- Rhode Island housing market: Get an idea of the state's real estate market before you buy.
- Rhode Island mortgage lenders: Compare programs from lenders who operate in Rhode Island.
- Best homeowners insurance in Rhode Island: Compare coverage options for protecting your new home.
- Mortgage calculator: Estimate your monthly payments based on the rate, term and down payment.
- Rhode Island first-time homebuyer assistance programs: Explore options to help make home buying more manageable for anyone who hasn’t owned a home in the past three years.
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.
Edited by: Suzanne De Vita, Senior Editor, Home Lending
I’ve covered the housing market, mortgages and real estate for the past 12 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.