North Dakota Mortgage and Refinance Rates

Current mortgage rates in North Dakota

As of Thursday, November 21, 2024, current mortgage interest rates in North Dakota are 6.38% for a 30-year fixed mortgage and 5.81% for a 15-year fixed mortgage. As of August 2023, the median single-family home price in North Dakota was $249,529, according to Zillow's Home Values Index.

Refinance rates in North Dakota

Refinance rates are way up from historic lows, but a cash-out refinance still might make sense for you. Use Bankrate’s mortgage refinance calculator to run the numbers.

How to find the best mortgage rate in North Dakota for you

Rather than going right to your bank for a mortgage, compare loan offers from a few different lenders. This could help you uncover a lower rate, potentially saving you thousands in interest over time. Bankrate can also help you find the best mortgage deal in today’s volatile rate environment. As you shop around, keep these tips in mind:

Step 1: Strengthen your credit score

Long before you start looking for a mortgage lender and applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.

Step 2: Determine your budget

Get a handle on how much house you can afford. One rule of thumb many buyers use to figure out their price range is the 28/36 rule. Keep in mind that a mortgage lender could qualify you for a loan over your budget, but that would leave no room for unexpected expenses.

Step 3: Know your mortgage options

There are different types of mortgages, including conventional loans with as little as 3 percent down and government-backed loans. If you’re in the market for a jumbo loan, check North Dakota’s county-by-county loan limits.

Step 4: Compare rates and terms from multiple lenders

Don’t settle on the first lender you talk to. Rate-shop with different lenders — banks, credit unions, online lenders and local independents — to ensure you’re getting the best deal on rates, fees and terms.

Step 5: Get preapproved for a mortgage

Get a mortgage preapproval with three or four different lenders. This’ll help you understand exactly what loan amount you’d qualify for if you were to apply, and prepare you to make offers on homes.

Mortgage options in North Dakota

If you’re looking to get a mortgage in North Dakota, consider these loan options:

• North Dakota conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 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 for private mortgage insurance (PMI), as well.
• North Dakota FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5 percent down payment. As with a conventional loan, if you put down less than 20 percent on an FHA loan, you’ll be on the hook for mortgage insurance.
• North Dakota VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed 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.

First-time homebuyer programs in North Dakota

The North Dakota Housing Finance Agency (NDHFA) offers programs which can help first-time homebuyers, including those living with a disability, veterans and low- to moderate-income residents. Eligible first-time homebuyers also have access to down payment assistance programs through the organization.

FirstHome Program

The FirstHome program through the NDHFA helps first-time homebuyers with a low to moderate income obtain a more affordable mortgage. Depending on the lender you work with, you might not need to make as much of a down payment, either. To be eligible, you must be a North Dakota resident; the property in question must be your primary residence; and you must make a minimum upfront $500 cash payment. You’ll also need to meet income requirements, as well, which vary based on the size of your household and county, and home price purchase limits.

DCA Program

NDHFA’s DCA program offers down payment and closing cost assistance, up to 3 percent, along with an affordable mortgage. You’ll need to have an NDHFA mortgage to qualify. To be eligible for the DCA program, you must use it exclusively (that is, you can’t apply any other forms of assistance), purchase a home that you’ll live in (versus an investment property) and meet qualifying income limits based on county and household size. You’ll also need to complete a homebuyer education course.

Start Program

The Start program also offers closing cost and down payment assistance up to 3 percent for those who have their first mortgage from NDHFA and can meet the income requirements.

North Dakota Roots Program

First-time homebuyers who exceed FirstHome program income limits might be able to obtain an affordable mortgage through the North Dakota Roots Program instead. Through the program, the NDHFA offers affordable mortgage loans regardless of income or first-time buyer status.

North Dakota mortgage resources

• Review North Dakota mortgage lenders
• North Dakota first-time homebuyer assistance programs
• Best homeowners insurance in North Dakota

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: 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.

Read more from Suzanne De Vita