Rhode Island Mortgage and Refinance Rates

Current mortgage rates in Rhode Island

As of Saturday, December 21, 2024, current mortgage interest rates in Rhode Island are 7.00% for a 30-year fixed mortgage and 6.22% for a 15-year fixed mortgage.

Despite interest rates that are much higher than the lows of 2021, the housing market in Rhode Island has stayed active. In August, the number of sales jumped by more than 10 percent versus the year before, and the median sales price hit $490,563 — a 9 percent year-over-year jump, according to the Rhode Island Association of Realtors.

Refinance rates in Rhode Island

Rhode Island homeowners who locked in a mortgage rate in the fall or winter of 2023 might want to compare refinance rates now to see how much a refinance could save them on their monthly payments. Be sure you'll stay in your home long enough to recoup the refinance costs, however, which is something you can calculate with Bankrate's refinance break-even calculator. 

Additionally, Rhode Island homeowners who have been in their current homes for a long time may have a sizable chunk of equity due to the surge in home valuations. If you’re one of those homeowners, a cash-out refinance can help you tackle other financial goals, like a home renovation project or consolidating other debt.

Rhode Island mortgage rate trends

Mortgage rates in Rhode Island have been trending downward in recent months, as lenders prepared for the Federal Reserve to cut rates (which it did in September). Most experts predict additional rate cuts in the future, which means mortgage rates could continue to drop through year's end and into 2025. 

Prices, on the other hand, do not seem set to decline anytime soon. Data from the Rhode Island Association of Realtors show that the state has 2.3 months of housing supply as of September, which gives sellers bargaining power.

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.

Mortgage statistics for Rhode Island

Rhode Island is a tiny 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, the median home price was $410,000 in August, while homes in Newport had a median price tag of $710,000, according to ATTOM. As you begin your house-hunting journey, here are some stats to help inform your search:

• Median sales price for a single-family home, August 2024: $490,563
• Median days on market, August 2024: 29
• Most affordable cities, August 2024: Providence, Warwick, Cranston, Pawtucket, Coventry
• Homeownership rate, Q2 2024: 59%

Sources: Rhode Island Association of Realtors, Redfin, ATTOM, U.S. Census Bureau

Mortgage options in Rhode Island

At the midway marker of 2024, buyers had purchased more than 6,400 homes in Rhode Island, according to ATTOM. For those who didn’t pay with all cash, here’s a look at the loan options they likely considered:

• 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.

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.

Read more from Jeff Ostrowski

Edited by: Laurie Richards, 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 Richards