Mortgage and Refinance Rates in Kansas
Use our comparison table to compare refinance and mortgage rates in Kansas
Today's Rates In Kansas
If you want to find the best Kansas mortgage rates but you aren't sure where to start, you've come to the right place. Mortgageloan.com has a wealth of mortgage information, including tips and articles, advertised lender rates, mortgage calculators, and a glossary of mortgage and financial terms. You can browse rates, read up on mortgage programs, learn about taxes, and even get free, personalized rate quotes from Kansas mortgage lenders with no obligation to you.
Regardless of whether you're looking for the best rates from Kansas City mortgage lenders or looking for a home loan out on the plains west of Salina, develop your mortgage knowledge base now and you'll be better equipped to clarify your own financial objectives and make smart mortgage decisions.
Today's Mortgage Lenders
Shopping for a mortgage has changed a lot in recent years. It wasn't that long ago that if you wanted to buy a home or refinance a mortgage in Kansas City, you pretty much had to deal with mortgage companies in Kansas City itself. Now, you can get Kansas home loans from lenders who don't even have an office in Kansas, but are licensed to do business there. Shopping online gives you access to a wider range of mortgage choices, and more lenders who are competing for your business.
Online lending can be convenient too. You can ask questions of your loan officer, file your application and submit additional documents if needed all from your home computer, rather than having to head down to your mortgage lender's office in Kansas City, Wichita, Topeka or wherever each time you need information or have update your application. Transactions that must be done in person, such as closing the loan, can be handled at the office of a title agent or an attorney.
It's still a good idea to talk to a lender in person if you're not sure about your options or are considering some of the less common transactions, like a balloon mortgage or an interest only loan. But if you know what you're looking for, you may find your best rates with an online lenders. The information and tools we provide here at MortgageLoan.com can help put you in a position to do that.
The most common type of home loans in Kansas are conforming mortgages, also known as conventional mortgages. These are backed by Fannie Mae and Freddie Mac, two government-created enterprises established to provide liquidity for the residential mortgage market. This helps keeps mortgage rates down and allows favorable terms like 30-year fixed rates, which are pretty much unique to the U.S. mortgage market.
Conventional mortgages offer low rates and attractive terms, and down payments as low as 3 percent for those with excellent credit (though larger down payments mean lower rates). Putting at least 20 percent down on a conventional Kansas home loan allows you to avoid additional payments for private mortgage insurance (PMI), though that can be canceled once you reach 20 percent home equity.
Kansas FHA Loans
The classic first-time homebuyer mortgage, FHA loans in Kansas allow down payments as low as 3.5 percent to most borrowers and has less stringent credit requirements than conventional mortgages do. Borrowers with lower credit scores will often find they can get better mortgage rates with an FHA loan as well, in addition to finding it easier to qualify for the loan as well.
Kansas mortgage rates
Mortgage rates in Kansas and elsewhere are determined by a number of factors. The type of loan is one factor – first-lien mortgages – those used to buy or refinance a home – have lower rates than second liens, such as home equity loans. Fifteen-year mortgage rates are lower than 30-year rates. Conventional mortgages backed by Fannie Mae or Freddie Mac have a different rate structure than FHA loans do.
Mortgage rates also vary from lender to lender and from borrower to borrower – even for similar loans. Your credit score and down payment can affect the rate you pay, as can the closing costs and fees charged by your lender – some may charge higher fees to offset a lower rate. Discount points are a major factor – these are a special fee you pay to buy a lower rate. They can often save you money over the long term, but can also be used to disguise the true cost of an advertised rate. Always check the number of points included with a rate – you can use a mortgage calculator to run the numbers and figure what the loan will cost you over the long term.
Most residential mortgage loans these days are fixed-rate mortgage (FRM). FRMs are the first choice for borrowers who like the security of having a set interest rate and payment for the life of the debt. These usually amortize, or are designed to be paid off, over 30 years, but shorter terms are also available.
A longer payoff cycle will create a lower payment, but a possibly higher rate will result in higher overall interest costs. Shorter loan terms come with a better rate, but the payments will be somewhat higher.
Kansas borrowers who are refinancing often opt for 20- or 15-year fixed-rate mortgages to get a lower rate while shaving a few years off their loan or stay on the same approximate schedule to pay it off.
Adjustable-rate Mortgages (ARMs)
Adjustable-rate mortgages are less popular than they once were, but are still around. Unlike a fixed rate, ARMs vary over time as current mortgage rates in Kansas and elsewhere change. They start out with a lower rate but are less predictable than fixed rates, as they can move up or down. Home equity lines of credit (HELOCs) are always adjustable-rate, while adjustable rates are usually an option on other types of Kansas home loans
ARMs for home purchases usually start out with a fixed rate for several years before they start to adjust, then reset at regular intervals from then on. These loans are usually described as 5/1, 7/1, 10/2 ARMs, etc., with the first number being the number of years the rate is fixed starting out and the second how frequently it adjusts after that.
How to Compare
The first step to saving money on your mortgage or refinancing is ensuring that you have different mortgage offers to compare. You'll have to contact several Kansas lenders and request rate quotes, or you can request quotes online from multiple lenders by using a tool like our rate request form at the top of the page.
You might choose to request quotes for several different loan types to make comparisons – FHA vs conforming, 15-year vs. 30, fixed-rate vs. ARM, etc.
To keep things simple, start comparing similar types of loans first. As you wean them down, use a mortgage calculator to get a clearer picture of the costs or savings of each loan. During this process, remember that securing a low monthly payment isn't the only way to save on your mortgage. You can also save on total interests costs. Often, when the total interest costs of a mortgage are lower, you're paying the debt back faster. That means that you're also building home equity faster. Find the right balance of monthly payments and interest savings and see what loan makes the most sense for you.