Best Mortgage Rates in New York

With a diverse mix of traditional banks and newer online mortgage providers, mortgage rates in New York state can vary as much as 0.75 percentage points at different lenders. For a closer look at mortgage rates in New York, we surveyed lender rates for a sample homeowner across 15- and 30-year fixed rate and 5/1 ARM mortgages.

Best New York Mortgage Rates for Purchasing

Based on our findings, most first-time home buyers in New York can expect a minimum rate of 4.00% on mortgages with a purchase price of $240,000 —the reported median home price during 2017. Our research assumed a 20% down payment and a 740 credit score with no points purchased to reduce the interest rate.

Lowest Mortgage Rates Online for New York

Although direct lenders are able to offer lower average mortgage rates than banks in most cases, our quotes for New York saw little difference in rates for 30-year mortgages. On the other hand, online lenders had significantly better 15-year fixed rate and 5/1 ARM loan rates.

30-year fixed15-year fixed5/1 ARM
Flagstar Bank4.00%--
Amalgamated Bank4.00%3.25%4.00%
Sebonic Financial4.12%3.37%3.25%
Trustco Bank4.12%3.63%3.13%
Alpine Mortgage-3.13%-

We found that direct lenders such as Alpine Mortgage and Trustco Bank had the lowest 15-year fixed and 5/1 ARM mortgage rates for our New York homeowners. 30-year mortgage rates were generally on par with traditional banks, discussed below. Because direct lenders are often companies that advertise and service mortgages through online channels rather than a brick-and-mortar location, their real estate savings are sometimes passed to customers in the form of lower rates.

Mortgage Rates at New York's Largest Lenders

We also obtained estimates for mortgage rates on a $240,000 home purchase at the five biggest lenders in New York state. Bank of America offered the best rates on each of the three products we examined, with the bank's biggest lead found on 5/1 ARM mortgages. Wells Fargo shared the lowest rate on 15-year fixed rate mortgages with Bank of America, while other consumer banks stayed fairly close behind on rates for the fixed rate mortgages.

30-year fixed15-year fixed5/1 ARM
Chase Bank4.13%3.38%3.88%
Wells Fargo4.00%3.25%3.50%
Citibank4.12%3.38%3.63%
Bank of America3.88%3.25%2.75%
Quicken4.63%-4.13%

Best Refinancing Rates in New York

Refinancing a mortgage is a popular option in times when interest rates dip below previous levels. Switching to a new mortgage at a lower rate than your first mortgage offers a way to reduce monthly payments or to speed up the repayment process as a whole. In New York, the best refinancing rates were found among the leading direct lenders, who provide online quotes. Our assumptions included a home price of $240,000 with $175,000 remaining on the first mortgage.

Best Online Mortgage Refinance Rates for New York

For the price and remaining balance we provided, New York refinancing rates were lowest at First Internet Bank and NBKC Bank, although NBKC provided slightly better deals on a 15-year fixed loan. As a group, direct lenders had a significant margin of advantage over the larger mortgage lenders that we also surveyed.

30-year fixed15-year fixed5/1 ARM
First Internet Bank3.88%3.25%3.50%
NBKC Bank3.88%3.00%3.50%
HomeDirect Mortgage4.00%3.25%4.13%
Flagstar Bank4.00%--
Sebonic Financial4.24%3.49%3.25%

Mortgage Refinance Rates Among Top New York Lenders

Compared to the rates they provide to home buyers, banks fall behind in their available refinance rates. The 30-year mortgage refinance rate rests well above 4% at each of the lenders in this category, although the rates on ARM loans were similar to rates advertised online by direct nonbank lenders.

30-year fixed15-year fixed5/1 ARM
Chase Bank4.13%3.38%3.75%
Wells Fargo4.25%3.50%3.63%
Citibank4.13%3.50%3.50%
Bank of America4.13%-3.38%
Quicken4.63%-4.13%

New York Mortgage Rates by City

While mortgage rates can vary somewhat across different states, we found little variation among the different cities in New York. Although median listing and sales prices showed great diversity —especially in New York City —the rate available for a mortgage stayed the same regardless of location, with most lenders making few if any adjustments by county or zip code.

CityLender30-Year Fixed15-Year Fixed5/1 ARM
NYC AreaChase Bank4.13%3.38%3.88%
Wells Fargo4.13%3.38%3.50%
Citibank4.13%3.38%3.63%
Bank of America3.88%3.25%2.75%
Online Lenders4.00%3.25%3.25%
BuffaloChase Bank4.13%3.38%3.88%
Wells Fargo4.00%3.25%3.50%
Citibank4.13%3.38%3.63%
Bank of America3.88%3.25%2.75%
Online Lenders4.00%3.25%3.25%
RochesterChase Bank4.13%3.38%3.88%
Wells Fargo4.00%3.25%3.50%
Citibank4.13%3.38%3.63%
Bank of America3.88%3.25%2.75%
Online Lenders4.00%3.25%3.25%
YonkersChase Bank4.13%3.38%3.88%
Wells Fargo4.13%3.38%3.50%
Citibank4.13%3.38%3.63%
Bank of America3.88%3.25%2.75%
Online Lenders4.00%3.25%3.25%

Even compared to the best rates we found with online lenders, Bank of America's rates on both fixed rate and variable ARM loans undercut every competing lender we surveyed. Since each bank tends to keep its rates similar for the whole state, it's likely that Bank of America also provides the best mortgage rates for New Yorkers who live in areas other than the cities we studied. In any event, we recommend including Bank of America on your list for comparison shopping.

New York, NY

  • Average 30-Year Rate at Top 5 Lenders: 4.05%
  • Median Listing Price: $798,000

New York City consists of five separate boroughs with wildly different —and higher —housing prices than the state as a whole. Its median listing price of almost $800,000 was more than three times the state median of $240,000. However, none of the Big Apple's notoriously high real estate prices affected the level of mortgage rates we found: the average 30-year rate was barely different from other cities in the state. Still, the fact that most properties in New York sell well above the state median means that you may need to consider whether a non-conforming mortgage will affect the final rate.

Buffalo, NY

  • Average 30-Year Rate at Top 5 Lenders: 4.03%
  • Median Listing Price: $70,000

A distant second in population to New York City, Buffalo nonetheless saw nearly identical averages on quoted interest rates for fixed rate and ARM mortgages. However, we did find that Wells Fargo offered rates that turned out to be a dozen basis points lower on 30-year and 15-year fixed rate mortgages in Buffalo compared to New York or Yonkers. None of the other banks we surveyed quoted significant differences on those products.

Rochester, NY

  • Average 30-Year Rate at Top 5 Lenders: 4.03%
  • Median Listing Price: $62,000

Of the four largest cities in New York, Rochester posted the lowest median listing price in 2017, at just $62,000 —slightly more than a quarter of the overall state median of $240,000. As with New York on the opposite end of the price spectrum, drastic differences in pricing had little effect on the available mortgage rates relative to the state at large, with the 30-year fixed rate landing around 4%.

Yonkers, NY

  • Average 30-Year Rate at Top 5 Lenders: 4.05%
  • Median Listing Price: $230,000

Yonkers home prices hewed most closely to the state median. Though Bank of America remained on top in terms of mortgage rates, we found that for Yonkers, the 15-year and 30-year fixed rates across all banks stayed closer to those in New York City than to rates in Buffalo or Rochester. 5/1 ARM mortgages, by contrast, remained at the same level for all lenders regardless of location.

Overall, our survey of mortgage rates in New York fits with the idea that US mortgage rates move on a national basis while housing prices move according to local patterns. Since the 1970s, 30-year fixed rate mortgages have been the subject of weekly reporting from the Federal Reserve, which publishes the average rate based on information from lenders nationwide.

line graph showing average U.S. rate on 30-year fixed rate mortgages between 2012 and 2017

The US average for a 30-year mortgage has stayed between 3.5% and 4.5% for the past half-decade. The historical trends of mortgage rates may be somewhat interesting to first-time purchasers, but they're very important if you're looking to refinance. Few people are willing to delay their first home purchase to wait for lower rates; people already in mortgages are better positioned to take advantage of these fluctuations. Aside from government statistics, people hoping to refinance should also consider tracking popular market indices like the 10-year Treasury bond rate and LIBOR rates, which lenders rely on to determine their daily mortgage rates.

Sources:

Freddie Mac 30-Year Fixed Rate Mortgage Average in the United States
Freddie Mac PMMS
New York Home Prices and Values

Comments and Questions