Best Mortgage Rates in North Carolina

See Mortgage Rate Quotes for Your Home

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The best mortgage rates in North Carolina can often be found at a direct lender advertising estimates online, but most borrowers continue to rely on traditional lenders such as major banks. We surveyed rates for both purchase and refinance mortgages in the state to find the lowest offers. Use our quote box to find quotes based on your details or read below for where to get the best rates in North Carolina.

Best North Carolina Mortgage Rates for Purchasing

To get a better picture of North Carolina mortgage rates, we compared a dozen estimates from major banks and direct lenders. The quotes assumed a $260,000 purchase price, 20% down payment and a credit score of 740.

Lowest Mortgage Rates Online for North Carolina

The best mortgage rates we found in North Carolina were all provided by direct lenders, who tend to be more active about publishing their rates online than traditional banks.

LenderAPRMonthly PaymentLoan Fees
LendingHome Funding Corporation4.292%$737.91$750.00Learn More
AimLoan.com4.419%$748.93$780.00Learn More
Sebonic Financial4.544%$759.14$952.00Learn More
ConsumerDirect Mortgage, a division of First Bank4.664%$771.21$675.00Learn More
First Internet Bank4.807%$782.47$980.00Learn More

Information based on a home purchase of $200,000 in North Carolina with 20% down payment and credit score of 740.

Mortgage Rates at North Carolina's Largest Lenders

Some of North Carolina's biggest mortgage providers are brick-and-mortar banks, which offer origination and loan servicing from thousands of accessible branches. The best rates among these lenders run somewhat higher than among typical direct lenders. Bank of America led the pack in all mortgage types, even matching the best direct lender rate on 5/1 adjustable-rate mortgages.

30-year fixed15-year fixed5/1 ARM
BB&T4.00%3.13%3.25%
Bank of America3.88%3.00%2.88%
Wells Fargo3.88%3.25%3.63%
First Citizens4.00%3.25%3.38%
Quicken4.38%-3.75%

Generally, both types of lenders kept 5/1 ARM rates lower than either of the fixed rates for 15- or 30-year terms. While this opens an opportunity for lower monthly payments, 5/1 ARMs also come with the potential for annual rate hikes once the initial 5-year fixed rate period ends. This makes them best for short-term residents who plan to refinance or sell their homes before long.

Best Refinancing Rates in North Carolina

North Carolina's bank-based refinance offers fell even further behind direct lenders than purchase mortgage rates. For these refinancing mortgage rate estimates, we assumed a $188,000 outstanding balance on a home worth $260,000. This balance was calculated on the basis of 5 years of payments on a 4% mortgage.

Best Online Mortgage Refinance Rates for North Carolina

The best refinance rates among direct lenders in the state were lower than traditional banks regardless of term length or loan type. For long-term homeowners, the guarantee of a locked-in rate may be worth the sacrifice of somewhat bigger payments.

LenderAPRMonthly PaymentLoan Fees
LendingHome Funding Corporation4.292%$737.91$750.00Learn More
AimLoan.com4.419%$748.93$780.00Learn More
Sebonic Financial4.544%$759.14$952.00Learn More
ConsumerDirect Mortgage, a division of First Bank4.664%$771.21$675.00Learn More
First Internet Bank4.807%$782.47$980.00Learn More

Information based on a mortgage balance of $200,000 in North Carolina with 75% loan to value ratio and credit score of 740.

Mortgage Refinance Rates Among Top North Carolina Lenders

Bank rates for refinancing remained higher among North Carolina's banks and other major mortgage providers like Quicken Loans. Unlike direct lenders, some of the banks we surveyed offered lower estimates for 15-year fixed rate mortgages compared to 5/1 ARMs. Only Bank of America defied this pattern, but it also happened to offer better rates than any other bank we surveyed.

30-year fixed15-year fixed5/1 ARM
BB&T4.00%3.25%3.63%
Bank of America3.88%3.13%3.00%
Wells Fargo4.00%3.38%3.63%
First Citizens4.00%3.25%3.38%
Quicken4.38%-3.75%

North Carolina Mortgage Rates by City

Mortgage rates are typically unaffected by changes in location, unlike real estate prices. Nevertheless, we took a closer look at estimated rates in four of the major cities in the Tar Heel State, as well as the average mortgage amounts that home buyers borrow.

CityLender30-Year Fixed15-Year Fixed5/1 ARM
CharlotteBB&T4.00%3.13%3.25%
Bank of America3.88%3.00%2.88%
Wells Fargo3.88%3.25%3.63%
First Citizens4.00%3.25%3.38%
Online Lenders3.75%2.88%2.88%
RaleighBB&T4.00%3.13%3.25%
Bank of America3.88%3.13%2.88%
Wells Fargo3.88%3.25%3.63%
First Citizens4.00%3.25%3.38%
Online Lenders3.75%2.88%2.74%
GreensboroBB&T4.00%3.13%3.25%
Bank of America3.88%3.13%2.88%
Wells Fargo3.88%3.25%3.63%
First Citizens4.00%3.25%3.38%
Online Lenders3.75%2.88%2.74%
DurhamBB&T4.00%3.13%3.25%
Bank of America3.88%3.13%2.88%
Wells Fargo3.88%3.25%3.63%
First Citizens4.00%3.25%3.38%
Online Lenders3.75%2.88%2.74%

Among banks, the only adjustment for location was Bank of America's 0.13-point discount on the 15-year fixed rate quoted for borrowers in Charlotte. The best online mortgage rates were just as similar across locations, with a single change in the 5/1 ARM rate for Raleigh.

Charlotte, NC

  • Average 30-Year Rate at Top 5 Lenders: 3.90%
  • 2017 Average Mortgage Amount: $229,405

Although it's one of the largest cities in the state, Charlotte's average mortgage rates were similar to North Carolina's overall numbers. One of the only changes was at Bank of America, which actually offered a lower interest rate in Charlotte for a 15-year fixed rate mortgage. Meanwhile, online lenders actually raised rates on 5/1 ARMs by about a dozen basis points. The average mortgage amount in Charlotte was about 15% greater than the average for the state as a whole.

Raleigh, NC

  • Average 30-Year Rate at Top 5 Lenders: 3.90%
  • 2017 Average Mortgage Amount: $202,762

Raliegh's mortgage rates were no different from the rate quotes we received for other cities: online lenders consistently had the lowest figures for all types of mortgage loans. Among banks, Wells Fargo and Bank of America came closest to matching the best direct lender rates on the common 30-year fixed rate mortgage. Raleigh residents reported an average mortgage size very close to the North Carolina average of $199,962.

Greensboro, NC

  • Average 30-Year Rate at Top 5 Lenders: 3.90%
  • 2017 Average Mortgage Amount: $159,809

We found that residents in Greensboro and Guilford County can expect nearly the same purchase mortgage rates as people in Raleigh or Durham. Much like other cities, the area saw the best rates for fixed rate mortgages at direct lenders, while Bank of America came closest to matching those lenders in 5/1 ARM rates. Meanwhile, Greensboro residents took on lower amounts in mortgage debt than other parts of North Carolina with a difference of about $40,000 or 20%.

Durham, NC

  • Average 30-Year Rate at Top 5 Lenders: 3.90%
  • 2017 Average Mortgage Amount: $178,680

The final area we examined, Durham's mortgage rates were just the same as our findings in North Carolina overall. Current homeowners looking to refinance would probably benefit most from a 5/1 ARM or 15-year fixed rate mortgage obtained from a nonbank direct lender, but some people may prefer to pay extra for points on a bank mortgage, reducing their rate while retaining the superior brick-and-mortar service options of a traditional bank. The average amount borrowed on a mortgage in Durham was about 10% lower than the state average.

Observing the collected government data shows us that US mortgage rates are currently holding at historic lows, with signs of slight upward pressure in the near future.

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

Data from the Federal Reserve demonstrate how 30-year fixed rate mortgages have bounced between 3.5% and 4.5% since 2012. Given these numbers, we judged that the estimates we obtained in North Carolina tally closely with the nation at large. While 5/1 ARM rates tend to be lower than comparable fixed rate mortgages, ARM rates nevertheless move in the same direction as rates on any other mortgage type. If you're interested in refinancing to an adjustable rate mortgage, you should also consider how index funds influence ARM rates.

While recent rate hikes announced by the Federal Reserve promise to push interest rates up in all sectors of the economy, mortgage rates seem to be relatively unresponsive so far. At most, general consensus predicts a gradual increase to 4.5% averages by the end of 2017 and the possibility of mortgage rates hitting 5% over the following year.

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