Refinance rates in South DakotaCurrent 30-year fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?Potential homebuyers should expect 30-year rates to remain between 6% and 7% for most of the year, according to the current mortgage interest rates forecast. That’s a welcome relief after rates spent several months above 7% in 2023. However, LendingTree senior economist Jacob Channel recommends buyers temper their optimism with a little bit of caution: Home affordability isn’t likely to change dramatically even with a dip in rates.
If you want to get the best mortgage rate, your first job is to influence the key factors determining your mortgage rate that you can control. Here are a few steps you can take today to get a great rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?Once you have both a house and a loan offer you want to move forward with, you can request a mortgage rate lock. A lock ensures that your interest rate won’t increase before you make it to closing. Rate locks are tied to a specific property’s address, so if you decide not to purchase the house you had your eye on, you’ll have to request a new rate lock later on down the line.
The South Dakota Housing Development Authority (SD Housing) has a loan program tailored to first-time homebuyers that can allow you to lock in a low interest rate on a conventional, FHA, VA or USDA loan.
Who qualifies?Borrowers must:
Be a first-time homebuyer
Earn within the program’s income limits, which vary depending on location and household size
Purchase a home for no more than $385,000
Who qualifies as a first-time homebuyer? People who have never owned a home
People who haven’t owned a home in the last three years*
Qualified veterans, regardless of their actual history owning real estate
*Certain types of mobile homes may not count as previous homeownership
Repeat homebuyers also have a great option through SD Housing. This program gives borrowers access to low interest rates, down payment assistance, closing cost assistance and discounted mortgage insurance rates.
Who qualifies?Borrowers must:
Earn less than $111,120 for a one- to two-person household, or less than $$129,640 for households with three or more members
Purchase a home for no more than $460,000
Have a minimum 620 credit score
Borrowers with an SD Housing loan may qualify for additional down payment assistance funds through this program, which offers up to 5% of the first mortgage amount. The assistance will come in the form of a second mortgage with no interest and no monthly payments. You won’t have to worry about repaying the money until you sell the home or pay off your first mortgage.
Who qualifies?To see if you qualify, reach out to an approved SD Housing lender.
Get the full details about each program at SD Housing’s website.
→ South Dakota conventional loans. Conventional loans are a popular choice and can offer good value on a home purchase. You’ll have to meet the minimum requirements, though, which means that anyone without at least a 620 credit score won’t be eligible.
→ South Dakota FHA loans. FHA loan requirements are more accessible than conventional loan requirements, and you can qualify with a credit score as low as 500. But, in order to do so, you’ll have to make a 10% down payment. If you’re looking to make a smaller down payment, you can put down as little as 3.5% — as long as your score is 580 or above.
→ South Dakota VA loans. VA loan requirements are the most flexible among common loan types, and there’s no credit score minimum set by the VA. You will, however, need to have a qualifying military service record.
→ South Dakota streamline refinances are for homeowners who want to refinance from an FHA loan into a new FHA loan, or from a VA loan into a new VA loan. The loans available to make this happen are FHA streamline refinance loans or VA interest rate reduction refinance loans (IRRRLs). The “streamline” name comes from the fact that these loans will require less paperwork and less hassle than other refinance types.
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