Refinance rates in UtahThere are many home refinance options, and each comes with slightly different features and rates.
Current 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?During most of 2023 interest rates marched relentlessly upward, but our market expert is cautiously optimistic about 2024. He predicts that rates will hold relatively steady — or even drop. The current mortgage rates forecast is for rates to remain between 6% and 7%, potentially even ending the year under 6%.
That said, the affordability of housing is an ongoing challenge for Utahns and won’t be solved by lower rates alone. Read on to learn what actions you can take to get the best mortgage interest rate in Utah.
Let’s look at which aspects of your mortgage rates you can influence and what actions you can take today to get the lowest mortgage rates in Utah. There are many factors determining mortgage rates that are out of your control, but here are a few things you can control right now:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?If you’ve applied for a mortgage, you should have received a loan estimate with the exact loan terms the lender is willing to offer you. Once you’re confident that these are good terms for you, it’s time to request that the lender give you a mortgage rate lock. A rate that’s locked can’t go up for a specified amount of time. This gives you a window that lets you make it to closing without having to worry about losing your rate.
There are many good options for first-time homebuyers looking to purchase in Utah. Here are a few programs you may want to look into as you get you started on your homeownership journey.
Who qualifies as a first-time homebuyer? People who have never owned a home
People who haven’t owned real estate in the last three years
Designed for first-time homebuyers purchasing new construction homes, this program offers up to $20,000. The funds can be used toward a down payment, closing costs or mortgage points. The best part is that these funds don’t have to be repaid as long as you stay in the home until you pay off the loan in full — but if you sell, refinance or transfer ownership before the end of the term, you will have to repay the money.
Who qualifiesBorrowers must:
Purchase a home for no more than $450,000
Purchase using a Utah Housing Mortgage
Use an approved lender
Meet income limits
Have been a resident of Utah for at least one year before closing
First-time homebuyers anywhere in Utah can apply for the FirstHome loan program, which offers down payment assistance of up to 6% of the mortgage amount. The funds can also be used toward closing costs, and will come in the form of a 30-year, fixed rate second mortgage.
Who qualifiesBorrowers must:
Be able to qualify for an FHA loan
Meet income limits, which vary by county and family size
Have a minimum 660 FICO Score
Purchase a home within the program’s price limits, which range from $349,500 to $400,300, depending on location
The Chenoa Fund provides down payment assistance to Utahns who want or need a “zero-down” home loan option. In fact, the program encompasses two different options — one you have to repay and one that’s forgivable — that both typically allow borrowers to cover the entire down payment amount of an FHA loan.
Who qualifiesBorrowers must:
Use the assistance in conjunction with an FHA loan
Have a minimum credit score of 600
Purchase a 1-2 unit property
Remain within certain income limits (these apply to forgivable down payment assistance only; borrowers whose income exceeds the limits can still get repayable down payment assistance)
→ Utah conventional loans. If you choose a conventional loan, you’re in good company: They’re a common choice and are considered the industry standard. They can be a great option for borrowers who meet the minimum requirements set by Fannie Mae and Freddie Mac.
→ Utah FHA loans. Borrowers who can’t qualify for conventional loans may want to explore FHA loans, since FHA loan requirements are a little more accessible. You can qualify with a credit score as low as 500 if you make a 10% down payment. If your down payment fund isn’t very large, you can put down as little as 3.5% as long as you have a 580 credit score.
→ Utah VA loans. VA loan requirements are very forgiving, and VA loans offer very attractive loan terms. For instance, most borrowers can purchase a home with no money down and no mortgage insurance.
→ Utah streamline refinances are an umbrella term that refers to FHA streamline refinance loans and VA interest rate reduction refinance loans(IRRRLs). They’re “streamline” because the process you’ll go through is quicker and requires less documentation than most other refinances. Just make sure you’re okay with sticking with your loan type — a streamline refinance can only refinance an FHA loan into an FHA loan, or a VA loan into a VA loan.
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