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Alaska Mortgage and Refinance Information

On Monday, December 04, 2023, the national average 30-year fixed mortgage APR is 7.50%. The national average 30-year fixed refinance APR is 7.59%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

On Monday, December 04, 2023, the national average 30-year fixed mortgage APR is 7.50%. The national average 30-year fixed refinance APR is 7.59%, according to Bankrate's latest survey of the nation's largest mortgage lenders.

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Current mortgage rates in Alaska

As of Monday, December 4, 2023, current mortgage interest rates in Alaska are 7.75% for a 30-year fixed mortgage and 6.63% for a 15-year fixed mortgage.

In 2024, the conforming mortgage loan limit in the state, which is the maximum amount Fannie Mae or Freddie Mac will guarantee, is $1,149,825. That’s far higher than in most states, where the limit stands at $766,550. Likewise, limits for Federal Housing Administration (FHA) loans in the state, which typically serve low- to moderate-income buyers, vary by county in 2024, from $498,257 to as high as $1,149,825.

Alaska mortgage refinancing

When it comes time to refinance your mortgage in Alaska, remember you’re not required to work with the same lender who provided the initial loan. In fact, it’s important to take the time to shop around and do your research to make sure you’re getting the best rates and loan terms possible. There are many private lenders and mortgage companies that provide refinancing options.

In addition, the Alaska Housing Finance Corporation (AHFC), the state’s housing finance authority, offers its own refinancing programs:

  • The Streamline Refinance for existing Alaska Housing borrowers doesn’t require an appraisal or (in most cases) credit screening. It also doesn’t require occupying the home as the owner. (However, the original loan must have been made to an owner occupant.)
  • There’s also a refinance option for those who did not purchase their home with an Alaska Housing program. This program can be used to obtain better loan terms or to provide the cash needed for renovations or home improvements.

Mortgage options in Alaska

  • 3% down payment mortgages: These are conventional loans backed by Fannie Mae and Freddie Mac, requiring only 3 percent down with a minimum credit score of 620 (for Conventional 97 and HomeReady loans) to 660 (for a HomePossible loan). Note: Both HomeReady and HomePossible loans have an income limit of 80 percent of the area median income (AMI) where you’re purchasing.
  • FHA loan: FHA loans are government-insured loans for homebuyers with lower credit scores. You can get an FHA loan with a credit score of 580 and just 3.5 percent down. FHA loans are insured by the Federal Housing Administration.
  • VA loans: VA loans are offered to qualifying active-duty military, veterans and their spouses. These loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and don’t require a down payment.
  • USDA loans: Buyers in rural areas might be able to take advantage of a no-down payment loan guaranteed by the U.S. Department of Agriculture (USDA). Along with buying in a specific rural area, as determined by the USDA, your income must be below area-specific limits to qualify.

First-time homebuyer programs in Alaska

AHFC, also known as Alaska Housing, offers programs that can be helpful to first-time homebuyers. In order to qualify as a first-time homebuyer, you can’t have owned a primary residence in the past three years. Here’s an overview of some of the agency’s programs:

First Home

The First Home mortgage program is aimed at first-time buyers with higher incomes and offers reduced interest rates. To apply, you must furnish federal income tax returns from the past three years.

First Home Limited

Similar to First Home, the First Home Limited mortgage program provides lower interest rates to first-time buyers, but you must meet income limits and purchase price limits to qualify. The first-time buyer requirement can be waived if the purchase property is located in a targeted area, which are locations that have higher income and purchase price limits.

How to find the best mortgage rate in Alaska for you

  1. Well ahead of shopping for a mortgage, check your credit reports and scores. If your credit is lacking, now’s the time to improve your score, whether that’s by paying down or paying off debt or disputing incorrect information on your report.
  2. Learn the different types of mortgages so you have a sense of what might work best for your needs. You can then begin comparing rates for that specific type of loan.
  3. Compare offers from at least three different mortgage lenders, including where you bank if it offers home loans. As you compare, look at the difference between the APR (annual percentage rate) and interest rate. This indicates how much a lender is charging in fees and points.