Delaware Mortgage and Refinance Rates
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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Delaware Mortgage and Refinance Rates
Current mortgage rates in Delaware
As of Monday, December 4, 2023, current mortgage interest rates in Delaware are 7.49% for a 30-year fixed mortgage and 6.66% for a 15-year fixed mortgage.
As of August 2023, the median single-family home price in Delaware was $369,846, according to Zillow's Home Values Index.
Refinance rates in Delaware
Refinance rates are way up from historic lows, but a cash-out refinance still might make sense for you. Use Bankrate’s mortgage refinance calculator to run the numbers.
How to find the best mortgage rate in Delaware for you
Bankrate can help you find the best mortgage deal in today’s volatile rate environment. Before you begin shopping around, take these steps:
Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender and applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
Step 2: Determine your budget
Get a handle on how much house you can afford. One rule of thumb many buyers use to figure out their price range is the 28/36 rule. Keep in mind that a mortgage lender could qualify you for a loan over your budget, but that would leave no room for unexpected expenses.
Step 3: Know your mortgage options
There are different types of mortgages, including conventional loans with as little as 3 percent down and government-backed loans. If you’re in the market for a jumbo loan, check Delaware’s county-by-county loan limits.
Step 4: Compare rates and terms from several lenders
Don’t settle on the first lender you talk to. Rate-shop with different lenders — banks, credit unions, online lenders and local independents — to ensure you’re getting the best deal on rates, fees and terms.
Step 5: Get preapproved for a mortgage
Get a mortgage preapproval with three or four different lenders. This’ll help you understand exactly what loan amount you’d qualify for if you were to apply, and prepare you to make offers on homes.
Mortgage options in Delaware
If you’re looking to get a mortgage in Delaware, consider these loan options:
- Delaware conventional mortgages: To qualify for a conventional loan, you’ll need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay for private mortgage insurance (PMI), as well.
- Delaware FHA loans: If your credit history disqualifies you from a conventional loan, you might be eligible for a loan insured by the Federal Housing Administration (FHA). For this type of mortgage, you’ll need a credit score of at least 580 with a 3.5 percent down payment. As with a conventional loan, if you put down less than 20 percent on an FHA loan, you’ll be on the hook for mortgage insurance.
- Delaware VA loans: If you’re an eligible veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee.
First-time homebuyer programs in Delaware
The Delaware State Housing Authority (DSHA) offers programs designed to help first-time homebuyers as well as current homeowners who might want to trade up. The agency’s options include below-market rate mortgages and down payment assistance programs. Here’s an overview:
DSHA Homeownership Loans
The DSHA offers 30-year, fixed-rate Homeownership Loans to low- and moderate-income state residents. Depending on what you qualify for, you might get a conventional, FHA, VA or USDA loan, provided you meet eligibility requirements, including income limits that vary by location.
In addition, you’ll need a minimum credit score of 620, and any applicant with a credit score below 659 is required to attend housing counseling. If your credit score is less than 699, the DSHA requires a 45 percent debt-to-income ratio (DTI), as well.
Lastly, the home you’re buying can’t exceed a certain sale price. In New Castle County, this limit is $539,250; in Kent and Sussex counties, the limit is $481,176.
Delaware First-Time Homebuyer Tax Credit
Specifically for first-time homebuyers, the Delaware First-Time Homebuyer Tax Credit allows participants to claim 35 percent of their annual mortgage interest as a special federal tax credit. The maximum credit allowed is $2,000 — a deduction that directly reduces your annual federal tax bill.
The program is open to any first-time homebuyer, meaning it’s not restricted to those participating in other DSHA programs. There are program eligibility requirements to keep in mind, however, including household income and purchase price requirements. You’ll likely need to a pay a fee, as well.