Missouri Mortgage and Refinance Rates
As of Tuesday, July 27, 2021, current rates in Missouri are 3.05% for a 30-year fixed, 2.31% for a 15-year fixed, and 3.13% for a 5/1 adjustable-rate mortgage (ARM).
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Missouri mortgage overview
By Zach Wichter
Missouri is home to just over 6 million people, and approximately 67 percent live in homes they own, according to Census estimates. The Missouri Housing Development Commission (MHDC) is a government-affiliated organization dedicated to providing financing and aid for citizens to obtain affordable housing. The MHDC also provides educational, training and consulting services to other nonprofit housing organizations.
First-time homebuyer programs in Missouri
Qualifying individuals and families in Missouri may have access to a variety of national programs and local educational opportunities to help them through the buying process. In addition to nationally available programs, there are some Missouri-specific first-time homebuyer programs available to residents.
First Place Loan Program
The Missouri First Place Loan Program, administered by the MHDC, is designed to help first-time homebuyers (or those who have not owned a home in the preceding three years) purchase a home.
Through the program, borrowers are eligible for cash assistance for the down payment and closing costs (equivalent to 4 percent of the first mortgage amount) and additional cash assistance in the form of a second mortgage, which will be forgiven if the borrower stays in the home for at least 10 years. The home purchased can be a:
- Single-family detached home
- One-half duplex
- Manufactured home on a permanent foundation
- Semi-detached home
Income limits based on the number of residents in the household apply, and are calculated based on where the borrower resides. For instance, a one- to two-person household in the St. Louis area must not exceed a household income of $82,900.
There are also statewide purchase price limits that vary based on the number of units and whether the home is located in a non-targeted or targeted area.
Missouri Mortgage Credit Certificate (MCC)
The Missouri Mortgage Credit Certificate (MCC) program converts a portion of the borrower’s mortgage interest paid into a non-refundable federal tax credit. The MCC program is available to low- to moderate-income first-time homebuyers who work with an MHDC-certified mortgage lender to receive the certificate. The program is structured to help first-time borrowers qualify for their first home loan by reducing the taxes they would otherwise have to pay.
The maximum tax credit in a year is $2,000; minimum credit scores, household income limits and home purchase price limits apply.
First-time homebuyers can also combine the MCC with another MHDC program, Next Step, that assists with down payment and closing costs in the form of a 4 percent second mortgage. To be eligible, borrowers must meet the same credit, income and purchase price requirements of the MCC program.
Missouri mortgage refinancing
For Missouri homeowners interested in refinancing, the MHDC offers a refinance program that assists with closing costs on a refinance, offering up to 3 percent of the loan amount as a second mortgage, which can be forgiven if the owner remains in the home for five years. If equity is an issue, borrowers may be able to also qualify for a grant up to $10,000.
To be eligible, borrowers must meet minimum credit requirements and receive in-person credit counseling from a HUD-approved agency. In addition, the property must not appraise for more than the maximum purchase price limit, among other requirements.
If you believe it could be beneficial to refinance your home in Missouri, private lenders, banks and mortgage brokers are other options, as well.
Regardless of which program or lender you choose, it’s wise to identify your goals in refinancing (such as a lower monthly mortgage payment, a shorter term or a lower interest rate), do your research and shop around to make sure you’re getting the best possible rate and terms.