Nebraska Mortgage and Refinance Rates
Current mortgage rates in Nebraska
As of Friday, December 8, 2023, current mortgage interest rates in Nebraska are 7.53% for a 30-year fixed mortgage and 6.74% for a 15-year fixed mortgage.
Rates are much higher today than they have been in recent years, now closer aligned with historical norms. Despite some home price softening, a higher rate could cut into what you’d be able to afford in Nebraska. Before you buy or refinance, know your options and compare at least three mortgage offers.
Refinance rates in Nebraska
Interest rates across the board rose in 2022, and for mortgages, have remained near that watermark so far in 2023. While rates aren’t as low as they were, a cash-out refinance could be an option if you’re renovating or consolidating higher-interest debt. If you don’t want to refinance but are still interested in tapping your equity, a home equity line of credit (HELOC) could be another option for you.
How to find the best mortgage rate in Nebraska for you
When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.
Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan on favorable terms:
Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or 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
To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.
Step 3: Know your mortgage options
There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check Pennsylvania’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 at least three different banks or mortgage companies. You can look to your bank or other 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
As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Mortgage options in Nebraska
If you’re looking to get a mortgage in Nebraska, consider these options:
- Nebraska conventional mortgages: For a conventional mortgage in Nebraska, you’ll generally need a debt-to-income (DTI) ratio of no more than 45 percent and a credit score of at least 620. The minimum down payment is typically 3 percent (at that level, you’ll need to pay private mortgage insurance, or PMI, premiums, as well).
- Nebraska FHA loans: If you have a lower credit score, a loan insured by the Federal Housing Administration (FHA) might be a better option. You can get an FHA loan with a credit score of 580 and a down payment of 3.5 percent.
- Nebraska VA loans: If you’re a qualifying veteran, an active-duty member of the military or a surviving spouse, you can get a mortgage guaranteed by the Department of Veterans Affairs (VA). VA loans don't require a down payment or mortgage insurance, but you do need to pay a funding fee.
- Nebraska USDA loans: Since Nebraska is largely a rural state, there are a lot of properties eligible for loans backed by the United States Department of Agriculture (USDA). Like VA loans, USDA loans don’t require a down payment. However, you’ll need to meet area-specific income requirements.
First-time homebuyer programs in Nebraska
The Nebraska Investment Finance Authority (NIFA) offers affordable, 30-year fixed-rate mortgages for first-time homebuyers (a buyer who has not owned a home in the past three years), veterans or repeat buyers purchasing a home in a “target area.” To qualify, you must meet household income and purchase price limits, as well as:
- Have a minimum credit score of 640 and a DTI ratio of no more than 45 percent; or a minimum credit score of 660 and a DTI ratio of no more than 50 percent (if you don’t have a credit score, you might still be eligible)
- Complete a homebuyer education course before closing