Mortgage Rates in Rhode Island
Compare today's average mortgage rates in the state of Rhode Island. Bankrate aggregates mortgage rates from multiple sources to provide averages for Rhode Island.
Rhode Island mortgage overview
As of May 2020, the median single-family home price in Rhode Island is $309,500, according to the Rhode Island Association of Realtors.
First-time homebuyer programs in Rhode Island
Through the agency RIHousing, Rhode Island has first-time homebuyer programs to help consumers who are ready to purchase their first home.
First-Time Homebuyer Loan
By getting their first mortgage through RIHousing, first-time homebuyers in Rhode Island can combine that first mortgage with a 15-year, fixed-rate second mortgage to help pay the down payment and closing costs. The down payment/closing cost assistance loan can only be applied on one- to four-family homes or condos with a maximum purchase price of $453,863, and there are also qualifying income limits.
First Down Program
RIHousing’s First Down Program offers $7,500 in down payment assistance to first-time homebuyers purchasing property in Providence or Woonsocket. The $7,500 down payment assistance comes in the form of a zero-percent second mortgage, forgivable after five years, with no charges, fees or monthly payments required.
To be eligible for the First Down Program, borrowers must complete a homebuyer education course, have a credit score of 660 or higher and live in the home as their primary residence, as well as meet qualifying income limits.
Note: All First Down down payment assistance must be closed by Nov. 25, 2020.
Like the First Down Program, RIHousing’s Spring7500 Program offers $7,500 in down payment assistance to first-time homebuyers, but is available on homes purchased throughout the state. The $7,500 in down payment assistance is a zero-percent loan with no charges, fees or monthly payments. The amount becomes due if the borrower no longer lives in the home as a primary residence, or the home is refinanced, sold or transferred.
As with the First Down Program, eligibility for the Spring7500 Program includes completion of a homebuyer education course, a credit score of 660 or higher and adherence to income and purchase limits.
FirstHomes Tax Credit
Available to first-time homebuyers in Rhode Island (as well as repeat buyers in areas of Central Falls, Pawtucket, Providence and Woonsocket), the FirstHomes Tax Credit is a mortgage credit certificate (MCC) that allows borrowers to claim up to a $2,000 federal tax credit per year. The program provides tax savings for eligible homebuyers and reduces a borrower's federal tax liability, which can be claimed for the life of the mortgage.
Rhode Island mortgage refinancing
Homeowners looking to refinance in Rhode Island can save through RIHousing, which offers up to 97 percent financing with no mortgage insurance on a refinance. The parameters include a maximum loan amount of $454,250, and the refinance must be for a one- to four-family home or condo.
With interest rates at historic lows, you may be able to lower your monthly payment and save thousands by refinancing your loan to a lower rate. You can use Bankrate’s mortgage refinance calculator to see how much you can save.