In South Carolina and across the country, mortgage rates are still near historic lows, but are beginning to rebound. According to figures from the St. Louis Federal Reserve, home buyers can still secure a 30 year fixed rate mortgage for under 4% interest nationally. Spring 2016 South Carolina mortgage rates are as low as 3.5% — surging up to an advertised 4.125%, so it pays to shop around.
While rates will vary based on location, your credit and a variety of other factors, a 30 year fixed rate conventional mortgage can be found for under 4% in South Carolina this spring, with some lenders offering competitive rates as low as 3.7%. Rates have remained steady since the start of the year, dipping slightly at the end of March, and are expected to remain steady for the remainder of the year. A savvy buyer who shops around can expect to score a competitive rate of under 4% on a 30 year conventional mortgage this year.
Falling home prices, low but slowly climbing interest rates mean that now is an ideal time to buy a home in the state of South Carolina. The state, particularly the beach and vacation destinations, was hard hit by the recession, and home prices toppled. Homes have been slowly rising in value over the last few years, but have yet to reach their peak. Buying now allows you to secure a great home for an ideal price – and still save money on your mortgage each month. The Post and Courier predicts that rates will stay low in early-mid 2016, but may begin to rise by the end of the year and beyond.
Get a Credit Checkup
The stated mortgage rate is often the rate offered to the very best applicants, not to every person approved for a mortgage. If you are shopping for a mortgage in South Carolina, then the stated interest rate is a good starting point, but not the only consideration you’ll have.
Obtaining a copy of your credit report prior to applying for a mortgage in South Carolina can help you spot any potential errors; according to credit experts at MyFico, you’ll need to see your score to determine how a banking institution will view your application. Working to improve your credit helps ensure that you can qualify for a mortgage loan and it also helps you secure the best possible interest rate when you buy your home.
Shop Around for the Best Rates
As in any state, South Carolina banking institutions offer a variety of mortgage products in a range of rates. While the rates are impacted by the Federal Reserve, there are enough variances that shopping around can help you save. A small percentage difference may not seem like much, but amortized over 30 years, even a single tenth of a percent can result in huge savings over the life of your mortgage.
Compare South Carolina mortgage rates by looking at not only the interest rate but the actual product being sold; the term length and other provisions will impact the amount of money you spend each month and the amount of money you’ll spend over the life of the mortgage. You should also consider any fees, including up front and monthly fees tacked on by the financial institution; these may not be impacted by the actual mortgage rate but will affect the amount of money you end up paying for your home.
Shop Local
While big banks have a strong presence in South Carolina, the state is also home to an abundant number of local neighborhood banks. Working with a local bank often makes it easier to secure a mortgage at a rate you can afford. Banks are anxious to build relationships in the local community and if your own local bank offers mortgages, you might find someone who can walk you through the process step by step and help you secure a great deal. Building a relationship with a local bank can help you get the best possible rate and still work with a familiar, friendly face if you have a problem or need help with the servicing of your account.
South Carolina Property Taxes
There’s great news for you if you are buying a home in South Carolina. Even in the most heavily taxed areas, including Columbia, the state capital and popular beach destinations like Myrtle Beach, Hilton Head and Charleston, property taxes are some of the lowest you’ll encounter in the nation. In 2006, state lawmakers voted to shift the burden of paying for education (generally one of the biggest line items covered by property taxes) from individual homeowners to commercial property owners. The resulting savings means that most home buyers fell little or no impact from property taxes annually and that taxes have only a minor impact on the amount of money you can borrow.
A 300,000 home a mile or two from the beach in South Carolina will generally have a tax burden of around $1,000 a year or roughly $80 a month. For South Carolina home buyers over the age of 65, that figure could be further reduced. That same home would have a tax burden of about $12,000 per year in the state of New Jersey, or roughly $1,000 a month; a huge addition to your monthly mortgage payment.
As mortgage rates in the state are still at historic lows, with many lenders offering under the national average of 4%, buying a home in South Carolina in the near future would help you save money over the life of the loan. Simply by choosing to live in the state of South Carolina, you’ll save money on your monthly mortgage payments; the low cost of living and low rate of property taxation makes the state an ideal destination for homeowners.
2 Point Highlight
As in any state, South Carolina banking institutions offer a variety of mortgage products in a range of rates; while the rates are impacted by the Federal Reserve, there are enough variances that shopping around can help you save.
Compare South Carolina mortgage rates by looking at not only the interest rate but the actual product being sold; the term length and other provisions will impact the amount of money you spend each month and the amount of money you’ll spend over the life of the mortgage.
