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Compare Mortgage Rates by State: What Buyers Need to Know

  • jl28853
  • Aug 19
  • 2 min read

Updated: 2 days ago

When shopping for a mortgage, your state can play a bigger role than you think. Mortgage rates aren’t just influenced by your credit score and loan type; they also vary based on regional market conditions, lender competition, and state-level policies. This guide will help you understand how and why mortgage rates differ from state to state, and how to use that info to your advantage.

Why Mortgage Rates Vary by State

Several factors influence state-level rate differences:

  • Local lender competition

  • Property tax and insurance rates

  • Average home prices and market demand

  • State regulations and closing cost structures

  • Risk of loan defaults or delinquencies in that region

State-by-State Mortgage Rate Trends (Sample View)

State

Average 30-Year Rate

Notes

Texas

6.75%

Highly competitive metro areas

California

6.65%

Larger loan sizes (jumbo) affect rate

Florida

6.60%

Strong refinance market

New York

6.80%

Higher taxes & insurance costs

Georgia

6.55%

Consistently low average rates

Note: These are sample averages. Actual rates vary by borrower profile and lender.

How to Compare Rates Effectively

  1. Get quotes from multiple lenders. Always request official Loan Estimates so you can compare APRs, not just base interest rates.

  2. Compare apples to apples. Make sure each quote uses the same loan term, amount, and down payment.

  3. Understand the APR.APR includes not just the rate but lender fees, making it the best metric for total loan cost.

  4. Check state-specific programs. Some states offer rate discounts, first-time buyer perks, or subsidized closing costs.

  5. Use a rate comparison tool. We recommend using our secure mortgage rate checker tool to view rates tailored to your credit profile and location.

Tools to Help You Compare Rates

✅ Mortgage Rate Comparison Calculator✅ Refinance vs. New Purchase Estimator✅ Custom Loan Scenario Analysis (with Velocity Team)

Don’t Just Shop Rates, Shop the Right Loan

A lower rate doesn’t always mean the best deal. Consider:

  • Loan type (FHA vs. Conventional vs. VA)

  • Upfront vs. ongoing costs

  • Your time in the home (break-even point)

  • Whether you plan to refinance later

Work With the Velocity Team

We help buyers nationwide evaluate their best options—not just for today’s rate, but for long-term cost savings and financial flexibility.

Want a personalized rate comparison by state?


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