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Buying a home in Alaska
According to Zillow, the typical home value in Alaska is a little lower than the US national typical home value of $356,026. The typical home value in Alaska is $332,157 and home values have increased 9.8% over the past year.
Historic mortgage rates for Alaska
By looking at the average mortgage rates in Alaska since 2010, you can see trends for 30-year fixed mortgages, 15-year fixed mortgages, and 7/1 adjustable mortgages:
Seeing how today’s rates compare to historic Alaska mortgage rates may help you decide whether you’d be getting a good deal by getting a mortgage or refinancing now.
Mortgage calculator
Our free mortgage calculator shows how today’s rates in Alaska affects your monthly payments.
Plug in today’s rates and term lengths to see how much home you can afford.
Alaska first-time homebuyer programs
The Alaska Housing Finance Corporation has several loan options for first-time borrowers statewide:
First Home Limited: The AHFC offers a mortgage with a discounted interest rate to low-to-moderate earners, for certain property types.First Home: This type of mortgage is similar to First Home Limited, except there’s no maximum income limit.My Home: If the type of property you’re buying doesn’t meet the standards of a First Home Limited or First Home mortgage, you may be eligible for a My Home loan.Closing Cost Assistance: You can receive a loan of up to 4% of your mortgage amount to put toward closing costs or a down payment.Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan. United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Alaska
Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate — especially if the new rate would be significantly lower.
You don’t necessarily need to refinance with the same lender you used for your initial mortgage. A different company may offer you a better deal this time around. Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees.
How to get a low interest rate
Here are some tips for landing a good interest rate on your mortgage:
Save for a down payment. With a conventional loan, you may be able to put down as little as 3%. But the higher your down payment, the lower your rate will likely be. Rates should stay low for a while, so you probably have time to save more.Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But the higher your score, the better your rate will be. To improve your credit score, be sure to pay all your bills on time. You can also pay down debts or let your credit age.Lower your debt-to-income ratio. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. Most lenders want to see a DTI of 36% or less, but an even lower DTI can result in a better rate. To improve your DTI, pay down debts or consider opportunities to increase your income.Choose a federally backed mortgage. If you’re eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). These loans typically come with lower interest rates than conventional mortgages. As a bonus, you won’t need a down payment for USDA or VA loans.
Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible.
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