Mississippi ranks at the No. 1 best state to get a mortgage loan, while Hawaii clocks in at the bottom of the list, according to recent findings by GOBankingRates.
GOBankingRates ranked all 50 states based on the local rates offered on 15- and 30-year fixed-rate mortgages (FRMs) in the first quarter of 2015, weighted with the average home listing price in the state.
“Mississippi offers low mortgage rates to its residents, with the second-best average 15-year FRM rate in the study at 3.024% APR during the first quarter of 2015,” GOBankingRates says in the article. “Its 30-year mortgage rate is also below the national average at 3.764% APR.”
In addition, the state’s low home prices are also a big boon to buyers, as the listing price average is $233,639.
Rounding out the top 10 best states to obtain a mortgage are Iowa, Ohio, Missouri, Kansas, Indiana, West Virginia, Arkansas, South Dakota and New Mexico, respectively.
Regarding the country’s worst state to get a mortgage, GOBankingRates says while Hawaii has a decent average 15-year mortgage rate at 3.031% APR, it isn’t enough to outweigh the state’s listing prices, which are the highest in the nation at an average of $1,019,316.
“Hawaii’s 30-year mortgage rate average doesn’t help matters much; the middling average rate of 3.768% would result in a staggering $4,731 monthly mortgage payment for the average home listing price,” GOBankingRates says.
Immediately preceding Hawaii is California as the worst state to get a mortgage, preceded by New York, Connecticut, Colorado, Utah, Massachusetts, Rhode Island, Florida and Texas, respectively.
Written by Cassandra Dowell