Overview of Kansas Mortgages
This true heartland state has plenty to offer, from wide, open prairie and wheat fields to Hutchinson’s Cosmosphere and Space Center, along with Wichita’s aviation past. When it comes to real estate, you will find that Kansas mortgage rates are above the national average, though they've historically been lower than it.
| Product | Today | Last Week | Change |
|---|---|---|---|
| 30 year fixed | 6.75% | 7.00% | -0.25 |
| 15 year fixed | 6.88% | 4.00% | +2.88 |
| 5/1 ARM | 4.63% | 3.00% | +1.63 |
| 30 yr fixed mtg refi | 6.75% | 6.75% | 0.00 |
| 15 yr fixed mtg refi | 6.38% | 6.88% | -0.50 |
| 7/1 ARM refi | 5.25% | 5.13% | +0.13 |
| 15 yr jumbo fixed mtg refi | 3.08% | 3.12% | -0.03 |
National Mortgage Rates
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Historical Mortgage Rates in Kansas
Kansas Mortgage Rates Quick Facts
- Median Home Value: $183,800 (U.S. Census Bureau)
- Loan Funding Rate: 60.28% (CFPB)
- Homeownership Rate: 69.3% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,467 (U.S. Census Bureau)
Kansas mortgage rates have been historically lower than the national average, a trend that has changed slightly recently.
A financial advisor in Kansas can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
*The FHFA stopped reporting new data in 2018.
Kansas Mortgages Overview
It’s typical to see lower home prices in the Midwest, and Kansas is no exception. The median home value is $183,800, while the national median is $281,400.
All Kansas counties have standard conforming loan limits of $726,200, and standard FHA limits of $472,030.
Kansas has lenient disclosure laws for sellers compared to the rest of the nation. If you’re shopping for a home in Kansas, it’s critical that buyers be vigilant when considering a property purchase. The best course of action is to arrange a property inspection with a well-trusted inspector or company. This will protect you from purchasing a home that has devastating defects.
30-Year Fixed Mortgage Rates in Kansas
Fixed-rate mortgages are the most common type of home loans. Interest rates that remain the same for the duration of the loan make it easier to budget for monthly payments. That means you know exactly what you are getting into when you sign the loan and your monthly payments will stay steady over the years. The most popular are 30-year fixed-rate mortgages which tend to have higher interest rates but lower monthly payments. Another option is a 15-year loan. These generally have lower interest rates but higher payments.
The average Kansas rate for a fixed 30-year mortgage is 5.95% (Zillow, Jan. 2023).
Kansas Jumbo Loan Rates
Homes in the nation’s bread basket are generally more affordable than the average American home, so the conforming loan limit is the standard $726,200 across all counties. If you need to take out a bigger loan that than for the house you have your eye on, you will have what is considered a jumbo loan. Keep in mind that jumbo loans have higher interest rates. Issuing a loan that is bigger than the conforming loan limit presents a bigger risk for lenders. Banks attach higher interest rates to jumbo loans in an effort to compensate for the additional risk. However, jumbo loan average in Kansas are actually lower right now.
The average jumbo loan rate in Kansas is 5.93% (Zillow, Jan. 2023).
Kansas ARM Loan Rates
An adjustable-rate mortgage (ARM) is a loan that typically offers a lower interest rate up front than a fixed-rate mortgage. The lower rate is available for a period of one, three, five, seven or 10 years. Once that period is over, the interest rate will usually go up once a year. There are certain checks in place, however, to prevent buyers who choose ARMs from suddenly waking up to an exorbitant interest rate. The loan’s terms will specify how often the rate can go up and the maximum possible height that it can reach. It is crucial to check that interest rate cap and make sure that it is one you can afford to pay before you decide that an ARM is the best choice for you. Strangely enough, ARM rates are currently higher than their fixed counterparts.
The average rate for a 5/1 ARM in Kansas is 5.51% (Zillow, Jan. 2023).
Kansas Mortgage Resources
If you need assistance buying a house in the Sunflower State, the Kansas Housing Resources Corporation has forgivable loans for first-time homebuyers to reduce out-of-pocket expenses associated with buying a home. If you’re a homeowner, you can also weatherize your home for more efficient heating and cooling with the weatherization assistance program. For buyers who don’t qualify for federal housing assistance, the Moderate Income Housing program can help you access loans and grants.
First-time homeowners can also receive assistance from the Kansas Housing Assistance Program. When you buy a house, purchasing costs can add up fast. But if you’re buying your first home and you’re eligible, you can get up to 4% borrower cash for a down payment and closing costs with this program. They also offer unlimited funding and 30-year fixed-rate loans with high loan-to-value loans, so no matter where in Kansas you’re looking, this is a great resource for those just starting out.
The United States Department of Agriculture Rural Development program also offers loan help and mortgage grants throughout the entire country. The program aims to help develop more rural areas of a state while offering safe, affordable housing for residents. Kansas has grants and loans available for home repairs as well as loan assistance programs for those who qualify.
Kansas Mortgage Taxes
Homeowners are allowed to deduct the mortgage interest they pay when they file their federal income taxes. This applies for Kansas state income taxes as well. You can double up on your deductions for the qualifying mortgage interest payments you have made in the tax year by including them on both state and federal filings. Kansas generally follows federal guidelines for itemized deductions.
In previous years, Kansas charged a 0.26% mortgage fee on real estate transactions, but that's no longer the case as of Jan. 1, 2019. A bonus for Kansas buyers and sellers, this state doesn’t charge taxes on real estate property title transfers, so you won’t have to pay a fee for that.
Kansas Mortgage Refinance
If it’s time to refinance, you have a couple of options. The Home Affordable Refinance Program (HARP) is no longer available, but Fannie Mae currently offers its own alternative, providing qualifying applicants access to interest and principal payment reductions as well as low closing costs.
If you don’t qualify for either of these, remember you always have the option of working with the lender who issued your current mortgage and comparing refinance rates with other lenders to ensure that you land on a solution that really works for your situation.
