Overview of Kansas Mortgages
The true heartland state has plenty to offer, from the wide rolling plains and wheat fields to Hutchinson’s Cosmosphere and Space Center and Wichita’s aviation past. When it comes to real estate, you will find that Kansas mortgage rates are below the national average - sometimes significantly.
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Kansas Mortgage Rates Quick Facts
Historical Mortgage Rates in Kansas
Kansas mortgage rates have been historically lower than the national average, and that trend is continuing. Rates for 2016 in Kansas are currently lower than the average U.S. rates.
Kansas Historic Mortgage Rates
|Year||Kansas Rate||U.S. Rate|
Kansas Mortgages Overview
It’s typical to see lower home prices in the Midwest, and Kansas is no exception. The average single-family home is valued at $120,200, which is lower than the nation’s average of $186,100, according to Zillow.
Kansas Mortgage Rates
|Percentage of Homes||92.00%|
|Average Property Value||$91,757.94|
|Percentage of Homes||1.80%|
|Average Property Value||$152,212.75|
|Percentage of Homes||3.80%|
|Average Property Value||$143,664.77|
|Percentage of Homes||2.50%|
|Average Property Value||$136,309.21|
All Kansas counties have standard conforming loan limits of $417,000, but a handful have FHA loan limits that are just slightly higher than the average $271,050. Those counties are Johnson, Leavenworth, Linn, Miami and Wyandotte, and their FHA loan limit is $278,300.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
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
Weighing your mortgage options in the Sunflower State? You will probably want to look into fixed-rate mortgages. These are the most common type of home loans as their interest rates remain the same for the duration of the loan. 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 for you is a 15-year fixed-rate mortgage. With 15-year loans you can expect lower interest and higher payments.
The average Kansas mortgage rate for fixed-rate 30-year mortgages is 4.25%.
Kansas Jumbo Loan Rates
Homes in the nation’s “breadbasket” are generally more affordable than the average American home, so the conforming loan limit is the standard $417,000 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.
The average jumbo loan rate in Kansas is 3.88%.
Kansas ARM Loan Rates
An adjustable-rate mortgage – or ARM – is one that typically offers a lower interest rate upfront 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. 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.
The average rate for an ARM in Kansas is 3.75%.
Kansas Mortgage Resources
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.
|Resource||Problem or Issue||Who Qualifies||Website|
|Kansas Housing Resources Corporation||Forgiveable loans for first-time homebuyers; weatherization help; moderate income solutions.||First-time homebuyers, homeowners who meet eligibility requirements for weatherization updates, moderate-income families who don't qualify for federal housing assistance; minimum credit score of 660.||http://www.kshousingcorp.org/1new-page.aspx|
|Kansas Housing Assistance Program||Lowering costs for first-time homebuyers; down payment and closing cost assistance.||First-time homebuyers who meet eligiblity and income requirements.||http://kshap.org/|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
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 (up to $1,000,000), and 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.
Also note that Kansas charges a 0.26% mortgage fee on real estate transactions.
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
Kansas homeowners -- if it’s time to refinance, you can start with the Home Affordable Refinance Program of Kansas. Eligible homeowners can receive low closing costs plus a reduction in monthly principal and interest payments. HARP accepts single family homes and condos for refinance assistance.
If you don’t qualify for a program, remember you always have the option of working with the lender who issued your current mortgage and comparing rates with other lenders to ensure that you land on a solution that really works for your situation.
See Mortgage Rates in These Other States
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset