Mortgage rates are not the same in every state

Mortgage interest rates are not the same from state to state in this country. What you pay depends on several factors, like homestead exemptions and title fees in your location.

HUD estimates that those buying homes or refinancing mortgages???? in non-recourse states (those that don't allow lenders to sue borrowers when???? property nets less in a foreclosure sale than the balance of the mortgage) pa approximately $500 more in fees on a $100,000 mortgage than borrowers in recourse states, because the non-recourse mandate increases the potential for lenders' losses in those states.

Another determinant???? in mortgage pricing is the extent of homestead exemptions. Bigger exemptions make the mortgage less risky???? for the lender. Why? Large homestead exemptions allow borrowers to declare personal bankruptcy (discharge other personal debts) without also defaulting on the mortgage. This???? provides them with more resources after filing to make mortgage payments. HUD says that that lender fees are $500 lower in states where the homestead exemption exceeds $40,000.

HUD also found that lender / broker fees were mysteriously higher in some states than others. While Alaska borrowers paid the least amount, followed by Wyoming, North Dakota, Tennessee, and and Minnesota,???? those in Nevada, Utah, Michigan, Florida, and Ohio paid the most -- on average more than $2,000 more.

Title charges make up some of the largest costs of refinancing a mortgage, and they range widely (on a $100,000 loan they can vary from $668 to $2,090) depending on where???? your home is located (when buying the home, the seller usually splits these charges with you). Title charges are lowest in North Dakota, Georgia, Wyoming, Colorado, and North Carolina, and highest in New York, Texas, California, New Jersey, and Connecticut. Keep in mind that you are allowed to shop for the title company with the lowest charges, and you're not obligated to use the one recommended by a real estate agent or lender.

Average mortgage interest rates by state over the last 30 years

Here is a list of average mortgage interest rates over the thirty year period from 1978 to 2008, derived from data provided by the Federal Housing Finance Agency, sorted from least expensive to most expensive. Note the difference in rate from the lowest to highest is over one percentage point.

When shopping for a mortgage, be sure and let the lenders know where the property is located. Find lenders licensed in your state and compare Good Faith Estimates to find your lowest mortgage interest rates.