If you are in the market for a new home, or refinancing the one you own, you may pay more depending upon where you live. A new study shows some states have pricer mortgage rates than others
Most of us believe a good credit score is all we need to get the best rate but now it seems what you pay, may be linked to the state in which you live.
Two different mortgage rate information sites -- go banking rates and rate watch -- recently conducted of survey of mortgage rates across the country. The sites found seemingly small differences that can amount to big dollars.
Rhode Island had the lowest interest rates, with an average of 3.4-percent, which is below the national average.
But in Nebraska, residents paid the highest interest in the nation at 4.1-percent.
If that sounds negligible, consider this, over 30 years, a difference of 0.7-percent on a $200,000 loan eventually costs 28,000 more in Nebraska than Rhode Island.
Why is this the case? In areas with struggling economies, lenders lower rates to encourage borrowers. A better economy can bump up interest costs.
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