Boise Mortgage Rates

Rates are a general range of financing options for homeowners from conventional loans to more niche products like DSCR (Debt Service Coverage Ratio) and bank statement loans for self-employed borrowers. Mortgage rates are relatively stable in Boise compared to other parts of the country, but they can still move based on many factors. Below we’ll go into those factors and the different types of loans and their uses. It is crucial to seek expert advice when navigating mortgage rates to ensure you make informed decisions.

What Affects Boise Mortgage Rates

Knowing what affects mortgage rates can help you better predict rate changes and make better financial decisions. While each individual’s mortgage rate is based on their personal financial situation, broader economic forces also play a big role. Here’s a breakdown of what drives mortgage rate movement in Boise:

1. Federal Reserve

The Federal Reserve sets the tone for mortgage rates across the country. While the Fed doesn’t directly set mortgage rates, their interest rate and inflation policies affect the cost of borrowing. When the Fed raises interest rates to combat inflation mortgage rates go up. When the Fed lowers interest rates to stimulate the economy mortgage rates go down.

As of 2024 the Federal Reserve has taken a more hawkish stance and raised interest rates to combat inflation. This has caused rates to rise over the past year. For homebuyers and refinancers in Boise it’s important to watch these rate movements closely and lock in a rate before they go up again and save thousands over the life of your loan.

2. Inflation

Inflation is one of the biggest drivers of mortgage rates. When inflation rises the purchasing power of the dollar goes down and lenders raise rates to protect themselves from future losses. Higher inflation means it costs more to borrow money so mortgage rates go up for borrowers.

In periods of high inflation locking in a fixed rate mortgage can be a smart move. This way your mortgage payments stay the same even if rates go up further. Since inflation is a concern in 2024 locking in a good rate now will provide long term stability.

3. Economic Conditions

The overall state of the U.S. economy also affects mortgage rates. In times of economic growth and low unemployment mortgage demand increases and rates go up. In economic downturns or times of uncertainty mortgage rates go down as demand for loans decreases.

Boise has had steady economic growth in recent years with a booming tech sector, low unemployment and a growing population. As a result the city’s housing market has been competitive with consistent demand for homes. This demand plus the good economic conditions has kept rates relatively stable compared to other parts of the country. Additionally, West Boise has seen significant economic growth and residential development, with major shopping centers like Boise Towne Square Mall and various restaurants contributing to the area's appeal.

4. Boise Housing Market

Boise’s housing market has grown rapidly over the past 10 years with home prices increasing due to high demand and low inventory. While this has made it tougher for some to get into the market it’s still a good place for long term investors. Rising home values can also affect mortgage rates as higher home prices means larger loan amounts which can mean higher rates. The development and characteristics of neighborhoods in the east end of Boise, such as Warm Springs, highlight upscale homes and proximity to natural features, reflecting the area's evolution and access to major transportation routes.

For buyers looking to buy in Boise it’s important to weigh the potential for continued appreciation against current rates. Lock in a low rate today and it will be good if home values continue to rise as your payments will be lower over the life of the loan.

5. Personal Factors

Your personal financial situation affects the rate you’re offered. Lenders look at many factors when determining your rate including:

• Credit Score: Borrowers with higher credit scores qualify for lower mortgage rates as they are less of a risk to the lender. A score of 740 or above is generally considered excellent and will get you the best rates.
• Down Payment: The size of your down payment affects the rate you’re offered. Larger down payments reduce the lender’s risk so rates will be lower.
• Debt-to-Income Ratio (DTI): Lenders use your DTI to determine your ability to repay the loan. A lower DTI means you have more disposable income and are less likely to default on the loan so rates will be lower.
• Loan Amount and Term: The amount you borrow and the length of your loan term also affect your rate. Larger loan amounts or longer terms may mean higher rates as the lender takes on more risk.

Exploring Boise Neighborhoods and Areas

Boise, Idaho, is a city that offers a unique blend of urban and wild experiences. The city is divided into several neighborhoods and areas, each with its own character and charm. From the vibrant downtown area to the scenic Boise Foothills, there’s something for everyone in Boise. Whether you’re drawn to the bustling city life or the tranquility of nature, Boise has a neighborhood that will feel like home.

Downtown Boise: A Hub for Homebuyers

Downtown Boise is the cultural center of the city, with a variety of shops, restaurants, and entertainment options. The area is also home to many small businesses and a growing number of high-rise buildings. The Basque Block, a popular tourist destination, is located in downtown Boise and showcases the city’s Basque heritage.

Downtown Boise is a popular choice for homebuyers, with a range of housing options available, from apartments to single-family homes. The area is also close to many of Boise’s major attractions, including the Idaho State Capitol, the Boise Art Museum, and Zoo Boise. Living in downtown Boise means you’re always just a short walk away from the city’s best dining, shopping, and cultural experiences.

Boise Mortgage Products

Boise has many mortgage products to fit different types of borrowers. Whether you’re a first-time homebuyer, investor or self-employed there’s a loan product for you. Below we’ll go into each of these:

Disclaimer:

The mortgage rates mentioned in this article are for informational purposes only and are subject to change daily based on market conditions, lender policies, and other economic factors. While we strive to provide accurate and up-to-date information, these rates may not reflect the most current rates available.



For personalized, up-to-date rate information and tailored mortgage advice, it is recommended that you consult with a mortgage professional who can assess your unique financial situation. Mortgage professionals can help guide you through the available loan products and provide recommendations based on your credit profile, income, down payment, and long-term financial goals.

1. Conventional 30-Year Fixed Rate Mortgage

The conventional 30-year fixed rate mortgage is the most popular loan product in the US and Boise is no exception. This loan has a fixed rate for 30 years and a fixed payment for the life of the loan. It’s for borrowers who plan to stay in their home long term and want a stable payment.

• Rate: 5.875%
• APR: 5.979%

Conventional loans require a higher credit score (usually 620 or above) and a larger down payment than government backed loans. But they offer more flexibility in loan amounts and property types.

2. FHA 30-Year Fixed Rate Mortgage

FHA (Federal Housing Administration) loans are for first time homebuyers and borrowers with less than perfect credit. These loans are government backed so lenders can offer more lenient qualification criteria such as lower down payments and credit score requirements.

• Rate: 5.00%
• APR: 5.444%

FHA loans require a 3.5% down payment so are for buyers who don’t have a lot of savings. But they do have mortgage insurance premiums (MIP) which will add to your overall cost of borrowing.

3. VA 30-Year Fixed Rate Mortgage

VA (Veterans Affairs) loans are for active-duty military, veterans and eligible spouses. These loans have some of the best terms available including no down payment and no private mortgage insurance (PMI) so are a great option for those who qualify.

• Rate: 5.125%
• APR: 5.238%

VA loans are backed by the U.S. Department of Veterans Affairs so lenders can offer competitive rates and terms. If you’re a veteran or active-duty military in Boise a VA loan could be the way to go for buying a home with little to no upfront costs.

4. Jumbo 30-Year Fixed Rate Mortgage

Jumbo loans are for borrowers who need to finance higher priced homes that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In Boise where home prices have skyrocketed jumbo loans are often needed for luxury homes or homes in high demand areas.

• Rate: 5.99%
• APR: 6.053%

Jumbo loans require a higher credit score (usually 700 or above) and a larger down payment (often 20% or more). These loans have stricter underwriting requirements but allow you to finance properties that are outside of conventional loan limits.

5. Jumbo ARM (ADJUSTABLE-RATE Mortgage)

Jumbo ARMs have the benefits of a jumbo loan but with an adjustable rate so the interest rate can change over time. These loans have a fixed rate for a set period (e.g. 5 or 7 years) before adjusting based on market conditions. Jumbo ARMs are for borrowers who plan to sell or refinance before the adjustable period begins.

• Rate: 5.875%
• APR: 6.148%

But because the rate can increase after the initial fixed period you should weigh the risks before choosing a jumbo ARM.

6. DSCR (Debt Service Coverage Ratio) Loan

DSCR loans are for real estate investors who want to qualify for a mortgage based on the income potential of the property not their personal income. These loans are popular among investors who own multiple rental properties as they focus on the cash flow of the property.

• Rate: 6.50%
• APR: 6.698%

With a DSCR loan the lender looks at the property’s rental income and compares it to the loan payment to determine eligibility. This makes it easier for investors to qualify especially if they have a complex financial situation or irregular income streams.

7. Bank Statement Loan

Bank statement loans are for self-employed or those with non-traditional income sources. Instead of using W-2s or tax returns the lender uses bank statements to verify income. These loans are great for business owners, freelancers or gig workers.

• Rate: 6.625%
• APR: 6.729%

These loans have more lenient qualification criteria but usually have higher interest rates because of the increased risk to the lender.

8. HELOC (Home Equity Line of Credit)

A HELOC allows homeowners to tap into their home’s equity as a line of credit. This is great for financing home improvements, consolidating debt or other large expenses. HELOCs have variable interest rates which means they can change over time.

• Rate: 7.75%
• APR: 7.965%

HELOCs offer flexibility as you can borrow only what you need and pay interest only on what you use. But because they are variable rate, your payments can increase if rates go up.

9. HELOAN (Home Equity Loan)

A home equity loan allows homeowners to borrow a lump sum against the equity in their home. This is for those who need a one-time cash infusion for a large project or expense. Unlike HELOCs home equity loans have fixed rates so your payments are fixed for the life of the loan.

• Rate: 7.25%
• APR: 7.469%

Home equity loans are for homeowners who want to finance major renovations, pay off high interest debt or cover medical expenses.

Education and Mortgage Options

Boise is home to several institutions of higher education, including Boise State University. The university is located in the heart of the city and offers a range of academic programs. The area surrounding the university is popular with students and faculty, with many housing options available. This vibrant community is perfect for those who want to be close to educational opportunities and the lively atmosphere of a college town.

Boise State University Area: A Popular Choice for Students and Faculty

The Boise State University area is a popular choice for students and faculty, with many housing options available. The area is close to the university and offers easy access to downtown Boise. The neighborhood is also home to many shops, restaurants, and entertainment options, making it a convenient and lively place to live.

For those looking to purchase a home in the Boise State University area, there are several mortgage options available. VA loans are a popular choice for veterans and active-duty military personnel, offering competitive interest rates and favorable terms. Other mortgage options, such as conventional loans and FHA loans, are also available, ensuring that you can find the right financing to suit your needs.

Should I Lock in a Rate Now?

Whether you should lock in a rate now depends on your personal financial situation and the current market. If you think rates will continue to rise due to inflation or Fed changes locking in a rate now will protect you from future rate increases.

On the other hand, if you think rates will stabilize or go down in the near future you may want to wait and see how the market plays out. Remember timing the market is always tough and locking in a rate gives you peace of mind knowing your mortgage payment will be the same.

For Boise homebuyers and refinancers now could be a good time to get a rate, especially with demand high and the local economy growing.

Refinancing in Boise: Worth It with Current Refinance Rates?

If you’re already a homeowner in Boise and locked into a higher rate from the past refinancing could save you thousands of dollars over the life of the loan. Refinancing allows you to replace your existing mortgage with a new one, ideally at a lower rate or better terms.

But refinancing isn’t free. You’ll have to pay closing costs which can be 2% to 5% of the loan amount. And you’ll need to consider the break-even point which is the amount of time it will take for your savings to pay back the cost of refinancing. If you plan to stay in your home long term refinancing could be a good move. Refinancing can also help you enjoy local amenities like the Morrison Center, a significant venue for cultural events and performances in Boise.

Refinancing can also be used to switch from an adjustable-rate mortgage to a fixed rate loan, consolidate high interest debt or tap into your home’s equity for a large expense.

Choosing the Right Lender

Choosing the right lender can be a daunting task, but it’s essential to find a lender that meets your needs. Consider factors such as interest rates, fees, and customer service when making your decision. It’s also essential to work with a lender that has experience in the Boise market. Local lenders often have a better understanding of the area and can provide more personalized service.

In addition to traditional lenders, there are also several online mortgage lenders that offer competitive rates and terms. These lenders often offer easy access to mortgage applications and pre-approvals, making the homebuying process more convenient. Whether you prefer the personal touch of a local lender or the convenience of an online application, there’s a mortgage lender in Boise that’s right for you.

Phil Gustin: Your Boise Mortgage Guy

As a mortgage broker with over 15 years of experience I help clients find the best mortgage for their situation. Whether you’re a first-time homebuyer, real estate investor or a homeowner looking to refinance I’m here to give you personalized advice and get you the best rates and terms. I will help you with exceptional service, walk you through the mortgage process and help you make good financial decisions for your future. Click the button below to get started today!