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Idaho does not officially use mortgages for home or property purposes. They use a loan product called “Trust of Deed”. This product, while structured much like a mortgage actually involves three parties instead of just the buyer and seller. The third person in the loan is a trustee that holds title to the property as the loan is paid off. The loans themselves are structured just like a typical mortgage. In Idaho you can currently apply for a conventional fixed rate loan, 3 different types of adjustable rate loans, balloon mortgages and jumbo loans. Again, these transactions are called by a different name under Idaho law, but the qualifications and payments are made just like a typical mortgage in any other state. Idaho has option for first time home buyers as well as those with bad credit.

Idaho Mortgage Rates

In comparison to other states, mortgage rates in Idaho tend to be higher than rates found elsewhere in the nation. This is because it is considered a higher cost state. Homes cost more in Idaho than in many other parts of the country which leads to a higher risk for the lender. Mortgage rates will be based on the type of loan you select, the loan to value ratio and, of course, your credit rating. Other considerations will include employment and amount of down payment. People with less than perfect credit should expect to pay an even higher interest rate.

Idaho Refinance Rates

Much like regular mortgages, Idaho refinance rates are higher than in most other parts of the country. Your final interest rate will be based on the amount that is being refinanced, if there is any equity accessed in the loan as well as credit and employment qualifications. Much like a regular mortgage in Idaho, a refinance will go through a trustee.

Idaho Mortgage Brokers And Lenders

There are several hundred different private lending companies, credit unions and banks offering mortgages in Idaho. Gathering information from several lenders prior to applying for a mortgage will help you select the one offering the best rates. Some lenders are offering points to reduce your interest as an incentive to gain your business. Internet mortgages are allowed in the state if the company complies with the trustee rules.