| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | 6.96% | 7.056% |
| 15-year fixed | 6.736% | 7.015% |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | N/A | N/A |
There’s no place like home, especially in Kansas. The Sunflower State offers a lower-than-average cost of living and reasonable home prices.
Start with our guide to current Kansas mortgage rates when you’re ready to buy or refinance a home.
What is a Mortgage Rate?
Your mortgage rate is what you pay a lender for loaning you money. You’ll see 2 rates from prospective lenders as you start to shop for a mortgage:
- The interest rate, which doesn’t include points or fees.
- The annual percentage rate (APR), which does include points and fees.
Both rates are informative. For example, if you notice a significant difference between the interest rate and the APR, it could be a clue that there are high fees involved in your mortgage. Dig into the fine print to learn more about the fees.
Make sure you’re comparing the same rates when you review quotes from different lenders. You can compare interest rate to interest rate or APR to APR. You don’t want to compare an interest rate from 1 lender to an APR from another lender. That’s essentially comparing apples to oranges.
5 Best Mortgage Lenders in Kansas
Ready to find a great rate? Here are the best mortgage lenders in Kansas.
- Online Service
1. Best Overall: Quicken Loans®
Quicken Loans® offers a simple, transparent mortgage process.
You can complete an application online using the intuitive Rocket Mortgage® by Quicken Loans® platform.
You can also apply by phone with the assistance of a Home Loan Expert.
Track your loan process online once the application is complete. Quicken Loans offers conventional, FHA, VA and jumbo
- Current Service Members
2. Best for Veterans: Veterans United
Veterans and service members deserve the best. Veterans United is the top VA purchase lender in the country due to its outstanding service.
Its website is informative and easy to navigate. Veterans United focuses exclusively on VA loans, so it knows the ins and outs of the process. Representatives are available around the clock to answer your questions.
Veterans United clients have left thousands of reviews praising its knowledgeable, hardworking staff. The VA loan process might seem complicated, but Veterans United makes it simple.
3. Best for First-Time Home Buyers: Capitol Federal
Capitol Federal is one of the top lenders for first-time buyers. It has many branches throughout Kansas, and a loan officer can walk you through the process. Its officers know the local market and can help you decide which mortgage is right for you.
Capitol Federal is a leader in residential lending in Kansas. It offers fixed- and adjustable-rate mortgages, construction loans, home improvement loans and VA loans. It also has special programs for low- and moderate-income home buyers.
- The Online Experience
4. Best for Online Lending: Better.com
Better.com offers a digital mortgage experience. It’s done more than just move the traditional mortgage process online. Better.com uses technology to streamline the process so you can close on your home sooner rather than later.
You can get a basic preapproval in just a few minutes and see what’s happening with your loan in real time online. Better.com doesn’t charge any lender fees, which can cost thousands of dollars.
It offers fixed-rate FHA loans and fixed- and adjustable-rate conventional and jumbo loans.
5. Best for Self-Employed Individuals: American Financing
Lenders sometimes see self-employed professionals as a higher risk, and this can make it challenging to get a home loan. You must also prove your income as a part of the mortgage process. Tax returns may not reflect your true income.
American Financing offers a bank statement loan program to address these problems. You can qualify based on the income shown on your bank statement and borrow up to 90% of the home’s value, depending on your reserve funds and your credit profile.
American Financing works with borrowers who have credit scores as low as 600.
What Factors Impact Your Mortgage Rate?
Lenders don’t offer all borrowers the same rate. Here are the factors lenders consider when deciding what rate to offer you.
- Your credit history: Lenders try to predict the future by looking at your credit past. If you have a history of paying your bills on time and keeping low balances on your credit cards, you’ll be in good shape. On the other hand, if you’ve struggled with making on-time payments or have had accounts go into collections, you might face more challenges.
You can improve your credit by adopting new habits. A HUD housing counselor can be an excellent resource for tips and strategies to improve your credit. - Your down payment: The bigger your down payment, the less risk for the lender. Lenders want as little risk as possible. A larger down payment also means you don’t need to borrow as much, so you’ll have lower monthly payments.
- Points and credits: Points and credits are options lenders offer that can lower or raise your interest rate. Points allow you to pay more upfront in exchange for a lower interest rate. Credits allow you to lower your closing costs by having the lender cover some of the costs. In exchange, you have a higher interest rate.
What is a Mortgage Type?
Your mortgage type refers to whether your mortgage is directly tied to a government program. Here are common mortgage types:
- Conventional mortgages aren't insured directly by a government program. Some conventional mortgages follow rules set by Freddie Mac and Fannie Mae. These are private companies sponsored by the federal government.
Home loans that follow those rules are called conforming conventional mortgages. Nonconforming conventional mortgages don’t follow those rules. - FHA loans: The Federal Housing Agency backs FHA loans. These loans have low down payment and credit score requirements. They’re designed to encourage a broader range of borrowers to become homeowners.
- USDA loans: USDA loans are sponsored and insured by the Department of Agriculture. These loans help moderate- and low-income borrowers buy homes in rural areas. No down payment is required. You can look up Kansas addresses on the USDA website to find eligible homes near you.
- VA loans: The Department of Veterans Affairs insures VA loans. These loans are available to service members and veterans who meet eligibility criteria. There is no down payment requirement.
What is a Mortgage Term?
Your mortgage term refers to how your loan is structured. Here are common options:
- 30-year fixed mortgages have an interest rate that never changes, so your required monthly payments stay the same. A 30-year fixed-rate mortgage has a 30-year payment schedule.
- 15-year fixed mortgages have a 15-year payment schedule. The interest rate and payments stay the same for the entire term. The payments are higher than with a 30-year mortgage, but you pay less in interest over the life of the loan.
- 5/1 ARM mortgages have interest rates that the lender can change. These mortgages are called adjustable-rate mortgages (ARMs). With a 5/1 ARM, the mortgage has the same rate for the first 5 years. Then the lender can adjust the rate annually.
Current Kansas Mortgage Rates
Lenders change interest rates to reflect what’s happening in the world around us. Lenders will lower interest rates to encourage people to borrow money when the economy isn’t doing well. Interest rates bounce back when things improve. Lenders can change rates as often as multiple times in 1 day.
Benzinga updates our rates frequently so you have the most up-to-date data. Here are the current rates in Kansas:
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed | 6.96% | 7.056% |
| 15-year fixed | 6.736% | 7.015% |
| 7/1 ARM (adjustable rate) | N/A | N/A |
| 5/1 ARM (adjustable rate) | N/A | N/A |
Calculating Interest in Kansas
Your monthly mortgage payment goes toward interest and your loan balance. More of your monthly payment goes toward your loan balance each month and less goes toward interest. This process is called amortization.
Here’s how much you can expect to pay in interest in the largest cities in Kansas.
| City | Average Home Value | Loan Term | Current Rate | Downpayment (20%) | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|---|
| Topeka | $112,800 | 30-year fixed | 6.91% | $22,560 | $594.92 | $123,931.20 |
| Wichita | $129,600 | 30-year fixed | 6.91% | $25,920 | $683.53 | $142,390.80 |
| Kansas City | $159,000 | 30-year fixed | 6.91% | $31,800 | $838.59 | $174,692.40 |
| Lawrence | $208,100 | 30-year fixed | 6.656% | $41,620 | $1,069.40 | $218,504.00 |
Lender Credit Score Minimums in Kansas
Your credit score is a computer-generated number lenders use to assess how risky it is to loan you money. The higher your score, the better. A higher credit score may result in a lower interest rate.
Lenders also have minimum credit scores. You may need to improve your score before you qualify for a home loan if you’re below the minimum. Here are the minimum credit scores for several Kansas lenders.
| Lender | Minimum credit score required |
|---|---|
| Quicken Loans® | 620 |
| better.com | 620 |
| Veterans United | 660 |
| Bank of America | 620 |
| loanDepot | 620 |
Find the Best Rates in Kansas
Contact multiple lenders to find the best mortgage rates in Kansas. Review each quote carefully and ask questions if you have concerns along the way.
Choose a lender that offers reasonable rates along with excellent service. Start with our list of recommended lenders today.
