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Mississippi Ranked Among Best States to Get a Mortgage; New York Ranked Among Worst

applicationConsumers that are looking to purchase a home must consider the varying mortgage rates and home prices in different states. GOBankingRates recently released a report, ranking all the states according to where it's easiest and cheapest to get a mortgage.

The company reviewed all 50 states based on the local rates offered on 15-and 30-year fixed-rate mortgages (FRMs) in the first quarter of 2015, weighted with the average home listing price in the state.

Among the best states to get a mortgage loan were Mississippi, Iowa, and Ohio, and among the worst were Hawaii, California, and New York.

GOBanking Rates Top Five States for Getting a Mortgage Loan:

1. Mississippi

Mississippi offers low mortgage rates to its residents, with the second-best average 15-year FRM rate in the study at 3.024 percent APR during the first quarter of 2015. Its 30-year mortgage rate is also below the national average at 3.764 percent APR. The state's low home prices are also a big boon to buyers. Trulia reports an average listing price in Mississippi of $233,639.

2. Iowa

For the lowest 30-year mortgage rate, look to Iowa. The Midwest state's 3.748 percent average rate on 30-year FRMs is the best of any state, and its average 15-year FRM rate is 3.047 percent. The low average listing price of $200,665 means that mortgage payments will remain low. Des Moines, Iowa, was named one of the hottest housing markets in 2015 by Realtor.com, with the state's low home costs making homeownership accessible to millennials.

3. Ohio

Ohio came in at number three thanks to favorable 15-year and 30-year mortgage rates. The average 3.757 percent 30-year mortgage rate in Ohio is the more competitive of the two, ranked sixth among all 50 states, but the Ohio 15-year FRM rate of 3.046 percent is still better than the median. Ohio also boasts the lowest average listing price in the nation at $191,283, according to Trulia.

4. Missouri

Continuing the trend among Midwestern states, Missouri also offers some of the best 30-year mortgage rates out there. Its average 30-year mortgage rate of 3.756 percent is the fourth-best rate in the nation. Its higher-than-average 15-year FRM rate of 3.052 percent, however, pushed Missouri down to the number four spot on this list. The average home listing price is also low at $208,059.

5. Kansas

The mortgage rates in Kansas are fairly competitive, though the state's average 30-year FRM rate pulls ahead at 3.763 percent, which ties it with Georgia for the 14th-best mortgage rate. The better-than-average 30-year rate and middle-of-the-pack 15-year mortgage rate average (3.048 percent) provide a balance that kept Kansas near the top of this list, along with its low average listing price of $208,998.

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
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