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Finding the best mortgage rates in Rhode Island is important for first-time buyers as well as seasoned purchasers looking for a new home. Since there are many mortgage lenders to choose from, including banks, credit unions, and online lenders, shopping around with at least three will help you avoid paying too much.
For today, January 28th, 2022, the current average mortgage rate in Rhode Island for a 30-year fixed-rate mortgage is 3.697%, the average rate for a 15-year fixed-rate mortgage is 3.063%, and the average rate for a 5/1 adjustable-rate mortgage (ARM) is 2.125%. Rates are quoted as annual percentage rate (APR) .
Current Mortgage and Refinance Rates in Rhode Island
Rates As of Jan 28, 2022
| Product | Interest Rate | Average Points/Credits |
|---|---|---|
| Fixed 30 Year | 3.697% | 0.377 |
| Fixed 30 Year - FHA | 3.634% | 0.229 |
| Fixed 30 Year - VA | 3.277% | 0.810 |
| Fixed 30 Year | 3.836% | 0.669 |
| Fixed 15 Year | 2.874% | 0.044 |
| Fixed 30 Year - FHA | 3.893% | 0.044 |
5 affordable places to live in Rhode Island
Looking for a place with a low cost of living in Rhode Island? Check out these affordable places to buy your new home.
1. Valley Falls
According to Niche, Valley Falls is the town in Rhode Island with the lowest cost of living. It's also the most inexpensive suburb in the state, and the eighth-best suburb in which to buy a home. The median home value of $224,000 in Valley Falls is a bit higher than the national average of $184,700, and 67% of residents of this town of nearly 12,000 own their homes. Unfortunately, property taxes in Providence County are on the high side according to Tax-Rates.org, averaging 1.31% of assessed fair market value.
2. Cumberland
Cumberland is a much larger town than Valley Falls, with a population of almost 35,000. It offers access to Blackstone Gorge, where residents can enjoy walking and taking in the views, and to Diamond Hill Park. These outdoor attractions are one reason this area was identified as the third-best suburb and the fifth-best location in which to buy a house in Rhode Island. Nearly 75% of Cumberland residents are homeowners, even with a high median home value of $274,400. Like Valley Falls, Cumberland is in Providence County, so property taxes are the same -- 1.31%.
3. Burrillville
Burrillville is home to more than 16,000 Rhode Islanders, and 75% of its residents own their homes. Houses here have a median value of $239,500, a bit below some of the other places on our list. Burrillville ranks eighth in Rhode Island for its cost of living. It's also in Providence County (Rhode Island is famously small, after all), so has the same property tax rate of 1.31% of assessed fair market value.
4. Smithfield
In this town of 21,630 residents, the median home value is $274,400, but 79% of people own their houses. Smithfield has been recognized as the 14th-best suburb in Rhode Island for raising a family, and it's one of the best places in Rhode Island to retire. It is also in Providence County, with its high average property tax rate of 1.31%.
5. Coventry
Coventry is one of the larger Rhode Island towns on our list, with a population of 34,575. Like some of its counterparts, it's recognized as a great place to raise a family. It's also occupied mostly by homeowners, with just 23% of residents renting. It boasts a median home value of $230,800, well above the national average. Unlike the other places on our list, however, Coventry is in Kent County, where property taxes are even higher at 1.42% of a property's assessed fair market value. Residents may not mind higher taxes, since they live near Moosup Valley State Park and several historical sites, including the Paine House Museum and the General Nathanael Greene Homestead.
If you want to ensure that becoming a homeowner is affordable, shop carefully for the best mortgage rate, and compare the costs of living in areas where you're thinking of buying. By choosing the right loan and an affordable locale, you can end up with monthly mortgage payments you can easily afford.
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The Ascent's best mortgage lenders
If you want to uncover more about the best mortgage lenders for low rates and fees, our experts have created a shortlist of the top mortgage companies. Some of our experts have even used these lenders themselves to cut their costs.
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