South Carolina Mortgage Rates And Loan Options Guide

Current Mortgage Rates in South Carolina

As of Friday, November 28, 2025, mortgage rates in South Carolina reflect the broader national lending landscape. The current rate for a 30-year fixed mortgage stands at 6.75%, while 15-year fixed-rate mortgages are available at 6.63%. These rates represent an important snapshot for prospective homebuyers and those considering refinancing their existing mortgages.

The trajectory of mortgage rates throughout 2025 has been notably favorable for borrowers. Rates began the year hovering near 7 percent, but economic uncertainty prompted a downward trend early in the year. Today, rates average closer to 6 percent, with the lowest point of the year reached in late October. For homebuyers and refinancers in South Carolina, this represents a meaningful improvement from early 2025 levels, though rates remain elevated compared to pandemic-era lows.

Looking forward, mortgage rate predictions suggest a continuation of current trends. Many experts anticipate modest decreases in rates for the remainder of 2025 and into 2026, though rates are expected to remain above 6 percent throughout this period. This forecast should inform your timing decisions if you’re considering a home purchase or refinance.

Refinance Rates in South Carolina

Mortgage refinancing has undergone a dramatic transformation since the pandemic era, when unprecedented low rates led to approximately 14 million mortgage refinances. Today’s refinance rates have more than doubled from those lows, currently hovering between 6 and 7 percent for both 30-year and 15-year refinance terms.

Whether refinancing makes financial sense depends heavily on your current mortgage rate. If you secured a mortgage rate below 4 percent, refinancing is generally not advisable given current market conditions—the rate improvement would likely be insufficient to offset closing costs and the lengthy break-even period. However, if you obtained a mortgage more recently with a rate between 7 and 8 percent, now represents an opportune moment to refinance and potentially save significant money over the life of your loan.

According to the October 2025 ICE Mortgage Monitor report, approximately 3.1 million mortgage holders across the nation could reduce their interest rates substantially through refinancing. Notably, three-quarters of these borrowers obtained their original mortgages in 2023 or later, indicating that recent homebuyers represent the primary demographic that could benefit from refinancing. If you fall into this category, a thorough analysis of your mortgage terms is warranted.

National Mortgage Rates by Loan Type

Understanding the various mortgage products available helps you make an informed decision about which loan type suits your financial situation and homeownership goals. The following rates reflect current national averages as of November 28, 2025:

The 30-year fixed mortgage remains the most popular choice among homebuyers due to its predictability and lower monthly payments compared to shorter-term options. The 15-year fixed mortgage attracts borrowers seeking to build equity faster and pay less interest over the loan’s lifetime, despite higher monthly payments. FHA loans provide accessible options for borrowers with lower credit scores or smaller down payments, while VA loans offer benefits for military service members and veterans. Jumbo loans, designed for properties exceeding conventional loan limits, carry slightly higher rates reflecting increased lender risk.

South Carolina Housing Market Snapshot

Understanding the broader housing market context provides essential perspective when making mortgage decisions. Key metrics from September 2025 reveal important market dynamics:

Median Home Sales Price: $381,600 as of September 2025, reflecting the current valuation landscape across the state. Median Home Value: $300,996 as of April 2025, providing insight into overall property valuations. Median Down Payment: $56,500 as of April 2025, suggesting typical buyer commitment levels. Median Days on Market: 83 days as of September 2025, indicating moderate market liquidity. Percentage of Homes Sold Above List Price: 11.7% as of September 2025, showing some seller advantage in select market segments. Percentage of Homes with Price Drops: 28.5% as of September 2025, indicating price adjustments in a shifting market. Homeownership Rate: 75.4% in Q1 2025, reflecting strong homeownership prevalence in South Carolina.

South Carolina Mortgage Programs and Options

Conventional Mortgages

Conventional mortgages represent the most straightforward borrowing path for qualified buyers. To qualify for a conventional mortgage in South Carolina, you’ll typically need a minimum credit score of 620 and maintain a debt-to-income (DTI) ratio of no more than 45 percent. If your down payment falls below 20 percent, you’ll be required to pay private mortgage insurance (PMI) premiums, which protect the lender against default risk. These mortgages offer competitive rates and flexible terms, making them suitable for buyers meeting standard credit and income requirements.

SC Housing Homebuyer Program

South Carolina’s SC Housing Homebuyer Program specifically targets first-time homebuyers seeking accessible financing options. The program offers 30-year mortgages with competitive fixed interest rates, though participants must maintain a credit score of at least 640. One of the program’s most compelling features is down payment and closing cost assistance with no monthly payment requirement. Even more remarkably, borrowers may qualify for forgiveness of this assistance after 15 years of continuous residence in the home. For first-time buyers struggling with down payment accumulation, this program represents a significant pathway to homeownership.

SC Housing Palmetto Home Advantage

The Palmetto Home Advantage program extends beyond first-time homebuyers, though first home purchases remain eligible. This program offers competitive interest rates alongside forgivable down payment assistance of up to 4 percent of the loan amount. To qualify, applicants need a credit score of at least 640, and household income cannot exceed $135,750. Notably, the program imposes no purchase price limits on the home you buy, allowing qualified borrowers to purchase properties at any price point within their financial capacity. This flexibility makes the program attractive for buyers seeking homes across various price ranges throughout South Carolina.

How to Find the Best Mortgage Rate in South Carolina for You

Step 1: Strengthen Your Credit Score

Long before you begin contacting mortgage lenders or submitting loan applications, conduct a comprehensive financial checkup. Your credit score represents one of the most influential factors in mortgage rate determination. Higher credit scores typically qualify for lower interest rates, potentially saving tens of thousands of dollars over a 30-year loan term. Review your credit report from all three bureaus (Equifax, Experian, and TransUnion), dispute any errors, pay down existing debts, and ensure all payments are made on time. Even small improvements to your credit profile can result in meaningful rate reductions.

Step 2: Determine Your Budget

Establishing a realistic budget forms the foundation of successful home shopping. Calculate how much house you can genuinely afford by examining your income, existing debts, savings for down payment and closing costs, and monthly expense obligations. A helpful rule of thumb suggests that housing costs (mortgage payment, property taxes, insurance, and HOA fees if applicable) should not exceed 28 percent of your gross monthly income. Using mortgage calculators and consulting with lenders about pre-qualification can help clarify your purchasing power and prevent overextending financially.

Conforming and FHA Loan Limits by County

South Carolina’s 46 counties each have specific conforming and FHA loan limits that determine the maximum mortgage amounts for conventional and FHA-insured loans. All South Carolina counties maintain a Federal Housing Finance Agency (FHFA) conforming limit of $806,500, the standard for most of the state. FHA loan limits, however, vary by county based on local median home values. Most counties have an FHA limit of $524,225, while counties with higher property values—including Beaufort ($609,500), Charleston ($632,500), Berkeley ($632,500), Dorchester ($632,500), and Jasper ($609,500)—feature elevated FHA limits reflecting their respective housing markets.

Frequently Asked Questions

Q: What credit score do I need to qualify for a mortgage in South Carolina?

A: Conventional mortgages typically require a minimum credit score of 620, though scores of 640 or higher are needed for state-specific programs like SC Housing offerings. Higher credit scores generally qualify for better interest rates.

Q: How much down payment do I need for a South Carolina mortgage?

A: Conventional loans often accept down payments as low as 3-5 percent, though 20 percent down eliminates PMI requirements. SC Housing programs and other assistance offerings may require varying down payment amounts, with some providing forgivable down payment assistance.

Q: Should I refinance my current South Carolina mortgage?

A: Refinancing makes sense if your current rate is significantly higher than current rates and you plan to stay in your home long enough to recover closing costs. If your current rate is below 4 percent, refinancing is typically not recommended given current market conditions.

Q: What’s the difference between a 15-year and 30-year mortgage?

A: A 30-year mortgage features lower monthly payments but costs substantially more in total interest. A 15-year mortgage requires higher monthly payments but allows you to build equity faster and pay significantly less interest over the loan’s lifetime.

Q: What is private mortgage insurance (PMI) and when is it required?

A: PMI protects lenders against default risk and is required when your down payment is less than 20 percent. PMI costs typically range from 0.5-1 percent of the loan amount annually and can be removed once you build sufficient equity.

Q: Are there first-time homebuyer programs available in South Carolina?

A: Yes, SC Housing offers the Homebuyer Program for first-time buyers with down payment assistance and the Palmetto Home Advantage program, which is not limited to first-time buyers but welcomes them with competitive rates and forgivable assistance.

Q: How do mortgage rates affect my monthly payment?

A: Interest rates directly impact monthly payments; even a 0.5 percent difference can result in hundreds of dollars in monthly payment variation on a typical mortgage, making rate shopping essential.

This article is general information, not personal financial advice. Consider your own situation, or speak with a licensed adviser, before acting on it.