Providence County comes out in the lead according to SmartAsset for getting a good deal on a mortgage, followed by Washington County.
|Rank||County||Loan Funding Rate||5 Year Borrowing Costs||Property Tax||Annual Mortgage Payment||Best Mortgage Markets Index|
|1||Providence, County RI||61.70%||$74,507||$22,590||$14,224||73.75|
|2||Washington, County RI||68.25%||$75,025||$17,270||$14,328||69.71|
|3||Newport, County RI||63.93%||$75,285||$15,826||$14,380||62.51|
|4||Kent, County RI||65.82%||$75,691||$22,972||$14,461||49.48|
|5||Bristol, County RI||68.90%||$75,985||$19,267||$14,520||47.31|
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2014 5-Year American Community Survey, Bankrate, government websites, SmartAsset