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Home Mortgage Rates in New Hampshire

Bell at Concord.

New Hampshire's home loan industry offers a typical selection of home loan products to consumers. These home loans are protected by a unique set of foreclosure processes that typically favor the lender. Furthermore, several of these foreclosure processes are unique to the area. As a result, New Hampshire's foreclosure processes are worth studying closely. Here is some background information about New Hampshire's home values, population trends and mortgage industry that can aid in the study of New Hampshire's foreclosure processes.

Places to Live

Metropolitan Areas

NH Rank US Rank Metropolitan Area 2016 Pop 2010 Pop Change % △
1 10 Boston-Cambridge-Newton, MA-NH Metro Area 4,794,447 4,552,402 242,045 5.32%
2 132 Manchester-Nashua 407,761 400,721 7,040 1.76%
3 206 Claremont-Lebanon, NH-VT Micro Area 216,307 218,466 -2,159 -0.99%
4 286 Concord 148,582 146,445 2,137 1.46%
5 462 Keene 75,774 77,117 -1,343 -1.74%
6 524 Laconia 60,779 60,088 691 1.15%
7 720 Berlin, NH-VT Micro Area 38,215 39,361 -1,146 -2.91%

New Hampshire's Real Estate Values

New Hampshire's median home values tend to be significantly higher than the 4th quarter 2009 national median price of $179,900.

To illustrate this point, here are the February, 2010 median home values for three of New Hampshire's most populated cities:

  • Dover ($207,500)
  • Concord ($199,900)
  • Manchester ($199,000).

There are two major reasons why this is the case:

First, New Hampshire's high median income makes the state less income-sensitive to home prices. New Hampshire's 2009 median income for a family of 4 was $87,396 - (source). This high median income makes New Hampshire residents less income-sensitive to the price of a home. In fact, it can be reasonably deduced that New Hampshire's income elasticity of demand for housing is one of the lowest in the country. This low income elasticity of demand for housing has a tendency to drive home values higher.

Second, there is always a high demand for quality housing in New Hampshire. This is the case because the state has a well-deserved reputation for having a great quality of life, good schools and enjoyable living conditions (source).

Manchester, New Hampshire Skyline.

The three most populated cities in New Hampshire, based on the 2006 US Census estimates:

  • Manchester (109,497)
  • Nashua (87,157)
  • Concord (42,378).

These cities have two common population trends that seem to be driving up home prices. Each of these cities has seen double-digit percentage growth in their populations, and all have also seen an influx of people from outside the New England area who are taking advantage of one of the nation's stronger job markets. This strength comes from an increase in investment from the health care and insurance industries. As a result, New Hampshire's home prices have stayed well above the national median home price.

Nashua River in Nashua, New Hampshire.

New Hampshire's fastest growing cities:

  • Manchester - Manchester has one of the lowest costs of doing business in the New England region. As a result, it has lured firms from the health care and high-tech industries into the area. Furthermore, Manchester's quality of life has brought people from other parts of the region who are tired of suburban living. These attributes have made Manchester the fastest growing city in New England.
  • Concord - Concord's growth can be attributed to its close proximity to Boston. Many Boston residents have moved into the region to take advantage of Concord’s better quality of life and better job opportunities.
  • Derry - Derry's population growth can be attributed to an influx of Boston area residents who wish to take advantage of a lower than average cost of living and cheaper home prices.

New Hampshire Census Data

According to the United States Census an estimated 1,334,795 people live in the state of New Hampshire. The state has 8,952.65 mi² of land area, which gave it a population density of 149.09 per mi². Here is a list of cities, towns & Census Designated Places with more than 4,000 residents, with their estimated population as of June 2016 & the 2010 United States Census. For cities & towns with populations below 5,000 and Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Manchester Hillsborough 110,506 109,565 941 0.86% 33.1 3,338.55
2 Nashua Hillsborough 87,882 86,494 1,388 1.60% 30.85 2,848.69
3 Concord Merrimack 42,904 42,695 209 0.49% 64.24 667.87
4 Derry Rockingham 33,246 33,109 137 0.41% 35.61 933.61
5 Dover Strafford 31,153 29,987 1,166 3.89% 26.72 1,165.91
6 Rochester Strafford 30,345 29,752 593 1.99% 45.4 668.39
7 Salem Rockingham 28,888 28,776 112 0.39% 24.72 1,168.61
8 Londonderry Rockingham 25,850 24,129 1,721 7.13% 41.98 615.77
9 Merrimack Hillsborough 25,650 25,494 156 0.61% 32.53 788.50
10 Hudson Hillsborough 25,109 24,467 642 2.62% 28.32 886.62
11 Keene Cheshire 23,406 23,409 -3 -0.01% 37.25 628.35
12 Bedford Hillsborough 22,418 21,203 1,215 5.73% 32.83 682.85
Derry CDP Rockingham 22,363 22,015 348 1.58% 15.22 1,469.32
13 Portsmouth Rockingham 21,485 20,779 706 3.40% 15.63 1,374.60
14 Goffstown Hillsborough 17,999 17,651 348 1.97% 36.86 488.31
15 Laconia Belknap 16,470 15,951 519 3.25% 20.06 821.04
16 Durham Strafford 16,431 14,638 1,793 12.25% 22.38 734.18
17 Hampton Rockingham 15,397 15,430 -33 -0.21% 12.9 1,193.57
18 Milford Hillsborough 15,299 15,115 184 1.22% 25.32 604.23
19 Exeter Rockingham 14,690 14,306 384 2.68% 19.56 751.02
20 Windham Rockingham 14,481 13,592 889 6.54% 26.81 540.13
21 Hooksett Merrimack 14,153 13,451 702 5.22% 36.46 388.18
22 Lebanon Grafton 13,513 13,151 362 2.75% 40.32 335.14
23 Pelham Hillsborough 13,425 12,897 528 4.09% 26.37 509.10
24 Claremont Sullivan 12,957 13,355 -398 -2.98% 43.12 300.49
25 Somersworth Strafford 11,791 11,766 25 0.21% 9.79 1,204.39
26 Hanover Grafton 11,416 11,260 156 1.39% 49.02 232.88
27 Amherst Hillsborough 11,244 11,201 43 0.38% 34.19 328.87
Londonderry CDP Rockingham 10,729 11,037 -308 -2.79% 12.31 871.57
Durham CDP Strafford 10,640 10,345 295 2.85% 2.69 3,955.39
28 Berlin Coos 10,413 10,051 362 3.60% 61.62 168.99
29 Raymond Rockingham 10,285 10,138 147 1.45% 28.77 357.49
30 Conway Carroll 9,969 10,115 -146 -1.44% 69.4 143.65
Hampton CDP Rockingham 9,338 9,656 -318 -3.29% 5.31 1,758.57
Exeter CDP Rockingham 9,223 9,242 -19 -0.21% 4.4 2,096.14
Milford CDP Hillsborough 9,107 8,835 272 3.08% 5.71 1,594.92
31 Newmarket Rockingham 8,964 8,936 28 0.31% 12.55 714.26
32 Barrington Strafford 8,919 8,576 343 4.00% 46.69 191.03
33 Weare Hillsborough 8,915 8,785 130 1.48% 58.84 151.51
34 Seabrook Rockingham 8,771 8,693 78 0.90% 8.9 985.51
35 Hampstead Rockingham 8,586 8,523 63 0.74% 13.3 645.56
36 Litchfield Hillsborough 8,475 8,271 204 2.47% 14.95 566.89
37 Franklin Merrimack 8,447 8,477 -30 -0.35% 27.28 309.64
Hanover CDP Grafton 8,360 8,636 -276 -3.20% 4.52 1,849.56
38 Hollis Hillsborough 7,817 7,684 133 1.73% 31.76 246.13
39 Bow Merrimack 7,775 7,519 256 3.40% 28.03 277.38
40 Plaistow Rockingham 7,658 7,609 49 0.64% 10.63 720.41
41 Stratham Rockingham 7,403 7,255 148 2.04% 15.1 490.26
Hudson CDP Hillsborough 7,388 7,336 52 0.71% 3.04 2,430.26
42 Belmont Belknap 7,275 7,356 -81 -1.10% 30.46 238.84
43 Gilford Belknap 7,155 7,126 29 0.41% 38.88 184.03
44 Pembroke Merrimack 7,118 7,115 3 0.04% 22.78 312.47
45 Swanzey Cheshire 7,116 7,230 -114 -1.58% 45.01 158.10
46 Epping Rockingham 6,875 6,411 464 7.24% 26.02 264.22
47 Farmington Strafford 6,848 6,786 62 0.91% 37.22 183.99
48 Atkinson Rockingham 6,839 6,751 88 1.30% 11.15 613.36
49 Peterborough Hillsborough 6,527 6,284 243 3.87% 37.72 173.04
50 Plymouth Grafton 6,395 6,990 -595 -8.51% 28.13 227.34
51 Newport Sullivan 6,367 6,507 -140 -2.15% 43.57 146.13
52 Meredith Belknap 6,366 6,241 125 2.00% 39.91 159.51
53 Sandown Rockingham 6,295 5,986 309 5.16% 13.95 451.25
54 Wolfeboro Carroll 6,234 6,269 -35 -0.56% 47.87 130.23
55 Kingston Rockingham 6,143 6,025 118 1.96% 19.65 312.62
56 Hillsborough Hillsborough 5,962 6,011 -49 -0.82% 43.64 136.62
57 Rindge Cheshire 5,901 6,014 -113 -1.88% 37.17 158.76
58 Littleton Grafton 5,882 5,928 -46 -0.78% 50.1 117.41
South Hooksett CDP Merrimack 5,825 5,418 407 7.51% 5.31 1,096.99
59 Hopkinton Merrimack 5,623 5,589 34 0.61% 43.37 129.65
60 New Boston Hillsborough 5,576 5,321 255 4.79% 42.84 130.16
61 Loudon Merrimack 5,473 5,317 156 2.93% 46.79 116.97
62 Rye Rockingham 5,389 5,298 91 1.72% 12.61 427.36
63 Auburn Rockingham 5,359 4,953 406 8.20% 25.2 212.66
Newmarket CDP Rockingham 5,319 5,297 22 0.42% 1.93 2,755.96
64 Alton Belknap 5,305 5,250 55 1.05% 62.89 84.35
65 Brookline Hillsborough 5,259 4,991 268 5.37% 19.77 266.01
Suncook CDP Merrimack 5,247 5,379 -132 -2.45% 3.71 1,414.29
66 Jaffrey Cheshire 5,245 5,457 -212 -3.88% 38.31 136.91
67 New Ipswich Hillsborough 5,227 5,099 128 2.51% 32.75 159.60
68 Charlestown Sullivan 5,029 5,114 -85 -1.66% 35.8 140.47
69 Wakefield Carroll 5,007 5,078 -71 -1.40% 39.46 126.89
Pinardville CDP Hillsborough 4,903 4,780 123 2.57% 1.66 2,953.61
70 Nottingham Rockingham 4,878 4,785 93 1.94% 46.53 104.84
71 Henniker Merrimack 4,849 4,836 13 0.27% 44.04 110.10
72 Chester Rockingham 4,825 4,768 57 1.20% 25.92 186.15
73 Northfield Merrimack 4,803 4,829 -26 -0.54% 28.83 166.60
Newport CDP Sullivan 4,798 4,769 29 0.61% 13.26 361.84
74 Newton Rockingham 4,752 4,603 149 3.24% 9.91 479.52
Littleton CDP Grafton 4,663 4,412 251 5.69% 8.46 551.18
75 Haverhill Grafton 4,656 4,697 -41 -0.87% 50.99 91.31
76 Brentwood Rockingham 4,649 4,486 163 3.63% 16.76 277.39
77 Epsom Merrimack 4,626 4,566 60 1.31% 34.26 135.03
78 Milton Strafford 4,606 4,598 8 0.17% 33.12 139.07
79 Barnstead Belknap 4,602 4,593 9 0.20% 42 109.57
80 New London Merrimack 4,579 4,397 182 4.14% 22.49 203.60
81 Enfield Grafton 4,557 4,582 -25 -0.55% 40.27 113.16
82 Danville Rockingham 4,446 4,387 59 1.34% 11.72 379.35
83 Fremont Rockingham 4,441 4,283 158 3.69% 17.11 259.56
84 Lee Strafford 4,363 4,330 33 0.76% 19.95 218.70
85 North Hampton Rockingham 4,361 4,301 60 1.40% 13.91 313.52
86 Deerfield Rockingham 4,349 4,280 69 1.61% 50.89 85.46
87 Allenstown Merrimack 4,302 4,322 -20 -0.46% 20.32 211.71
88 Ossipee Carroll 4,287 4,345 -58 -1.33% 70.76 60.59
89 Northwood Rockingham 4,271 4,241 30 0.71% 28.05 152.26
90 Winchester Cheshire 4,269 4,341 -72 -1.66% 54.96 77.67
Farmington CDP Strafford 4,203 3,885 318 8.19% 6.38 658.78
91 Pittsfield Merrimack 4,084 4,106 -22 -0.54% 23.85 171.24
92 Strafford Strafford 4,036 3,991 45 1.13% 49.16 82.10
93 Moultonborough Carroll 4,024 4,044 -20 -0.49% 59.47 67.66

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

New Hampshire Mortgage Types

As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $424,100 ceiling apply across most the state for single unit homes. Dual unit homes have a limit of $543,000, triple unit homes have a limit of $656,350 & quadruple unit homes have a limit of $815,650. People buying premium properties in the Bost metro area have the following thresholds. People borrowing more money than these thresholds will require a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.

County Name Metropolitan Designation 1 Unit 2 Unit 3 Unit 4 Unit
Rockingham Boston-Cambridge-Newton, Ma-Nh $598,000 $765,550 $925,350 $1,150,000
Strafford Boston-Cambridge-Newton, Ma-Nh $598,000 $765,550 $925,350 $1,150,000

New Hampshire's home loan industry features a typical line of home loan products. These home loan products include:

  • Fixed rate mortgage loans that mature in 15 or 30 years.
  • ARM's that mature mainly in one year or five years.
  • Second mortgages.
  • Refinance mortgage products
  • Reverse mortgages.
  • Plus a typical selection of FHA and VA loans.

These home loans are recognized by New Hampshire law as being mortgage instruments. In addition, many mortgages in New Hampshire feature a "Power of Sale" clause that makes it easier to foreclose on defaulted properties. Finally, New Hampshire also recognizes mortgage instruments as liens on real property. This recognition allows non- judicial foreclosure procedures to happen.

USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.

Natural Disasters

Flood Insurance

Homeowner's insurance policies typically do not cover flooding. Most of the state of New Hampshire has a very low to moderate risk of flooding. Here is county-by-county classification.

  • Very low risk: Belknap
  • Low risk: Cheshire, Hillsborough, Merrimack, Strafford, Sullivan
  • Moderate risk: Carrol, Coos, Grafton, Rockingham

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Earthquakes

Most of the state has a very low eathquake risk. The following counties have a low earthquake risk: Belknap, Carroll, Essex, Grafton, Merrimack, Rockingham & Strafford.

Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.

Hail

Hail damage is not uncommon across the state. Damage from hail is typically covered by home insurance policies.

New Hampshire Foreclosure Laws

Most mortgages in New Hampshire also have full recourse privileges. Lenders may attempt to recover a deficiency judgment under Chapter XLVIII, Chapter 479 of New Hampshire's Civil Code. They have 30 days from the time that they must record the home's sale to do so. (Source: ibid.)

New Hampshire recognizes both judicial and non-judicial foreclosure procedures. However, the vast majority of foreclosure procedures that are conducted in New Hampshire are non-judicial foreclosures.

Borrowers may in some instances attempt to redeem their properties. If a home is foreclosed upon using a judicial foreclosure procedure, the borrower may attempt to redeem a property. On the other hand, a borrower may not attempt to redeem a property if any of the three non-judicial foreclosure procedures described below are used.

Here is a brief review of the foreclosure processes that are used in New Hampshire:

The judicial foreclosure process works like this:

  1. The borrower must first ask the court for the right to foreclose on a property. This process must take place in the same county as where the home resides.
  2. If the court agrees that the borrower is in default, the court will grant the borrower between 14-60 days to redeem the property. To do this, the court will ask the borrower to pay the delinquent amount plus any costs.
  3. If the borrower fails to do this, the court will issue a decree to sell the house.
  4. The terms of the sale are governed by these rules:
    • A notice of sale must be written and recorded at the court of record for the proceedings.
    • After this is done, a copy of the notice must be mailed to the borrower at least 25 days before the proposed sale of the house.
    • Once this is done, the same notice must be published in a local newspaper at least once a week for three consecutive weeks in a newspaper that is published in the same county where the property resides.
    • The first publication of this notice must appear at least 20 days before the proposed sale of the house.
    • The notice must describe the time, date and place of the sale.
    • It must also describe the amount of the default as well as "warn" the borrower that his property is going to be sold. It must also mention what rights he has to stop the procedure.
    • The foreclosure sale must be held at the site of the property, unless there is specific language in the Power of Sale clause that specifies a different location.
  5. During the auction, anyone may bid any amount to start. This means that the lender and the borrower could realistically attempt to purchase the house.
  6. The bidder who bids the most wins the house. As a result, there are no reserve prices set for the homes.
  7. The seller has up to 30 days to attempt to recover a deficiency judgment.

New Hampshire's three non-judicial foreclosure procedures:

Non-judicial foreclosures occur in New Hampshire if and only if a Power of Sale clause exists in the language of the mortgage. If such language does exist, a non-judicial foreclosure may occur using one of these three procedures:

  1. Through a "Power of Sale" procedure.
  2. If the power of sale clause has specific language that describes how the sale should occur, that language will dictate how the sale happens.
  3. Otherwise, follow the steps for selling a home as outlined above for judicial foreclosures.

New Hampshire also has three unique methods that can be used to conduct a non-judicial foreclosure:

Entry under process:
A Lender may foreclose on a property by entering the property under process of law and maintaining physical possession of the property for one full year. A New Hampshire lender may also foreclose on a property through a method called "Entry and Publication." Here is how it is done:

  1. The lender must first peaceably enter onto the property.
  2. Afterwards, the lender must continuously and peacefully posses the home for one year.
  3. During this time, the lender must publish a notice in a local paper that is published where the home resides that states:
    • The date the home came into the lender's possession,
    • The lender and borrowers name,
    • The date of the date of the mortgage
    • And an accurate description of the property.
  4. The notice must be published at least once a week for three consecutive weeks with the first publication appearing at least 6 months before the borrower's redemption rights expire.

Finally, New Hampshire lenders may also foreclose through a process known as "Possession and Publication."
Here is how that process works:

  1. The lender must first peaceably obtain possession of the home.
  2. Afterwards, the lender must publish in a paper in the county where the home resides that
    • After a certain day, the property will be held for default on the mortgage and that the borrower's rights to the property will become foreclosed upon.
    • This notice must be published for 3 consecutive weeks in a newspaper that is published in the same county as where the home resides.
    • It must state the borrower's name, and the lender's name.
    • It must also state the date of the mortgage, a fair description of the property
    • Finally, it must also state clearly the lender's intention to keep the property physically in his possession for at least one year from the date of the first occupancy in the home.