Mortgage Rates in Tea, South Dakota — March 2026
Updated March 2026 | Based on Tea market data and regional lending conditions
Tea is a growing city in South Dakota with a population of 6,574. The current 30-year fixed mortgage rate in Tea is 6.89%, which is 0.24% above the national average. With a median home price of $206,000 and a 20% down payment of $41,200, homebuyers can expect a monthly principal and interest payment of approximately $1,084.
Current Mortgage Rates in Tea, SD
Below are the current average mortgage rates available in the Tea area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.89% | 6.65% | +0.24% |
| 15-Year Fixed | 6.1% | 5.89% | +0.21% |
| 5/1 ARM | 6.33% | 6.15% | +0.18% |
| FHA | 6.57% | 6.25% | +0.32% |
| VA | 6.32% | 6.05% | +0.27% |
| Jumbo | 7.14% | 6.85% | +0.29% |
Tea Housing Market Overview
The Tea housing market offers relatively affordable housing compared to many major cities. The median household income in Tea is $57,800, and the cost of living index is 88.4 (national average = 100). Based on the 28% affordability rule, the median income in Tea is sufficient to afford the median-priced home.
Monthly Payment Breakdown for Tea
Based on the median home price of $206,000 with 20% down ($41,200), here is what you can expect to pay monthly in Tea:
15-Year vs. 30-Year Mortgage in Tea
Choosing a 15-year mortgage in Tea at 6.1% instead of a 30-year at 6.89% would save you $138,240 in total interest over the life of the loan. However, your monthly payment would be $1,400 instead of $1,084 — an increase of $316 per month.
Calculate Your Tea Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Tea
What are the current mortgage rates in Tea, SD?
As of March 2026, the average 30-year fixed mortgage rate in Tea, South Dakota is 6.89%, while the 15-year fixed rate is 6.1%. FHA loans average 6.57% and VA loans 6.32%. These rates are 0.24% above the national average of 6.65%.
How much is a monthly mortgage payment in Tea?
Based on the median home price of $206,000 with 20% down, the estimated monthly mortgage payment in Tea is $1,084 for principal and interest. Including property taxes of $211/month, the total monthly housing cost is approximately $1,295.
What income do I need to buy a home in Tea?
Using the 28% rule, you would need an annual income of approximately $55,500 to afford the median-priced home in Tea at $206,000. The median household income in Tea is $57,800. The median income is currently sufficient to meet this threshold.
Is Tea a good place to buy a home in 2026?
Tea offers a below-average cost of living with a cost of living index of 88.4 (national average = 100). The property tax rate in South Dakota is 1.23%, which is near the national average. Tea has a population of 6,574 and offers a very affordable lifestyle.
Mortgage Rates in Other South Dakota Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Tea, South Dakota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.