Conventional loan in North Carolina: what it costs on the median home, and when PMI ends

On North Carolina’s rough $330,000 median, a conventional loan with 5% down means $16,500 at closing and about $2,393 a month with taxes and mortgage insurance; with 20% down, $66,000 and about $1,884. Everything below is worked on those numbers and on the state rules that change them.

Loan limits: the North Carolina picture

$832,750 is the ceiling on a conforming one-unit loan in North Carolina for 2026. On the $330,000 median, a 20% down loan of $264,000 is 32% of the limit, comfortably conforming. Above the limit the loan is jumbo: typically a higher score, more reserves, a full appraisal and no automated-underwriting shortcuts. Every North Carolina county is in the table below; see conforming loan limits and jumbo loans.

County-level loan limits in North Carolina for 2026

For 2026 the FHFA county list shows a single tier in North Carolina: all 100 counties at the $832,750 baseline for one unit, $1,066,250 for two units, $1,288,800 for three and $1,601,750 for four. Above those figures a loan is jumbo, whatever the county.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

The numbers: 3%, 5%, 10% and 20% down in North Carolina

Each row is the same $330,000 North Carolina home at 6.5% for 30 years — only the down payment changes. PMI is an illustrative market rate for that down payment; property tax is the state’s rough 0.78% effective rate divided by twelve.

For other loan amounts and rates, the payment tables show principal and interest, total interest and the PMI break points.

When PMI ends in North Carolina

Three dates matter: the month the balance hits 80% of the original price (you ask), 78% (the servicer must act) and the loan’s midpoint (cancellation regardless of value, if current). On North Carolina’s median with 5% down at 6.5%, the schedule reaches 80% in about 10 years and 4 months; with 3% down, about 11 years and 1 months; with 10% down, about 7 years and 11 months. Over that time the 5% buyer pays roughly $24,304 in PMI at $196 a month.

The North Carolina closing: costs and who runs it

North Carolina treats the residential closing as the practice of law: the State Bar requires a licensed North Carolina attorney to examine title, supervise the closing and disburse, and a title company may only issue the policy on the attorney’s opinion. The Good Funds Settlement Act, G.S. chapter 45A, makes it a wet-funding state in which the closing attorney may not disburse until collected funds are in trust and the deed and deed of trust have been recorded. Attorney fees for a purchase commonly run from several hundred dollars to about a thousand.

North Carolina does not tax the deed of trust; it is recorded with the county Register of Deeds for a flat statutory fee set by G.S. 161-10. The excise tax on conveyances under G.S. 105-228.30 is $1 per $500 of price, paid by the seller on the deed, with a few coastal counties adding a local land transfer tax. Refinances cost recording fees only. North Carolina’s excise tax on conveyances is $1 per $500 (0.2%), paid by the seller; seven coastal counties add a land transfer tax of 1%.

North Carolina closings are conducted by attorneys; buyer costs — attorney, title insurance, lender fees and prepaids — typically total 2% to 3% of the price.

Three North Carolina rules to read before signing

Prepayment. G.S. 24-1.1A(b) bars prepayment penalties on home loans at or below a statutory principal threshold — $150,000 under the current text, so verify — and G.S. 24-1.1E forbids them on high-cost home loans of any size; above the threshold a penalty may be charged only as the note states and within federal qualified-mortgage limits. On a conforming loan the question is moot — the agencies do not accept penalties — but check a portfolio or jumbo note.

Spouses and title. North Carolina is a separate-property state, so only the borrowing spouse’s debts and income are underwritten.

Homestead. G.S. 1C-1601(a)(1) exempts $35,000 of equity in a residence from judgment creditors, rising to $60,000 for an owner aged 65 or older whose spouse has died and who previously held the home as tenants by the entirety.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in North Carolina.

Frequently asked questions

What is the conforming loan limit in North Carolina for 2026?

$832,750 for a single-family home, identical across North Carolina’s 100 counties because FHFA found no high-cost area in the state for 2026. A loan above it is jumbo; a conforming first plus a second lien is the usual way to stay under.

When can I cancel PMI on a conventional loan in North Carolina?

Under the federal Homeowners Protection Act you may request cancellation when the balance reaches 80% of the original value and the servicer must cancel automatically at 78%. On a $330,000 North Carolina home bought with 5% down at an illustrative 6.5%, scheduled payments reach 80% after about 10 years and 4 months and 78% after about 11 years and 3 months; extra principal or a new appraisal showing appreciation can move the date up.

Does North Carolina add anything to a conventional loan’s closing costs?

North Carolina does not tax the deed of trust; it is recorded with the county Register of Deeds for a flat statutory fee set by G.S. 161-10. North Carolina’s excise tax on conveyances is $1 per $500 (0.2%), paid by the seller; seven coastal counties add a land transfer tax of 1%. North Carolina closings are conducted by attorneys; buyer costs — attorney, title insurance, lender fees and prepaids — typically total 2% to 3% of the price.

Related: 30-year vs 15-year mortgage: the real trade-off, with the numbers, ARM vs fixed-rate mortgage: when an adjustable rate makes sense, Jumbo loans: requirements, rates and how they differ from conforming, PMI removal: the 80% request, the 78% automatic cancellation, and the appraisal route. First home in North Carolina: programs and assistance. Hub: Conventional loan.