Mortgage Rates Explained in Knoxville Tennesse
If you are considering purchasing a new home in Knoxville or East Tennessee or refinancing your current home loan, and you’re shopping around for the best rates available, be cautions. The rates you may find published in newspapers and on websites might not be available or accurate. Mortgage Rates change often, daily and often multiple times per day. This means many of the mortgage rates you find for Knoxville Home Loans will most likely be outdated. Freddie Mac and Fannie Mae, the two biggest issuers of mortgage-backed bonds, publish their rates which are reported and not “advertised”. What this means, if you want to find out what rates were locked in over the past few days; go to www.freddiemac.com (Fannie Mae does not offer the same resource).
Also, there are different factors that will impact the rate you will be able to obtain. Your credit, the amount you have for a down payment, the type of loan you’re applying for (ARM, fixed, interest only, etc.), the length of the loan (15 or 30 years) and the loan amount.
Because of the factors listed above, you may want to be sure to speak with a reputable mortgage consultant. They should know what questions to ask and have access to the most current interest rates to give you an accurate interest rate quote that takes into account your personal circumstances.
Read below to gain a better understanding of the components of a mortgage loan.
Please don’t hesitate to contact me for additional information or to see what type of interest rate you can obtain for your home loan.
Sample Mortgage Loan
Let’s say someone has a 30 year fixed rate loan at a 5.50% interest rate with No Discount points and No Origination fees. How does this break down?
30 year – This indicates your loan is will be paid off in 30 years, or 360 months.
Fixed – This indicates the interest rate and principle and interest payment will not change for the entire 30 year term of the loan.
5.50% - This is the interest rate on the loan
Zero Discount points and Zero Origination fee – Discount points and origination fees are basically the same thing—pre paid interest. The lender will often offer a lower interest rate in exchange for a borrower’s payment of discount fees.
Q: Is The Lowest Advertised or “Published” Rate Always The Best?
A: You always want to get the best terms available for your home loan.
But your search may not always result what you expect if you are only paying attention to the interest rate. Some lenders will publish artificially low rates that they are not actually available, or require large discount fees. You need to be aware of all the costs associated with that rate to make an educated and informed decision.
That requires a GFE or Good Faith Estimate of the costs, as well as a Rate Lock Agreement signed by the Lender – guaranteeing the quoted rate. This will protect you if an issue arises about your final rate or costs. You will be able to document the rate and fees you were promised.
Q: Should You Always Get A 30 Yr Mortgage term?
A: This depends on your future plans and budget, locking in a fixed rate for a long period of time might not be the most beneficial option for you. There are many factors to consider, and working with an experienced lender ensures that you are getting the best loan program for your situation.
Q: What Causes Rates To Change so often?
A: There is no easy answer to explain what causes rates to change. Rates move up and down, day to day, hour by hour. Money is a universal commodity, and any significant news event around the globe that appears to even remotely impact the economy may cause the interest rates to change. Political events, wars, economic news, natural disasters or an influential person such as the president or federal reserve chairman to voice an opinion or theory to influence investors which impacts mortgage rates.
I would love to spend some time with you to help you sort through the issues and options available for the purchase of your Knoxville home to make sure you get the best mortgage loan for the purchase of your new home.
Let Me Know How We Can Assist You
- Send an email to firstname.lastname@example.org telling us when you’d like us to call you back!
- Call me to explore your loan options over the phone toll-free 866-435-6553
Apply on-line by completing short on-line loan information form