The coronavirus has unexpectedly impacted all aspects of our life, including mortgage rates and the housing market. If you are looking to purchase a new home or refinance your current mortgage, and have questions regarding how the coronavirus is affecting mortgage rates in the regions of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact Foundation Mortgage today. Our loan specialists can help you navigate the rapidly changing housing market and find a financing option that is suitable for you.
How Is COVID Affecting Mortgage Rates?
Mortgage rates are fluctuating as the coronavirus continues to spread. Before the COVID crisis became widespread, interest rates were lower, and there was a significant increase in home refinances. As concerns about the coronavirus grew, the Federal Reserve cut down interest rates in order to stimulate the economy. Since then, rates have continued to rise and fall, but mortgage rates still remain low, making it a decent time to purchase or refinance a home. If you are able to time your purchase or refinance right, you could save a significant amount of money.
Buying a Home During the Coronavirus
If you are interested in purchasing a home, rates at this time are reasonably low. Therefore, it is a good time to lock yourself in at an ideal rate, since rates continue to rise and fall somewhat unpredictably due to the pandemic and are not guaranteed to stay low. It is important to note that since mortgage rates are low, there are many people who are also looking to buy homes, so demand for houses could rise, as well as prices. In order to secure a home at a favorable rate, it is advisable to get mortgage pre approval to let sellers know you are serious about buying the home and ensure that the sale will go through.
Refinancing a Home During the Coronavirus
Since mortgage rates are low, many homeowners are refinancing their mortgages for a variety of reasons, including; to lower their payments, replace an adjustable rate loan with a fixed rate loan, to shorten the term of a current loan, to eliminate FHA mortgage insurance, or to get a cash out refinance. Due to the increase in refinances, lenders are experiencing extended workloads, so to facilitate the process, you can submit a complete application and provide all the required documentation. Although interest rates are low, it may not always be advantageous for you to refinance your home. It is important to consider the closing costs of a refinance, and the length of time you will plan to live in your home; if you are planning on moving within the next couple of years, the amount you pay in closing costs may not be worth the expense.
Getting Help With Mortgage Rates During the COVID Pandemic
Whether you are looking to buy a home or refinance your current mortgage during the coronavirus pandemic, Foundation Mortgage can help you secure the best mortgage rates. We serve clients in Knoxville, Maryville, Lenoir City, Oak Ridge, and Gatlinburg, Tennessee. Contact us today for a consultation.