Nashville Mortgage Rates May Not Stay Low for Long
The average US long-term mortgage rates approached their lows for the year in November to 4.01 percent from 4.02 percent for a 30-year loan. The Nashville mortgage rate average on a 30 year fixed-rate rose for the second week in a row to 4.02 percent. A 15-year fixed mortgage rate averaged 3.21 percent in November, up from 3.13 percent. A one year adjustable rate mortgage rose from 2.43 percent to an average of 2.45 percent.
This was likely a factor of the fastest rate of September home sales since the recession. October sales surprisingly rose as well despite the fact that the market usually slows in the fall and winter.
Currently, historically low mortgage rates are helping buyers find affordable housing options. It’s vital to keep in mind that interest rates are subject to change according to the market and this can happen quickly. While currently there is no indication that rates will suddenly hike up, a small increase in monthly payments can push a buyer out of an opportunity on a home they want.
If you are looking to grab a good rate now on a mortgage or to re-finance, here are some mortgage rate tips:
- Document your finances, W-2x, bank statements, investment accounts and any other assets you have. Be able to explain any unusual deposits to your accounts. Lenders are more diligent now about underwriting home loans.
- Pay attention to your credit and take care of it. The best mortgage rates go to borrowers with credit scores of 720 or higher. You may still get a mortgage with a score of 680 but lower scores mean higher rates or closing costs.
- Many homeowners lost an opportunity to refinance at a lower mortgage rate in 2013 when rates jumped. If you are still paying more than 5 percent on a home loan, there might still be an opportunity to refinance for a better rate.
- Don’t plan on overspending. It’s that simple, you won’t be able to get a loan you can’t afford.
- New mortgage rules created by the Consumer Financial Protection Bureau went into effect and as consumers you have many rights. If you run into issues with your mortgage servicer or fall behind on payments, be aware of what your rights are.
- Lock a rate in as soon as you can. Rates are likely to climb into 2015.
- Lastly, use any bargaining power you have and shop around for the best deal and look beyond the interest rate on the loan, there may be other factors involved.
If you want recommendations on who to go to for a mortgage loan in Nashville, contact me. I will be happy to help.