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Knoxville mortgages made easy

Home values have been on the rise in Knoxville and they just won't stop! The market in Knoxville is a safe buyer's market at this time, so now is your chance to purchase something that is almost guaranteed to see an increase in value in just the next year! There's so much to do, see, and discover in Knoxville and with the affordability, you'll have more money to use for family activities, vacations, and so much more. Knoxville is a lovely place to live!

Life is better when you own your home

Earnest can help you get your mortgage in Knoxville

Living in Knoxville is affordable and it's also a great investment that will grow as your family grows! Zillow is calling it a buyer's market currently so it's smart to purchase now so you can start growing your home’s value. Knoxville homes increased in value by 4.8 percent since last year and Zillow expects them to increase by another 4.4 percent by next year. The market is stable and the purchase is safe. Now is the time to buy your forever home and watch it increase in value. Mortgage rates are great right now too! Bankrate shows rates as low as 3.9 percent for a 30-year fixed mortgage and Earnest may even be able to help further. After all, there can be some great deals on purchase prices and mortgage rates depending on down payment, credit score, and more!

A mortgage in Knoxville unlocks doors

You're almost there! Earnest can help you finish your mortgage

So you finally found that special home that you've been searching for? Great! Now you just need a mortgage and you're on your way to homeownership. It's a very rewarding thing, but homeownership is a bit of work. Earnest can guide you through the entire process and make it as stress-free as possible. Earnest knows exactly what questions to ask and what information can save you money. You'll get the best mortgage possible by working with Earnest. Refinancing is also something that Earnest can help with, so if you're interested in freeing up some money to enjoy retirement, start here.

Common Questions About Knoxville Mortgage Rates

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

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The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.