Compare mortgage rates in York, PA.

Introduction to Mortgage Refinance Rates

Where Mortgage Rates Come From

The factors that influence mortgage rates are somewhat complex. The bond market, particularly the 10-year U.S. Treasury Note, is a key indicator. When the yield on the T note goes up, rates on mortgages are likely to follow. The housing market also plays a role. If the housing market is slowing down, you might be able to get a better rate. The overall economy and the health of the job market are other factors that can affect the rates lenders offer. When the economy is doing well, rates tend to go up. When the economy is in trouble, rates tend to go down.

Lenders will use these indicators to set a general rate, but to come up with your specific loan offer, they will also examine the following:

•   Your credit score A conventional mortgage (one not backed by a government agency) typically requires a score of 620 or more. The higher the score, the lower the rate you’ll likely obtain.

•   Your down payment amount Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.

•   Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.

How Interest Rates Affect Home Affordability

Why spend time studying interest rates and polishing your credit score? Mortgage rates play a pivotal role in the overall affordability of a home. It’s not unusual in York to need to borrow around $200,000 to buy a home. If you obtained that loan with a 30-year term at a 6.50% interest rate, your monthly payment would be $1,264. But if your interest rate was 7.00%, you would be paying $1,330 each month. Over 30 years, that seemingly small difference in interest rate adds up to almost $25,000, as you can see from the chart below.

York Mortgage Rate Trends

Historical U.S. Mortgage Rates

Understanding historical mortgage rates can be helpful as you decide when to apply and what kind of rate you might want to lock in. While rates have gone up in the last few years, they are still relatively low compared to significantly higher rates of, say, the 1980s. The graph shows a half-century of average mortgage rates. The chart shows how Pennsylvania has tended to stack up against national averages (the Federal Housing Finance Agency stopped compiling state averages after 2018.)

Types of Mortgages Available in York

In York, the type of mortgage loan you choose will also have an impact on your rate. By exploring these common types, you can find the best mortgage rates in York and the repayment plan that works for you.

Recommended: The Cost of Living in the U.S.

Should You Wait for Interest Rates to Take a Tumble?

If you’re a homebuyer in Pennsylvania, you might be pondering whether to bide your time for a more favorable interest rate. The current outlook suggests that mortgage rates in Pennsylvania are set to hold steady in the near future. Fannie Mae projections point to an average of 6.30% by the close of 2025. While the prospect of waiting might seem alluring, it’s worth noting that buyers who move forward can do a mortgage refinance should rates become more favorable down the line. And buying now means you begin to build equity in the property.

The Cost of Living in York

York is a relatively affordable city, with a cost of living that’s five points below the national average. Food, housing, and health care are all more affordable here than the national average. No wonder York made SoFi’s list of the best affordable places in the U.S. The housing market is very competitive, with many homes getting multiple offers. However the median sale price of a home in York is just $150,000 — that’s less than half of the U.S. average, according to Redfin.

Get Your Best Possible Rate in York

To secure the best possible mortgage rates in York, you’ll want to focus on your credit score, which can have a big impact on the interest rate you qualify for. Check your credit report for errors, and request corrections if necessary. And of course, pay every bill on time. You’ll also want to aim for a low debt-to-income (DTI) ratio, which is the percentage of your monthly gross income that goes toward paying debts. So to the extent possible, try to pay down some debt before applying for a home loan.

If you can make a larger down payment, you may be able to secure a lower rate. Going through the mortgage preapproval process with a lender can give you a clear picture of what size mortgage you might qualify for and what your rate and payments would look like. Having that preapproval letter to show sellers could also be helpful in York’s hot housing market.

Helpful Tools & Calculators

A mortgage payment calculator can give you a good idea of what your monthly payments might be, as well as the total interest costs over the life of the loan. And it’s not the only calculator you’ll find useful during your home search. These are three of our favorites:

How to Evaluate Loan Offers in York

A competitive mortgage rate is a game-changer, potentially saving you thousands. The key to getting one is to compare rates and fees from various lenders, with a focus on the APR, or annual percentage rate, which includes fees and closing costs. (Lenders will disclose the APR in their loan information.) Once you’ve found an offer that shines, consider locking in your rate for up to 90 days, especially if you sense rates are on the upswing.

York Mortgage Resources

York offers several programs to aid homebuyers, especially those who qualify as a first-time homebuyer or who have limited financial means. The Pennsylvania Housing Finance Agency (PHFA) is your best resource, with offerings like the Keystone Advantage Assistance Loan program and the HOMEStead Down Payment and Closing Cost Assistance Loan. Down payment assistance programs and loans with forgiving terms can significantly ease the financial load of purchasing a home. And don’t forget to explore local York programs for added support.

Recommended: Average Monthly Expenses for One Person

Closing Costs in York

If you’re buying a home in York, you can expect to pay between 2% and 5% of your loan amount in closing costs. These costs can vary based on the price of the home you’re buying and where it’s located. They can include loan origination fees, the cost of an appraisal, and title insurance. To keep your costs down, make sure to shop around for the best rates. In some markets, buyers can negotiate with sellers to help cover some costs, although this might not be feasible in York’s relatively competitive market.

The Takeaway

York, Pennsylvania offers a range of mortgage options for prospective homebuyers in the area. By staying informed about current mortgage rates in York and carefully exploring available assistance programs, you can make a strategic decision about your mortgage type, term, and rate that aligns with your financial goals.

View your rate

FAQ

How do Pennsylvania mortgage rates compare to the national average?

Pennsylvania’s mortgage rates are usually on par with the national average, or ever so slightly above it, according to state average data compiled by the Federal Housing Finance Agency.

What sets fixed-rate and adjustable-rate mortgages apart?

Fixed-rate mortgages offer stable interest rates, whereas adjustable-rate mortgages (ARMs) may start with a low introductory rate for a fixed time period, but then begin to adjust at regular intervals according to the market. This means that if you have a fixed-rate mortgage, your monthly payments will stay the same for the life of the loan, whereas if you have an ARM, your monthly payments will change now and then.

Will mortgage rates ever go back to normal?

Historical data suggests rates could return to more stable levels over time. Keep an eye on economic factors and your personal financial needs.

How do mortgage interest rates work?

Mortgage interest rates are the cost of borrowing. The rate is expressed as a percentage. The interest rate you receive is based on your credit score, down payment, and employment history, as well as current economic conditions.

Compare mortgage rates in Jacksonville, Florida.

Introduction to Mortgage Rates

Where Mortgage Rates Come From

Mortgage interest rates can figure differently for every person, and in every state or city in the U.S. Rates are influenced by the bond market, with the 10-year U.S. Treasury Note being their primary benchmark. An interest rate any homebuyer receives on a home loan is impacted by a number of factors, beginning with their credit score. Keep reading to learn more.

See what factors impact your mortgage.

See how different loan amounts, down payments, and other factors impact your home mortgage with our mortgage calculator.

The type of home mortgage loan you choose and its term will impact your interest rate, too. We’ll get into that in more detail below.

How Interest Rates Affect Home Affordability

Every househunter should know: Mortgage rates have a huge impact on your monthly loan payment, and therefore on how much home you can afford. A $400,000, 30-year loan at a 6.00% interest rate will require a payment of $2,398 per month. But if the rate is 7.00%, your monthly payment jumps to $2,661. Over the 30-year term, that percentage point difference in the interest rate will have you paying almost $100,000 more in interest. That’s a lot.

Take a look at this chart to understand how your interest rate and loan term could impact your monthly payment amount and the total interest you’ll pay on a $300,000 mortgage.

Mortgage Rate Trends in Jacksonville

Examining historical mortgage rates in Florida and across the country may give you an idea of what the future will hold for Jacksonville’s rates.

Types of Mortgages Available in Jacksonville

You have opens when you’re looking for the type of mortgage loan that will best set you up to purchase your home in Jacksonville. Understanding all the choices will help you make informed decisions at every point in the process.

Should You Wait for Interest Rates to Drop?

Whether you qualify as a first-time homebuyer in Jacksonville or not, you may be wondering if you should wait for mortgage rates in Florida to drop. Forecasters are predicting a fairly steady path for rates in Florida through 2025 and 2026. What plan is best for you? Most likely you should start by carefully considering your financial readiness. Assess your savings and your credit score, along with market conditions. You can then decide if you want to buy now.

One thing potential homebuyers should know: If interest rates drop after you’ve purchased a home, you haven’t made a mistake. You can pursue a mortgage refinance to help you take advantage of the lower rates.

How Do Jacksonville’s Costs Stack Up?

Jacksonville’s cost of living is pretty affordable compared to other Florida cities. The cost of living is 8% lower than the state average, and 7% lower than the national average. But overall, it is expensive to live in Florida compared to other states. The median monthly mortgage payment in Florida is $2,275.

The chart below shows you how Jacksonville compares to other Florida cities on an index where 100 equals the average cost of living in the U.S.

How to Get Your Best Possible Rate in Jacksonville

To secure the best rate possible in Jacksonville, make an effort to increase your credit score while reducing your debt-to-income (DTI) ratio. Conventional loans are a common choice and typically require a credit score of 620 or higher, but in 2024 the average credit score of approved applicants was 758, according to Experian®, one company that tracks consumer credit scores.

•   Improve your credit score by making timely payments and paying down your credit cards — don’t carry balances.

•   Lower your DTI ratio by paying off debts.

•   A higher down payment on a home is a good idea if you can do it. That chunk of cash will likely help you get a lower interest rate.

•   Lenders look for a steady source of income by checking up on your employment history. They want to make sure you’ve got the cashflow to make your monthly payment.

•   You may want to gather your information and go through the mortgage preapproval process, which will give you a reliable idea of what you can afford.

•   Check out government-backed loan programs, which tend to have lower interest rates than conventional mortgage loans.

Recommended: Average Monthly Expenses for One Person

Tools & Calculators

A mortgage calculator is a helpful and easy-to-use tool. It will help you understand the impact of different interest rates on a loan in Jacksonville. It will also tell you how the rate you negotiate will affect monthly payments over your loan’s run. These calculators take the loan amount you request, the term length, and the interest rate, and provide a clear and accurate financial picture that can help you make smart decisions.

Try out these three mortgage calculators we like:

How to Evaluate Loan Offers in Jacksonville

Grabbing a competitive mortgage rate is a smart move that can save you a substantial amount of money over the lifetime of your loan. It’s not only the interest rate that matters, though. You’ll also need to factor in fees, closing costs, and discount points. Found a loan offer that feels right? You’re ready to make a bid when you find a home you love.

Jacksonville Mortgage Resources

Florida is home to a lot of resources and programs offering assistance to homebuyers. If you are buying your first home or are worried about your financial scenario, you may find the support you need to buy a starter home in Jacksonville at a great mortgage interest rate.

You might even be considered a first-time buyer if you’ve owned a primary residence before — as long as it hasn’t been in the last three years — or qualify for a down payment assistance programs. The Florida Housing Finance Corporation offers the Florida First initiative, with 30-year fixed-rate FHA, VA, and USDA loans. And the Florida Assist Second Mortgage can provide up to $10,000 for your down payment and closing costs.

Recommended: The Best Affordable Places in the U.S.

Closing Costs in Jacksonville

If you buy a home in Jacksonville, you can expect to pay between 2% and 5% of your loan amount in closing costs. For a $292,392 home — the average value for homes in Florida in early 2025 — that is between $5,800 and $14,700.

The amount you will pay will likely depend on a range of factors, from the home’s price to its location in the city. Closing costs in Jacksonville may include credit report fees, appraisal fees, loan origination fees, title insurance premiums, and property taxes. Understanding the costs and shopping for the best possible mortgage rates will result in you saving money when you purchase your home. You may find help with your closing costs, too, through local or state programs in Florida.

When you’re figuring out your budget for closing expenses, you may also consider reserving funds for mortgage points. (A mortgage point generally costs 1% of the mortgage amount, and each point lowers your mortgage interest rate by 0.25%.)

The Takeaway

The mortgage landscape in Jacksonville offers options if you’re looking to be a homebuyer. Staying up to date about current mortgage rates and exploring local and state assistance programs are important steps for prospective buyers, whether you’re a first time buyer or an experienced homeowner. Be sure to take advantage of all available resources — it will make the whole process easier and more affordable.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

Is it the right time to buy a home in Jacksonville?

Your decision on whether to buy a house in Jacksonville should depend significantly on your personal financial situation and conditions in the market. If you’re prepared moneywise to purchase property and you are able to secure a competitive interest rate, it can indicate that it’s a good time to buy. It’s important, however, to carefully consider your long-term financial goals and the economic climate overall before you make a decision about.

Will Jacksonville home prices go down?

The Jacksonville housing market is influenced by a wide variety of factors, including the state of the economy, locally and nationally. Supply and demand are also key in the home market. It’s hard to predict the exact direction home prices will go, especially when market volatility is increasing. A real estate agent with local knowledge can help you identify the most important points and figures to consider.

How do you lock in a mortgage rate?

Shop around. Compare offers from multiple mortgage lenders to zero in on the most attractive rates. Once you select a lender, ask how you can lock in your rate: A rate lock will most likely last 30 to 60 days. These freezes are free sometimes, but often carry a cost that can be between 0.25% and 0.50% of the loan amount.

How do mortgage interest rates work?

Mortgage interest rates are usually advertised as a percentage. They tell you, very basically, your cost to borrow the money to purchase a house. Rates are affected by economic conditions and your personal financial history. Fixed-rate mortgages carry stable rates, while adjustable-rate mortgages have fluctuating ones. It’s helpful for homebuyers to understand the basics, since even small rate changes can cost or save you thousands of dollars over a 30-year loan term.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SOHL-Q225-135

Compare mortgage rates in Appleton.

Introduction to Mortgage Interest Rates

Where Mortgage Rates Come From

Mortgage rates in Wisconsin are influenced by a variety of factors, and understanding how they are determined can help you make more informed decisions when it comes to your home purchase. The bond market, and specifically the 10-year U.S. Treasury Note, is a strong indicator of which direction rates are heading. The performance of the housing market, inflation, and unemployment rates also play a role. When the economy is strong and growing, mortgage rates tend to rise. When the economy is slowing or inflation is low, mortgage rates tend to fall.

But that’s just half the story. The other half belongs to you, the homebuyer. Lender will weigh your personal financial profile and history, scrutinizing the following:

•   Credit score Most conventional lenders will look for a score of 620 or more, but generally speaking, higher is better.

•   Down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.

•   Debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%.

See how your debt level may affect your mortgage

Use SoFi’s debt-to-income calculator to determine your personal DTI number..

How Interest Rates Affect Home Affordability

Are we making too big a fuss about mortgage rates? You be the judge: A one-percentage-point increase in the interest rate on a $250,000 mortgage — from 6.00% to 7.00% — adds about $165 to the monthly payment. That’s almost $2,000 a year.

Even a fraction of a percentage point can have a significant impact on your budget and your long-term financial health and stability, as you can see in the table below. Calculations are based on a $250,000 fixed-rate loan repaid over 30 years.

Appleton Mortgage Rate Trends

Historical U.S. Mortgage Rates

Mortgage interest rates have always fluctuated quite a bit. The graphic shows 50 years of average national rates, from 18.00%+ in 1981 to under 3.00% in 2021. The table illustrates how rates in Wisconsin closely follow the national average, usually a bit higher or lower. Keeping your finger on the pulse of these trends by following news of interest rates can help you make the best choices for your mortgage.

Should You Wait for Interest Rates to Dip?

It’s a question that often pops up, especially among those new to the homebuying scene in Appleton. The current outlook suggests that mortgage rates will hold steady for a while. Forecasts are pointing to an average mortgage rate in Wisconsin of around 6.30% by the close of 2025.

While the idea of lower rates down the road is alluring, it’s wise to weigh your financial readiness and the perks of locking in a mortgage now. If rates do take a dip in the future, you can always explore a mortgage refinance to take advantage.

The Cost of Living in Appleton

The overall cost of living in Appleton is about on par with the national average. While home prices are on the rise (up 6.9% year over year in May 2025), the average home value here of $287,000 is well below the national average of $368,000. That can make fitting a mortgage payment into your monthly budget much easier.

Here’s how Appleton compares to other Wisconsin cities on an index where 100 equals the average cost of living in the U.S.

Recommended: Average Monthly Expenses for One Person

How to Get Your Best Possible Rate in Appleton

To secure the best mortgage rates in Appleton, the first thing to focus on is improving your credit score, which can significantly lower your interest rate. Then pay down your existing debts as much as possible; aim for a debt-to-income (DTI) ratio below 36%. And you probably know that increasing your down payment can help you avoid private mortgage insurance (PMI). But a higher down payment can also reduce your interest rate.

Lenders will carefully review your employment history, income, and assets to assess your financial stability. To solidify your budget, consider going through the mortgage preapproval process and explore different types of mortgages, such as fixed-rate or adjustable-rate loans, to find the best fit for your financial situation.

Helpful Tools & Calculators

Using a mortgage calculator is a great way to see how different mortgage rates in Appleton, WI will affect your monthly payments and overall costs. You can also input different loan amounts, loan terms, and interest rates to see how your total payment will vary. Remember, you should also compare rates and fees from different lenders to see which lender will offer you the best deal. Additionally, you can use online calculators to estimate closing costs and other expenses.

Types of Mortgages Available in Appleton, Oregon

Another factor that influences your mortgage interest rate is the type of mortgage loan you choose. Fortunately, in Appleton, you’re spoiled for choice when it comes to mortgages. For a conventional mortgage, a credit score of 620 is the usual starting point, but the average score for a homebuyer in 2024 was 758. Here’s a bit more about the main mortgage types and the rates you can generally expect from each.

How to Evaluate Loan Offers in Appleton

A competitive mortgage rate can be the key to significant savings over the life of your loan. Even a seemingly small rate difference can add up to big bucks. That’s why it’s so important to compare rates and fees from multiple lenders, focusing on the APR (annual percentage rate), which includes all the costs of the loan. Once you’ve found an offer you like, you can lock in your rate for up to 90 days for a fee, which can provide some peace of mind in a volatile market.

Appleton Mortgage Resources

Appleton is brimming with resources and programs to support homebuyers, especially those stepping into the market for the first time or those with limited financial resources. The Wisconsin Housing and Economic Development Authority (WHEDA) is a fantastic starting point. They offer the Advantage Conventional Loan, which requires a 620 credit score and meeting income limits. The Advantage FHA loan needs a 640 credit score, and they also have two down payment assistance programs: the Easy Close DPA and Capital Access DPA. These resources can be the key to making homeownership more accessible and affordable for you.

Closing Costs in Appleton

For those of you setting your sights on a new home in Appleton, closing costs typically range between 2% and 5% of the loan value. What’s the secret formula behind these costs? Well, it’s a mix of your property’s value and location, and the typical costs include loan origination fees, appraisal fees, title insurance, and attorney fees.

Here’s a pro tip: To keep these costs in check, be sure to shop around for lenders who are upfront about their rates and fees. And don’t be afraid to negotiate.

The Takeaway

Appleton, Wisconsin homebuyers know a great place to live when they find one. They also know that making well-informed decisions can set them on the path to successful homeownership. Comparing interest rates and terms from multiple lenders can result in significant savings. Keeping an eye on interest-rate news and locking in a rate can shield you from potential increases. By exploring assistance programs and staying up to date, you can confidently navigate the mortgage market. This knowledge is your key to securing favorable terms and realizing your property ownership aspirations.

View your rate

FAQ

Wondering if mortgage rates will dip in Appleton, Wisconsin?

Predicting future mortgage rates is a bit like forecasting the weather — it’s not an exact science. But you can get a good idea of what might happen by keeping an eye on key economic indicators. For example, if the 10-Year Treasury Note yield dips, mortgage rates might follow. That said, the forecast is for interest rates to hold steady for the rest of the year, ending 2025 around 6.30%.

Will mortgage rates ever be normal again?

While we may not see a return to the record low mortgage rates of 2021, there is hope that they will hold steady for the time being. If you take the long view, current rates are actually around the 50-year average. The key is to stay flexible and consider your financial readiness before making any big decisions about a home. And if you’re ever in doubt, a chat with a financial advisor can help you make the best choice for your situation.

Will Appleton, Wisconsin home prices ever decrease?

Although we’ve seen a general uptick in home prices of late, we could see a leveling off or even a dip in home prices. To navigate these potential shifts, it’s wise to stay attuned to local market conditions and seek the guidance of a qualified real estate professional. Additionally, utilizing a mortgage calculator can be a strategic move, allowing you to carefully estimate your monthly payments and compare different scenarios based on current mortgage rates. This kind of planning can provide the clarity you need to make a confident, well-informed decision.

Is it a good time to buy a house in Appleton, Wisconsin?

Whether or not to make that leap into homeownership in Appleton, Wisconsin, is a decision that’s influenced by a variety of factors. While higher mortgage rates can nudge up monthly payments, Appleton home values in 2025 are well below the national average. For first-time homebuyers, there are programs like the WHEDA Advantage Conventional Loan and down payment assistance to help ease the financial load. Keep an eye on the economic landscape and your own financial readiness to know when the time is right for you.

Compare mortgage rates in Knoxville.

Introduction to Mortgage Interest Rates

Where Mortgage Rates Come From

The interest rate a homebuyer pays on the money they borrow through a home loan is dependent on a range of factors, including the economy, the borrower’s credit history, and their overall financial situation as well. Let’s take a closer look:

The type of home loan you choose, both in variety and term, will also impact your mortgage interest rate. We’ll discuss that in more detail below.

Discover how your debt level may impact your mortgage.

Try SoFi’s debt-to-income calculator to calculate your DTI number.

How Interest Rates Affect Home Affordability

In Tennessee, a small chane in mortgage rates can have a giant impact on your experience as a homeowner. If you take out a $300,000 loan at a 6.00% interest rate, for example, your monthly payment will be $1,799. If the rate increases to 7.00%, your monthly payment will jump to $1,996. But over the life of a 30-year mortgage, that one-percentage-point difference will add up to more than $71,000 increase in interest paid.

Recommended: Best Affordable Places to Live in Tennessee

Knoxville Mortgage Rate Trends

Types of Mortgages Available in Knoxville

Looking for types of mortgage loan that will best set you up to purchase your home in Knoxville, you’ll have options. If you understand all the choices, that knowledge will help you make informed decisions at every point in the process.

Recommended: The Best Affordable Places in the U.S.

Should You Wait for Interest Rates to Drop?

If you are hoping to qualify as a first-time homebuyer in Knoxville, you may be wondering whether or not you should wait for Tennessee mortgage rates to drop. Current market predictions indicate that rates will probably remain stable through 2025 and 2026. What does that mean? Your best plan is to carefully consider your personal financial situation, including the condition of your savings and credit score, and to evaluate overall market conditions. Only you can make the decision about whether buying now is the right choice.

Remember: If interest rates drop, even after you’ve purchased a home, you can take advantage of the lower rates by pursuing a mortgage refinance.

See How Knoxville’s Costs Stack Up

Knoxville’s cost of living is relatively affordable — as are other Tennessee cities when you compare their figures to national standards. Here’s how Knoxville compares to other cities in Tennessee on an index where 100 equals the average cost of living in the U.S.

How to Get Your Best Possible Rate in Knoxville

In Knoxville, if you want to get the best mortgage interest rate, you’ll need to focus on a few key factors.

•   Build your credit score by making all your payments on time and paying down any credit card balances you are carrying.

•   Lower your DTI ratio by paying down your debts.

•   Make a higher down payment. It can help you secure a lower interest rate.

•   Maintain a steady source of income. Lenders will likely want to look at your employment history.

•   Go through the mortgage preapproval process. This is something to strongly consider — it will give you a better idea of what you can afford.

•   Look into government-backed loan programs, which often have lower interest rates than conventional loans.

Recommended: Average Monthly Expenses for One Person

Tools & Calculators

Mortgage calculators are helpful and easy tools to assist you in understanding the impact of different interest rates on a loan in Knoxville. They can also tell you how the rate you negotiate will affect monthly payments over your loan’s term. These calculators take the amount of your loan, the term length, and the interest rate, and use the numbers to provide a clear and accurate financial picture to help you make smart decisions.

Try out these three mortgage calculators we recommend:

How to Evaluate Loan Offers in Knoxville

Grabbing a competitive mortgage rate is a win that can save you money over the lifetime of your loan. It’s not just the interest rate that matters, though. You should factor in fees, closing costs, and discount points as well, to calculate what your home loan will cost you. If you’ve found a loan offer that feels right and you’ve completed the mortgage preapproval process, you’re ready to make a bid as soon as you fall in love with a home.

Knoxville Mortgage Resources

Tennessee, the Volunteer State, offers a lot of resources and down payment assistance programs to assist homebuyers, particularly those stepping into homeownership for the first time or dealing with financial constraints. The Tennessee Housing Development Agency (THDA) spearheads the Great Choice Home Loan Program, which offers 30-year fixed-rate loans and down payment help tailored for FHA or USDA loans. If you’re exploring mortgage rates in Knoxville, Tennessee, you may find competitive offers to fit your needs.

Closing Costs in Knoxville

If you decide to buy a home in Knoxville, expect to pay between 2% and 5% of your loan amount in closing costs. For a $361,367 home — the average value for homes in Tennessee in early 2025 — that’s going to be between $5,800 and $14,700.

The amount you will pay will likely depend on a range of factors, from the home’s price to its location in the city. Closing costs in Knoxville may include credit report fees, appraisal fees, loan origination fees, title insurance premiums, and property taxes. Understanding the costs and shopping for the best possible mortgage rates will result in your saving money when you purchase your home. You may find help with your closing costs, too, through local or state programs in Florida.

When you’re figuring out your budget for closing expenses, you may also consider reserving funds for mortgage points. (A mortgage point generally costs 1% of the mortgage amount, and each point lowers your mortgage interest rate by 0.25%.)

The Takeaway

Knoxville’s mortgage landscape is as diverse as this giant Tennessee city itself, offering a wide variety of options for you if you’re looking to become a homebuyer. Staying informed about current mortgage rates in Knoxville and investigating assistance programs are important steps for prospective buyers before you take the plunge. Whether it’s your first time as a buyer or you are an experienced homeowner, take advantage of resources you find and the process will be easier and more affordable.

View your rate

FAQ

How do you lock in a mortgage rate?

Shop around, comparing offers from multiple mortgage lenders to find the best available rates. Once you’ve selected a lender, inquire about how you can hold your rate: Rate locks will typically last 30 to 60 days. Some lenders offer them for free, but more often they carry a cost between around 0.25% and 0.50% of the loan amount.

How do mortgage interest rates work?

A mortgage interest rate is basically a percentage that tells you what it will cost you to borrow money for your home purchase. Rates are impacted by economic conditions, as well as the borrower’s personal financial history. Fixed-rate mortgages carry unchangeable rates, while adjustable-rate mortgages, or ARMs, have rates that can change in time. Homebuyers need to understand the basics of mortgage rates, since even a small change can cost or save you thousands of dollars over a 30-year loan term.

Will Knoxville mortgage rates drop?

Economists have predicted that mortgage rates in Knoxville are likely to remain stable into 2026. But no one can guarantee how they will react to economic factors like inflation. Keeping your eye on the price of Treasury bonds will help you anticipate where rates may go. Even more important: Weigh your personal financial readiness, beginning with your credit situation.

Will Knoxville home prices go down?

The housing market in Knoxville is influenced by a wide range of factors. These include the state of the economy, locally and nationally, and powerful influencers like supply and demand. While it’s hard to predict exactly how home prices will change, especially if home market volatility increases, a real estate agent with local knowledge may have tips and figures to consider.