While the COVID-19 pandemic has negatively impacted many aspects of the U.S. economy, the housing market has flourished in recent months. With people spending more time at home, they’re realizing how important living in a space they love is to them and their families. If you find yourself in the market for a new home in the Seattle area, the interest rates are historically low—giving buyers the advantage and an opportunity to become homeowners at a lower cost. We’ve outlined a few tips on getting the best mortgage rates and the most bang for your buck.
Decide between a fixed- or adjustable-rate mortgage
Mortgage rates can be fixed or adjustable, and they’re pretty self-explanatory based on their names. Fixed-rate mortgages offer a locked, consistent interest rate over the life of the loan, while an adjustable-rate mortgage changes over time. Home loans are not a one-size-fits-all solution, so each homebuyer should do their research and work with a loan professional to come to the right decision for your circumstances. Need help finding the right broker? Blue Fern has vetted and recommended trusted professionals to guide you through the process.
Find out if you qualify for homebuying programs
Special programs for homebuyers can make the homebuying process less costly. Combined with the already-low interest rates, you could save thousands on a home in Washington. Again, speaking with a loan professional can help you save money on your down payment or overall mortgage.
Lock in your mortgage on the right day
Mortgage rates change daily. When you’re shopping for a mortgage and find the rate that’s right for you, you enter into a “contract”. This contract agrees to the rate offered, and your lender agrees to give you that rate for a specified number of days (typically 30). Just like airline and hotel prices, specified days of the week are better for the buyer. The Mortgage Reports, with help from MBSQuoteline, broke down what days are best to lock in your mortgage rates. Mondays, Tuesdays and Thursdays are optimal for homeubyers—with the least extreme changes in market prices posing the least risk for the borrower.The current state of the U.S. might seem uncertain, but a well-built home can offer a sense of security. With the right mortgage rates and a builder you can trust, you can become a homeowner in the Seattle area for less money than you’d expect. Contact Blue Fern Homes today for more information on buying a home in today’s economy.