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Buying a home in Delray Beach Florida? We'll help!

A part of the metropolitan area of Miami, Delray Beach is a coastal city located in Florida's Palm Beach County. It is a world-famous resort destination. USA Today voted it as the Most Fun Small Town in America, in 2012. The city has a lot of fine restaurants and art galleries. It is also known for its family-friendly festivals. Apart from tourism, import/export and international financial trading also contributes to Delray Beach's economy. Earnest can help you own a home in this fun city.
Miami Florida skyline of downtown colorful skyscraper buildings

A city that can make you feel alive and enjoy life

Delray Beach offers you a vibrant and fun life by the ocean

There is no shortage for entertainment options in Delray Beach. Nightclubs can be found in all parts of the city. The city is a food lover's paradise. Locals and visitors alike participate in the many family-friendly festivals such as the Delray Beach Wine & Seafood Festival, the Garlic Fest and so on. The Arts District located downtown is famous for its galleries. The cost of living is a little higher in Delray Beach compared to the nation's average, however, it is worth it in terms of the entertainment, the job opportunities and the medical and health care that can be found here. The job growth has remained positive over the years. Marriott Hotels & Resorts and the Delray Medical Center are two of the top employers in Delray Beach. In 2010, the city was nominated as one of the top tennis towns in America by the US Tennis Association.
Miami Florida skyline of downtown colorful skyscraper buildings
Cocktails on the bar counter in night club.

Buy your dream beach bungalow in Delray Beach

Earnest can provide you financial advice and help you get a mortgage

Whether you are looking for an affordable single-family home that is cozy or a lazy beach bungalow in Delray Beach, Earnest can help. We can find you the right home at the right location according to your budget. Earnest can help you get a mortgage as well, and that too at a fair rate. The online application process is very easy. If you are bothered about your bad credit history while considering a mortgage, just talk to us, and let us find a solution for you. We consider factors such as your savings, your present income and your future financial potential as well, not just your credit score.
Cocktails on the bar counter in night club.

Common Questions About Buying a Home in Delray Beach

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.