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Buying a home in “The Heart of the Gold Coast”

For a place to call home that epitomizes beachside living, Pompano Beach is the place to be. Located between Palm Beach and Miami, this city with a high walkability rating is a seaside paradise for scuba divers, snorkelers, anglers, and boaters. But these aren’t the only attractions: You'll also find that restaurants and shopping abound. Homes in Pompano Beach are now affordable, but prices are rising. Act fast to snatch up your Pompano Beach property with a home loan from Earnest.
Hotels and residential buildings on the beach in Miami Florida

Pompano Beach is a booming metropolis

This vacationer’s choice can be a full-time paradise

Pompano Beach can be every outdoor lover’s paradise. With a 1,000-foot-long municipal fishing pier, white sand beaches, and 50 local parks, Pompano Beach is perfect for families, singles, and retirees who want to turn life into a long-term vacation. As part of the larger Miami metro, too, residents of Pompano Beach can take advantage of the area's vibrant Latin culture. With a population of just over 100,000, Pompano Beach has the best of urban living without all the hassle. Many residents take the city’s excellent public transit system to work, while parents may choose to send their children to a school that specializes in a specific area. Residents who live in beautiful neighborhoods like High Ridge Estates or Cypress Harbor have easy commutes to the beach after hard days at the office.
Hotels and residential buildings on the beach in Miami Florida
Miami, United States - February 15, 2015: Car travel through the highway to North Miami. Florida, US.

Helping you buy your home in Pompano Beach

A simple application and low rates from Earnest make it possible

With a multibillion dollar building boom in Pompano Beach, you need to act fast to snatch up the perfect home in this hot-spot city. Last year, the median home price increased by more than 8 percent. That kind of increase can signal the difference between an affordable home and an unattainable one. With a median home price in Pompano Beach of $173,000 and a predicted increase of nearly 2 percent over the rest of this year, there’s no time like the present to commit to beachside living. Buying your ideal house in Pompano Beach—especially so quickly—can be a daunting task.Take the guesswork out of finding and buying your new home. Earnest considers your priorities (walkability, neighborhood attributes, and schools) and then finds you a home that fits within your target price.
Miami, United States - February 15, 2015: Car travel through the highway to North Miami. Florida, US.

Common Questions About Buying a Home in Pompano 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

People around a computer

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.