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Buying a house in Cape Coral made simpler

One of the most beautiful planned and constructed cities in the country, Cape Coral is a marvel of modern city planning and engineering. The city was founded in the year 1957, and it is the 9th best place to retire in the USA according to Forbes. It has more water ways and navigable canals than any other city in the world. 9% of the area that the city covers is water in the form of canals. The architecture in the city is mostly modern as most settlements happened only after the 1970's.
The old Florida State Capitol building as seen from Monroe St and Apalachee Parkway with the New Capitol in the background

Beautiful landscape, stunning waterfronts

Great weather and scenic properties

The city of Cape Coral is filled with well planned and expertly engineered properties. It was a building project like no other where land was bought up and a residential community was built with roads paved and canals dug out. The area is not a natural marsh, it was purpose built to have almost every house with an accessible canal that connects to other canals, some of them extend out into the Gulf. Life in the Cape is a year-round vacation. Since the city is seated on the coast, you can expect humid weather throughout the year, but all the water present has an effect on the climate and it is rather cool and pleasant. The city receives over 355 of sunshine, so it is warm and comfortable almost every day. The median age in this city is 45.
The old Florida State Capitol building as seen from Monroe St and Apalachee Parkway with the New Capitol in the background
big tent for the adults and small tent for the children at campground

Living in Cape Coral, made easier than ever before

Lower-than-anticipated rates, easier-than-expected process

Buying a property in Cape Coral can be an intimidating process. Almost every house looks great, neighborhoods are amazing and settling on one can be quite a confusing task. If you feel like you are bogged down, Earnest can help you identify not only the most suitable rates in terms of mortgage, but also the best home by price, location and convenience to amenities. Using all of these metrics, we can even determine exactly what price range your dream home should ideally be in. The median price of a house in the Cape is just short of $200,000. The third quarter of this year has seen a steady upswing in prices, after a sharp decline in June; just the perfect time to invest in the Cape. For that price, the house you get and the kind of neighborhood that you can move into is just worth the money.
big tent for the adults and small tent for the children at campground

Common Questions About Buying a Home in Cape Coral

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.