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Buy a home in Key West, it is the right time!

You would never be bored living in Key West, the city offers a ton of fun and adventure activities. The cost of living is very high compared to the national average (50.60% higher), however, it is expected out of a city where the fun never ends. The amenities the city offers justifies the high cost of living. The home values have gone up in the recent years, however, it is still possible to buy budget-friendly homes in the city. Job growth in Key West has been positive in the recent years.
Miami Florida skyline of downtown colorful skyscraper buildings

You can experience Caribbean culture in Key West

The tropical island city that is irresistible to adventurous/active people

Key West is a tropical island city that is located in the Straits of Florida. It is within the limits of Monroe County, Florida. The city is a prominent tourist destination. The Key West Art & History Museum, the Audubon House & Tropical Gardens and Ernest Hemingway's house are some of the popular attractions. Key West has been home to Ernest Hemingway and President Harry S. Truman. Key West offers saltwater fishing, scuba diving, snorkeling and various other water activities. The city has a sunny weather most of the time. Key West has a good education system. 87% is the high school graduation rate, which is quite high. There is easy access to healthcare facilities in and around the city. 70% of the Key West residents commute by car, 12% by bike and 8% by public transportation.
Miami Florida skyline of downtown colorful skyscraper buildings
Colours, cabs and cocktails determine the nightlife while celebrating in Miami Beach. South Beach offers endless locations to have fun all night long.

Earnest can find you a budget-friendly home

Owning a home in Key West can yield tremendous return in the future

Finding a home that is reasonably priced in Key West is not an easy task since the city has limited spaces that are very desirable. However, Earnest can find you a home that suits your budget. A home in Key West means a healthy and fun living, as well as a wise investment for the future. Earnest's online application process is simple and fast. You can contact our client support team for any queries/issues. Earnest can get you a mortgage with a fair rate (and by fair, we mean the lowest) to finance your home. Do not wait to invest in that home in Key West, even if your credit score is bad. It is true that you need a good credit score to get a mortgage/a good mortgage rate. However, Earnest can find alternative ways, to get you a mortgage with a fair rate, just talk to us. We can help.
Colours, cabs and cocktails determine the nightlife while celebrating in Miami Beach. South Beach offers endless locations to have fun all night long.

Common Questions About Buying a Home in Key West

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.