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Considering buying a house in Palm Bay, Florida?

Palm Bay has been named the 11th Most Innovative City in America by Forbes. More and more people are flocking to the area after discovering how affordable housing is in Palm Bay. This, when coupled with all the amenities offered by the city, make for an unbeatable combination. Currently, a three-bedroom home, measuring 1,900 square feet in area, can be had for about $150,000. If you don’t need that much space, you could purchase a 1,500 square-foot home for around $110,000.
Orlando, Florida, USA downtown cityscape over the highway.

Palm Bay is the perfect place to live

Once you discover all that it has to offer, you will never want to leave

The city is spread over 68.8 square miles, of which 5% is water; and home to 105,838 residents (accurate as of 2014). A third of these inhabitants moved here only after 2000. You would too if you knew more about Palm Bay. It is located on the coast, so there is no shortage of water-based activities. You could go fishing, kayaking, scuba diving or see marine life in their natural habitat at the Turkey Creek Sanctuary. Even play a round of 18-hole golf at The Majors Golf Course, which was designed by none other than the legendary Arnold Palmer. The weather is great all throughout the year, with mean temperatures ranging between 72 °F and 91 °F. Strong winds off the coast of Palm Bay make kiteboarding possible. There are several elementary, middle and high schools, both public and private.
Orlando, Florida, USA downtown cityscape over the highway.
This is a beautiful photo capturing the Downtown Orlando Skyline at sunset.

Own a home in Palm Bay

Get the best rates with Earnest

One person who moved to Palm Bay from Miami describes it as ‘Paradise’. You can own a piece of Palm Bay too, and enjoy living there. Earnest provides you with low rates so that the entire procedure of buying a home in Palm Bay is easier like never before. We will pre-approve your mortgage so that the house-hunting process is simplified considerably. All you need to do is get in touch with a realtor with this piece of information (the amount you qualify for) so that he/she can help you find a home that suits your needs. You could also look at listings online, and contact the owner directly.
This is a beautiful photo capturing the Downtown Orlando Skyline at sunset.

Common Questions About Buying a Home in Palm Bay

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.