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Why a Bonita Springs home is a good investment

The median price of a home in Bonita Springs was $131,600 in 2000. By 2013, it had skyrocketed to $241,318 – an appreciation of 83%. This corresponds with 24,500 people moving in to the area since the beginning of the century – a trend that is likely to continue as several businesses continue to set up shop here owing to low taxes and cheap office space. Median home prices are 57% higher than the Florida state average. A two-bedroom 1,276 square-foot condominium can be had for about $235,000.
Hollywood Florida, illuminated buildings at sunset reflected in the water

Life in Bonita Springs

Settle down by the sea

A number of PreK-12 schools serve the schooling requirements of its residents. The Southern Technical College also operates a campus here for meeting the higher education needs of Bonita Springs. Forbes ranked Barefoot Beach #6 in the country; and there are several other beaches as well, including one for dogs. The Southwest Florida International Airport serves Bonita Springs, and Center for the Arts of Bonita Springs ensures that cultural, performing arts and music festivals are held all throughout the year. For nature lovers, there is the 13,000-acre Corkscrew Swamp Sanctuary and the Lover’s Key State Park, where they can view wildlife (this includes birds and marine species) in their natural habitat. There are always opportunities for swimming, snorkeling, kayaking, scuba diving and fishing.
Hollywood Florida, illuminated buildings at sunset reflected in the water
Group of friends jumping from the boat. having fun on the yacht and in the water

Owning a home in Bonita Springs made easy

Take advantage of Earnest’s low rates and simplified paperwork

If you are a first-time buyer, you could expect to receive up to $15,000 under the Florida First Time Home Buyers Grant Program. We understand that you may have put together every cent you can to purchase your dream home, so we offer extremely low rates of interest. We make the process of owning a home simpler with simplified paperwork, and we will even pre-approve your mortgage for you. If you already have a home in Bonita Springs, consider our refinancing plans. Switching to a fixed-rate mortgage from an Adjustable Rate Mortgage can save you thousands of dollars. Earnest’s low rates can still save you money even if you are on a fixed-rate mortgage at present. With all that Bonita Springs offers, and its 65 °F – 82 °F mean temperatures, living here can be a very pleasant experience.
Group of friends jumping from the boat. having fun on the yacht and in the water

Common Questions About Bonita Springs Mortgage Rates

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.