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Low mortgage rates in Brooklyn

With a plethora of homebuying options, Brooklyn offers many possibilities for first-time homebuyers. Brooklyn's unique neighborhoods, rich with history and ethnic diversity, make Brooklyn perfect for anyone, regardless of age or income. According to Zillow, the current median price of homes is $65,000. With increases predicted in rates for the upcoming year, now is the time to act on your dream home.

Discover Brooklyn before anyone else

Be a trendsetter

With community-centered neighborhoods, amenities and activities for all ages, as well as beautiful city views, it's easy to see why Brooklyn residents are so happy. According to Trulia, the median sales price of homes in Brooklyn has typically hovered below $100,000. This might seem too good to be true, but low prices are the standard for up-and-coming neighborhoods. And this neighborhood is definitely up-and-coming. With new housing opportunities and close proximity to larger cities, home shoppers are finding Brooklyn the new place to be as it provides a city feel for an affordable price.

Affording the up-and-coming Brooklyn area

Restaurants and high energy—now all you need is a way to live here

When searching for a home, be sure to do research ahead of time. Finding a loan can be a difficult process, and you don't want to be stuck saying ""goodbye"" to your dream home because of a slow loan application. Stay in the know using Earnest. We use the top industry experts to get you your loan in the most efficient way possible. Not only this, but we also have incentives for paying off old loans you may have, and we can even help with refinancing. The process of finding a loan can be scary, but Earnest will help to make the monsters go away. Be sure to take advantage of the low mortgage rates in Brooklyn with Earnest. This up-and-coming neighborhood won't be cheap for long.

Common Questions About Brooklyn 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.