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Columbia mortgage rates made clear and simple

With the mortgage rates as low as they are in Columbia, now is the perfect time to look into purchasing your dream home. From a wide selection of houses and apartments, and different neighborhoods to explore, you're bound to find your perfect home within this small city, whether you're settling down, moving on up, or just looking for an oasis from the office. Earnest can make those dreams easier to achieve. We've even built this simple calculator to make finding your price range easier.

Affordable Columbia homes for your budget

Your dream home is waiting for you

Columbia is bursting with affordable houses and apartments−many that include gorgeous views of healthy green yards and colorful foliage. The current median home price for housing in this small city is $362, 600. However, this price is predicted to rise within the next year or so. Commute times in this area are low; the most common estimated travel time to work is just 30 minutes. Everything is within a comfortable driving distance and with the amount of activities and events this area offers, it’s worth the few minutes spent in the car. Keep in mind that tornado activity in this area is slightly higher than the national average, so make sure to research the safety procedures in your target neighborhood and prioritize accordingly when looking at homes.

The perfect loan for your housebuying needs

Earnest helps you achieve your dream loan for your dream home

Buying a new home can quickly become overwhelming. Let Earnest take the frustration and confusion out of homebuying and help you find the home of your dreams in Columbia. Whether you're an experienced homebuyer or a newbie, Earnest helps identify your priorities as a homebuyer, all while keeping your unique financial profile in mind in order to provide better service. Best of all, we make the application process simple by providing an easy-to-use online application. If you're researching Columbia mortgage rates in order to refinance, the process is just as easy. Earnest will look at your needs and help identify the best option so that you can start freeing up some cash for something you love. Whether you are looking to switch from an ARM to a fixed rate, or changing your term, or a variety of other options, we will help you see how much you can save--and set you up for success.

Common Questions About Columbia 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.