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A home in Dunedin makes for a good investment

The median price of a home in Dunedin at the turn of the century was $86,900. This appreciated by as much as 64% to $142,554 in 2014, meaning homes increase in value by more than 11% every year. The city boasts of the #1 beach in the United States, and also provides for affordable and safe living. The cost of living here is 4% lower than the state average, while the crime rate is a massive 37% lesser. As of now, the median value of a home in Dunedin is 3% lesser than the $153,300 for Florida.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.

Life in Dunedin is exciting!

There is more to the city than the sun, sand and beaches

Spread over 28.2 square miles, the city has a population of 37,000. It has one of the best marinas on the West Coast, and can accommodate boats of all sizes. If you enjoy a game of golf, there is the Dunedin Golf Club, which has a championship 18-hole course. Tampa Bay Magazine named it Country Club of the Year in 2008 and it has also hosted the Senior PGA Tour. There is a Farmers’ Market from where you can buy fresh produce and the Dunedin Historical Museum stores records of how the Roebling Alligator amphibian assault landing vehicle was produced here during the WWII era. The Toronto Blue Jays have also made Dunedin their spring training home. The Florida Auto Exchange Stadium, where they practice, is one of the top five places to watch Major League Baseball training games, according to Sports Illustrated.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.
4th of July fireworks at Miami Beach, Florida.

Get yourself the Earnest advantage

With simplified paperwork and low rates, owning a home in Dunedin is easy

Dunedin is a great place to live, with average temperatures ranging between 80 °F in the summer and 62 °F in the winter. It is served by the St. Pete-Clearwater International Airport, 12 miles away and there are several schools for PreK-12 education needs. When you drive around Dunedin, you will understand how this is a quiet place, but having access to all amenities – perfect for raising a family or for retirement. A three-bedroom 1,375-square-foot home can be had for around $250,000. Earnest pre-approves your mortgage so that you can look at Dunedin homes which you qualify for. If you already have a home in Dunedin, consider one of Earnest’s refinancing plans. With its fixed-rate mortgage, you could save thousands of dollars when compared to the Adjustable Rate Mortgage you may be on at present.
4th of July fireworks at Miami Beach, Florida.

Common Questions About Dunedin 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.