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Oakland mortgage rates to get to move-in day

With mortgage rates and Oakland home prices lower than ever, now is the time to invest in a new family, vacation, or retirement home. With nearby resorts, local historic sites, and a strong community, Oakland can host any type of buyer. Earnest can help you identify your target price range, taking you one step closer to the home of your dreams.

Take advantage of Oakland's affordability

Vacation cabins or a family house, this is a scenic place to call home

Oakland has the perfect market for any buyer. Whether you are looking for a ski cabin with a view of the mountains, or a family home secluded by forest, Oakland is for you. With a strong community, great local points of interest, and a median sales price of $158,275, Oakland is a fantastic deal for all of its amenities. Oakland has never been so affordable, so now is definitely the time to act and finally go for your dream house. Although Oakland is great for many different buyers, there are only local elementary schools, making middle school and high schools a bit of a drive for students on the bus or in their own car.

Find the right home loan in Oakland

Mortgage rates don't need to be an obstacle to your dream home

A lot goes into buying a house. Finding a home loan with low rates is key. Let Earnest help you find the right home at the right price. A variety of factors affect your mortgage rate, such as ZIP code, credit score, and loan amount. Make sure you discuss any options for discounts or special rates with your realtor. Once you're preapproved for a mortgage, you're closer than ever to moving in. Refinancing your home isn't too different from obtaining your initial mortgage. All of the research is quite similar--you just need to figure out what you want to change in your mortgage terms. Don't let refinancing scare you; it's an essential step to making more money available for life's big moments. Earnest is here to help ease your stress and answer any questions.

Common Questions About Oakland 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.