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Orlando mortgage rates puts homeownership in reach

With the national and state mortgage rates at historic lows—and Orlando's average rates are even lower—now is the perfect time to think about purchasing property. High buyer demand has reduced the current inventory of traditional single-family homes, but the 16.2 percent vacancy rate means there are properties to be found for homebuyers willing to go beyond their expectations. Use our simple calculator to determine your target price range for your new home.
Orlando Florida, Lake Eola. ( Photograph with the Phantom 3 Professional at 400 feet altitud. )

Get more space for your money in Orlando

Cozy to mammoth—Orlando homes in all shapes and sizes

Affordable, spacious single-family homes are common throughout Orlando but high in demand. With a median home price of $158,600, move-in-ready properties can sell literally overnight. In hot neighborhoods, the average list price is $249,000. Homebuyers willing to sacrifice space may consider midtown condos, which make up for size with incredible views of the city and nightly fireworks from nearby theme parks. A vintage three-bedroom bungalow in an up-and-coming area can be remodeled for less cost than a new home. From energetic Metro West to the eclectic Thornton Park to established Williamsburg, Orlando neighborhoods offer community and convenience to its diverse population. When narrowing options, consider reviewing comparable sales, neighborhood amenities, and even HOA dues—homeowner associations are common in many suburban areas.
Orlando Florida, Lake Eola. ( Photograph with the Phantom 3 Professional at 400 feet altitud. )
Underwater manatee swimming in Kings Bay, Crystal River, Florida

Secure the best loan for an Orlando home

Lock in that low mortgage rate

The first step to purchasing any new home or investment property is to secure a loan. Many factors can impact your rate—from purchase price to ZIP code to the percentage of your down payment—but getting preapproval will help you determine your target budget. With current low mortgage rates, many Orlando homebuyers are opting for the 30-year fixed mortgage to lock in the rate and reliable payment schedule. Homeowners often refinance to switch between fixed rate and ARM, to change the mortgage term, or free up funds to pay for major purchases like college tuition. Earnest helps you identify the right option to fit your needs so you can get the house you want for the money you want to spend. Let Earnest be your first stop on the road to homeownership.
Underwater manatee swimming in Kings Bay, Crystal River, Florida

Common Questions About Orlando 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.