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Low mortgage rates for fast home buying

Mortgage rates are low throughout the country and the same applies to Panama City where it is around 3.24% for a 30-year fixed mortgage. The city is home to ranches, small family homes, mansions and expensive waterfront properties. Lynn Haven is one of the most popular neighborhoods, it was specifically formed for housing veterans right before World War I. Nature lovers will find themselves at home here as there is plenty of greenery in the form of parks, bays and creeks surrounding the city.
The old Florida State Capitol building as seen from Monroe St and Apalachee Parkway with the New Capitol in the background

Everyone feels at home in Panama City

Anyone could fit right in here

Residents of Panama City can experience both modern environments in the downtown area and indulge in lush greenery. Both the cost of living and home prices are on the rise but they still remain affordable and lower, compared to the state-wide rates. Green swamps, creeks, beaches and bays merge into more industrial areas as you go further away from the shore-line. The Panama City Marina along with the mall are the major entertainment areas. The beach and nearby waters allow for ample water sports and fishing. If this becomes boring then major cities are a short drive away. Those who live there have the luxury of being a beach town with plenty of jobs being available. Other than the tourism industry, the Tyndall Air Force Base is the largest employer. Unemployment rates have declined in the city and are lower than the national average.
The old Florida State Capitol building as seen from Monroe St and Apalachee Parkway with the New Capitol in the background
Woman kayaker paddling down a beautiful jungle river with two people in a canoe on a gorgeous day.

Best mortgages in Panama City

Low mortgage rates decided by useful metrics

Home buyer Many buyers are discouraged from buying homes on mortgage as they are frustrated by the rates. Various factors like the neighborhood, down payment and the purchase price of the home can sway mortgage rates. At Earnest, we make it a point to look further than your credit score while providing mortgages. Current earnings, savings and future earnings are all analyzed before putting down a rate. Your dream home could become a reality after just a few short steps. Refinancing a mortgage Many home owners might want to refinance their homes for different purposes. At Earnest, we make it a point to come up with a detailed financial plan after looking at various factors. We can guide on the type of mortgage to take up and predict savings. Our entire process can be conducted online, thus making it easier for home owners to re-finance.
Woman kayaker paddling down a beautiful jungle river with two people in a canoe on a gorgeous day.

Common Questions About Panama City 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

People around a computer

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.