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Pensacola mortgage rates make homebuying easy

As in the rest of the country, mortgage rates in Pensacola are at historic lows, making now an excellent time for those considering purchasing property. The Pensacola area offers an extensive inventory of affordable homes and condos, perfect for families and retirees alike. We’ve built a simple calculator to help you determine your target price range.
Panama City Beach, Florida, view of Front Beach Road at night during blue hour

See what homes you can afford in Pensacola

Condo or beach house, Pensacola has something for everyone

Pensacola is chock-full of spacious single-family homes—some on the bay, some on the beach, and some with verdant green surroundings. Whether you want a seaside property or something a bit more grounded, take time to investigate comps (recently sold homes) and property taxes. According to Trulia, the average home sale price in Pensacola during the summer of 2016 was $135,250. Pensacola neighborhoods range from Pensacola Beach to Brent and Ferry Pass—all with amenities perfect for military families and couples. Pensacola crime statistics are higher than the national average, so be sure to pay attention to the specific safety stats in your target neighborhood. Also consider the risk of damage to your property by storms and hurricanes.
Panama City Beach, Florida, view of Front Beach Road at night during blue hour

Pensacola’s best home loan

Low mortgage rates rates and easy application

Whether you’re purchasing a first home, an investment property, or a place to retire, a savvy first step is to secure a preapproved loan. Mortgage rates vary depending on many factors: ZIP code, purchase price, down payment, and your credit score. Veterans are also eligible for special rates. When researching Pensacola mortgage rates, ask your real estate agent about discounts. After being preapproved for a mortgage, it’s time to start looking for your dream home! If you’re planning to refinance your Pensacola mortgage, the loan process is similar. Refinancing can help homeowners who wish to free up cash for other major purchases, like college tuition or renovations. So whether you want to change your term from 15 to 30 years or switch from an ARM to a fixed mortgage, Earnest can help identify the right option based on your needs.

Common Questions About Pensacola 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.