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Luxury homes at bargain prices

Spencerville mortgage rates are low but steadily on the rise. With the market prices expected continue increasing in the next several years, now is a good time for homebuyers to secure the best, most affordable rates. Spencerville offers a wide range of luxury housing that you'll love, with something for everyone in this town. Check out our simple calculator to help find out how much you can afford at the current rates.

Beautiful homes at a premium price

Spencerville homes are full of charm and comfort

In Spencerville, you'll find spacious suburban homes and luxurious multi-story residences in sprawling communities. Property value in Spencerville is relatively high. At a median sale price of $437,500, homebuying in Spencerville isn't for the budget-conscious shopper, but what it offers in luxury, amenities, and location more than makes up for the high price. Though its cost of living is seemingly high, Spencerville has a low rate of crime, low unemployment rates, and a healthy average household income. Residents can truly feel at ease in their surroundings and connect with the community without worry. The area has public attractions such as parks and libraries, and plenty of public transport options for taking advantage of all the city has to offer.

Get ready for homeownership

Earnest can help you buy or refinance in Spencerville

Whether it's your starter home or a retirement vista, your dream home in Spencerville starts with the right home loan. Earnest can help you pin down the details and get preapproved fast, so you spend more time enjoying the homebuying process, and less time stressing out about ever-changing numbers and confusing terms. According to Bankrate, you could have rates as low as 3.2 percent for a 15-year fixed mortgage rate plan in Spencerville, so start researching today. Additionally, refinancing allows homeowners to free up funds for major expenses, such as home renovations or college tuition. With several options to choose from, Earnest can help you decide what would work best for you--from extending the length of your mortgage or switching from ARM to a fixed rate (or vice versa). There are more possibilities than you think, so don't hesistate to get in touch.

Common Questions About Spencerville 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.