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Many Swanton homes have affordable mortgage rates

For choosy buyers who wish to build their homes from the ground up, there are many options available in Swanton. Buyers who seek an affordable home with a bit of history are spoiled for choice as well. There are few manufactured homes; most Swanton residents opt for traditional colonials, or purchase land to build the luxurious homes of their dreams. All of the homes in the community have an undeniable aesthetic charm.

Charming and serene

Find your dream home in Swanton

Forest living is something that many people only dream of. In Swanton, it is an everyday reality. Swanton is much like a beautiful, enchanted forest, where life is blissful regardless of the house size. Sure, first time buyers might have to start off with a smaller home; however each freestanding home has a certain je ne sais quoi that makes it both breathtaking and charming regardless of its size. Families are the mainstay of this community year round. Tourists seem to fill in the gaps during warmer months, along with those who have a vacation home in the area. Swanton is the perfect escape from urban life. It is a woodsy paradise in a county that is touted for its outdoor activities and captivating splendor.

Fixed or ARM in Swanton

All things mortgage to consider

Mortgage rates fluctuate depending on the type of loan that a potential resident may seek. For example, residents who opt for a 15, 20 or 30-year fixed mortgage might see rates go up marginally depending on the week or month. However, the variable rate, or adjustable rate mortgage (ARM), will always be in flux. It is up to the consumer to decide the best course of action when it comes to mortgages. Consider using a mortgage calculator to estimate the total amount available for a down payment. Additionally, keep in mind the type of property that you would like to purchase. As noted, Swanton has many lots available due to residents preferring to purchase a lot, and then build a home from the group up.

Common Questions About Swanton 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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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.