Alert Message

Tallahassee mortgage rates are too good to pass up

With mortgage rates so low, there’s no better time to buy your dream home in Tallahassee, Florida. Whether you’re a family choosing Killearn for its top-rated schools or a young professional choosing Midtown for its walkability and easy access to restaurants and attractions, there’s a neighborhood to fit every lifestyle and every budget, too. The only question that’s left is, “How much house can I afford?” Our simple calculator will help you answer that question.
Tampa, Florida, USA downtown city skyline over the Hillsborough River.

Tallahassee neighborhoods for every lifestyle

And every price range, too

Once you know your budget, it’s time to find that perfect house. Even Killearn, made popular by the community’s top-notch schools, offers many types of homes at all different price ranges. On the northeast side of town, you’ll find high-end neighborhoods like Golden Eagle, Summerbrooke, and Ox Bottom Manor. And then there are new communities like Southwood, which considers itself to be a small town within the bigger city. Crime rates in Tallahassee are higher than the national average, so be sure to dive into the specifics when you’re considering a neighborhood.
Tampa, Florida, USA downtown city skyline over the Hillsborough River.
Palm tree reflection in a corporate building.

Tallahassee’s best home loan

Low mortgage rates and a hassle-free application

As low as mortgage rates are right now, there is still a lot of variation based on things like ZIP code, purchase price, how much of a down payment you’re making, and your credit score. Earnest will help ensure you don’t leave money lying on the table. We’ll even help you figure out whether you’re eligible for any special discounts, such as the lower interest rates that are available to veterans. Not interested in moving right now? That’s okay. You can still take advantage of today’s low interest rates by refinancing. Refinancing can be a great way to free up some cash. If you don’t need the extra cash from lower payments, refinancing can reduce your terms from 30 years to 15. Here at Earnest, our priority is to help you secure the loan you need to achieve your own goals, whatever they may be.
Palm tree reflection in a corporate building.

Common Questions About Tallahassee 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.