Alert Message

Invest before the rates go up in the new year

Because 2017's mortgage rates are expected to rise, now is a perfect time to invest in a home. At a current median sales price of $325,00 and a median rent of $2,000, buying in Tracys Landing is important as it begins to transform into an up-and-coming city.

So many homes, so many choices

Choose the ideal Tracys Landing home

Tracys Landing is filled with beautiful homes complete with lush green yards, gardens, and waterfront views. But with so many options, how do you choose? To find your ideal neighborhood, do some research ahead of time. Do you want the bay as your backyard? Or would you rather live five minutes away? Look into homes on the market and homes that were recently taken off the market. According to listings on Trulia, homes can sell from approximately $349,900 all the way into $2,000,000. Therefore, it's important to pinpoint which areas you can afford. Look into neighborhood characteristics to know what kind of community you will be moving into. For example, 98 percent of the Tracys Landing residents commute by car to their professions, so be sure that you have one before moving!

Buying a home in Tracys Landing may be affordable

A quick application process that makes buying a home easy

The process of finding a home can feel like a roller coaster, especially in a city that offers so many options in an ideal location. Being approved for a mortgage is usually a large part of this roller coaster, and can provide a lot of bumps around the way. Don't let a slow approval process keep you from your new home. Earnest can help you with this by completing their online application. Unlike other companies, Earnest looks at all traits in your life and not just your credit score, making it easier and more likely to get a low rate.

Common Questions About Tracys Landing 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.