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Brentwood mortgages that won’t break the bank

As in the rest of the country, mortgage rates in Brentwood are at historic lows, making now an excellent time for those considering purchasing property. The Brentwood area offers an extensive inventory of affordable single homes and apartments families and retirees alike with beautiful neighborhoods and attractions. Now is the time to begin your home search. We’ve built a simple calculator to help you determine your target price range.

Feel right at home in Brentwood

Community-based living

Regardless of your housing preference, you’re sure to find your perfect home in Brentwood. Join a welcoming community and get to know your neighbors and city-mates. Plan and attend exciting community events with a diverse crowd, raise your kids in the great Brentwood school systems, and have access to endless learning experiences through the city’s rich history. Before deciding on your forever home, make sure to investigate the property taxes and the homes recently sold in your area of interest. According to Zillow, home values in Brentwood has risen 5.6 percent, making the median home value $517,700.

Brentwood home loans can’t be beat

Home loans your wallet will love

Before signing a contract to buy a first home, an investment property or a place to retire, you must take the first step by securing a loan. There are many factors that affect the price of mortgage rates, such as ZIP code, down payment, purchase price, etc. During your search for Brentwood mortgage rates, don’t forget to ask your realtor if you are eligible for special discounts. After you’re preapproved for your loan, it’s time to get down to business and start looking for your forever home!

Common Questions About Brentwood 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.