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A smooth home purchase in Miami Beach with Earnest

Located to the east of downtown Miami, Miami Beach is a beach paradise with fantastic nightlife, excellent amenities, and a diverse community. From fabulous ocean views and exclusive streets to the South Beach's Art Deco Historic District and quiet areas, the city's residential charm and tourist vibe co-exist harmoniously. Home to a number of neighborhoods, each with their distinct charm, Miami Beach offers immense choice. Earnest can help you locate an ideal property based on your unique needs.
Tampa, Florida, USA downtown city skyline over the Hillsborough River.

One of Miami's most notable neighborhoods

Scenic beauty, great culture and electric nightlife

Miami Beach is a vibrant beach community dotted with several neighborhoods, each offering their own flavor. It is home to amazing beaches, world-class golf courses, historic and cultural sites, and high-end shopping and dining. Established in 1915, the city has evolved into a tourist paradise and beckons home buyers seeking sunny skies, ocean views and active lifestyles. It is home to the New World Symphony, the Miami City Ballet, and hosts the Miami Beach Festival of the Arts and Art Basel Miami Beach, one of the country's largest art shows. South Beach is famous for its no-holds-barred nightlife scene. In South Pointe, charming streets and scenic waterfront views attract cyclists and joggers. North Bay is the city's glamorous neighborhood, while West Avenue neighborhood enjoys a tranquil atmosphere away from the buzz and activity.
Tampa, Florida, USA downtown city skyline over the Hillsborough River.
This family was having a great time swimming at the beach on Amelia Island, Florida. This was a hot July day.

Get the best deal on your mortgage

Earnest is a one-stop destination for mortgages

Are you a first-time home buyer? Rookie mistakes are common when you're navigating the home purchase process for the first time. With Earnest, you can avoid pitfalls and make the most of opportunities to secure the perfect home and mortgage for your needs. Navigate the home buying process with our experts, and grab low rates and competitive terms that save you money over the long term. Looking to refinance your mortgage? Refinancing is a great way to lower your interest rate and monthly mortgage payment. It allows you to leverage the equity in your home to pay for expensive purchases. You can also refinance to switch to a shorter term mortgage and become debt-free sooner. Whatever your intention, Earnest can put a range of mortgage refinancing solutions before you. Our assistance is comprehensive and our solutions are bespoke.
This family was having a great time swimming at the beach on Amelia Island, Florida. This was a hot July day.

Common Questions About Miami Beach 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.