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Favorable mortgage rates for owning a Miami home

Across the nation, mortgage rates remain at historic lows, and Miami is no exception. There’s never been a better time to consider a property purchase, whether you are raising a family, building a career, buying a seasonal home, adding to your investments, or looking for the perfect place to retire. Since the first step is pinpointing a target price range, we’ve built this simple calculator to give you a head start in determining that important factor—quickly and easily.
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How much home can your dollar buy in Miami?

Virtually unlimited options can make any Miami dream home come true

Few cities rival Miami’s residential communities, neighborhoods, and suburbs. Spacious family homes with lavish landscaping, high-rise condos, and elegant waterfront properties mix with walkable historic districts and vibrant urban developments. Trulia calculates the median Miami home price at $270,050, but take time to research specific comps of recently sold homes and property taxes. Miami’s sprawling subdivisions and suburbs include popular names like Coconut Grove, Coral Gables, Weston, and Palmetto Bay. Attractions are never far from home, crowned by regional gems like the Miami waterfront’s Bayside Marketplace, Bayfront Park along Biscayne Boulevard, or Little Havana with its world-class Cuban cuisine. Miami crime rates are higher than the national average, which calls for a careful review of safety statistics for specific areas.
Miami, Florida, USA downtown aerial cityscape.
The dynamic Miami skyline at night and a couple of palm trees.

Simply the best loan available in Miami

Record-setting low mortgage rates and a fast, easy application process

Securing a loan is always the first step, whether you're buying your first home, downsizing, or stepping up. Mortgage rates can vary beyond your credit score, such as with the type of loan, zip code, purchase price, and down payment. Your real estate agent can advise you about discounts you may be eligible to receive, including special rates for veterans. The moment you are preapproved for a mortgage, you can start the exciting process of finding your dream home! Refinancing your existing Miami home? Whether you're changing the term, switching between a variable rate and a fixed rate loan, or simply turning home equity into cash for major purchases like renovations or college tuition, Earnest can help you identify the best option for your unique needs and situation, including the amount of money you will be able to receive or save.
The dynamic Miami skyline at night and a couple of palm trees.

Common Questions About Miami 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.