Alert Message

Oxford is on a steady ride, so hop on board fast

Unlike other cities, Oxford's mortgage rates have been on a steady rise in 2016. Because of this, and with 2017's rates for all cities projected to increase, now is a perfect time to invest. Although their median price of homes is $699,000, Oxford offers a variety of affordable homes, condos, and lots that are perfect for retirees, families, and young couples. Here's a simple way to find out which type is best for you.

Determine what you can afford in Oxford

A condo, house, or lot?

Oxford offers a variety of homes with different styles. Country-style condos, traditional homes, and large lush plot spaces leads to a lot of decision making. So what is best for you? According to Zillow, the current median price of homes in the area is $699,000, and is expected to go up more. This year, alone, the home values have increased by 3.5 percent. With this said, the city offers a lot of bang for its buck. Riverfront views, and excellent play-spaces and parks for children make the investment all the more worth it. In other words, you're not just paying for the home, but the neighborhood as well.

Get the perfect loan for your perfect home

Paying attention to all of your life traits in one application

With rates on the rise in this upscale neighborhood, it is incredibly important to find a company that you can trust to find you the right loan with the best rates. Earnest can help you with this as they offer quick and easy online applications that are reviewed by top-of-the-industry professionals. Before applying, the company even allows you to play around with a calculator for loan amounts. It even estimates an average 3-year fixed APR and monthly payment so that you can get an idea of what you will be expected of after investing. After filling out the application and playing around with the calculator, you'll have your dream home before you know it!

Common Questions About Oxford 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.