Alert Message

Dreams are possible with a Queenstown mortgage

Financial security is a great argument for buying a home in Queenstown. Home values are on the rise, with an increase of 3.4 percent since last year. It's estimated that these values will continue to increase 2 percent by next year as well. Mortgage rates are hovering around 4 percent APR at a 30-year fixed rate. Now is a great time to lock in a purchase and watch your investment grow.

It's a great time to invest in Queenstown

Get your mortgage today

Queenstown is a beautiful and quiet city that is waiting to be discovered by you and your family. In the town of 664 residents and 1.45 square miles, you’ll find luxury homes, family-based neighborhoods, and a friendly atmosphere. Home prices start around $300,000 for smaller single-family homes and range to over $2 million for five bedroom properties. With the town’s outlet shopping and 36-hole golf course, you don’t have to travel for a full day of fun.

Small town feeling with a side of luxury

Queenstown mortgages: Easy to apply and even easier to enjoy

If you're looking into a mortgage in Queenstown, it really is a simple process. Earnest can help you see what fits within your budget. Check out our calculator below to see your best options for living big in this small and beautiful town. Just refinancing? Earnest can help with that too. Whether you're freeing up money for a dream vacation or sending the kids to college, Earnest can help you achieve your goals.

Common Questions About Queenstown 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.