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Mortgages in Royal Oak made easy

Mortgage rates across America are at all-time lows, and Royal Oak's are no different. The time for investment is now; whether you're looking for a first-time home or a restful place to retire, Royal Oak offers outstanding quality homes with eager homebuyers. Find the right target price in Royal Oak for you.

See which homes you can afford in Royal Oak

The perfect, quiet home for anyone

Royal Oak has many affordable, spacious homes for a wide range of people, from couples to families to retirees. With median home prices around $516,000 according to Trulia, and home values on the rise, there hasn't been a better time to acquire residence in this robust community. A small population of under 1,000 gives Royal Oak a small town feel that is ideal for those looking for a laid-back lifestyle.

The best home loan in Royal Oak

Home mortgage applications that are easy with low rates

Obtaining a loan is the first step in homebuying, regardless of whether it's your first home or your retirement residence. With the many factors that go into mortgage rates, such as credit score, down payment, ZIP code, and more, it can seem a bit harrowing, but this process doesn't have to be difficult. Ask your realtor if you qualify for any special discounts. Once you get preapproved, making your dream home a reality will be easier than ever! Refinancing involves a similar process to homebuying, and make big purchases such as college tuition or renovations feasible. Earnest is here to help you find the right option for your needs and to simplify the process.

Common Questions About Royal Oak 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.