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Sarasota mortgage rates: secure your dream home

Whether you're interested in the quaint cottages and duplexes of hot-spot Gillespie Park, the selection of 1950s ranch homes in Paver Park, or the easy walkability to one of the country’s best beaches from Pine Shores, there’s something for everybody. Sarasota’s many choices can make it hard to get your home search off the ground, but Earnest is ready to help. Our easy-to-use calculator can help you pinpoint your ideal budget, which is a great way to streamline the home-buying process
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Affordable homes right in paradise

Mortgage rates that put your dream home within reach

The median home value in Sarasota is $261,900. That’s up almost 6 percent over the past year, and property values are expected to continue to rise. Young families and professionals alike can find great homes in the low 100,000s, while people further along in their careers may prefer neighborhoods like Lakewood Ranch, which offers everything from playgrounds to polo. And then there are communities like the Golf and Bay Club, offering condos with amenities second to none.
Hollywood Florida, illuminated buildings at sunset reflected in the water
Siesta Key, FL, USA - November 19, 2012:Siesta Key beach on the Gulf of Mexico from the top of a beachfront apartment block at Crescent beach on Siesta Key, Sarasota in Florida

Taking the hassle out of buying a Sarasota home

Low rates and an easy application process keep things simple

Folks wanting to buy property in Sarasota, Florida, should act now, while interest rates are at an all-time low. Earnest is ready to guide you through the process, steering you toward the neighborhoods that meet both your budget requirements as well as your priorities in a home. And our customized loan process is simple and fast, reducing the chance that you’ll miss out on your dream home because you’re still waiting on a loan approval. It’s also a great time to consider refinancing, whether it’s to free up cash for your kids’ college education or to turn your 30-year loan into a 15-year loan. Earnest can help you consider your options, and we may be able to point you toward discounts you didn’t know existed, like lower rates for veterans. We’re committed to helping you purchase the house of your dreams with a personalized mortgage.
Siesta Key, FL, USA - November 19, 2012:Siesta Key beach on the Gulf of Mexico from the top of a beachfront apartment block at Crescent beach on Siesta Key, Sarasota in Florida

Common Questions About Sarasota 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.