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St. Petersburg Mortgage Rates for Easy Home Buying

St. Petersburg home buyers can take advantage of historically low mortgage rates. In September 2016, Florida mortgage rates ranged from 3.1 percent to almost 4 percent. A large inventory of homes are available, including single-family homes, condos, and townhouses. Lenders require your house payment be no more than 28 percent of your gross monthly income. If you think you can budget $1,200 a month for a house payment, your lender will want your gross monthly income to be at least $4,300.
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Discover What You Can Afford in St. Petersburg

From bungalows to condos, there are options for everyone

In September 2016, Trulia listed more than 3,500 homes for sale in St. Petersburg, ranging from bungalows near downtown to spacious homes with private boat docks on Tampa Bay. No matter what type of home you like, take time to look at all your available options, investigate the prices of similar properties recently sold (called “comps”), and check local property taxes so you don’t have any unexpected sticker shock later on. StPetersburg.com features information on eight St. Petersburg neighborhoods, from the Old Northeast historic district and Roser Park with its Mediterranean-style private homes to Snell Isle, named for the developer who turned a mangrove island into a residential community. Zillow estimates current median home value at $163,500, a 12 percent increase in the last year, and projects it to increase by 5 percent this year.
Beach scene in Hollywood Florida on a beautiful sunny summer day with colorful hotels, buildings, palm trees and Atlantic Ocean in the background
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The Best Home Loan in St. Petersburg

An easy application process is your gateway to a low mortgage rate

Whether it’s a starter or vacation home or even an investment property, getting preapproved for a mortgage is a savvy first step in the home buying process. As everywhere else, Florida mortgage rates vary based on a variety of factors: credit score, size of down payment, purchase price, and location of the property. Military veterans can be eligible for special rates, and real estate agents may also be aware of additional discounts. You may want to refinance your mortgage in the St. Petersburg area. Refinancing can allow you to do a variety of things: lower your monthly payment to free up money for other debt or expenses (college or a major renovation) or pay off your home loan earlier. Earnest is reinventing the personal loan process to help you obtain the best mortgage terms possible.
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Common Questions About St. Petersburg 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.