720 Locust St, West Palm Beach, FL 33405

Here’s an analysis of the property at 720 Locust St, West Palm Beach, FL 33405, focusing on refinancing considerations:

Property Details:

• Address: 720 Locust St, West Palm Beach, FL 33405
• Property Type: Single Family Home
• Bedrooms: 2 beds
• Bathrooms: 1 bath (Public records confirm 1 full bath)
• Square Footage: 1,015 sqft (living area, though some records show 1,215 sqft or 1,373 sqft; verify exact living area for appraisal).
• Lot Size: 7,020 sqft (approx. 0.16 acres).
• Built in: 1952 (73 years old). The age will significantly impact insurance costs and potentially some loan options.
• Stated Value: $348,900 (This is the value provided in your input. This aligns closely with the last recorded sale price and market estimates.)
  • Redfin Estimate: $404,944 (as of May 2025). This is significantly higher than your stated value, suggesting potential for more equity.
  • Realtor.com Estimate: $233,000 (as of July 2025). This appears to be an outlier or error, as other data contradicts it.
• Last Sale Price: The property last sold for $291,000 on January 31, 2020. This indicates substantial appreciation since the last sale, providing significant equity.
• Estimated Refinance Payment: $2,422/mo (This is the payment provided in your input. This seems plausible given the property’s value and the high cost of taxes and insurance in West Palm Beach.)

Financial Aspects & Fees:

• HOA Fees: None mentioned; typical for single-family homes in this type of neighborhood.
• Property Taxes:
  • 2024: $5,185 (on an assessed value of $257,523).
  • 2023: $5,048
  • 2022: $4,984
  • 2021: $4,963
  • 2020: $4,321
  • These are substantial annual costs that factor heavily into monthly housing expenses.
• Homeowner’s Insurance: This is a major cost driver in Palm Beach County.
  • Average for Palm Beach County: Approximately $1,027 monthly, or $12,326 annually, according to one source.
  • For a $300,000 home built before 2001 with no wind mitigation, average annual rates can be over $20,000. If wind mitigation features are present (e.g., impact windows, roof strapping), the cost can drop significantly (e.g., to $7,000-$9,000).
  • Given the home was built in 1952, the cost could be very high unless significant wind mitigation upgrades have been made and documented. This needs to be a key inquiry.

Additional Property Features and History:

• Construction: Concrete Block/Stucco.
• Roofing: Asphalt/Composition.
• Year Renovated: Some records indicate 1975 or 2010. Any recent significant renovations would positively impact value and potentially insurance.
• Exterior Features: Fenced yard, private pool (per some descriptions of similar homes, though not confirmed for this specific address, one recent sale of a similar Locust St home mentioned a pool).
• Location: Part of the “BELVEDERE COURT 03 REP” subdivision, within the 33405 zip code. This area is known for its proximity to downtown West Palm Beach, beaches, and amenities.

West Palm Beach, FL (33405 Zip Code) Real Estate Market Trends (as of July 2025):

• Market Condition: The 33405 zip code is currently considered “not very competitive,” leaning strongly towards a Buyer’s Market.
  • Homes typically sell for about 6% below list price and go pending in around 78 days.
  • Multiple offers are rare.
• Median Sale Price (33405): $1.068 million in June 2025 (up 21.4% year-over-year). However, this median is highly skewed by high-value properties in the zip code. For smaller, older homes like this one, individual home values are lower and may be experiencing different trends.
• Typical Home Values (overall West Palm Beach): $397,047, down 4.0% over the past year (Zillow, through June 30, 2025).
• Median Days on Market: 78 days, indicating a slow sales pace.
• Sale-to-List Price Ratio: 94.3% in June 2025, meaning homes sell for an average of 94.3% of their list price.
• Flood Risk: Moderate risk, with 55% of properties in 33405 at risk of severe flooding over the next 30 years. Flood risk is increasing faster than the national average. Flood insurance is likely necessary and adds to the monthly cost.

Current Mortgage Refinance Rates in Florida (as of Monday, July 21, 2025):

• 30-Year Fixed Refinance: Average APRs are approximately 6.84% – 6.957%.
• 15-Year Fixed Refinance: Average APRs are around 5.75% – 6.113%.
• 5-Year Adjustable-Rate Mortgage (ARM): Average APRs are around 6.50% – 7.108%.

Note: These are average rates and are subject to change based on individual borrower qualifications (credit score, debt-to-income ratio), specific lenders, and daily market fluctuations. APR (Annual Percentage Rate) includes some fees beyond the interest rate.

General Requirements for Refinancing a Loan in Florida:

• Home Equity (Loan-to-Value Ratio – LTV): Most lenders require an LTV of 80% or less for conventional refinances (meaning you have at least 20% equity). A new appraisal will be required.
• Credit Score: Minimum FICO score of 620 for conventional loans (higher scores get better rates).
• Debt-to-Income (DTI) Ratio: Lenders typically look for a DTI of 43% or lower, including the new mortgage payment, property taxes, and all insurance.
• Property Occupancy: Must be your primary residence.
• Stable Income and Employment: Proof of consistent income and employment.
• Closing Costs: Expect to pay 2% to 6% of the new loan amount in closing costs (can range from $7,000 to $20,000+ for a $350k loan). These can sometimes be rolled into the new loan.

Analysis for this specific property:

This property at 720 Locust St has a compelling case for refinancing due to significant equity. The last sale price of $291,000 in early 2020 means there’s been substantial appreciation, potentially even more than your stated $348,900 if the Redfin estimate of $404,944 is accurate. This strong equity position makes the homeowner a good candidate for conventional refinance terms.

The estimated refinance payment of $2,422/mo appears to reflect the high cost of property taxes and especially homeowner’s insurance in West Palm Beach.

Let’s break down a potential monthly cost:

• Assuming a loan amount of $280,000 (if you’re refinancing close to 80% LTV on a $350k value) at 6.9% interest for 30 years: Principal & Interest would be approximately $1,843/month.
• Add 2024 Property Taxes: $5,185/year or approx. $432/month.
• Add Homeowner’s Insurance: This is the wild card. For a 1952 home in Palm Beach County, it could range from $600-$1,700+/month depending on specific mitigating features (wind, roof updates) and the insurer. Let’s assume a mid-range of $800/month.
• Subtotal (P&I + Taxes + Insurance): $1,843 + $432 + $800 = $3,075/month. This is higher than your $2,422/mo estimate, which implies your estimate might be based on different assumptions for taxes or insurance, or a smaller loan amount, or it doesn’t include taxes/insurance in the estimate.

Crucially, the homeowner needs to get actual insurance quotes and verify current property tax bills. The “Est. refi payment” might be an optimistic projection.

The West Palm Beach market (33405) is currently a buyer’s market, with homes selling below list price and taking longer to sell. This means a new appraisal will be vital to accurately determine the home’s current market value for the refinance.

Strong Recommendations for the Homeowner:

1. Verify All Monthly Costs: Immediately get a precise breakdown of what the $2,422/mo estimate includes. Specifically, confirm the exact amounts for Principal & Interest, current 2024 Property Taxes ($5,185/year or approx. $432/month), and Homeowner’s Insurance (get multiple actual quotes for your specific property, emphasizing its age and any upgrades like hurricane shutters or a newer roof).
2. Obtain a Professional Appraisal: This is paramount. It will provide the definitive current market value and allow for an accurate Loan-to-Value (LTV) calculation. The Redfin estimate is significantly higher than your stated value and the last sale, which could mean more equity is available than you realize.
3. Confirm Current Loan Balance: Know your exact outstanding mortgage balance to determine your current equity.
4. Shop for Personalized Refinance Offers: Contact multiple lenders. Be transparent about the property’s age. Discuss any wind mitigation features or recent updates that could lower insurance premiums. Compare APRs, interest rates, and all closing costs.
5. Explore Flood Insurance: Given the “moderate” flood risk in 33405, inquire about the need for flood insurance, which would be an additional monthly cost.
6. Define Refinancing Goals: Clearly articulate your primary objective (e.g., lower interest rate, lower monthly payment, cash-out). Be prepared for the reality that the total monthly payment in West Palm Beach, driven by high taxes and insurance, might still be substantial even with a lower interest rate on the principal.