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Berlin has the home you've always wanted

Berlin is the small town suburb many search for when in need of peace and quiet. Whether you're looking for a home for your family or settling down in your first place, Berlin has the best homes for everyone. Even in a smaller area, there are some parts that are walkable, making it desirable for all ages. Berlin has all of the best neighborhood attributes that make it a great place to work and live.

Small town charm is waiting in Berlin

Relax in a quiet and peaceful town

With a population of only 4,552 according to city-data, Berlin is small enough for those who don't want a lot of hustle and bustle. The median home price in Berlin is only $259,900 based on information from Zillow, making this small suburb affordable for everything you get in return. From its history to its many parks, Berlin offers you a little bit of everything to live a happy life in your new home. The median household income in the area has increased significantly in recent years based on information from city-data, meaning that the area's economy is in great shape. Now is the perfect time to invest in Berlin.

Berlin makes homebuying affordable

Settle down and be happy in your new home

Homebuying can be a long, drawn-out process,with all the options and search engines available to you. Thankfully, Earnest helps simplify the whole process by evaluating your checklist and financial situation to find the perfect home loan to fit you and your budget. With all the details sorted out, you can focus more on moving into your new home in Berlin. Your financial situation, credit score, and down payment will all have an affect on your mortgage rate, but Earnest can help make these calculations simple and quick with our loan calculator. You belong in Berlin, so don't miss this chance to make your dream life come true. Earnest is here to reach out a helping hand.

Common Questions About Buying a Home in Berlin

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.