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Find your peace of mind in Allen

For a 30-year fixed rate mortgage, rates fall in between 4.1 percent and 4.4 percent. The 20-year fixed rate mortgage rates vary between 3.8 percent and 4 percent and 15-year fixed mortgage rates fluctuate from 3.2 percent to 3.5 percent. With a gorgeous view, a growing urban community, and relaxing activities guaranteed, it’s no wonder people move to Allen and stay. Nestled in Wicomico County, this small city is a peaceful area just waiting for you to call it home.

Allen: Your new home

Low mortgage rates will make your dreams of becoming a homeowner come true

Allen mortgage rates are currently at an all-time low and with the medium sales price for Wicomico County only $160,000, you won’t find a better time to purchase a new home. With a local winery, a stunning orchard aptly called Garden of Eden, and a wonderful view of Passerdyke and Wicomico Creek, this small city is a gem. Allen offers relaxing pastimes, and an air quality significantly better than the national average. While this city is low on the walkability scale, everything you need, from groceries to supplies, is less than a 10 mile drive away. The majority of homes in this area were built between 2000 and 2009.

Finding the best home loan for you

Whether you are looking to get a loan or refinance, Earnest has your back

Once you’ve decided to purchase a new home, the first step is getting a home loan. You may be eligible for certain rates and discounts (i.e. Veteran’s rates) so discuss your options with your realtor before purchasing your new home. Refinancing allows you to free up some money for other major areas in your life such as college funds, renovations, or retirement savings. The process is just as simple as buying. With Earnest you can switch from an ARM to a fixed rate, a 15-year to a 30-year, or vice versa. They'll show you how much you’ll save and help you find the best option for your needs.

Common Questions About Allen 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.