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Affordability in Benedict

For a 30-year fixed rate mortgage, rates fall between 4 percent and 4.5 percent. The rates on 20-year fixed rate mortgages vary from 3.7 percent to 3.9 percent, and a 15 year fixed rate mortgage rates fluctuate from 3.2 percent to 3.5 percent. Benedict is the perfect place to settle down. With low crime rates, a multitude of activities to participate in, and a long list of houses and apartments to pick from, you won’t regret making the move to this small city.

The ins and outs of Benedict

Benedict homes give you waterfront views without drowning your wallet

The current median sales price for houses in Benedict, Maryland is $360,000. And with mortgage rates currently below the national average, you can’t afford to wait to purchase your new home. Overlooking the Patuxent River, this small city has everything. Though low on its walkability score, everything is within an easy driving distance. Buy fresh produce over at the Calvert County Farmers Market or grab some delicious food at local restaurants like Ray’s Pier, River’s Edge Restaurant, or Landing Goose. If you’re looking for local adventures, sail the Patuxent River, or explore one of the nearby parks.

Finalizing the deal

With Earnest, securing a home loan for your new home is quick and simple

Securing a home loan is the first step to getting your new home. Mortgage rates depend on credit score, ZIP code, down payment, purchase price, and the purpose of the loan. The Earnest team makes you a priority and ensures that you have a clear understanding of each of your mortgage options. Are you researching mortgage rates to refinance? The process is just as simple. Earnest looks at your needs to identify the best options for you. You can start freeing up cash for life expenses like college funds and renovations. Looking to switch from an ARM to a fixed rate, or changing your term from a 15-year to a 30-year? Earnest will help you with all of it.

Common Questions About Benedict 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.