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Call this luxe D.C. suburb home

The average 30-year fixed mortgage rate for Bethesda is 3.69 percent. However, compared with surrounding neighborhoods like Chevy Chase or Friendship Heights, Bethesda real estate is more economical, with better potential for growth. Let Earnest help you make your home investment wisely!

Now is the time to buy in Bethesda

Find the right mortgage rate for you

With the average home value in Bethesda resting around $814,000 and a predicted increase of 2.1 percent over the next year, real estate in this D.C. suburb is a worthwhile investment. Bethesda is home to roughly 60,858 residents--in other words, the perfect middle ground between a close-knit town and a thrilling city. Demographically, Bethesda is racially and socioeconomically diverse, with ties to adjacent D.C. making it a champion for open-mindedness and political advocacy.

Let Earnest help you find a loan

Now is the time, and Earnest will make it easy

Mortgage rates in Bethesda depend on each buyer's specific demands and qualifications. With Earnest's easy-to-use loan calculator, you will be able to find out just how much property you can afford. Buying in Bethesda is a wise investment, with property values that surge annually. Let Earnest help you start your future!

Common Questions About Bethesda 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.