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A comprehensive guide to mortgage rates in Bowie

With mortgage rates at an all-time low, now is the perfect time to buy your dream home in Bowie. Bowie offers a wide selection of houses and apartments, with many different neighborhoods to explore. Whether you are settling down, moving up, or looking for a calm oasis at the end of every stressful day, Bowie is bound to have something for you.

Affordable homes within your budget

Finding your upscale dream home

Buying a home can be overwhelming and confusing, especially for first-timers. Fortunately, there are many websites that can help you explore your home loan opportunities. Just plug in all your information--credit scores, loan amount, and points--to calculate your most affordable options. According to Trulia, the average home in Bowie is currently selling for an affordable $245,000, with an average 30-year fixed mortgage rate of 4.01 percent. This is up 28 points, but still within reach for homebuyers looking to invest in a remarkable community . At such great rates, now is the time to buy in Bowie.

Home loans made easy

Making the most of your mortgage

With so much information at your fingertips, you may wonder how to process it all. Earnest is here to help. With Earnest, you'll begin your search for a new home using a loan calculator to discover which options are best suited to your financial situation. Alternatively, you can explore options to refinance your home. While searching for properties, make sure to remain in contact with your licensed realtor to find any discounts or faults related to a potential home.

Common Questions About Bowie 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.