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Butler's mortgage rates are low

With such a large selection of available single-family houses and apartments, and mortgage rates lower than the national average, it is the perfect time to start looking into buying a new home in Butler, Maryland. Whether you are looking for a peaceful place to retire, a spot to raise a family, or somewhere just for you to relax away from the troubles of the office, there’s a perfect home in Butler just calling your name. We've even included this easy-to-use calculator to help you get started.

Now is the perfect time to buy a home in Butler

This small city promises beautiful views and a peaceful atmosphere

The median sales price in Butler is currently $358,000 and with Butler mortgage rates lower than the national average, there is no better time to buy a new home in the area. Located north of the city of Baltimore, at the top corner of Baltimore County, this small city promises a peaceful atmosphere and gorgeous views. From spacious single-family houses to comfortable apartments, there is something for everyone—individuals, families, and retirees alike. This is a car-dependent community, however everything you need, from grocery stores to shopping centers, are all within an easy driving distance. While tornado activity in this area is significantly below the Maryland state average, make sure to research any and all safety procedures in place within your target neighborhood.

Get ready to move on over to the city of Butler

Securing a home loan and refinancing is easy with Earnest there to help

Before you buy your one-of-a-kind home in Butler you need to secure a home loan. Mortgage rates will depend on credit score, the ZIP code of your target neighborhood, down payment, purchase price, and, of course, the purpose of the loan. Do you qualify for any special rates or discounts? Make sure to bring up this topic with your realtor. Once you secure a home loan, you are on the way to purchasing your dream place. Perhaps you are researching Butler mortgage rates in order to start refinancing. Refinancing allows you to free up some money for other important things in your life such as college tuition, a special trip you've always wanted to take, or an exciting new project. Rely on Earnest as your key way to learn about your refinancing options and figuring out exactly how much money you can save.

Common Questions About Butler 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.