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Catonsville mortgage rates make homebuying easy

All over the country, mortgage rates are plummeting to historic lows, and Catonsville is no exception. This charming little section of Baltimore County offers homes and condos for almost any budget.

Find out how much you can afford in Catonsville

Young and single or ready to retire, find your home here

Whether you're involved with the University of Maryland, preparing to retire, or somewhere in between, Catonsville has something for everyone. With a small town feel and numerous cultural offerings, this town is the perfect place to live. The median home value is $278,600 and expected to go up. A mortgage for a Catonsville home is likely to come at a rate of 3.4 percent to 3.9 percent in the current market--some of the lowest rates of the last thirty years. Make yourself at home in Catonsville today!

The best home loans in Catonsville

Low mortgage rates and an easy application

Buying a home? Before you agree to a mortgage, you should know about the different factors that can affect your rate. Your loan purpose, purchase price, down payment, ZIP code, and credit score all come into play. Veterans are also eligible for special rates. Your realtor can help answer any questions you have about specific deals, so don't hesitate to ask. If you already have a mortgage and are looking to refinance, the process is very similar to buying a new home. Refinancing can help you free up some money if you need to make a major purchase, such as a renovation. If you're thinking of transitioning from a 15- to a 30-year term or switching from a fixed rate to an ARM, Earnest can help you figure out your best options--and show you just how much you'll save.

Common Questions About Catonsville 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.