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Charlestown mortgage rates are rising

Charlestown is a beautiful town with lots of affordable properties. Mortgage rates are rising across the country, and Charlestown is no exception. Potential homeowners seeking to buy in this area should take advantage of the lower rates before they rise. Earnest can help you secure a home loan and lock in great rates.

Affordable and attractive homes

Inexpensive homes sweeten the deal

Charlestown proves that owning a nice home doesn't have to be expensive. There are plenty of small homes at affordable prices, great for people looking for the charm of Maryland without the big-ticket prices. At a median sale price of $213,795, you won't have to worry about breaking the bank to afford your new home. While there are some nearby amenities to choose from, options are limited, and the city's location makes it inconvenient to travel to larger cities. A decent cost of living and low home prices make up for the lack of amenities and nearby attractions. While mortgage rates are high, 15-year fixed and 7/1 ARM are seeing a drop in Charlestown. Homeowners seeking to buy a home should do so before the rates skyrocket in the next few years.

Home loans and refinancing available

Earnest gets you the best possible rates

Whether you're in the market for your starter home, an investment property, or are just looking for a great vacation home, the homebuying process starts with getting preapproved for a home loan. Mortgage rates are subject to a number of factors, including the ZIP code, down payment, and overall price of the desired property. We'll help you find a rate that works perfectly with your budget, so you don't have to settle for anything that doesn't make you happy. If you already have your home but are looking to free up some of your assets, consider refinancing your mortgage. We'll work with you to choose an option that works best for you. Build that addition you've always wanted, or send your kids to school upstate. We'll make sure you're happy with your decision and help you understand what options you have in changing the terms of your mortgage.

Common Questions About Charlestown 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.