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What to know if you're buying a home in Childs

For a 30-year fixed rate mortgage rates are hovering between 4.1 and 4.5 percent. A 20 year fixed rate mortgage has rates ranging between 3.7 and 4.1, and a 15-year fixed rate mortgage with 20 percent down has rates between 3.1 and 3.5 percent. And if this sounds complicated, don't worry: We have even included this easy-to-use calculator to help you get a jump start on the process. There has never been a better time to purchase a home in Childs.

Now is the time for a Childs mortgage loan

Purchasing a home doesn't have to be complicated

While Childs itself offers much history, nearby towns to visit, and a pleasant environment, the county it's part of is truly remarkable. The median household income in Cecil County is $64,886 and high school graduation rates have steadily risen over the past 5 years to 89 percent, up from 80. The Cecil County Public School District boasts 17 elementary schools, 6 middle schools, and 5 high schools. Childs has a local private school, Mt. Aviat Academy, whose tuition was 5,585 for the 2016-2017 school year. Cecil County is a relatively diverse community in terms of age, with the median being 38.9 years. Demographically, the county's population is broken down: 89.2 percent White, 6.4 percent Black/African-American, 3.4 percent Hispanic, and 1 percent Asian. In short, it is a community on the rise and a house there is a solid investment.

Get a mortgage loan for a new home in Childs

If you don't have the right information, you can't make the right decision

Regardless whether you're purchasing a home to settle down in, or to invest in, Childs, Maryland is an ideal location. Earnest will allow you the chance to find out which mortgage loan rate would work best for your family and your needs. Mortgage rates will depend upon your credit score, the ZIP code of your target neighborhood, down payment, purchase price, and of course, the purpose of the loan. Remember to talk to your realtor to see if you are qualified for any special rates or discounts (such as veterans’ rates) before deciding which mortgage rate to take on. Earnest is prepared to work with you while you're purchasing your home, or if you should choose to refinance later down the road. With their help, becoming a homeowner isn't as daunting a task as it's made out to be.

Common Questions About Childs 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.