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Mortgage rates understood in Church Creek

For a 30-year fixed rate mortgage, rates fall between 4 percent and 4.5 percent. A 20-year fixed rate mortgage has rates that vary between 3.8 percent and 4.2 percent, and a 15-year fixed rate has rates that fluctuate from 3.2 percent to 3.6 percent. Church Creek’s mortgage rates are at an all time low, making now the perfect time to consider investing in a new home. All of Church Creek is lush with amazing greenery and history. With its variety of home styles, Church Creek eagerly awaits.

Opportunity is alive in Church Creek

This is the right time to buy

Church Creek has many opportunities for homebuyers, property investors and anyone seeking to refinance their current property. With two bodies of water nearby (Church Creek and the Little Choptank River), the town has with a history steeped in the ship building industry. It’s the perfect area for families and history aficionados to put down their anchors. The relatively low crime rate adds to the appeal for families.

Homebuying made simple

Trust Earnest with your homebuying needs

Purchasing a home, property or starting the refinancing process presents numerous challenges. It can easily take a toll on any buyer. Before starting the process, it is essential to speak with a knowledgeable team with solid experience. Earnest knows the industry and understands how to navigate through the mortgage process to ease the transition into home ownership. Consider contacting Earnest’s knowledgeable staff with your questions.

Common Questions About Church Creek 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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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.