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Get an easy mortgage in College Park

Mortgage rates are at historic lows at the moment, so it's time to get serious about buying your ideal College Park home. With an eclectic array of Dutch Colonial homes, two-story modern designs, and homes dating back to the Civil War, there's bound to be a home here that will meet your needs. Keep in mind, though, that tornadoes and hurricanes have occurred in College Park in the recent past, and insurance for these natural phenomena should be included in your budget.

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This neighborhood is beckoning for you

College Park is the quintessential American college town, with added urban charm. College Park has all the amenities and luxuries of a city, with all the quiet comforts of suburbia. Outside of the University of Maryland for higher education, there are also exceptional area schools for children and plenty of parks and recreational spaces to enjoy. While there's much to do in College Park, both the Beltway and rail access can get you into Washington, D.C., in no time should you need to commute for work or visit family.

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Mortgage rates low enough for you to afford

Whether you're purchasing a home or an investment property, the first step to securing a contract is successfully obtaining a loan. Mortgage rates vary depending on many factors, including the loan purpose, ZIP code, purchase price, down payment, and your credit score. When researching College Park mortgage rates, make sure to ask your realtor for any discounts you may be eligible for. If you're researching College Park mortgage rates with plans to refinance your mortgage, the process is similar to buying a home. Refinancing can help homeowners who wish to free up cash for other major purchases. So whether you want to change your term from 15 to 30 years, or switch from ARM to fixed or vice versa, we can help identify the best options for your needs.

Common Questions About College Park 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.