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Attractive mortgage rates in Cordova

Skyrocketing home values make now the time to invest in your dream home in Cordova. Most Cordova housing is made up of single-family homes. This small town, at the 200 census, only had 214 homes within its 5-square-mile borders, providing a limited opportunity to acquire housing. The value of homes in Cordova increased 14 percent last year, making a home purchase in this area an unrivaled investment.

Urban meets rural in Cordova

Perfect single-family homes between Baltimore and the beach

Most homes in the area have several bedrooms and luscious yards in both the front and back of the house, though some have many acres of space. Homebuyers therefore have many options when it comes to house price and size. Plentiful wildlife, along with densely wooded areas, and a nearby nature preserve, give Cordova a rustic feel. Meanwhile, the thriving Baltimore metropolis lies only a short hour away. It's easy to see why this quaint rural town is the perfect middle ground between urban and rural.

Low rates in Cordova

Find your lowest interest rate mortgage ever

Mortgages can be confusing and intimidating, but don't let that stop you from achieving the best possible price for a new home in Cordova. It doesn't matter whether you're buying your first home or looking to refinance either way, consider beginning to your search for low rates today. Though your rate will depend on many different factors, such as neighborhood, purchase price, and credit history, it is never too early to start securing preapproval for a low rate when you've finally found your dream home. Or, if you are unhappy with your current home financing, make a decision today to free up extra capital for other purchases, lock in a lower interest rate, or adjust your payments for the most comfortable price possible. Update your mortgage term or switch to a fixed rate in a few easy steps with the help of Earnest.

Common Questions About Cordova 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.