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A Davidsonville house is worth the mortgage

Davidsonville is a great location for homebuyers. Everything is available to you, and the houses are just gorgeous. People moving into this area will want to gather as much mortgage information as they can: payment plans, interest rates, etc. The home values and mortgage plans in Davidsonville vary according to a number of factors, including the particular house you've chosen. There are plenty of affordable options, one of which might just urge you to finally make the move.

What are the mortgage rates in Davidsonville?

Mortgage options based on median sales price

It's no surprise that you would desire a mortgage plan for a house in a location as unique and inviting as Davidsonville. The median home value for a house in this town is $588,600—more expensive than the state average, but well worth the extra money spent as the houses are of exceptionally high architectural and aesthetic quality. Mortgage rates vary on the product that you choose (30-year, 20-year, 7/1 ARM etc.). For a 30-year plan, the rates start from 4 percent APR with payments of $1,385 a month. Considering the high quality of life in Davidsonville, this price is difficult to beat. The rates and payments vary depending on the lender, going up to 4.635 percent APR with payments of $1,491 a month.

Home values vary in price

Different options, different choices

Davidsonville has many choices for homebuyers looking for a mortgage. No matter what price you end up paying, a Davidsonville home is a worthwhile investment. With home prices ranging from $275,000 to $780,000, a mortgage rate of 3.532 percent APR with payments of $1,235 a month is one of the low-cost possibilities. Prospective buyers might take comfort from the fact that the cost decreases over the next 30 years. Using the higher end of the home value range, you can also find mortgage rates starting from 4.125 percent APR with payments starting from $3,780 a month. Note that the mortgage rates vary with lenders chosen. It is wise to check if you are applicable for a discount when following through with your lender.

Common Questions About Davidsonville 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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