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Low Dayton mortgage rates are big opportunities

There are few areas in the Baltimore area that are more desirable to live than in Dayton. This community is known for its family-friendliness, safety, high-quality homes and schools, and overall classy community setup. That's why so many professionals are working hard to move into the area instead of locations with more attractions.

Enjoy city living in a quiet suburb with Dayton

Get closer to Baltimore while enjoying a quiet life in Dayton

Dayton is a unique suburb that you won't find the match of anywhere else. It's a very high quality place to live for professional families that can afford the home prices, which are over $600,000 on average according to Zillow. Not only do the communities value school, education and good living standards, but the location is very convenient to Baltimore, making it good for serious professionals that work in the city. Living in this beautiful little slice of paradise will put you within 30 minutes of Baltimore and will also give you access to the Chesapeake bay for activities out in the ocean. The community is known for its excellent seafood and offers several restaurants worth checking out. It's an exciting place to live and worth taking a look at if you want a nice spot near Baltimore that's perfect for families.

Get a quick, low interest Dayton mortgage

Buy into Dayton before rates rise

First-time homebuyers are getting into the real estate market at the perfect time. Interest rates are as low as they are likely to go, and you'll be able to buy more house for the money. It's best to buy as soon as you can, to avoid rising interest rates and increasing home values in the area. Earnest can help you determine if you can live in Dayton's challenging million-dollar market or if you have to look elsewhere. Earnest's tool will also help you qualify for a mortgage faster, and to pick out a property that you can truly afford. If you are refinancing, Earnest can help you through that process as well. You can renegotiate the terms of your mortgage, or adjust your current rate. If you've had the mortgage for more than a decade, it's likely you'll be able to obtain lower interest rates if you have a good credit score.

Common Questions About Dayton 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.