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Mortgage rates in Deale

Now is as good a time as ever to make a home purchase in the greater Deale community. While the mortgage process can be overwhelming, you can count on Earnest to make your mortgage lending process a smooth one. The staff at Earnest offers a host of mortgage calculation tools to help you get one step closer to the house of your dreams. Deale is a great place for families, couples, and retired individuals to call home, so why not take the first steps to securing a dream home in Deale today?

House buying factors in Deale

Homebuying does not have to be overwhelming

Several factor weigh in when buying a house in Deale. Often, the process can seem a bit overwhelming. The good thing is that Anne Arundel County is a prime location for making an affordable real estate purchase. Deale is a location where investors find great deals, so there is a chance that the median interest rate will fluctuate. The estimated median household income for Deale is approximately $95,000, with the per capita income estimated at just about $45,000. These numbers have an effect on the median home or condo cost, which is $355,000 and up depending on the style of home that a homebuyer chooses. It is best to choose wisely when selecting a home.

Getting the best rate on a Deale home

Negotiating the best mortgage rate for your dream home

If you are planning on buying a property in Deale to live in or to add to your investment portfolio, it is essential to get a loan first. Understanding the mortgage rates and the factors which cause them to vary is important. Mortgage rates can vary due to ZIP code, home purchase price, and of course, credit score. Also note that certain target consumers (such as members of the military, police officers, and federal workers) may be eligible for certain discounts or incentives. While there are home incentive programs for home renovations, it is important to learn whether or not such incentives are applicable to home purchases made in Deale. Consider whether ARM or fixed mortgages are a good fit for you financially. Whichever mortgage term you decide upon, know that Earnest will help you find the right fit for your homebuying needs.

Common Questions About Deale 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.