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Derwood mortgages at great rates

Derwood offers condos, apartments, and houses to suit your needs--whatever they may be. In a location that appeals to both young singles and families, now is the time to look for a home in Derwood. Talk to Earnest to discuss your target price range and mortgage options.

Combine quality with affordability in Derwood

Whether you need a one-bed apartment or a family home, Derwood has it

Derwood offers a wide array of housing options to meet a range of buyer needs. With both D.C. and Baltimore nearby, Derwood is in close proximity to a large variety of historical, cultural, and entertainment activities and events. Within Derwood, there are many local restaurants and shops to visit on the weekends or after work. Do your research and figure out what other houses in the area are selling for, and what the local property taxes are like. According to Zillow, the median listing price for a home in Derwood is $592,400 as of 2016. Thanks to the nearby metro stations (The Red Line) and bus routes (Inter-County Connector), Derwood residents can access a variety of towns and cities, all without a car.

Look for a home loan in Derwood

Earnest provides a quick application process with low rates

Mortgages can be confusing. Let Earnest help! Home loan interest rates can vary based on a number of factors: The ZIP code, loan purpose, your credit score, and more. Find a home and a mortgage that work with your budget with help from Earnest. Mortgage rates are an important step in gaining a contract for your new home, so use a company you know you can trust. With support from Earnest, get preapproved for your mortgage and settle in to the home you deserve.

Common Questions About Derwood 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.