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In District Heights, you'll save while you gain

Mortgage rates in the American housing market are low right now, but this will not always be the case. If you're looking for a house, the best way to invest is to choose a home that will rise in value--and few ZIP codes are appreciating as quickly as District Heights, Maryland. While District Heights is small in size, the area is perfect for connecting with any of the surrounding urban centers. Buy a home in the heart of the region at a fraction of the price.

Afford city life with a house in District Heights

In District Heights, you can be an urban resident with a quiet oasis

From the modest perimeter of District Heights, you'll have access to two of the East Coast’s busiest urban areas, ensuring you'll have all you need even outside the bustle of urbanity. Near both Walker Mill and Suitland, Maryland, District Heights is only a few minutes from the heart of Washington, D.C., and just over 40 miles outside Baltimore. In District Heights, you'll be conveniently located in a home you'll enjoy. The average home is priced at around $171 per square foot, compared with an average of $214 per square foot in the Washington metropolitan area. Both mortgage and refinancing rates are also affordable in District Heights; with a predicted 3.8 percent increase in home values over the next year, your investment today will pay off down the line.

Secure a loan for your new home

Applying for a loan is easy with Earnest. Buy a home with our help.

You may love the thought of living in District Heights, but turning the dream of homeownership into reality can be complicated. Even when you've found the location and price range that fits your needs, you'll need a loan. At Earnest, we look at more than just your credit score when determining eligibility. With us, the process is simple but thorough, making homeownership in District Heights a tangible goal. We'll invest in you so you can invest in your home. In District Heights, the current low mortgage rates reflect the same rates as the rest of country. Unlike the rest of the country, however, the value of your soon-to-be home in District Heights is increasing rapidly. With 15- or 30-year refinancing plans at about 2.9 percent or 3.7 percent APR, now is the time to act.

Common Questions About District Heights 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.