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The perfect mortgage for you

With mortgage rates averaging at 4.15 percent APR, now is the perfect time to invest in an Elk Mills home. With a variety of options on the market, there is a home that fits your needs and your price point. Mortgage rates will depend on credit score, the ZIP code of your target neighborhood, down payment, purchase price, and, of course, the purpose of the loan. Make sure to talk to your realtor to see if you qualify for any special rates or discounts before choosing your mortgage rate.

Come home to Elk Mills

Put yourself on the fast track to an affordable rate

Elk Mills' proximity to areas of Maryland, Delaware, and Pennsylvania make it the ideal place to settle for those want quiet, small-town living with access to some of the best the Mid-Atlantic region has to offer. The median sales price of homes in the Elk Mills area is $210,000, with a variety of single-family homes available for every budget. With this price likely to increase, now is the best time to buy.

Find the right mortgage rate in Elk MIlls

Earnest is here to bring you home

Mortgage rates are determined by a variety of factors, including the ZIP code, your finances, the purchase price of the home, and more. Whether you are buying a new home, or refinancing your current Elk Mills mortgage, Earnest has affordable loan options to meet your needs. If you are looking for a new home, be sure to ask your realtor if you are eligible for discounts.

Common Questions About Elk Mills 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.