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What you'll gain with a Gaithersburg mortgage

So, you found the perfect home for you or your family in Gaithersburg? Awesome! Now, it's time to do some homework. Currently, the average rate for a mortgage in the Gaithersburg area is about 3 percent, and is expected to increase within the next 12 months. Still, these rates are the lowest they've been in years, so why wait to get an affordable mortgage? Check out Earnest's mortgage calculator to see which deals work best for you.

Find an affordable Gaithersburg home today

What are you waiting for?

With a fantastic selection of homes, apartments and townhouses, both of old and modern design, currently on the market, Gaithersburg is a hot destination. The median price for a home in Gaithersburg is about $353,100, according to Zillow. Over the past year, the cost of homes in Gaithersburg have increased by an average of 2.6 percent, and are projected to increase by about the same amount over the course of 2017. This means you can't go wrong investing in Gaithersburg property now. With a crime rate lower than the state and national average, why wouldn't you?

You're never alone when using an Earnest loan

Make the most of your Gaithersburg mortgage

Whether you're getting your first home or moving, you're going to need a loan. The rate on your mortgage depends on multiple factors, including the loan's purpose, the price of the property, the down payment and your credit rating. Be sure you talk with your realtor about discounts you might be eligible to receive. If you're looking for a mortgage for your home, refinancing will help you free up liquid cash assets necessary for the purchase. Whether you're switching the type of mortgage you have, or merely the duration of your existing deal, Earnest can help you save on your mortgage.

Common Questions About Gaithersburg 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.