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Galena mortgages at affordable rates

Galena has all the charm you'd expect from a small town comprised mostly of local businesses, but its proximity to both the Sassafras River and nearby cities makes it ideal for work and play. Its cost of living is lower than the national average, which means that home and mortgage rates are also markedly low, making it an affordable place to settle down and raise a family.

Galena makes work and play affordable

Vibrant community, entertainment, and recreation without the price

Galena is an affordable city to live in, which explains the high homeownership rate of 73.5 percent. The cost of living in Galena is approximately 91.6, which is under the national average of 100. The median list price per square foot of property is $171, with an estimated average home value of $215,104, which is 23 percent lower than the average home price for all of Maryland. For potential homeowners, the average mortgage payment is around $1,250, while for renters the median gross rent is just under $700 per month. The average household consists of 2.7 people. Not only is this a great spot to raise a family and start up a new business, there are also many excellent sources of entertainment, including the nearby Chesapeake Wine Trail.

Galena homes add up to good sense

Affordable mortgage, affordable place

Galena is a charming city with a small town vibe that you're sure to be enamored with. The local culture and flavor is revered by the community, and whether you work within Galena or outside in a larger city, you'll be happy to come home to Galena every night and enjoy community events or just respite along the gorgeous Sassafras River. Almost everything is walkable from the heart of town, and nature trails, horseback riding, and more make this town the perfect peaceful destination. Let Earnest be your guide in helping you find your perfect home, central to everywhere you need to go, with the best possible mortgage. Earnest's expertise and offerings are valuable for both first-time homebuyers and homeowners looking to refinance.

Common Questions About Galena 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.