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Your dream home in Gunpowder's natural landscape

Just outside of Baltimore, Gunpowder is a calm respite from hectic city life. Along the western edge of the Chesapeake and tucked into a large state park, this small town offers opportunities to get in touch with nature without sacrificing the urban luxuries you've grown accustomed to, like easy access to restaurants, transportation, and entertainment. Discover low interest rates in the beauty of this untouched landscape today.

Gunpowder offers beautiful homes in a great area

Large single-family homes among the scenic landscape

Gunpowder, home to the largest state park in Maryland, has easy access to outdoor attractions, including hiking, kayaking, and boating along the Chesapeake Bay. Though homes in the immediate vicinity are limited, there is a plethora of options in the surrounding areas. All neighborhoods provide easy access to Baltimore as well as the abundant natural surroundings. Only a short drive away in the city waits restaurants, schools, and other entertainment like Camden Yards and the National Aquarium. Most homes in the area are newly constructed single-family homes with spacious layouts, boasting at least three bedrooms and often more. The majority of homes sit on large plots of land with sprawling front and back yards with plentiful greenery.

Low rates for buying and refinancing

Find your dream home today in Gunpowder

The rolling hills, winding rivers and overall rustic appeal of Gunpowder are easy to get lost in. Unfortunately, so too is the process of buying a new home. Luckily, Earnest is making finding mortgage rates for new loans and refinancing easier than ever before. First, determine your personal housing budget with Earnest's mortgage calculator to ensure that you are searching for a home you can afford. From there, Earnest will assist you in analyzing your financial profile to deliver you the best possible interest rate, whether you're a first-time buyer or refinancing your home. Their deep dive into your financial history will create flexibility and opportunity for you to purchase your dream home.

Common Questions About Gunpowder 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

People around a computer

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.