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Kensington mortgage rates expedite homeownership

The mortgage rates in Kensington are currently low, making now an excellent time for those considering purchasing property. The Kensington area offers an extensive inventory of affordable homes and condos, perfect for families and retirees alike. We've built a simple calculator to help you determine your target price range.

Find the best home at the best price in Kensington

Why this beautiful area is for you

Victorian-style houses with beautiful finishes and quality craftsmanship make Kensington a dream town. With gorgeous yards and spacious floor plans, you'll never want to leave. Whether you prefer to have a waterfront view or be surrounded by nature, it’s important to set aside time to research the property taxes and the houses that have recently been sold. The average sales price for a house in 2016 is $686,536--higher than the national average but worth the extra cost. Kensington neighborhoods are close to parks, shopping, and restaurants, making it perfect for families and retirees. Kensington is also known as a walkable town and, according to Trulia, has lower than average crime rates.

Home loans tailored to you in Kensington

Low rates and a seamless process

The first step to moving into your dream home is securing a loan. However, there are many factors that contribute to the terms of your loan: the ZIP code, purchase price, down payment, and your credit score, to name a few. As you search for Kensington mortgage rates, be sure to check with your realtor to see if you are eligible for special rates or discounts. Once you have your loan, then the real excitement begins: finding your dream home. Refinancing a mortgage is similar to the home-buying process. If you have other investments on your mind, such as renovations, refinancing may be the best option for you. We are here to help you identify the best opportunities given your particular goals and needs. Whether you're looking for specific price points, amenities, or financial terms, we make the process work according to your expectations.

Common Questions About Kensington 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.