Alert Message

Home loans in La Plata can't be beat

If you're considering purchasing property, the mortgage rates in La Plata prove it has never been a better time to do so. Whether you're looking for a place to retire or raise your family, the housing options in La Plata fit all needs alike. With our target price range calculator, you can put your financial worries to rest.

Affordable living with a rich view in La Plata

Living starts here

Nestled in the historic town of La Plata are various housing options ranging from detached houses to boats and RVs. Whether you wish to be within walking distance of museums, restaurants, and parks or unique shopping centers, take into consideration the property taxes and homes that have recently been sold. The median home sales price in La Plata is $303,211, which is a $127,811 increase since 2000. La Plata has a walkability score of 70 out of 100, so you can get your daily steps in while running your errands or walking downtown. Live minutes away from local parks, perfect for exercising or family outings. The crime index is lower than the U.S. average, but be sure to do your research to ensure safety for you and your loved ones.

Easy home loans in La Plata

A seamless application process with Earnest

The first step in purchasing a home is to secure a loan. The second is negotiating the contract. Remember that the ZIP code, purchase price, down payment, and your credit score can all affect your mortgage rate. Be sure to research whether you are eligible for special rates in the La Plata area, such as veteran discounts. Once you’ve successfully navigated the approval process, you're ready to begin the search for the home of your dreams. The process for refinancing your mortgage rate in La Plata is similar to the homebuying process. If you have high-priority expenses, such as a newborn child or college tuition, refinancing may be the choice for you in order to free up cash. Whether you're looking to extend the terms of your contract or switch to a new rate, we are here to help you through the important decisions.

Common Questions About La Plata 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.