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Lexington Park mortgage rates you'll love

When it comes to buying a home, the process can be a bit overwhelming. But Lexington Park is full of beautiful houses, making the selection process that much easier. Earnest can help you narrow down your options by identifying your priorities (walkability, commute time, etc.) and taking into account your financial position to select your dream price. With median house prices in Lexington Park at around $224,924, there’s never been a better time to buy your forever home.

Condo or townhome, Lexington Park is for you

Luxurious living in a place that feels like home

From luxurious condos to beautiful townhomes, your dream home awaits you in Lexington Park. Watch the sun rise each morning from your waterfront view or wake up to the friendly faces of your townhome neighbors. Whatever you desire, just be sure to investigate the property taxes and the homes recently sold in your area of interest. According to Zillow, home values in Lexington Park have risen 0.4 percent, making the median home value $240,900. The neighborhoods of Lexington Park are perfect for families wishing to live close to their children’s schools, or for retirees searching for community-based living. Before you and your family decide on a house and neighborhood, be sure to research specific safety statistics.

The home loan you need in Lexington Park

Home loans you can afford

Before putting pen to paper and signing a contract, you'll need to take an important first step: securing a loan. So, what determines a mortgage rate? Factors include ZIP code, the amount of your down payment, and the overall purchase price of your new home. During your search for Lexington Park mortgage rates, don't forget to call up your realtor and ask if you're eligible for special discounts. After you're preapproved for your loan, it’s time to get down to business and start looking for your forever home. Refinancing your mortgage is somewhat similar to the process of securing your first home loan. It may be a savvy option for you if you're eager to free up cash for a major purchase or two, whether it's college tuition for your son or daughter or an important renovation project you've been planning. Whatever the reason, Earnest can lend a helping hand and support your initiative to refinance in Lexington Park today.

Common Questions About Lexington Park 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.