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Low mortgage rates make Manchester even better

Mortgage rates in the Manchester area yield a fixed rate of 3.909 percent, which is definitely on the lower end of the spectrum in Maryland. Today, mortgage rates are at historic lows but have slowly begun to rise. That's why, if you're looking to purchase a home at a low price, now is the time. In fact, 2016 is one of the best years to be a homebuyer, given the low rates and increasing home values. Let Earnest help you move in to your new home in Manchester.

Manchester has great long-term value

If you're interested in agriculture, you may want to take a closer look

Manchester is comfortably situated around luscious scenery; it sits close to the beautiful Codorus State Park. The abundance of lakes in the area will suit any nature lover or outdoorsy type. And for the agriculturally minded, Manchester is within the humid continental climate region, with the ideal summer climate for growing crops like tomatoes, sweet corn, and squash. These crops are already farmed locally--and without a doubt, farm fresh produce is far superior to what's sold in grocery stores. The land is very arable, so whether you're looking to invest in a lot of land, look into produce and crop production, or start up a small garden, Manchester is worth the investment for its bountiful property and harvestable land.

Manchester makes your commute stress-free

Close to beautiful scenery and not far from the city. What's not to love?

In Manchester, you'll be close enough to commute to the city while relishing the comforts of nature. The easy commute is packaged with lower mortgage rates since, naturally, the suburbs are less expensive than the city. Zillow reports that the median home price in Manchester is $284,900, and City-data notes that the average cost of housing units in 2013 was $287,803. Earnest is here to help you find a home to suit your budget. Home searches can be strenuous, especially when your dream home seems just out of reach. But in Manchester, you can enjoy low mortgage rates and skip the mania of living in the city. Rely on Earnest to help you jump over the hurdles of homeownership. And if you'd rather refinance, we can help with that, too. Whatever you need when it comes to mortgages, we want to help.

Common Questions About Manchester 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.