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Maugansville homes to invest in before rates go up

Rates that 2016 has portrayed won't last forever, as rates are expected to go up next year. The Maugansville area provides easy-living lifestyles, excellent education, and healthy surroundings for a variety of ages. To discover your new home rates, we combine data science, streamlined design, and customer service for a low-cost experience.

Figuring out what you can afford in Maugansville

To rent, or to buy?

Maugansville provides consumers with both renting and buying options. With over 1,000 homes, around 71.26 percent are owned, while 28.74 percent of homes are rented (according to Livability). With a median resident age of 46.4 years, this balance between owning and renting provides consumers with options that work towards what they need best at different times of life. According to the census data, the median housing value in Maugansville is $195,700. If this is above your price range, City Data states a median gross rent of $811. If livability and healthy life choices are important to you along with affordability and small town appeal, then look into settling in Maugansville, Maryland.

Applying for a mortgage, made easy

Earnest makes sure that you're moving in the right direction

Buying or rented a new home can be stressful. Between reaching for your dream house and finding someone you can trust to get you there, this process can be tricky. This is where Earnest comes in handy. Unlike other mortgage companies, Earnest takes all aspects of your life into consideration. In other words, from education to credit score, everything matters. If you're searching for a home in Maugansville, and you know that you will need a loan, Earnest is the place for you. Using non-traditional resources and views, they are sure to provide a loan that you can afford with the lowest rates possible. If you're interested in refinancing and changing your mortgage terms, let Earnest help make that process as smooth and straightforward as possible as well.

Common Questions About Maugansville 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.