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Homeownership is fast with Phoenix mortgage rates

With mortgage rates in Phoenix, Maryland being below the national average and the median home value in the area steadily on the rise, now is the perfect time to become a new homeowner. Filled with a wide selection of single family houses, vast green lawns, and a variety of activities for the whole family to enjoy, the small city of Phoenix, Maryland is just the place to settle down in. We have even included this easy-to-use calculator to help you get a jumpstart on purchasing your new home.

Affordable homes in Phoenix

Low rates and rising home values make now best time to buy

Mortgage rates across the country are low and Phoenix, Maryland is no exception. In fact, Phoenix mortgage rates are currently below the national average. But while mortgage rates are low, the median home value in the city of Phoenix is on the rise. Currently, this area has a median home value of $483, 900. This price has gone up 2.2 percent within the last year and is predicted to continue to rise by 1.8 percent within the next year, making purchasing a house here a wise investment. This is a car dependent city, but everything is within a comfortable driving distance, including both Baltimore and Washington D.C. With a wide selection of spacious single-family houses to choose from, you and your family are guaranteed to find the house of your dreams in this small city.

The best home loans for your homebuying needs

Take out the hassle from homebuying with low rates and an easy application

Once you've decided on your target neighborhood and your new home, your next step is securing a home loan. These mortgage rates depend on a wide variety of factors which include your credit score, ZIP code, down payment, reason for the loan, and the purchase price. Keep in mind, meanwhile, that you may be eligible for certain discounts; be sure to discuss your options with your realtor. Looking to refinance instead? Refinancing allows you to put aside some extra cash for other important things or events like college funds, housing renovations, or even a well-earned vacation. With Earnest the process is just as simple. Earnest will help you switch from a 30-year to a 15-year term, or vice versa, or even switch from a fixed rate to an ARM. No matter what, Earnest will help you find the right option for you.

Common Questions About Phoenix 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.