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Prince Frederick beach homes with low rates

Although slightly higher than other destinations in Maryland, Prince Frederick's rate is pretty low considering the location. There's much more than just the beach, however. The town has more to offer than just summer attractions. The area is filled with farms for Fall festivities, as well as a brewing company. In other words, this beach town is about more than just the water.

Discovering your dream home

A dream in Prince Frederick for the perfect rate

While looking in Prince Frederick, you may find yourself falling in love with more than one home. According to Trulia, the average sales price for a home in Prince Frederick is $293,750, which leaves a lot of room depending on your budget. Homes in the area can range from a small rancher to a large conventional home that has been recently built. Depending on what you are looking for, the town might have just what you're looking for. According to Zillow, the median home value is $296,800, and has gone up 2.2 percent within this past year. Zillow also predicts these home values to increase by 2.4 percent within the next year. Therefore, be sure to look into this town now, or you might lose your dream home before you find it.

Making a dream into a reality in Prince Frederick

Make the most of your mortgage in your new home

Earnest is a company that can help you throughout the home search process. Before finding your home, be sure to decide on your budget, as well as how large of a loan you want. This is where Earnest comes in. They stick with you every step of the way. Through helping you to decide what you can afford without breaking the bank, to getting you a loan within a fast and easy application your homebuying process might be easier than you ever could have expected. Once receiving your loan, you even get to customize your payment plans. There will be no more "making it until the end of the month," with this company.

Common Questions About Prince Frederick 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.