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Mortgage rates for a new house in Queen Anne

Queen Anne is a small, unincorporated town in Maryland, so there is not much information pertaining to current and previous mortgage rates available online. Your Earnest realtor will be able to answer all of your questions about mortgage rates.

Charm and history in Queen Anne

Low mortgage rates and an easy application processes to your dream home

Historical railroad tracks add to the charm of Queen Anne. Nearby Tuckahoe State Park brings recreation and culture to the small town and its 200 residents. Bustling with young families and it's own local schools, Queen Anne is the perfect place to move and settle down for couples, families, and anyone seeking a tight-knit community.

Getting settled into quaint Queen Anne

Great mortgage rates and streamlined application on the road to home

Whether you are a first-time homebuyer, seeking an investment, or looking for a seasonal residence, you will need to start with a loan. Factors that affect mortgage rates include the purpose for the loan, ZIP code, purchase price, down payment, and your credit score. Veterans are eligible for special rates, so be sure to ask your realtor if you are eligible for any discounts. Once preapproved you can begin searching for homes in your price range. If you are looking to refinance your existing loan, you will follow a similar process. Refinancing can be a great way to free up additional funds to invest more in your property, or to sock away for peace of mind. Whether you want to change your term from 15 to 30 years, or switch from ARM to fixed loan or vice versa, Earnest will be there to guide you—from start to finish.

Common Questions About Queen Anne 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.