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Randallstown mortgage rates you can afford

With such a unique variety of neighborhoods and a wide range of prices, Randallstown can be perfect for anyone, regardless of age or income. According to Zillow, there are currently 245 pre-foreclosures in the area, making your housing search even easier by offering homes at a lower price. Why? Foreclosures lower rates, making those 245 pre-foreclosed homes a huge benefit to your homebuying process. Don't miss out on this opportunity!

Randallstown is ripe with opportunity

Researching, finding, and buying

If you're a young, single, first-time homebuyer, a retiree looking to downsize, or a family looking for a place to grow, Randallstown is the perfect location for you. With safe neighborhoods, plenty of activities for all ages, and friendly suburban views, it's easy to see why so many people have settled happily here. According to Trulia, Randallstown's median home price has typically hovered around $300,000. With so many foreclosures, however, there is a large possibility of finding more affordable options. Be sure to do all of your research before committing, as you never know what's located on the next block.

Affording your perfect home in Randallstown

How to get an easy loan for your new home

When purchasing a new home, securing a loan is a crucial first step. Without a loan, your contract could terminate, which means losing your new dream home. Don't find yourself in this position, and place an application with Earnest. With a fast and trustworthy process, you'll have a better chance at a larger loan in less time. And while mortgage rates vary depending on many factors (including the loan purpose, ZIP code, purchase price, down payment, and your credit score), Earnest can help in every situation as we take in everything for consideration.

Common Questions About Randallstown 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.