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Mortgage rates for a beautiful suburb

A low mortgage rate makes it easy to move into a new house in one of the most exciting towns in one of the best areas of the country to live in. With a variety of options you will have no problem finding a house in Savage that fits whatever stage of life you are in. Everything you could need is just a short drive away and in some cases just a short walk away.

Dream house in the Maryland suburbs

You'll love your new home in Savage

Located right in between two large East Coast cities Savage is a small community of just over 6,000 people. With a median sales price of $290,000 Savage is a town that offers affordable housing options in a multitude of price ranges for anyone looking to escape city living and move to a comfortable suburb. Culture in the city is not hard to find with beautiful parks for those that enjoy nature, a ton of food options for those that enjoy a good meal, and plenty of exercising options for those that want to do something more than run around the block. The area will only go up in property value will only go up as the town has seen a dramatic increase in population so now is a good time to look into a home there.

An affordable new home in Savage

Earnest has a mortgage rate you'll love

It does not matter whether you are buying your first house, investing in a property, or looking for a good place to retire, the first step to securing a contract for a house is getting a loan. Mortgage rates vary based on a good deal of factors, such as the purpose for the loan, ZIP code, purchase price, down payment, and credit score. Military veterans are eligible for special rates. When researching mortgage rates for Savage make sure to ask your realtor if you are eligible for any discounts. After preapproval for a mortgage you can start looking for the place you have been dreaming of. Refinancing a mortgage? If you are researching mortgage rates in Savage because you mean to refinance, the process is comparable. Refinancing can help a homeowner put a little bit more cash in their pocket for that next big adventure.

Common Questions About Savage 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.