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Your dream home is waiting in Severn

In the past year, market rates have been low, favoring buyers in every part of the country. Severn is no exception, with low prices and mortgage rates for every type of home. The area is lively, well-located, and suitable for every type of resident. Commuters, families, and single homeowners will all love the life they lead in Severn. Here, you'll be buying more than just a new house; you'll be investing in your home.

Severn houses will exceed your expectations

Invest today and save for the future

Severn, Maryland, has grown drastically since 2000, and with the growth in population came a steady increase in housing availability. These homes cost, on average, $334,200—lower than many of the surrounding towns, including Crownsville, Gambrills, Hanover, and Crofton. Severn is also a municipality of Anne Arundel County, so you'll have access to high-ranking public schools, medical centers, and eateries. And with Baltimore so close, you'll never have to go far to find what you want or need. There are several nearby nature refuges and expansive parks to explore, and the trip to BWI Airport is a short and easy one. Severn has everything within reach, including Maryland’s bigger cities, so you can live peacefully in the suburbs without sacrificing a thing.

A real home for the price of your dreams in Severn

Secure a mortgage with an Earnest loan

"National mortgage rates have been at notable lows in the past year, but they are predicted to increase in the coming months. In Severn, the average 30-year mortgage rate is roughly 3.9 percent to 4.1 percent APR, meaning you'll be saving today while your home grows in value. Zillow projected that homes would rise by 2.4 percent next year—so a purchase today would not only be cost-effective, it would be a smart investment for your future. Refinance rates in Severn are also favorable, with 15- and 30-year plans averaging at around 3.1 percent to 4.0 percent APR. Whether you are buying a home for the first time or refinancing an existing house, Earnest can help you secure a loan. With us, you'll be buying with the utmost financial stability. Let Earnest find the Severn home for you."

Common Questions About Severn 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.