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Find your ideal mortgage in Smithsburg

There's never been a better time to become a resident of peaceful Smithsburg. With 20-year fixed mortgage rates steady between 3.9 and 4.0 percent, 15-year fixed rates between 3.2 and 3.9 percent, and 30-year fixed rates currently 20 percent down, varying between 4.2 and 4.6 percent, affordable routes to owning a home in this idyllic town are plentiful.

Don't settle for less than perfect

Choosing your perfect Smithsburg home starts with the facts

With an exceptionally low crime rate and ample private school options, including 16 elementary schools, 17 middle schools, and 14 high schools, safe and affluent Smithsburg offers ideal conditions for raising a family. The town's many exclusive schooling opportunities and close proximity to many acute care hospitals make it a comfortable haven in which to bring up children, while its peaceful countryside makes it an equally fitting living space for those seeking to escape the noise and crowds of urban areas. Smithsburg residents can enjoy leisurely drives through bucolic scenery, open spaces, rolling hills, lush farmland, and verdant orchards. Such natural beauty makes Smithsburg an idyllic place of residency for both families and individual seekers of easeful, rural solitude.

Begin your new adventure in Smithsburg

Homebuying isn't tricky with Earnest

Earnest Realty not only simplifies the mortgage finding process, but also eliminates the extra fluff that people sometimes get roped into. With Earnest, you're always getting the best possible package. This is a company that will take the time to personalize your experience, taking your specific needs and preferences into account while performing extensive research into education opportunities, commuter routes, safety, and affordability. By matching your priorities as a homebuyer alongside your financial profile, Earnest will help you to find the Smithsburg home that most neatly fits your needs.

Common Questions About Smithsburg 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.