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Homes and mortgages in Taneytown

With rates expected to increase in the United States within the next year, investing in a new home has reached an all-new importance. Taneytown offers a variety of homes in different styles and locations. There are more conventional homes for the growing family, traditional houses, and ranchers. All, of course, are built on a beautiful property with trees and large backyards.

An affordable and community-based town

Finding your dream community for a great price

According to Trulia, the average sales price for a home in Taneytown is $290,000. Compared to other cities in the area, this is pretty affordable for the location. Since you are so close to larger cities, buying a home in Taneytown is perfect for the city-lover gone suburb. With access to the city, you are also able to enjoy your "patch of green" when coming home. Since it is a smaller city, there is no current data for median sales prices. However, according to Zillow, the median list price per square foot is $147, which is lower than Baltimore's at an average of $169. What does this mean for you? Buying a home in Taneytown can get you a home close to more than one city, without the city price.

Affording your dream home

How to afford your dream home and still have a budget

Finding your dream home can sometimes be easy, but affording it is another story. Especially if you're overbudget. With Earnest, affording your home might be just as easy as finding it. Using their online loan application, consumers are able to receive a loan based on more than just their credit score. Reinventing the mortgage industry, Earnest wants to get to know you more than the average company. Therefore, they judge you based off of the bigger picture, rather than one small detail. Once you've filled out your application—which is done in the comfort of your own home on your computer—the trustworthy company will get back to you within two business days so that they can help your dream become a reality.

Common Questions About Taneytown 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

People around a computer

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.