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Accident: low prices for lush farmlands

Accident, MD is the perfect mixture of lush farmlands and historical culture. Community-focused, you'll get the most out of small town life with a number of landmarks, independent businesses, and churches. Raising a family in Accident couldn't be easier, especially since buying a home is cost-effective. While most residents are homeowners, renting is also an affordable option. Enjoy the best of every season here with your family by your side!

Accident, MD is a homeowner’s paradise

Buying a home in Accident is easy because of the inexpensive mortgage rates

There are a large number of homeowners in Accident, and In turn, mortgage rates are also especially low. On average, there is a 4.2 percent APR on a 30-year fixed mortgage, monthly mortgage payments are about $1,400. The current average three-year-fixed mortgage rate has gone down four basis points from 3.97 percent to 3.93 percent. For those looking to rent in Accident, the median monthly rent is 40 percent lower than the national average. Accidents rich historic landmarks and brilliant farmlands make it an ideal place to raise a family, without costing a fortune. Let Earnest help you build up a safe, loving space for your family.

A small town suitable for big families

Living in Accident is affordable because of the low mortgage rates

Living in Accident, MD, is remarkably affordable for both homeowners and renters, compared to the average, the median price to buy a home is 40 percent lower and renting a place is 55 percent lower. The small population and close proximity to the city increases the potential for job availability and growth. The low cost of living means that, on average, the home price to income ratio is lower than the Maryland average, with an unemployment rate that is 13 percent lower than that national average. If you're planning on relocating to Accident with a large family, have no fear: it is also incredibly affordable to purchase additional land. Earnest can help you build your financial plan to start or grow your family in a space that suits all of your needs.

Common Questions About Accident 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.