Investing now is beneficial in the long run
Now is the time to invest in Annapolis. Mortgage rates are slowly increasing–so by purchasing property now, you are putting yourself ahead of the curve. According to Trulia, Annapolis mortgage rates are currently fixed for 30 years at 4.33 percent but predicted to increase. Purchase or simply invest in valuable property in Maryland’s capital while it is still in your budget.
Investing in Annapolis has never looked so easy
Annapolis is ideally located along the Chesapeake Bay near Baltimore and Washington, D.C. Investing in property in Annapolis means you get the rural beauty of the bayside area with the convenience of a large city in close proximity. Your investment could be a small house with its original red brick directly on the bay, or a condo in the city; the options are limitless. With Earnest, you don’t need to stress about finding the perfect home. We will help you every step of the way.
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Family-friendly, historical, and innovative
Annapolis is home to many historical sites, including the Maryland State House and St. John’s College. Your family will love being immersed in history, especially when it is incorporated into modern attractions such as nature parks and theaters. The Paca House and Garden is a beautiful reminder of Annapolis’ rich history. The mansion overlooks the gardens, and a tour inside shows furnishings and paintings from the 1700s. Spend some quality time with your family in the Jonas Green State Park located along the Severn River–it’s the perfect picnic or fishing spot!
Common Questions About Annapolis Mortgage Rates
All The Answers You Need to Settle Down Sooner
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.
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.
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.
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.
Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%
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.
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