Alert Message

Brandywine homes bring more bang for your buck

It seems that many have caught on to the value and affordability that Brandywine homes offer. With a growing population, Brandywine has become the location of choice for young people seeking innovation and community. Immerse yourself in the local culture, beautiful parks, and remarkable restaurants--you'll fit right in. Brandywine's population has increased by 376.5 percent since 2000, reaching 6,719 residents in 2010. And that's no coincidence.

Explore the value of Brandywine homes

Home values are climbing

Examining mortgage rate trends over the past 10 years will prompt gasps from many new homebuyers. Why? Because rates are at historic lows. Note, however, that they're beginning to rise again--so you'll want to buy now, if ever. According to city-data, Brandywine mortgage rates are affordable at a cool 3.936 percent, extremely attractive for the area. And let's not forget that with these low rates come high values. Home values in Brandywine have increased by 1.9 percent over the past year and are predicted to rise another 2.5 percent over the next year. Values are only expected to rise as mortgage rates increase, however, making this an excellent time to enter the housing market. Rates and value are on your side right now, so don't sit on them for too long.

Brandywine homes bring beauty and value

Attractive and affordable, invest in yours today

The attraction of a Brandywine home is noticeable at first glance, but figuring out the right home for you will require crunching the numbers. According to city-data, the average price of a Brandywine home in 2013 was $267,069, with townhouses valued at $209,608. These prices resonate with the reported values of homes, estimated at $298,700 on average. With the median list price per square foot in Brandywine at $148, these homes are definitively more affordable than neighboring properties in the Washington Metro area, which average a much higher $214 per square foot. Brandywine is an affordable, attractive option, so let Earnest walk you home today. We offer assistance for new homebuyers and hopeful refinancers alike.

Common Questions About Brandywine 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.