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California, MD mortgage rates

California, Maryland Mortgage Rates are nearly at a historic low, which makes right now the absolute perfect moment to purchase a property. With a plethora of beautiful homes currently on the market–your perfect family home awaits! If a home does not sound fitting, Don't worry! California, MD also has beautiful apartments and condos for you as well.

Live in California, Maryland and feel at home

California is for the person wanting dreams to come true

California, Maryland is full of dream homes awaiting the dreamer. With beauty and nature surrounding the area, there is always something to do here. This location packs a promising package for families and retirees’ alike with an extremely low crime rate, safe neighborhoods and an excellent elementary school system. According to Trulia, in 2016, the median sales price was $210,000. If buying a home was not a part of your plan, the average rent of California, MD is at $1,700. It’s important to know that the average rent has dropped 1 percent of the course of the year and the average median sales price has dropped 16 percent.

Make your dreams a reality

Earnest is the true dream maker

With lower than average mortgage rates and decreasing sales prices–it’s the perfect time to begin looking at buying a home or potentially refinancing. Regardless of which path you are on–you are going to need a team who understands the market and the complexities of the system. Earnest has years of experience in the industry protecting and finding the dream homes for many. Give Earnest a call and allow for the professionals to guide you in the right direction.

Common Questions About California 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.