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Cascade mortgage rates call for Maryland living

Cascade mortgage rates are presently quite reasonable and that makes purchasing a new home in this part of Maryland an affordable decision. Surrounded by nature and the beauty of Washington County, Cascade offers the perfect combination of beautiful living and great value. That adds up to a homebuyer's dream that won't break the bank.

Cascade offers all of the essentials

Homes with heart and healthy living

Cascade's healthy living statistics are well above the state average, which suggests that residents are making excellent use of the wholesome activities and opportunities the area provides. As trends indicate that smart lifestyle choices are becoming more and more important to the average consumer, Cascade is a good place to be. Moreover, the median house price in Cascade is lower than the state average, allowing individuals and families to take advantage of beautiful Maryland living at an affordable price. The length of time residents stay in Cascade after moving in also surpasses the state average, indicating that those who come to this town quickly fall in love with everything it has to offer and continue to feel the same way for years afterwards.

Cascade's greatest home loan

Low rates and a simple process

The simplicity of Cascade living and a median sale price of $229,000 is an attractive combination, but the process of purchasing a home here is as complex as it is anywhere else. Sifting through countless websites and advertisements with so many competing claims can be confusing so Earnest works hard to make the process as straightforward as possible. The first step towards your new residential future is securing a home loan. Mortgage rates in Cascade are presently around 4 percent but your specific rate will depend on a variety of factors. Make sure to work with your realtor to find out what discounts you may be eligible for. If you're looking to refinance your home, you might be familiar with the process—but Earnest can help simplify it further, freeing up cash for renovations and activities even sooner.

Common Questions About Cascade 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.