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Chestertown mortgages are affordable and available

Chestertown is full of life. Residents enjoy it for its affordability and the unique homes it has. Families also enjoy the safety it provides for their children and retirees love it for how quiet it is. You're not missing out on anything because the nearest big city is about 20 miles away. The city is not out of reach but the cost of living and noise certainly is. Maryland median home values continue to see growth and Chestertown homes are extremely affordable so now is the time.

Invest in a beautiful area

Nature and affordability are waiting

Homeownership can be expensive in some areas but not in Chestertown. There's a wide range of prices available so you can pick exactly what you're looking for in a home. Median home values in Maryland continue to rise year after year. Zillow reports that median home values have risen by 4.3 percent just since last year and they expect an increase of 2.9 percent by next year. Mortgage rates remain very affordable as well. Bankrate reports that 30 year fixed mortgages are available for as low as 4.3 percent and that's with just a 20 percent down payment. Your mortgage rate can improve and get even better depending on many factors, including your down payment, credit score, and more. Earnest can help you get the best rate available by going over all your information and options with you.

Affordability and natural beauty await

There's never been a better time to invest

Whether you're purchasing a first home or your simply your next home, the first step to securing a contract is securing a loan. Mortgage rates vary depending on many factors, including the loan purpose, ZIP code, purchase price, down payment, and your credit score. Make sure to research and ask your realtor for any discounts you may be eligible for. Refinancing can help homeowners who wish to free up cash for other major purchases, like college tuition or renovations. So whether you want to change your term from 15 to 30 years, or switch from ARM to fixed or vice versa, Earnest can help identify the right option based on your needs. Whether you're purchasing a home or refinancing to free up some money for that big adventure in your life, Earnest is ready to help you get it done fast and correctly so you can get back to enjoying life.

Common Questions About Chestertown 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.