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Federalsburg rates make finding a home easy

Extremely low mortgage rates across the country are creating a buy-friendly market presently. However, rates are rising and the time to purchase your Federalsburg home is now. Federalsburg offers community and nature that make the extremely affordable home prices well worth the investment. For families, retirees, or those looking for a second home Federalsburg has everything one would need to fully feel at home.

Your money go further in Federalsburg

A small town with a lot of activities, Federalsburg has it all

Federalsburg offers a wide array of single family homes either on the water, ot closer to nature. And, less than a half an hour from Delaware means easy access to fun day trips. When looking for a new home, make sure you do your research on what local property taxes are like, and what other homes are selling for. Find a neighborhood that works best for you and your lifestyle in Federalsburg. According to Trulia, November 2016 marked a slight dip in median home sale prices at $87,500. So, take advantage of the new, more affordable prices while they are still available! With an extremely low crime rate and quality local schools, Federalsburg is the perfect community to raise a family.

A home loan that doesn't cause headaches

Earnest makes applying for a home loan simple and painless

Don't let home loans and mortgage rates scare you away from buying a home. Although, before you do anything, definitely educate yourself on the ins-and-outs of buying a home. Find out how your ZIP code, loan purpose and amount, and the like will affect your mortgage rates. Also make sure you ask your realtor if you're eligible for any discounts, such as a discount for veterans. Earnest is here to help you sort out your priorities and figure out your budget. Then, we can help you finance your dream home! Refinancing is for later in life when you need a bit more of your money available to pay for life's big moments, such as a wedding! Earnest is here to help you figure how to change your mortgage terms to save you as much as possible.

Common Questions About Federalsburg 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.