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Buying a Friendsville home is a smart move

Low population density and even lower mortgage rates make moving to Friendsville an easy and cost effective choice. Today's rates in Friendsville are hovering around 4.1 percent for a 30-year fixed mortgage, and 3.3 percent for a 15-year fixed mortgage. These rates are expected to rise over the next year making now the perfect time to invest in this friendly community.

Friendsville is affordable for everyone

Settle into a true community

Friendsville is a remarkably affordable town, with owners and renters paying less than 30 percent of their incomes toward housing expenses. Homeowners occupy roughly 56 percent of homes, while renters make up 28.3 percent. The cost of living is low, and about 86 percent of homes cost under $200,000. The average monthly homeownership costs with a mortgage is $1,133, while the average monthly rent is $297, both of which are below the national average. Friendsville is a walkable town with a Blue Ribbon elementary school and easy access to employment centers in Morgantown, West Virginia; Oakland, Maryland; and Cumberland, Maryland. It’s an excellent place to settle down and raise a family, with its newer homes (74 percent of them were built after 1990), many of which have three or more bedrooms.

Transportation life hacks for working residents

Getting in and out of Friendsville

Since Friendsville is such a small town, employment opportunities are more likely to be found in nearby big cities, which means that transportation needs should be considered. While most of Friendsville is walkable, traveling to and from work outside of the town can be difficult if you do not have a personal mode of transportation. That’s where Earnest can help. The average daily one-way commute in Friendsville is 27 minutes, which is three percent higher than the national average. While public transportation is low and not very accessible, the average number of people who carpool is 61 percent higher than the national average. Earnest can help those considering moving to Friendsville find a location that will give easy access to any and all of your potential transportation needs.

Common Questions About Friendsville 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.