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Mortgage rates in Frostburg

As mortgage rates in Frostburg continuously increase and decrease, it is important to pay special attention to your research. If done properly, you may be able to buy your dream home at an all-time low rate. When looking, you'll be sure to find a number of single-family homes, apartments, and foreclosures. And with their population steadily growing, these deals won't be available for long.

Affordable homes within your budget

Finding your Frostburg dream home

Finding a dream home within your budget can sometimes seem like a chore. Whether there are too many options to choose from, or not enough at all, it's never an easy process as a home buyer. Frostburg, fortunately, has many choices to choose from. With 3,552 housing units—according to the Census Bureau—there is an array of homes to choose from. From single-family homes to foreclosures, Frostburg offers all options for consumers. Like the neighborhood, but can't find a home? Don't worry, you can build your own home by taking advantage of a foreclosure. Found a home? Perfect, your search is almost done.

Finding a home loan made easy

Making the most of your mortgage with Earnest

After so much information and processing, it can be hard to figure out your "next step." Luckily, Earnest is here to help. Starting you off with a home search— where you also have access to a loan calculator— you will be able to discover which of the available options work with your current financial situation. Earnest also provides help when it comes to refinancing your home. With top-of-the industry workers, you won't be disappointed by this company's quick turnout and expertise.

Common Questions About Frostburg 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.