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Your guide to mortgage rates in Gambrills

Offering a wide selection of family homes, Gambrills gives citizens a niche away from the city filled with green lawns and breathtaking architecture. With this said, be sure to do your research, as the small town is currently facing a lot of foreclosures, which could make your home-buying process easier.

Gambrill homes within your budget

Finding your dream home

Buying a home can be very overwhelming and confusing, especially if this is your first time looking. Don't get too overwhelmed, however, as there are plenty of websites that can help you with research. According to Trulia, the average sales price for a home in Gambrills is $366,000, making it one of the more expensive cities in Maryland. With great educational and health opportunities all around, it can be hard to say no despite your price. Luckily for you, there are a decent amount of foreclosures the area—like most of the United States—which leads to lower rates. Be sure to do your research, as a foreclosed home might be your golden ticket to your dream house.

Your golden ticket to Gambrills

Buying within your budget in a great neighborhood

In a pricier neighborhood like Gambrills, it can be easy to fall in love. But don't get your heart broken by finding a home that is way outside of your budget. Visit Earnest's website to play around with their loan calculator. By doing so, you will be able to see how much you can afford, and what type of loan that Earnest might give you based on your current financial state. Not only this, but the application process in itself is easy. Rather than finding yourself stuck, visit Earnest for a trustworthy process that could help you afford your dream.

Common Questions About Gambrills 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.