Alert Message

You'll love the sound of Glen Echo mortgage rates

Glen Echo mortgage rates are hovering at relatively low levels, making owning a home in this beautiful Maryland community within the reach of many. Surrounded by breathtaking scenery and situated in an extremely diverse and populous county, Glen Echo is an ideal destination for families and retirees alike. By providing the best of small town and densely populated areas in a single gorgeous community, Glen Echo is rightly viewed as a desirable residential destination.

Small town, big access

Glen Echo combines small town charm with diverse opportunities

A community with a population below 300 in the most populous county in Maryland, Glen Echo is an intriguing place to live. Consistently ranked as one of the most educated areas in the county, Glen Echo oozes sophistication beyond its size. House values in Glen Echo are above the state average, so while it might be more pricey to join this community, a home purchase here is an excellent investment. Moreover, the unemployment rate in this town is significantly lower than the state average, illustrating the overwhelming success of the community as a whole. With plentiful work and educational opportunities, Glen Echo is an ideal location for families looking to jumpstart their children's success, as well as for affluent retirees seeking a close community of like-minded individuals.

Glen Echo's greatest home loan

A small town simple process and low rates to match

Could Glen Echo be your home? Its cozy comforts foster a close community feel without sacrificing access to urban attractions. Securing a home loan is the first step to making your Montgomery County life a reality. Mortgage rates in the Glen Echo area are just below 4 percent but your rate can depend on a variety of factors. Your realtor may know about discounts you could be eligible for. When the time comes to open this new chapter of your life after being preapproved for a home loan, Earnest can help make the process as painless as possible. If you're refinancing your current home and know the steps you have to take, Earnest can simplify things further so that you can free up funds for additional activities and projects sooner than you thought possible.

Common Questions About Glen Echo 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

People around a computer

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.