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Halethorpe mortgage rates can't be beat

Halethorpe, Maryland, was recently incorporated into the Baltimore area. But if you buy a house here, you'll find plenty of tranquility amidst the chaos of the city. As an extension of the town of Arbutus, Halethorpe doesn't lack for amenities or activitities—but you won't have to deal with the prices or hassle of downtown Baltimore. Choose a house in Halethorpe and have the best of both worlds. Your new home will be an investment you can count on.

Halethorpe: your first step to a secure future

Invest in your dreams with a new house

The price of a Halethorpe house is low, but compared with the rates of the nearby areas, you'll be getting an even better deal. The average Baltimore metropolitan home is valued at around $169 per square foot, whereas Halethorpe homes are just $147 per square foot. Even the Arbutus area, which is a few short minutes away, is rated as nearly $40,000 more expensive per home than Halethorpe. What’s more, Zillow estimated that the houses in this area would increase in value by 1.8 percent in the coming year—and as they already rose 2.5 percent in 2016, you can bet you'll be getting returns on your investment. But Halethorpe is appealing for much more than its cost-efficiency: You'll be saving on your house, but you'll also have all the benefits of Baltimore and its townships within your reach.

Halethorpe has mortgage rates you won't believe

Homeowning is just around the corner with a loan from Earnest

Buying a house for the first time is exciting, but it can be a daunting process. At Earnest, we recognize the difficulties of taking this step, and we know it’s more than just a purchase. Before anything else, you'll have to secure a loan. In Halethorpe, a 15- or 30-year mortgage rate is currently valued at 3.2 percent to 4.13 percent APR, respectively, which is slightly under the national average. This Maryland suburb has the right home and rates for you. For those who are refinancing, you might also find challenges as you are attempting to sort through the process and rates available. In Halethorpe, you can invest in a 30-year refinance plan for just 4.0 percent to 4.13 percent APR as well. Whichever option draws you in, Halethorpe is a pleasant place and secure option for your new house.

Common Questions About Halethorpe 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.