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Hampstead mortgage rates are low

With mortgage rates at all-time lows and house prices on the rise, right now is the perfect time to considering buying a home. Hampstead offers an ideal location and perfect homes for families looking to make an investment at an affordable price. Earnest offers all of the tools to take this next step.

Get more bang for your buck in Hampstead

Prices here come as a pleasant surprise

Now is the time to move to Hampstead, before the secret gets out. This little town offers homes that can fit any family's needs. With ample public schools nearby, low property taxes, and a great community to be found in the local business, churches, and organizations, Hampstead is perfect for children and adults alike. By moving to Hampstead, buyers are placing themselves within driving distance from Washington, D.C., and Baltimore without paying the exorbitant city prices. Hampstead offers the kind of community families won't be able to find elsewhere.

The best home loans in Hampstead

Low rates and a simple application

Before purchasing that first house, second home, or retirement residence, every buyer needs to secure a loan for a contract. Mortgage rates are determined by a variety of factors such as location, credit score, loan purpose, and the like. Talk to your realtor about any discounts you may be eligible for, such as special veteran rates. After you've done all your research on Hampstead mortgage rates and been preapproved for a mortgage, you can go on the hunt for your next home. Mortgage refinancing involves a similar process to procuring your initial mortgage. Refinancing a mortgage is the right choice for families who need to access money currently tied up in their mortgage. It is important to find the timing and type of mortgage that work best for you and your family. Let us give you a hand.

Common Questions About Hampstead 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.