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Hillsboro mortgage rates for every buyer

Hillsboro, Maryland's location between the Chesapeake and Delaware Bay makes it the perfect locale for those who love the outdoors. With reasonable mortgage rates for most applicants, it may be just the spot you've been looking for to settle down. Plentiful outdoor activities and three major cities within a two-hour drive make Hillsboro a rural town with quick access to some of the country's best urban areas.

A dream home near the water

Find a single-family home in scenic Hillsboro

Embrace the outdoors and life by the water in Hillsboro, a tiny town filled with history and culture. Though near the Delaware border, Hillsboro is also a few short hours away from Washington, D.C., Baltimore, and Philadelphia. The cozy town of 160 residents is an ideal spot for people who want to live in a peaceful environment but be a daytrip away from the action. Visit D.C. for the renowned monuments, Baltimore for its scenic waterfront, and Philadelphia for its historical sights.

Low rates for Hillsboro homes

Find your rate today for first-time buyers and refinancing

Most mortgage rates for refinancing fall somewhere between 3.5 and 4.5 percent, making it an affordable opportunity for those looking to revisit their current mortgage. New buyers are looking at rates that hover right around 4 percent. These low rates are ideal for buyers and you shouldn't let this opportunity pass. Act fast and act now. And let Earnest help. Using their easy-to-navigate budget calculator, Earnest can reveal your price range by analyzing factors like credit score, income, and credit history. Using all of that data and more, they will determine the best budget for you in a few simple steps. They will also help find you low interest rates for a new mortgage or to refinance to help you stay within your predetermined budget. Start looking today.

Common Questions About Hillsboro 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.