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Dreams become reality with an Indian Head mortgage

You've found the home you've been searching for! Now you just need to secure your mortgage and you'll be on your way to homeownership in Indian Head. According to Bankrate, 30-year fixed mortgage rates are currently around 4 percent. There's never been a better time for you to call Indian Head your home. It might seem easy to fret and stress over the next step, but we've got a calculator here for you to determine all the specifics and see what's best for your budget.

Secure a great mortgage and home in Indian Head

The values here are slated to increase

With a friendly family atmosphere and home values that just won't stop growing, now is the perfect time to purchase a home you'll love to own in Indian Head! Zillow reports that there's already been a 2 percent increase in home values in the past year alone, and they project even more growth with an increase of 2.6 percent within the next year. The median price per square foot is only $100, which is significantly lower than the Washington Metro area average of $214. It won't be long until your home has reached a value that you never previously thought possible! Indian Head homes are as beautiful as they are valuable, making this the perfect place for you to buy a home you'll love living in for decades to come!

Unique homes are waiting for you in Indian Head

Don't let the opportunity to own paradise pass you by

Whether this is your very first home or the home you've been looking for all these years, the journey starts here with getting your loan secured. There are numerous factors that can influence your mortgage, so it's important to remember to ask all the relevant questions; you might just qualify for discounts that you may not have thought possible. Earnest is tops when it comes to homebuying. We do our best to identify your "wish list" and help you attain it while staying within your budget. Meanwhile, if you've been thinking about refinancing your home to free up additional funds for your next big project, it's still best to let Earnest lead the way. We'll help find the best rates available to you without your needing to stress about the process. Peace of mind and refinancing, together at last.

Common Questions About Indian Head 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.