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Lanham is the place for you to buy your new home

If you're looking to buy a home or hoping to refinance your mortgage, you know the current low rates won't stay that way forever. By investing in a home in Lanham, you will be taking advantage of a buyer's market while reaping the benefits of this animated town. Business thrives in Lanham--but if you're looking for even more excitement, you can head south to nearby Washington, D.C., on one of Lanham's many public transport lines. Buy a home you'll love at a price you can afford, right here.

Buying in Lanham is a smart decision

Buy a house near D.C. without overspending

In the past year, the average Lanham home increased in value by a whopping 10.4 percent. Still, valued at around $276,700, a typical house in Lanham is far less expensive than in any D.C. neighborhood. And at the current mortgage rates, you could not choose a smarter--or more timely--location for your investment. Both mortgage and refinance options are available at around 3.74 percent APR, and home values are predicted to increase another 4.7 percent in the coming year. In other words, an investment in Lanham is an investment in your future. Take advantage of this convenient and comfortable community today.

Loans are easy with Earnest

Don't write off homeownership as a pipe dream

Lanham may tick off every box on your checklist--but before you can join this standout community, you'll have to secure a loan. At Earnest, we offer simple loan applications and ample support throughout your house search. If Lanham's location, school system, neighborhoods, and price range have drawn you in, let us help you seal the deal. Live in the area of your choice at historic low mortgage rates. For those hoping to refinance a 15- or 30-year plan, Lanham offers great rates in a great area. While rates on par with the national average may not seem exciting, Lanham's proximity to huge urban centers makes them a real bargain. Earnest can walk you through the entire process from start to finish. Invest in your new home today.

Common Questions About Lanham 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.