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Mortgage rates in Lonaconing to fit your budget

Lonaconing is one of the safest towns in the nation to live in. With several home style options at the disposal of the consumer, and an array of very fair and affordable mortgage rates on offer, finding the right house in this distinctively sleepy and beautiful community is easy. The town welcomes families, couples, retirees and singles. The homes offer views of a mountainous region, which can be both inspiring and beautiful.

Small town affordability in Lonaconing

Affordable housing options for every buyer

With a population just under 1200, this small community is eminently affordable. Median home sales fall in the range of $113,000. There are plenty of affordable housing options for homebuyers to choose from. Consider Lonaconing a great escape from the monotonous frenzy of city life. With the sweeping mountain views, tranquility is guaranteed. Beautiful parks will intrigue the avid adventurer, while shoppers will find that there is no shortage of shopping centers and super stores within driving distance. Restaurants abound in nearby Cumberland. Due to its proximity to Cumberland, the property value of Lonaconing homes will steadily increase with time.

Lonaconing mortgage rates made easy

Let Earnest help you get your dream home

Lonaconing is a great place for families and retirees. With Earnest's help, it is possible to make the dream of owning a home here an affordable reality. With the assistance of loan calculators, the Earnest team will ensure that you get the right interest rate and term for your mortgage in order to purchase your dream home. The mortgage process does not have to be overwhelming. Currently, mortgage rates are at an all time low, and with the abundance of home options in Lonaconing, buying a house will be a snap! Now is an excellent time to buy a home, and the staff at Earnest will take the time to review your finances and come up with an action plan that will get you and your family into the house of your dreams.

Common Questions About Lonaconing 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.