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Middletown: something for everyone

Mortgage rates are on the rise wherever you turn, but that doesn't necessarily mean that the home value is following the increase in mortgage rates. Luckily, Middletown reflects that value, and it's easy to see. With a great location, value is natural, but paired with the strength of this community and the beauty of its surroundings, Middletown is hard to beat. With a large selection of homes, Earnest can help alleviate any concerns from the process as you work to find your new place.

Middletown homes at attractive rates

Properties that are infused with value

Middletown home values have increased 3.4 percent over the past year and are projected to rise an additional 2.6 percent within the next year according to data from Zillow. Zillow's home value index projects that Middletown homes are valued at $332,300 and that their median list price per square foot is an attractive $159 compared with the $214 Washington Metro average. Middletown's market health shows a positive trend line, showcasing a healthy market. Middletown's affordability is flexible for any budget, with an incredible range of houses, condominiums, apartments, and rentals. A buyer's market is inevitably present here in Middletown, and with their competitive, affordable pricing, who could resist? Earnest is here to help you along the way as you seek out the perfect place.

Finding your home in Middletown

Accessibility makes it easy

Whether you're purchasing your very first home or your forever home, the first step to securing a contract is securing a loan. Mortgage rates vary based on a list of factors, including the loan purpose, ZIP code, purchase price, and your credit score. When looking into Middletown mortgage rates, be sure to take time to ask your realtor for any discounts for which you might be eligible. If you're looking to refinance your mortgage, the process is similar. Refinancing can help homeowners free up budget for other important purchases and expenses, from college tuition to renovations. Count on Earnest to help identify the best options for refinancing based on your highly individualized needs.

Common Questions About Middletown 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.