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Rates you won't believe in Montgomery Village

In Montgomery Village, you'll find a great home surrounded by great people, and the amenities in the area are hard to beat. Here, you'll have all the support of a small community without sacrificing your opportunities in D.C. or nearby towns. Instead, you can choose the perfect balance between life in a suburb and life in the city, but at a price you can afford. There are few places with rates like these in such a great location. Buy a house and begin living the dream in Montgomery Village.

Good rates for quality homes in Montgomery Village

Buy a house with a low mortgage rate in beautiful southern Maryland

This Maryland community is spacious and well-organized, with exquisite homes. Though just over 32,000 residents enjoy the beauty and geography of Montgomery Village, there are still over 12,000 houses available for potential buyers, and the rates are great for new homeowners. Zillow values the homes in the area at $250,500 on average, and they predict additional growth of 2.1 percent in the next year. Compared to D.C. prices, you'll be saving nearly $37 per square foot. With the nearby schools, hospitals, parks, and public transit stops—including an Amtrak station—there’s no limit to your options in this area. In Montgomery Village, you can be a homeowner and fulfill your checklist without fretting over the costs.

Secure a Montgomery Village mortgage

Become a homeowner today with help from Earnest

As a first-time homebuyer, you probably have a list of standards your new home must meet. However, sometimes the price tag doesn't match your budget. At Earnest, we provide you with the financial guidance to make your dream home a reality. Rates in Montgomery Village are low, with 30-year mortgages at around 3.9 percent APR. Secure a loan with us, and you can save while you spend. For those considering refinancing, Montgomery Village also offers great rates. Refinance rates for 15- and 30-year plans are right below the national average at around 3.1 percent to 4 percent APR. If this path is the one for you, Earnest can help you get the most out of your investment. Let us help you secure your future.

Common Questions About Montgomery Village 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.