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Olney mortgage rates for any budget

Buying a house can be complicated and frustrating, especially if you don't have your finances figured out. Earnest can help you put those concerns to rest and give you peace of mind when it comes to paying for your dream home. Olney is an exciting place to live, and Earnest wants to help you live there. Whether you need a loan or need guidance refinancing a mortgage, Earnest will be there with you every step of the way.

The market's cold, but the houses in Olney are hot

It's a buyer's market this year

The average home in Olney is valued at $460,000. This may be more than the national average, but it's for a good reason. Location is everything when it comes to buying a house—and Olney is well worth the price, as we can see from market trends. A cold market, or a buyer's market, is ideal when it comes to purchasing or refinancing a home, allowing the buyer a wide selection of homes to choose from. And though this means an increase in competitive offering prices, it makes it all worth it when you can close on your dream home. Professionals predict a 2.1 percent increase in home values in Olney next year, making a home here a true investment in your future. Now is the perfect time to buy or refinance a home in Olney. Let Earnest get you there.

Olney mortgages will increase, buy now

Start paying off your dream home

Earnest wants to make your dream a reality and help you afford the home you've always wanted. At Earnest, we have easy and manageable plans that allow our customers to evaluate their financial situation. From there, we'll help you choose a plan and a home that fit your specific needs. Olney is a dream location, and with Earnest, it can become a reality. In Olney, 30-year mortgages are the most manageable, allowing you to pay just 4 percent interest. This is perfect for a busy parent saving for school tuition or a recent graduate hoping to pay back student loans. Let Earnest help you turn your dream house into your home.

Common Questions About Olney 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.