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Obtain a hassle-free mortgage in Pasadena today

The perfect time to purchase a home in Anne Arundel County is now. Real estate values in Pasadena are rising, making this a great time to invest in a home. Whether you are a first-time buyer or looking to refinance your current home, Earnest can help you make your search simple and affordable. Pasadena has something to offer everyone!

Pasadena properties won't break the bank

Pasadena is waiting for you to come home

According to Zillow.com, the median listing price of a home in Pasadena is $299,900. In the last year, the value of homes in the area increased by 1.6 percent, and researchers predict that they will increase by another 1.9 percent over the next year. All of this makes a Pasadena home an excellent investment. The average household income in Pasadena was $95,264 in 2013 (well above Maryland's total average household income). In 2000, this figure was $65,205--indicating a $30,000 increase in average income in the Pasadena area over the last 13 years alone. Low crime in this family-friendly and economically strong area make Pasadena the ideal community for any homebuyer. And Earnest makes the process easy!

A home within your budget is now within your reach

Earnest makes the headaches of homebuying a thing of the past

If you are looking to purchase your first home in a family-friendly area, Pasadena is the place for you--and Earnest is your tool for making it happen. Start here with your home search, where an easy-to-use loan calculator will help you determine the best options for your current financial situation. When searching for a home, be sure to check with your realtor to find out about any potential quirks of certain homes or discounts. If you already own a home in the Pasadena area and are looking to refinance, you already know it can be almost as stressful as purchasing a new home. Earnest is here to make the process easy and affordable so you can stop worrying about your mortgage and start enjoying your home.

Common Questions About Pasadena 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.