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Low rates help you find a future in Patuxent River

The Patuxent River area offers incredible waterfront views and a well-respected community of veterans, Navy personnel, and families alike. Homes include farmhouses and apartments for rent in close proximity of the Naval Base Station. With mortgage rates at all-time lows in the country, today is the time to build a future in Patuxent River with your family.

A worthwhile investment you don't want to give up

Farmhouse or apartment, get your dream home in this respected community

If you're consider moving to the Patuxent River area, especially for work, take a look at how much you can afford. Whether it is a farmhouse or an apartment for rent, use comps to see what homes have been recently sold. Pax River homes offer an abundance of windows to showcase beautiful views, and some overlook the Chesapeake Bay. Modern farmhouses, surrounded by many acres of land, are also available. As of March 2016, the cost of living index is 88.9, which is less than the U.S. average. Experience life in Patuxent River today.

Learn about the best Patuxent River loan

Don't be alarmed and plan ahead to invest in your future in Patuxent River

Be sure to do your research and inquire about special discounts and rates. Veterans especially are qualified for discounts, so now is an excellent time to invest in your home in this military sanctuary. Keep in mind that ZIP code and your credit score, among other factors, will affect your mortgage rate. Though mortgage rates are at all-time lows, careful planning will makes your dream come true. Don't be afraid to refinance if you think it is the best choice for you. The research process is similar to one for the homebuying process. Earnest can guarantee you the best saving options. Refinancing your mortgage is an effective option, if you need funding for other major purchases.

Common Questions About Patuxent River 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.