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Poolesville mortgages are easier than ever

The average mortgage rate for Poolesville is around 4.1 percent, and is expected to rise, making now the perfect time to invest in a home. Let Earnest help you figure out how to get the most affordable option available by using our calculator. You can determine what fits best within your budget before moving to the next step. When you're ready to get one step closer to being a homeowner, Earnest is waiting to help you do so.

Make your Poolesville dream home a reality

Earnest is here to help

Poolesville has many different types of homes available at many different price points. According to Trulia, the median sales price in Poolesville is $462,000 and is trending upward. According to Zillow, however, the median home value in Poolesville is expected to rise 1.8 over the next year, so there has never been a better time to make an investment in your dream home. Before you begin your search, Earnest's calculator can help you find out how much home you can afford, and what financing options are available to you.

The best loan for your new home

Earnest makes it fast and easy

Whether you are looking to purchase your first home, retirement home, or refinance your current mortgage, Earnest helps you make sense of the myriad of factors that determine the cost of your Poolesville home. Taking into account your financial situation and your needs and wants, we simplify and demystify the process of finding the most affordable loan option for you. Once you know your price point, be sure to discuss any discounts you may be eligible for with your realtor.

Common Questions About Poolesville 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.