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Preston mortgages make luxury living affordable

Preston is growing in value faster than people can move there which makes it the perfect place for you to move! According to Zillow, home values are up 9.7 percent from last year and they're expected to continue to grow! There are homes of all types and sizes waiting to be purchased and they're increasing in value so there's no way for you to make a bad decision or investment. It all just depends on what you're looking for and how much you'd like your investment to grow.

A quality mortgage waits for you in Preston

Find a home you never thought you could own

With mortgage rates lingering right around 4 percent, now is the perfect time to pick up your piece of paradise in the heart of the great state of Maryland. Earnest can help you find the mortgage that not only fits your budget and housing needs but also exceeds what you thought was even possible—and at a great price! Preston has a variety of different homes available and there are also many different sized homes, so it all just depends on what you're looking for. Mortgage rates are stable and home values continue to consistently rise so there's no need to be afraid. All that's left to do now is find the home that you've always wanted but didn't realize was hiding right in the middle of Preston for you to scoop up and invest in, not only for your future, but also your family's as well.

The time to invest in a home is now

Preston is ready for you to call it home

Whether this is your first home, second home, or your home away from home, Earnest can help you find the best mortgage for both your budget and housing needs. There's a handy calculator below that can help you see what looks best for your budget as well before you speak with Earnest. If you are researching your refinancing options, Earnest can provide ample assistance with refinancing as well to help you get to the next step in putting your money to good use.

Common Questions About Preston 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.