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Buy a great home at great rates in Severna Park

Right now, the housing market rates are low, but they’re predicted to rise within the next few months. If you’re looking to become a homeowner, now is the time make the investment, and there are fewer places better than Severna Park to fit your needs. Situated close to Maryland’s biggest cities, the town provides the comfort of the suburbs with easy access to urban life. Severna Park offers places for both families and single residents, so every buyer will be happy with their purchase.

Severna Park has a home for you

Choose a house in the town you’ve always wanted at a price you can afford

In Maryland, it can be hard to find a home in a location that checks all of your boxes. Severna Park, however, can do just that. With its beautiful neighborhoods, vibrant atmosphere and proximity to other cities, you will not find any limitations on the lifestyle you dream of having. The commutes are easy, the homes are pretty, and the amenities of the district are hard to be beat. An average home in Severna Park costs about $473,700, and Zillow.com predicts that they will rise in value by almost 2 percent in the next year alone. In this town, you can opt out of the prices and bustle of living in the city without making sacrifices. Instead, you will have all the benefits of Anne Arundel County’s homes, schooling and health systems, at a cost within your means. Invest in a Severna Park home today.

You’ll save while you spend in Severna Park

With Earnest, buy an elegant home at a great price in this Maryland town

Severna Park homes are nicely located and affordable, and if you're looking to invest in a mortgage, this town offers good rates as well. The purchase rates on mortgages are consistent with the national average, at about 3.8 percent APR. As the value of the homes is increasing, the choice to become a homeowner today will be worth the investment. Earnest makes it easier to find the home of your dreams for a price equally dreamworthy. If you're especially savvy and wish to refinance your existing mortgage, Earnest can help you achieve these goals as well. With 30-year refinance rates about around 4 percent APR, you can act now and become a homeowner without overspending. Severna Park has a home for you, and Earnest can get you there.

Common Questions About Severna Park 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.