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Your dream home is in Sparrows Point

In this lovely bayside town in inland Maryland, you'll have all you could ever want in a house within your budget. Sparrows Point will be your small haven away from the bustle of Baltimore without having to sacrifice proximity to the city. The commute is short and the homes are affordable, but beyond the numbers, Sparrows Point is also the perfect place to call home. This town has something for any type of resident. Now is the time to begin your life here.

Quality homes at affordable prices

In Sparrows Point, you'll find the house and community for you

As a buyer seeking a new home, you know that now is the time to make an investment. Rates are low while most houses are increasing in value, but because of this pattern, you won't always find prices at such a steal. In Sparrows Point, Zillow has valued the average home at $251,200, with a slight predicted growth in value for the next year as well. Furthermore, houses here—just a short 10 miles from the city of Baltimore—are far more affordable than average properties in the Baltimore metro area, at $160 per square foot versus at minimum $170 per square foot, respectively. With its many affordable and comfortable homes to offer, Sparrows Point will become the home you've always imagined. Invest in a home in the bayside town and make a purchase you can be sure of.

Sparrows Point offers mortgages at low rates

The market is low with high benefits for homeowners in Sparrows Point

First time homeowners often feel that they have to compromise in order to find the house, the location, and the price that meets all of their needs. In Sparrows Point, you can have proximity to Baltimore and the surrounding towns at a moderate price, with a home you'll be comfortable in. Rates for a 15- or 30-year mortgage are the same as the national average, at 3.25 percent to 4.5 percent APR depending on the payment plan you choose. Refinance rates in Sparrows Point are also affordable, also reflecting the average rates at around 4 percent APR. Invest soon and you'll reap the benefits of a low-rate market while your property grows in value. Earnest can help. Try our easy-to-use loan calculator to get started.

Common Questions About Sparrows Point 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.