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Become a homeowner with a Sykesville mortgage

If you've been thinking about purchasing a new home, now is the time. With low mortgage rates and a buyer-friendly market, your new home is closer than you think! Unsure of how much you can spend on your dream home? Check out Earnest's mortgage calculator to help you determine your target price range.

See how much you can afford in Sykesville

Beauty and peace: just what you need for your new home

With just under 4,500 Sykesville community members and limited housing units, it's important to snatch up a home as soon as you find one you like. Homes in this area are grand, classic, and gorgeous, selling for a median price of $420,000 (an average of $228 per square foot). But keep in mind: You'll get a lot of bang for your buck in this beautiful neighborhood.

Find the loan that's right for you

Home loans made easy with Earnest

Whether it's your first home or your forever home that you're looking to buy, you'll need to secure a loan before you do anything else. Mortgages are at an all-time low, but rates remain affected by factors including your ZIP code and your credit score. Make sure you talk to your realtor about any discounts you may be eligible for. The process is similar whether you're applying for your first mortgage or refinancing a current one. Refinancing may allow you to free up cash for another major purchase, such as college tuition or renovations. In either case, Earnest can help you identify your best options, from loan type to loan terms. Let us invest in you so you can, too.

Common Questions About Sykesville 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.