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Takoma Park mortgage rates for every wallet

Find your new home just minutes from the bustling energy of Silver Spring and Washington, D.C. With mortgage rates at all-time lows across the nation, now is the best time to buy your dream home in a prime location. Call Takoma Park home today. This is one investment you won't regret.

Takoma Park offers budget-friendly living

Stay within budget close to the city

Takoma Park is where ideal living takes place. Many people move into the suburbs and commute every day because living here requires nothing more than a short commute to work or a quick drive to your favorite restaurant in the city. Mortgage rates in Takoma Park are at their lowest, making homebuying affordable for everyone. The median value of a Takoma Park home is $469,500, according to Zillow. This figure has increased over the past year by 2.4 percent and is expected to increase by another 2.2 percent within the next year. This means now is the best time to invest in a Takoma Park home. They're already rolling out the welcome mat, so what are you waiting for?

Takoma Park homebuying is quick and easy

A mortgage to fit your budget and lifestyle awaits you

Homebuying and refinancing a mortgage are more similar than some people may think. Both processes involve the same kinds of calculations--and neither needs to be stressful. Earnest will help you when it comes to prioritizing important factors for determining your mortgage rate so you receive the best rate possible based on your budget. If you're refinancing your home so you can afford to go back to school or finally start those home renovations, Earnest can help you adjust your term or switch your ARM to a fixed rate. With Earnest, everything is seamless. Don't put off your dreams, especially your dream home!

Common Questions About Takoma 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.