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Towson mortgage rates are nothing to be scared of! Located close to Baltimore and the border of Maryland, Towson homes are ideally located for anyone on the go. Your property will only increase in value as people continue to spread out from Baltimore. Maryland homes rise in value year after year, and Zillow expects median home values to increase by an additional 2.9 percent over the next year.

Make Towson your next investment

You'll love your new home and investment

Towson is a beautiful city to call home in a state that's just as nice! Maryland homes have been rising in value for years, and Zillow predicts continued growth in median home values over the next year as well. Mortgage rates are also great at the moment. Bankrate reports that rates are as low as 3.5 percent—and given the projected growth in home values, there's never been a better time to call Towson your town. You'll be just a 30-minute drive from Baltimore, but far from the high cost of living.

Easy access to Baltimore in Towson

The ideal place for anyone on the go

So you've found the perfect home for yourself or your family? Great! Even if this is your first time buying, don't stress. Earnest can guide you through the entire process and make it look easy. Before you know it, you'll be a proud homeowner living in the beautiful city of Towson! If you're looking for information on refinancing, that's another of Earnest's specialties. Whatever your home needs may be, Earnest can help.

Common Questions About Towson 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.