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Market health in Valley Lee

According to Real Estate US, there are currently 118 active real estate agents in the Valley Lee area. Therefore, there are more than enough resources for finding your future home. The town also offers a variety of homes from lots to estates to please all consumers of any background. Located in Southern Maryland, looking into this city is a plus for your family and for your budget.

Now is the best time to invest in Valley Lee

No matter the type of home you desire, Valley Lee has it

Currently, like a lot of the country, Valley Lee is facing a ton of foreclosures. On Zillow alone, there are 10 foreclosed or preforeclosure properties listed for the average consumer to look into. Foreclosures lower the town rates, making it easier and cheaper for you to find your dream home. If you're looking for a home and don't see anything in the foreclosure section, don't be discouraged. The fact that there are so many homes in this state impacts Valley Lee's market health as a whole. Therefore, the traditional brownstone houses along Herring Creek may be more affordable than you think. The median list price of homes in the area is $269,900, according to Zillow. This is just above the Maryland state average price of $265,400. The area economy is strong and steady.

Earnest can assist you in making Valley Lee home

Think you can't afford a home? Earnest can help

Not sure if you can still afford a home even with lowering rates due to foreclosures? Earnest is here to help. Using our simple online process, we take away the need to drive to an office in order to get loans. Test out our loan calculator before submitting an application to get an idea of what you might have to put down monthly. Buying a home and refinancing are two very similar processes, due to the unknown factors and stress involved. Earnest is your go-to tool to make the experience easy.

Common Questions About Valley Lee 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.