Maryland Refinance Rates

What is the Current Interest Rate for Refinancing a Home?

Interest rates are determined using the following factors: credit score, equity in your property, and the type of financing you are using. It is impossible to determine your specific interest rate without having a mortgage lender take an application. That being said, to get a general sense of the national mortgage rate averages, here is a trusted link to click on:

http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

Can I Refinance My Mortgage with No Closing Costs?

Generally you have the option to refinance your mortgage without adding any closing costs to your loan payoff. In order to do this however, the type of financing you are obtaining must allow for this and typically this is accomplished by taking a slightly higher interest rate than the most competitive rates available, and the lender pays for your closing costs in the interest rate.

All mortgage loans have closing costs, whether you pay for them out of pocket, roll them into your mortgage, or the lender pays for them, there is no way to escape these costs. You can handle them in different creative ways however, so it’s best to have your mortgage lender provide you with all of the options available to you.

Is Now a Good Time to Refinance My Mortgage 2020?

Interest rates have been following a downward trend for years now and 2019 going into 2020 is no different! Rates have been incredibly low and any increase or decrease has been fairly minimal to the point where anyone that has an interest rate over 4% should be consulting with their mortgage lender immediately to determine if there is any advantage to refinancing.

Remember, refinancing isn’t always about one specific goal, it can be utilized to accomplish multiple objectives at once. Lowering your rate and accessing equity in the home, or lowering your rate and your mortgage term, are a few examples of killing two birds with one stone during a refinance.

Should I Roll Closing Costs Into Refinance?

Most homeowners choose to roll their closing costs into their new mortgage balance versus coming to the settlement table with a check to pay the costs out of pocket. That being said, sometimes there isn’t enough equity in the property to roll in the closing costs so you will either have to pay for them out of your pocket or ask the lender to pay for them by increasing your interest rate.

Some people have the means and the desire to pay down their loan balance and they want to avoid rolling in any costs to their loan so they will show the lender they have the ability to pay for the closing costs out of their pockets. Whether or not this is highly beneficial is something your mortgage lender can help you determine

What is the current mortgage rate in Maryland?

Interest rates are determined using the following factors: credit score, equity in your property, and the type of financing you are using. It is impossible to determine your specific interest rate without having a mortgage lender take an application. That being said, to get a general sense of the national mortgage rate averages, here is a trusted link to click on:

http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

Maryland Mortgage Program Rates

The Maryland Mortgage Program, also referred to as the MMP, is a state issued mortgage program that is designed to make the down payment and monthly mortgage payments more affordable. There is a network of approved lenders through which you go through to obtain a loan through the MMP.

There are specific guidelines and criteria that you must meet in order to qualify for a loan through the MMP that deal with such things as your credit, income and assets, so it is critical to find a lender that can explain the pros and cons of the particular program that you are interested in.

The process of the MMP is typically more difficult than that of applying for a regular FHA loan, so as long as you are prepared to put in the time and effort, the MMP can provide you a positive outcome for your new home purchase. Interest rates for the MMP are posted on this link:

https://mmp.maryland.gov/Lenders/Pages/Interest-Rates.aspx

Current VA Mortgage Rates in MD

Interest rates are determined using the following factors: credit score, equity in your property, and the type of financing you are using. It is impossible to determine your specific interest rate without having a mortgage lender take an application. That being said, to get a general sense of the national mortgage rate averages, here is a trusted link to click on:

http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

Refinance Rates

Interest rates are determined using the following factors: credit score, equity in your property, and the type of financing you are using. It is impossible to determine your specific interest rate without having a mortgage lender take an application. That being said, to get a general sense of the national mortgage rate averages, here is a trusted link to click on:

http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

What is the FHA Streamline Program?

The FHA Streamline Refinance program is available to any homeowner that has an existing FHA mortgage. The “Streamline” part of the program’s title refers to the fact that there is less documentation involved in the process as compared to that of a regular refinance. For example, the FHA Streamline Refinance program does not require a home appraisal, there is no income documentation, and the lender must cover the cost of the closing costs because they cannot be added into the new mortgage balance.

This is one of the most popular refinance programs available today and in order to qualify for the FHA Streamline Refinance program, outside of having an existing FHA loan, you must be able to reduce your interest rate by at least .5% compared to the existing rate that you have. There are several other qualifying factors, such as credit score, length of time in your current loan and so forth, so please consult your mortgage lender to determine your qualifications.

97% Conventional Refinance Program

According to consumer research conducted by Fannie Mae, the primary barrier to homeownership for first-time home buyers is saving money for the down payment and closing costs. To expand access to credit and to support sustainable homeownership, Fannie Mae offers 97% loan-to-value financing to help creditworthy home buyers who would otherwise qualify for a mortgage but may not have the resources for a larger down payment, as well as a 97% loan-to-value refinance option for Fannie Mae loans.

Interest rates as well as the associated PMI (private mortgage insurance) that is required on all Conventional loans with less than 20% down payment or equity, are higher with the 97% programs. Please have your mortgage consultant show you the different options to help you determine which program best suits your needs.

MD Refinance Rate Trends Over Time

Here is a trusted link from a trusted source that shows you the national average of mortgage rates between 2014 and 2019:

http://www.mortgagenewsdaily.com/data/30-year-mortgage-rates.aspx

Scroll to the middle of the page where you’ll see a chart that is interactive and gives you a good sense of where rates were and where they are headed.

Maryland Conforming Loans

A conforming loan is a mortgage that is equal to or less than the dollar amount established by the conforming loan limit set by the Federal Housing Finance Agency (FHFA) and meets the funding criteria of Freddie Mac and Fannie Mae. For borrowers with excellent credit, conforming loans are advantageous due to the low-interest rates affixed to them.

To check on the conforming loan limits for 1-4 unit properties in your specific county, click on this link: https://entp.hud.gov/idapp/html/hicostlook.cfm

You only need to select from three of the drop down boxes:

• State – select your state
• Limit Type – select Fannie/Freddie
• Limit Year – select CY2020

Maryland Government Loans

In the state of Maryland an estimated 30,000 government mortgage loans are originated each year. These types of loans include FHA (available to everyone), VA (available to veterans only), and USDA (available to anyone buying in a rural area) loans. Government loans are not issued by the government, however they are guaranteed by the government, which is one reason they are such popular mortgages.

Additionally, VA and USDA mortgages have no down payment requirement, while FHA loans only require a 3.5% down payment. For FHA and VA mortgages, the credit qualifications are also more flexible than Conventional loans, however USDA mortgages are often the most stringent in their approval standards. To find out whether a government loan or a conventional loan works best for you, reach out to your mortgage lender for specific advice.

Maryland Jumbo Loans

Jumbo mortgages in the state of Maryland are loans that exceed the conforming loan limits established by the Federal Housing Finance Agency (FHFA). In the state of Maryland, the average conforming loan limit is $520,950, with a high limit of $765,700 and a low limit of $510,400 in certain counties. Loan amounts that exceed these limits are eligible for Jumbo mortgage financing.

Jumbo mortgages typically require larger down payments and tougher eligibility requirements such as higher credit scores and lower debt-to-income ratios. Not all mortgage lenders offer Jumbo loans and even if they do, the larger corporate and institutional banks typically offer the best rate and terms for these types of loans.

How to Find the Best Mortgage Rates

Often times the first place everyone looks for interest rates is online and while there are specific sites that are trustworthy for this information, there are also many lenders who offer teaser rates to entice borrowers to call them. Teaser rates often come with “points” used to buy down the rate and require 760 credit scores and 25% down payment.

Click on this link to find daily updated mortgage rates:
http://www.mortgagenewsdaily.com/mortgage_rates/daily.aspx

The best method to obtain the best mortgage rate is to contact 2-3 mortgage lenders, let them run your credit and ask them to give you a Loan Estimate. Your credit score should be exactly the same for each lender as long as you let them run your credit within a 2 week period and no major changes to your credit profile occur. Don’t waste your time asking for a lender’s rates without giving them access to your credit report and the additional factors that go into determining your rate. Your credit will not suffer.