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Relax in beautiful Capitol Heights

Capitol Heights is an tiny town located in the heart of Maryland. With a population of just 4,500, Capitol Heights is a quiet neighborhood where you can sit back and relax. According to Zillow, the average home is valued at $184,300, with an increase of 3.1 percent predicted for next year. Consider this your invitation to come and call this affordable little town home.

Go easy on your wallet in Capitol Heights

Make Earnest your partner in homeownership

Capitol Heights is tiny: Its 4,452 residents make Capitol Heights one of the smallest towns in Maryland. That said, growth is up 6.18 percent from last year because Capitol Heights is such a great (and affordable) place to live. The average home is listed at just $184,300--up 4.7 percent from last year, but predicted to rise another 3.1 percent over the next year. Homebuyers are likely to pay approximately $135 per square foot for their house, well under the state average. Nearly 75% of the local population owns their home, and for good reason. Join them today and make yourself at home!

Sit back and relax in Capitol Heights

A quiet retreat from a busy life

The population of Capitol Heights is very small. While it may not be a bustling hub for tourists or large corporations, however, Capitol Heights is full of mom-and-pop shops that sustain the local residents. Capitol Heights is right on the border of Washington, D.C., so you'll have culture and excitement just a short drive away. Nearby cities like Bowie and Clinton also offer many opportunities for entertainment and education, such as the National Capital Radio and Television Museum in Bowie and the Surratt House Museum in Clinton.

Common Questions About Buying a Home in Capitol Heights

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.