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Begin your homebuying process in Cheltenham

Located in Prince George's County, Cheltenham offers scenic views of farms and woods. Homes are both affordable and comfortable, which should make your search for your new home both short and enjoyable! There are plenty of beautiful homes that are just waiting to be discovered in Cheltenham and with median home values rising year after year in Maryland, it's a great time to secure your investment for not only yourself but also for your family.

Cheltenham is the best of both worlds

If you're searching for a quiet and suburban life, then look no further

Cheltenham is a small rural town located in Maryland. The population of the town is approximately 3,909. It may be small, but it has a variety of different types of homes and the best neighborhood attributes. Safety and comfort come to mind when describing Maryland. It really is a great place to settle down and raise a family, enjoy life with that special someone, or just relax by yourself. There are a wide range of homes in terms of price, number of bedrooms and cost. Cheltenham has plenty of different homes to choose from and there are plenty of homes that can fit within any budget. While small in number, Cheltenham is known for it's variety of diversity. Many different cultures call Cheltenham their home, which just makes the town that much greater.

The home you desire is waiting in Cheltenham

Satisfactory rates make applying for a new loan easy

Buying a home in Cheltenham can be overwhelming. If you are from a large city it may be disorienting that the things you are used to being near in the city aren't to be found in this small town. Many homebuyers in the Cheltenham area have an average commute of 45 minutes when driving to work. But the cost of living is especially affordable, so the minor inconvenience is definitely worth it. Cheltenham is also near some beautiful and natural attractions as well. Piscataway Creek Stream Valley Park and Merkle Wildlife Sanctuary are on both sides of Cheltenham and only a short drive away for a fun afternoon outside!

Common Questions About Buying a Home in Cheltenham

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.