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Your beautiful beach home is in Chesapeake Beach

If you dream of waterfront views and a relaxing atmosphere, then make Chesapeake Beach your next home. This bayside community offers several attractions including Chesapeake Beach Water Park to the Chesapeake Beach Resort filled with beautiful yachts and all around luxury. Not to mention the beautiful white sand-filled beaches!

Chesapeake Beach is for beachgoers

Watersport entertainment, dining, and sunbathing await

Chesapeake Beach offers many home opportunities for you to live conveniently, next to the beach. The Chesapeake Beach Elementary School is rated a 5/5 by Greatschools.com making it a great community to raise the little ones if you choose the right neighborhood. Chesapeake Bay offers a range of dining options. Visit Ledo Pizza or Neptune's Seafood Pub and watch the sunset as you enjoy a delicious meal. Find a vacation home, or enjoy the rest of your life on vacation in Chesapeake Beach.

Live by the beach in Chesapeake Beach

Earnest can move you into your beach home

Living by the beach or owning a vacation home does not have to be a dream anymore. Earnest will make your beach-living desires come true. Once the pre-approval process is finished we can begin doing our search and get you on step closer inside your home. The median home price in Chesapeake Beach is around $260,000 making living by the beach a possible reality for the right homebuyer. Let us help you through this process and you will be one step closer to your home.

Common Questions About Buying a Home in Chesapeake Beach

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

People around a computer

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.