Alert Message

Welcome to Crapo

Don't get caught up the name of this unincorporated community in Dorchester County, Maryland. The name Crapo comes from the French word, crapaud, which means toad. Crapo, Maryland offers a wealth of riches for those wishing to spend time in nature: It is lucky to be surrounded by a historical park, a wildlife refuge, a vineyard, and located a little ways inland from a river.

Crapo is surrounded by attractions

Small towns always have more than they appear to have

Crapo is a 30-minute drive from Cambridge, the Dorchester County seat, which has a more populous and bustling environment. It is also about a 20-minute drive from the Blackwater National Wildlife Refuge, essentially a huge lake with various rivers, streams and creeks providing a completely untouched natural area. In the same general environs lies such attractions as the Harriet Tubman Underground Railroad National Historic Park. For the wine lovers, there is Layton's Chance Vineyard and Winery, approximately 45 minutes away, which is a great day trip during the summer season.

Buying a home in Crapo

A community to call home

Finding your perfect home amid the swaths of open land, thick forests, and wildlife, doesn't have to be complicated. Earnest makes finding the right home loan for your perfect home possible. They work with homebuyers, experienced and beginner, to help identify their main priorities, such as proximity to schools, daily commute time, crime rate, and area walkability. In addition, Earnest will analyze your unique financial profile in order to determine a target home price that's perfect for you and your needs. With Earnest, you can stop worrying about the little things and start focusing on what’s important−buying your new home in Crapo, Maryland.

Common Questions About Buying a Home in Crapo

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.