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Come home to unwind in Crofton

Located just a short drive from Washington, D.C., Annapolis, and Baltimore, Crofton provides a balance of city and suburban life in a medium-sized town. Local events allow homeowners to participate in the community and meet their neighbors, making Crofton the perfect place to settle down. Equipped with a skilled workforce as well as business and residential growth, Crofton is an ideal location to relocate for high quality of life.

Escape work to come home to peaceful Crofton

This town feels like home, only a short drive from the city

Located less than five miles from Baltimore and less than 20 miles from Washington, D.C., Crofton is the place you come home to after a long day of work. With blooming trees in the spring and numerous seasonal festivals, both nature and activities are enjoyed in the community. Enjoy taking in fresh air on an evening walk, or meeting other members of the community at a local event. In Crofton, you get a little bit of everything. With about 97 restaurants, coffee shops, and bars, Crofton offers everything you need close to home. If you spend time in the city but enjoy peace and quiet, a home in Crofton offers a relaxing place to reside just a short drive from the city. Spend the day in busy Baltimore or Washington, D.C., then come back to your own oasis.

Crofton homebuying is a smooth process

Earnest makes homebuying quick and affordable with an easy application

Moving to a new area like Crofton can be a lot to manage. With multiple ways to research and compare neighborhoods, school districts, and home prices, finding time to find the right home seems impossible. Thankfully, Earnest helps the process of homebuying become seamless and stress-free by focusing on your needs and financial situation, while also finding a place to fit your lifestyle and family. Earnest has the quality, service, and technology to help provide low-interest loans to those who carry strong potential. Crofton's median home prices—around $292,000—are a steal for this quiet, commutable, covetable area near Baltimore and D.C. Stay within your budget while living close enough for a short commute to the city. Now is the time to invest in your home and your future.

Common Questions About Buying a Home in Crofton

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.