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Derwood homes near Baltimore and D.C.

With accessible public transit in Derwood, residents can easily reach nearby Baltimore or Washington, D.C., no car necessary. While home prices are on the rise in Derwood, it is still much more affordable than D.C. or Baltimore, making now the right time to invest in a home. With condos, apartments, and houses available, Derwood offers an abundance of options. Earnest can give you the right tools to secure your new home.

Derwood: a suburb for any type of buyer

Less than an hour from Baltimore or D.C., Derwood offers a prime location

In close proximity to two major cities, Derwood is the perfect location for young professionals and families alike. Whether by bus, car, or metro, both D.C. and Baltimore are under an hour away, making the occasional trip or a daily commute completely manageable. Due to its proximity to these two cities, Derwood offers a plethora of different restaurants, shops, and cultural opportunities. Derwood home prices are low, but values are on the rise and expected to increase for years to come. With only 0.1 percent of homes in negative equity and 0 percent delinquent on mortgage payments, these homes are the right choice for those looking to resell one day.

Buying a house in Derwood has never been easier

Take advantage of current low rates and Earnest's seamless application

There are so many locations, home types, prices, and other information to consider when searching for a home. Just finding a home is tough, let alone handling the ins and outs of mortgages. Let Earnest help you move in to your dream home. With Derwood homes' median listing price at $592,400, according to Zillow, now is the time to make an investment in yourself and your future.

Common Questions About Buying a Home in Derwood

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.