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Frostburg homes in a college town

According to the Census Bureau, Frostburg has an approximate population of 8,667. Although a small college town, the median housing value steadies at $170,300, but has many homes on both ends of the spectrum. Surrounded with students attending Frostburg State University, the city is a college town, and is filled with brimming college life perfect for singles. However, it also allows space for growing families by providing a variety of homes, neighborhood attributes, and attractions.

A renter-friendly city for consumers

What to know, and how you can live in Frostburg without having to commit

Because most of the residents of Frostburg are students attending the local university, the average age of residents is 24 years old. According to listings on Zillow, the average home is priced at $103,000. However, there are options for any budget. As a student-populated town, there are 3,730 housing units, out of which 1,877 are rented. If you are looking to buy, the current average cost of a home in Frostburg still falls under the state average, making it a great city to look into. Therefore, this city provides options for all consumers whether they are looking for a family starter home, or a college apartment.

What it means to live in Frostburg

The college lifestyle without necessarily being in college

Frostburg State University provides much of the population and influences the lifestyle of the surrounding area in Frostburg. Therefore, this city makes for a perfect starter home for those who have just graduated and are still young. Originally founded in 1898, there are currently 5,400 students enrolled in the university. There are, however, historic nuggets located within the city as well to please the biggest history buff. The Hocking House, The Frostburg Historic District, and the Borden Mines Superintendent's House are only some of the historic sites located in the neighborhood, and are also all listed on the National Register of Historic Places.

Common Questions About Buying a Home in Frostburg

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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