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Make Gaithersburg your sanctuary

Nestled in Montgomery county about 22 miles north of the nation's capital is the city of Gaithersburg. The fourth largest incorporated city in Maryland, Gaithersburg is a gem of a city to call home. Filled with white-picket lawns, family homes and an atmosphere conducive to a happy, quieter life, Gaithersburg isn't a community you should overlook. If you're serious about buying, try Earnest's simple calculator and see what homes fit your budget in Gaithersburg.

Get ready to call Gaithersburg "home"

Gaithersburg is waiting for you

Nestled about an hour's drive between both Baltimore and Washington D.C., Gaithersburg is the perfect picture of an American suburb where your neighbors are friendly, the streets are verdant and green, and life is calm and joyous. Still, there's more to this town than just the postcard-worthy descriptions. IBM, the NIST and Medlmmune are some of the biggest drivers of Gaithersburg employment, is in close proximity to major regional and international airports, and sports a mix of traditional and modern housing to meet any buyer's tastes.

An affordable house, a priceless home

This town is big enough for you

Gaithersburg is the ideal Maryland suburb nestled snugly between two of the nation's most vibrant and important cities, and offers homes ideal for nearly all types of buyers. According to Zillow, home values are on the rise, and have gone up by 2.6 percent in the past year. Currently, the median Gaithersburg home price is $353,100, with a median price of $224 per square foot. There is plenty to love about Gaithersburg, and its population growth shows it.

Common Questions About Buying a Home in Gaithersburg

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.