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Gambrills: a small town in the metro area

Located in Anne Arundel County, Gambrills is a small community located in the Baltimore metro area. The small town provides consumers with access to great schools, beautiful homes, large backyards, and quick access to Baltimore. According to the Census Bureau, the homes in this area have a median housing value of $447,500, and the town is filled with gorgeous homes and mcmansions that can make any consumer happy.

Low unemployment rates and healthy lifestyles

What to know about buying a home in Gambrills

Gambrills is a town in rapid growth. From population to new outstanding homes, this neighborhood is definitely up-and-coming. Therefore, for those looking to move into an up and coming neighborhood, Gambrills is the perfect spot. Not only this, but the community within the town is almost all employed. Gambrills, itself, has an unemployment rate of 2.77 percent, which is at an all time low compared to surrounding cities (Livability). This economic growth is a huge indicator of the community's overall economic health. Besides this, neighbors living in Gambrills seem to be entirely happy. According to Livability, 72 percent of the population is at a healthy weight, while 89 percent is insured.

Gambrills: Life in the fast lane

A growing community filled with life

According to City-Data, Gambrills is an older community with a median age range that falls at 44.9 years. Therefore, this is a community mainly for growing families or those looking for a second home. Living in Gambrills allows consumers to live a life filled with the tranquility of the outdoors without the racing cars in the city. With this said, the town isn't too isolated, and is only a 30 minute drive away from the city of Baltimore. Because the population in this city is given such freedom to adventure, 78 percent of them live active lifestyles. Not only this, but according to Livability, Gambrill provides citizens with family practicioners nearby as well as chiropractors, physical therapists, and internal medicine. Therefore, the town has fantastic medical access for families and elderly to ensure the best quality of life.

Common Questions About Buying a Home in Gambrills

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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