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Your new home awaits in Lothian

Lothian is an unincorporated community in Anne Arundel County, south of the county seat of Annapolis. Located off of the Patuxent River, Lothian is home to beautiful wildlife and some of the state's natural treasures. With median home values that are significantly below the Maryland average, and a variety of housing options to fit any budget, Earnest is here to help find the right home for you and your family in Lothian.

Community meets the great outdoors

Lothian is a hidden gem

About a half hour's drive from Annapolis, Lothian is home to about 6,500 residents. The population density is 194 people per square mile, partially because the town is situated among one of Maryland's finest protected wilderness areas. The Jug Bay Wetlands Sanctuary is a combination of parks and preserves that combine protecting the ecological and historical heritage of the area with educating the public through recreational activities. The sanctuary offers over 15 miles of hiking trails in addition to boating, kayaking, canoeing, and fishing. In addition to the wetlands, Lothian also offers two recreational parks, multiple farms, and a country club. Lothian is home to an elementary school and a middle school, with a high school in close proximity.

Find your dream home in Lothian

Earnest makes homeownership easy, accessible, and stress-free

Owning a home is an important milestone, but with so many possibilities and factors to consider, such as proximity to schools and transportation needs, it can be difficult to decide what will work best for you and your family. The large amount of information available on homebuying, while helpful, can make looking for your home in Lothian harder than it should be. To streamline the process, Earnest takes all of your needs into account, in addition to your financial profile to determine how much you can afford, and what loan options will help. With the median home price of $402,700 expected to rise 1.6 percent within the next year, now is the perfect time to settle down in Lothian with the help of an Earnest home loan.

Common Questions About Buying a Home in Lothian

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.