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Located in Southern Maryland, Patuxent River is well known as a military community that satisfies veterans and families alike. Consider moving to this area for work: The average commute times to nearby neighborhoods are between 5 and 25 minutes. There is something for everyone here, whether you desire a waterfront property or a modern farmhouse. Your future can be a bright one if you discover your dream home in Patuxent River.

Great accessibility to all amenities in Pax River

Patuxent River is a sanctuary for military families

The Patuxent River is a tributary of the Chesapeake Bay and a sanctuary for Navy families. With a population of 1,331 as of 2013, this area is nothing short of hustle and bustle. The Naval Air Station maintains a significant part of the Patuxent River community, as well as the Patuxent Naval Air Museum, which is located in Lexington Park. These attractions are what makes Patuxent the perfect place to move. Lexington Park is one of the few nearby neighborhoods within minutes and home to several great schools.

Making homebuying exciting in Patuxent River

With amazing loan rates, you are even closer to your new home

Buying a home in the Patuxent River area is a rewarding experience for the entire family. Though the homebuying process can be a burden, you will find discovering your dream home in this community worthwhile. After all the research and combing through your options, the process can be exceptionally quick. Earnest can lead you step by step into identifying your priorities. We've also built a financial calculator that lets you know how much you can afford in a home in Patuxent River.

Common Questions About Buying a Home in Patuxent River

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.