Alert Message

The home of your dreams awaits in Potomac

Delve into the high-class and highly-educated culture of Potomac, Maryland. Potomac is a stunning town sprawling with mansions, country clubs and culture. Bloomberg Businessweek named Potomac the 29th richest zip code in the United States in 2011. Potomac is located just outside Washington D.C. so it's a wonderful location and an easy commute into the city for those who work there. Earnest can help you find your dream home in Potomac!

Potomac is a town where you'll never be bored

From whitewater rafting to golfing, Potomac has it all

Potomac is located in an ideal location, just outside Washington D.C. and close enough to nature, that there's something for everyone in the family to do. Nearby Potomac are the Great Falls of the Potomac River where you can kayak, white water raft, rock climb and go hiking. Potomac Village is a focal point of the town where great shopping is located. Potomac contains multiple options for schools including public, private and also religious schools. With 44,965 residents in Potomac it's a big enough town that you'll want to drive many places, but there are tons of historical locations and parks to go on relaxing walks.

Finding your dream home in Potomac is exciting

The process of buying a home should be fun and stress free

Finding your dream home in Potomac can be stressful with the multitude of stunning neighborhoods, apartment buildings and houses. Starting your home search with Earnest can make this process much more simple and relaxed. Earnest works well for both first time home buyers, experienced home buyers and for gaining information on refinancing one's home. According to Zillow, it's a buyers market in Potomac currently and the current median listing price for homes in Potomac is $1,100,000. Potomac is currently pricier than the Washington Metro area. Now is the time for you to buy your dream home in Potomac as the price of homes is supposed to rise 1.7 percent in the next year. Get started with Earnest today!

Common Questions About Buying a Home in Potomac

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

People around a computer

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.