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Prince Frederick homes with a beach view

Located in Calvert County, MD, Prince Frederick is a small town located along the Chesapeake Bay in southern Maryland. With 1,233 housing units, consumers can find their perfect waterfront view for a fraction ofthe price. According to Zillow, the average value of a home is $296,800 with a predicted rise of 2.4 percent in the next year. Keeping this in mind, dreams of sunsets on the beach can become a reality.

Now is the time to buy

Everything you should know about buying a home in Prince Frederick

According to Livability, the approximate population of Prince Frederick stands at about 3,213. However, the beach views are attracting more community members, and the current population is up by 42.92 percent from last year. For those looking to settle down in a beach community, Prince Frederick is the perfect spot. Like most beach communities, a lot of the homes are rented. In Prince Frederick, 61.02 percent rent their homes, while 38.98 own. So what does this mean for you? Whether your looking to buy or rent, you won't be limited, as this small beach town welcomes all.

Unique homes with beautiful views

Finding your spot to relax and unwind

Buying a home in Prince Frederick would be a dream come true for most. The small town offers a variety of homes for every consumer. Between new constructions, traditional homes, and ranchers, there's a myriad of homes to attract everyone. Not only this, but most of the homes feature either a large and lush yard or a waterfront view, so there is always something beautiful to come home to. The small town is also perfect for growing families. According to Livability, the schooling systems scored an eight out of 10 on GreatSchools. Sound like a perfect place to turn your vacation into a permanent home? Act fast. These homes won't be available for long.

Common Questions About Buying a Home in Prince Frederick

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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