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Randallstown homes in the heart of Maryland

In the heart of Maryland, Randallstown is a diverse community located just west of Baltimore. The small town is located right between Ellicott City, Maryland, and Philadelphia, making it a great adventure opportunity. Luckily, the town's convenient public transportation makes travel between the big cities a breeze, all while providing that "small town" feel.

Randallstown: a small town with big transportation

Universities, access to multiple cities, and plenty of public transport

Located at the hub of several intersecting cities in Maryland, Randallstown is a place for families, young singles, and retirees alike. Offering two close Amtrak stations, easy access to several prestigious universities, and plenty of shopping centers with a diverse range of shops, Randallstown is anything but boring. There are activities for all ages: A family can take a trip to the local library, while a young professional can set off on a short commute to her new job in Washington, D.C. With so much going on in such a little town, Randallstown is always bustling with life.

Randallstown is a place for everyone

A neighborhood filled with communities for every age

Buying a home in any location can be overwhelming, no matter your age or homebuying experience. Randallstown makes finding a home especially difficult, but for all of the right reasons. There are so many options available that you'll really have to dig deep in order to find your ideal neighborhood. If you have a family, look into buying a home within a more family-oriented neighborhood. If you're single, look into neighborhoods closer to the center. Whichever is your niche, however, Randallstown will have a spot for you.

Common Questions About Buying a Home in Randallstown

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.