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Buying homes in Solomons, Maryland

Known by many Maryland residents as Solomons Island, this area is ideal for sea-loving homebuyers. It's packed with coastal views, and offers access to excellent seafood restaurants throughout the year. Solomon is a popular destination with attractions and views that draw people in from around the state. With homes becoming more difficult to obtain in this area, Solomon is an excellent investment. Known for its safety, it is well-suited for families.

Solomons is a boat lovers paradise

Solomons is a boat lovers paradise

Solomons is a well-known boating destination that's positioned right where the Patuxent river meets the Chesapeake Bay. It's a little gem of a town that's known for it's miniscule population, quaint little seaside restaurants, and generally good-natured people. It was named one of Coastal Living's Happiest Seaside Towns, and it's easy to see why that is. This compact little seaside escape is home to Stoney's Seafood House, a famed local restaurant, and it features a lengthy boardwalk that you can stroll up and down while enjoying the view out over the Chesapeake. Local homes range from cute and compact seaside cottages to sprawling six-bedroom mini-mansions. The little town is famous for the Annmarie Sculpture Garden and Arts Center, which showcases pieces loaned out from both the Smithsonian and the National Gallery of Art.

Simplify your Solomons home search

Affordable rates and a simple application process make purchasing easier

Obtaining a home in Solomons is a somewhat limited endeavor, with only a small collection of properties to choose from. The properties available are truly stunning. With a median home value of $268,700, the area is affordable for families and professionals looking to get a closer spot by the sea. That said, homes aren't easy to come by in this location. Earnest can help you conduct a more thorough search by analyzing your finances and then coming up with matches that fit both your wallet and your wants from Solomons. Solomons is a beautiful coastal town within day's driving distance of both Baltimore and Washington D.C., making it a good place to call home for many different types of people.

Common Questions About Buying a Home in Solomons

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.