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Your path to homebuying in Washington Grove

Washington Grove is a wonderful community in the heart of Maryland. Located west of Baltimore, Washington Grove offers rustic plantation-style homes and many outdoor destinations for people to explore. Home prices are on the rise, so find your dream home in Washington Grove today.

Washington Grove has fun for everyone

From parks to events, enjoy everything Washington Grove has to offer

Washington Grove is a small town packed with activities and places to spend time. Take a walk in The Meadow, swim in Maple Lake, or play sports in Woodward Park while enjoying the well-preserved landscapes. Stroll through the Forests of Washington Grove while spending some quality time with friends and family. The town also hosts a variety of indoor events; McCathran Hall hosts town socials, while Acorn Library is every book lover's dream. Regardless of your preference for outdoors or indoors, Washington Grove is a town for all.

Become a Washington Groves homeowner

Low mortgage rates and quick, easy application

Buying a home in Washington Grove can seem a bit overwhelming with all of the options available, especially since there are so many unique locations in the town to choose from. With all of the open houses and website browsing, it's no wonder that buying a home is not a quick process. Earnest makes this process simple and smooth by taking your priorities into account to provide you with a target home price. And with refinancing, major purchases such as college tuition and home renovations are finally practical and well worth considering. Invest for the future. In light of the increasing value of the homes here, the median home price at $472,000 is a steal.

Common Questions About Buying a Home in Washington Grove

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.