Alert Message

Purchase your new home in Allen

Listed as #1 on City-Data’s “Top 100 Best Educated Cities” list Allen, Maryland is brimming with houses and apartments for you to choose from. Located in Wicomico County, the small city of Allen overlooks sparkling waters on one side and a growing urban population on the other. Whether you are moving with a family, looking for a place to retire, or need somewhere to escape the daily office grind, this small city is certainly one to look into.

Beautiful views and relaxation

Local wineries and peaceful scenery make Allen the place to call home

Allen, Maryland sits along the Passerdyke Creek and Wicomico Creek, granting residents a magnificent view of peaceful bodies of water. When you’re not enjoying the view, spend a worry-free day visiting the Garden of Eden Orchards or unwind with some friends over at Bordeleau Vineyards and Winery. This small city is also conveniently located close to major employment hubs. The average commuting time to work is between 15 to 19 minutes. Allen is guaranteed to help you and your loved ones find some peace of mind.

Mortgage rates made easy

An Earnest loan can take the stress out of purchasing your dream home

Purchasing a brand new home can be exciting. With current mortgage rates across the nation as low as they are, it’s no wonder people are rushing to purchase a new home. However, with multiple websites to browse, neighborhoods to research, houses and apartments to explore, and amenities to consider, this process can soon overwhelm both experienced and beginner homebuyers alike. Thankfully, Earnest makes it simple. Not only will they help you figure out your priorities as a homebuyer, they analyze your unique financial profile to determine a target home price perfect for you. No more stressing over paperwork. With an Earnest home loan, you and your loved ones can rest easy and focus on what’s really important.

Common Questions About Buying a Home in Allen

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.