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Annapolis Junction is stop for a home

Nestled between Baltimore and Washington D.C. the small city of Annapolis Junction is the place you and your family have been searching for. Not to be confused with Annapolis City, Annapolis Junction is the very definition of cozy and convenient. With a great location, low mortgage rates and average home values on the rise, right now is the perfect time to start searching for your new home in this small city full of charm.

Kick back and relax in Annapolis Junction

Leave the hustle and bustle behind in this cozy little city

Located in beautiful Howard County, Annapolis Junction lies between Baltimore and Washington D.C. However, despite being surrounded by big cities, this beautiful area maintains a small cozy atmosphere perfect for homebuyers looking for an escape from the office. With such a close-knit community and a wide variety of schools within a few miles to choose from, this is a great place to settle down with family. Take a trip to the National Archives Microfilm Rental Program or visit the neighboring Fort Meade Army installation. Go shopping nearby at Arundel Mills or hop on the Savage MARC Rail Station for great travel options.

Home-buying made quick and easy

Take the stress out of purchasing your new home with Earnest

Whether you are an experienced homebuyer or just beginning your homebuying journey in Annapolis Junction, purchasing a new home can quickly go from exciting to frustrating. Though you might have initially decided on a specific area, you still need to find a home that meets your needs. With this comes researching the different neighborhoods, looking into nearby schools, figuring out commute time to work and sooner or later what started out as simple has begun to overwhelm you. Thankfully, Earnest will make the process as easy as possible for all homebuyers. With a seamless online application, Earnest helps you identify your priorities as a homebuyer while analyzing your financial profile so that they can determine your target home price.

Common Questions About Buying a Home in Annapolis Junction

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.