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Call Annapolis home today

Nestled along Chesapeake Bay, south of Baltimore and east of Washington, D.C., you can find the urban capital of Maryland: Annapolis. With its many events and attractions--from art exhibits to parades--as well as numerous historic sites, Annapolis caters to tourists and residents alike. A mix of young singles and friendly families makes Annapolis a great fit for just about anyone: The fantastic school system appeals to parents, while romantic carriage rides and hip bars attract the single crowd.

Join the fun in Annapolis

Art, history, and segways

Anchored in colonial history, Annapolis has much to offer. Whether you prefer to ride a bike, a segway, or a boat, there are many different tours you and your family can take to explore the city. Alternatively, hop on one of the many buses that are part of Annapolis's excellent public transportation system. Now is the right time to buy in Annapolis: The city's population has risen 8.4 percent since 2000, which comes as no surprise given Annapolis's many attractions. And with a median home sales price of $381,000, you can find something within almost any budget! Just make sure to buy soon, because prices in this hot market have been on the rise since August 2016 and are expected to climb another 1.9 percent over the next year.

Homebuying starts here

Everything you need to know about buying a home in Annapolis

Buying a home can be an incredibly stressful experience. Whether you're spending hours comparing neighborhoods and school districts or calculating the distance between work, home, and nightlife, there is a lot to consider. In Annapolis, you can expect to pay an average of $255 per square foot of space for your home. The elementary schools in the city are fantastic, and public transportation can take you anywhere with ease. With 37 percent of Annapolis identifying as "single," those looking for love will be in a great place to find it--and still feel at home when they're ready to settle down. Annapolis's population was estimated at 39,474 in 2015 and continues to grow.

Common Questions About Buying a Home in Annapolis

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.