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The simple way to buy a home in Ashton

A little suburb tucked outside of Baltimore, Ashton is a nice place to call home if you care about living the quiet life. It's the perfect little spot to settle down, and professionals and growing families flock to the area. Ashton is known for offering decent safety, schools, and restaurants. It is close to many other attractions as well.

Ashton is just right as a relaxing refuge

A good mix of suburban living and city access

Ashton is a small town in Maryland about 40 minutes outside of Baltimore. It's sprinkled with nice suburbs, beautiful communities, quality public parks, and good schools. Rock Creek Regional Park, an excellent hiking and nature reserve, is just over 20 minutes away, providing endless hours of activities for lovers of the great outdoors. Ashton is an accessible commute for Baltimore employees and for beachgoers. Beach day trips are quite common in this area, and many residents have boats at marinas on the Chesapeake Bay. Ashton's good quality seafood options seem right at home. While home prices aren't cheap, buying into Ashton is more than worth it for many people. Earnest offers several tools and mortgage programs that make it easier to obtain a mortgage and purchase a home in a nice town like Ashton.

The mortgage process can be quick and easy

Get the suburban home of your dreams in Ashton

Ashton, Maryland median home prices are $561,700 according to Zillow, and that rate is expected to climb. With interest rates at such low levels, and property values expected to rise, it makes sense to buy in Ashton as soon as you can. Earnest offers tools to help you do just that. Unfortunately, obtaining a mortgage can seem like a difficult task, and it can be quite time consuming. Most people dread it. But have no fear, Earnest is here. Earnest's tool is easy to access and it offers plenty of mortgage options. The website and services are designed to help both first-time homebuyers and refinancers. You'll be amazed at how simple the mortgage and budgeting processes can be when you use the right tool for the job.

Common Questions About Buying a Home in Ashton

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.