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Opportunities abound in Benedict

Resting on the magnificent Patuxent River, the small city of Benedict, Maryland contains a diverse selection of cozy single-family houses and apartments perfect for families, retirees, and individuals alike. With a population of 261, it fosters a tight-knit community. Its open spaces and farmland make for quiet nights and peaceful days.

Don't wait any longer to call this city home

Waterfront views and a wide array of homes make Benedict perfect for you

Grab lunch at Ray’s Pier or go shopping across the river. There hundreds of fun activities nearby and the average commute time ranges from 30 to 34 short minutes. Take a sailing trip along the Patuxent River or cross the river to visit Hollow Point Park. Crime in this area is extremely low compared to the rest of Charles County. This small city by the water is an ideal choice for homebuyers looking for some peace of mind.

From home researcher to homeowner

Earnest's easy online applications make homebuying simple

Buying a new house or apartment along the waterfront can be stressful even with the soothing sound of waves on the beach. With area mortgage rates to research, different neighborhoods to explore, houses and apartments to look through, and a list of amenities to prioritize, this experience can be frustrating. Earnest works with homebuyers, experienced and beginner alike, to keep the process simple. Earnest provides an easy online application for potential homebuyers and helps identify the important things such as walkability, average commute time to work, schools, local crime rates, and proximity to the waterfront. Looking at your unique financial situation, Earnest will help to determine the perfect target home price to meet your needs.

Common Questions About Buying a Home in Benedict

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.