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The history of Childs is alive and well

An unincorporated area nestled among larger towns in its county, Childs, Maryland is lovely, simple community that is an ideal place to raise a family The residents take pride in its rich history—it takes its current name from 19th century newspaperman George Childs—but they also take pride in the importance of creating a welcoming environment for newcomers.

The community of Childs can be your new home

Small towns are an ideal place to settle down

Although originally known as Spring Hill, the residents at the time felt that name didn't correctly showcase their community's unique heritage. By taking the name of a preeminent 19th century citizen, the newspaperman George Childs, the village paid tribute to its past. Childs boasts not only history, but geography and architecture: Little Elk Creek runs through it, and one of the old post offices is now an antique and art store. Childs is a tranquil town that borders several other more populated, equally colorful municipalities, such as Elkton. Any way you look at it, it is an ideal place to settle down.

The importance of community lives on in Childs

A place that prides itself on its history, scenery, and overall character

Small towns foster the importance of family, growth, and overall character development. Dr. Richard C. Brookings and Mary Carter learned firsthand what a great small town could do for someone, namely their son. Robert Brookings, founder of Brookings Institution, were from Childs, Maryland. Brookings Institution, since its founding 100 years ago in 1916, has since become one of the greatest think tanks in the world, valued at 95 million. Childs is also home to Mt. Aviat Academy, a Roman Catholic Independent coeducational School. Many residents from Childs choose to send their children to this nearby academy, or stay within the public school district.

Common Questions About Buying a Home in Childs

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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