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Wading in to Church Creek

Located in the heart of Maryland's Dorchester County, Church Creek is a known for great people and beautiful scenery. With its hospitality and close-knit community Church Creek’s, there’s no surprise its popularity has been steadily growing. Home to the oldest church in the nation, Church Creek is the ideal location for homebuyers seeking a retreat from the hustle and bustle of the beltway. If a quiet life is what you seek, look no further than Church Creek for your new home.

Church Creek: A synopsis

Where small town charm meets history

With its vantage at the head of the Church Creek River, the town boasts beautiful views and classic small town, American main street living. From fishing and boating to exploring local history, there are enough activities to keep outdoor lovers busy all year round. History buffs can enjoy a variety of historical sites, including the Old Trinity Church, which was built in 1675. There are several district public elementary, middle, and high schools within the same ZIP code, making Church Creek a great place for families, retirees or anyone looking for a scenic home in a serene neighborhood.

The time to buy is now

It's a buyer's market, so act fast

Whether you're looking for a new home, vacation home or investment property, the homebuying process can be challenging. The housing market is fast paced and rates may fluctuate, making it hard for the new homebuyer to keep up with. Earnest is ready, willing and waiting to assist homebuyers with the buying process. Earnest can help find a house that matches your needs, your dreams, your lifestyle and most importantly, your budget. Church Creek homes are within your grasp. Now is a good a time to start the home buying process.

Common Questions About Buying a Home in Church Creek

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.