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See yourself in Claiborne

Claiborne, Maryland was once part of the town closest to it, McDaniel, but was renamed in honor of William Claiborne, a fur trader who established an English settlement on Kent Island. Claiborne homes boast a mix of an older colonial style and various modern and new age designs. Each section of the community showcases its diverse scenery and rich history.

Family vacations have a new location in Claiborne

Rich in history and scenery, this bayside community offers much to see

Small communities like Claiborne have an innate ability to help you reset, and that is exactly what everyone needs a few times a year. Claiborne is a 10 minute drive to the nearby town St. Michaels. In St. Michaels you'll find a collection of small stores, a large selection of local art, and beaches as well. A little larger than Claiborne, with approximately 1,061 residents, St. Michaels has more to do and see once you've had the chance to clear your head in Claiborne. Its salutary effects cannot be denied: When grouped with St. Michaels, Claiborne ranks 6th in health outcomes out of 24 counties, 5th in health factors, and 3rd for healthy behaviors. Residents spend 2.4 percent less than the national average on goods and services related to health care. It's a perfect place to rest and recuperate.

Find your escape in Claiborne

Finding an environment that gives you the freedom to just be

Many families struggle with finding a place to call their own. Claiborne is a perfect place to get away, clear your head, and spend some time with those you love. Whether you're looking for a vacation home, a rental property, or a permanent fixture in this grand community, Earnest will make sure that the possibility becomes a reality. However, when trying to go from a homebuyer to a homeowner, frustrations can quickly mount. With houses and apartments to look at, neighborhoods to research, websites to browse, and mortgage rates to consider, it can fast become overwhelming. Thankfully, with Earnest you can avoid some of the stress.

Common Questions About Buying a Home in Claiborne

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.