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What to know before moving to Clements

Clements, MD is a safe, small farming town located in Northern Maryland within St.Mary's County. Because Clements is so small, it is marked as an "unincorporated" community, and as a result does not have many statistics available. What is apparent, even without statistics, is that St. Mary's County is a beautiful and historic area to consider when searching for a home. For beautiful rural living and fantastic neighborhood attributes, move to Clements today.

Clements is small town filled wIth tons of history

Where the colonists came through

St. Mary's County is home to St. Clement's Island--not to be confused with Clements--which is where the first Maryland colonists settled in 1634. The county itself has an estimated population of 111,413 citizens, based on information from the U.S. Census Bureau. There are a ton of attractions to visit when looking for your new home. Attractions include Piney Point Lighthouse, Drayden African American Schoolhouse, and so much more. The idea of living in a historic county sounds intriguing and magical. There will always be new stories to find in Clements; perhaps even in your new home.

Homes galore for you to pick from

Lots, land, and foreclosures

With such a small town in a large county, there are a ton of homes to choose from in Clements. From new homes to foreclosures, the area has it all. While most homes are a traditional and ranch style, the community also allows room for creation with lots and land for sale. This way, you don't have to choose between a dream home and a perfect neighborhood. You can have both by purchasing a lot or piece of land and building your own home with personal touches. Don't be discouraged if you don't find a home right away. Your dream house might just be located right around the corner! Whether you are looking to refinance or buy a starter home, Earnest is here for you.

Common Questions About Buying a Home in Clements

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.