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Living in the fast lane

Clinton is a rapidly growing town located in central Maryland. With a population that increased by one-third last year, Clinton is perfect for those seeking a busy lifestyle. According to Zillow, the average value of a Clinton home is $276,600 and predicted to rise another 4.5 percent in the next year. Now is the perfect time to invest in this up-and-coming area.

There's no better time to buy

Here's the A to Z on buying a home in Clinton

The population of Clinton is booming: At 38,873 residents, growth is up 31.5 percent from last year. This population surge is feeding the economy and quickly making Clinton an excellent real estate investment. The average home is priced at $275,100--up 8.9 percent from last year--with a predicted increase of 4.5 percent over the next year. Despite this thriving market, the cost of the average home in Clinton still falls under the state average. Homebuyers can expect to pay around $162 per square foot for their house. Only 11.95 percent of the Clinton population rents, so you'll be in good company if you buy here!

Time travel in Clinton

A rich piece of history

Clinton, Maryland, is most famous for its role in the aftermath of Abraham Lincoln's assassination. Early in the morning on April 15th, 1865, John Wilkes Booth made a stop in central Clinton--then known as Surrattsville--to pick up weapons and supplies just hours after firing on Lincoln at Ford's Theatre. Today, a local museum called the Surratt House Museum tells the story of that fatal, fateful night.

Common Questions About Buying a Home in Clinton

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.