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Affordable island living

Nestled off the coast of Maryland is Cobb Island, a cute area surrounded by the Potomac River. Cobb Island features a wide variety of homes, including lavish Victorian-style dwellings, brick ramblers, and renovated Colonial-style houses. Many homes have quick access to the river so you can be out on the water with little hassle. The city is cozy, so travel might be necessary for those used to the convenience of city living.

A peaceful town with lots of charm

Quiet, cozy, and sure to please

Cobb Island is situated at the confluence of the Potomac River and the Wicomico River. Never be far from the water in any of the charming homes Cobb Island has to offer. The area offers many opportunities for outdoor recreational activities, but is limited on shopping and dining amenities. The community features a few locally owned restaurants, a bakery, and a seasonal coffee shop. With limited walkability and virtually no public transport, personal transportation is a must. The gorgeous view and allure of the water aren't the only things that makes Cobb Island special. Schools in Cobb Island are excellently rated and boast high rates of graduation. While there isn't much to do in the immediate area, Cobb is only a short drive away from the nation's capital and Baltimore.

Your new home in Cobb Island

We make the process easy

Finding your dream home on Cobb Island is no easy feat. There are so many factors to consider, including location, neighborhoods, and mortgage rates. Let Earnest help with the first step in the process: securing a great home loan. Whether you're buying your first home or refinancing on your already owned home, we give you access to great tools to help you make the decision best for your family. Together, we'll find your target home price and work with you to purchase the home of your dreams.

Common Questions About Buying a Home in Cobb Island

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.