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Homebuying in Deale

Situated on the pristine Chesapeake Bay, Deale is an idyllic small Southern Maryland town in Anne Arundel County. Less than twenty minutes away from Annapolis, Deale is a town that most people outside of Southern Maryland may not be familiar with. The location of the town is excellent in that it is close to both Annapolis and Washington, D.C. Residents can therefore experience both the excitement of city life and the tranquility of the waterfront.

Elegance in a sleepy town

Elegant homes pad the streets of Deale

While many would consider this sleepy town to be a suburb, it borders the rural back roads of Anne Arundel County. Charter fishing is a mainstay of Deale. Boating is a town staple as well. Its scenic roads and docks make sitting on the dock of the bay a pleasure year round. Locals enjoy restaurants and dockside cafes. Deale homes tend to have a price range of $299,000 to $800,000. Many of the homes are charming cottages, while others boast high end glamour. They sit elegantly against lush, tree-lined streets. With the Chesapeake Bay providing a scenic overlook, the property values of homes in Deale rarely plummet. When residents need a bit of excitement, Annapolis is only a short drive away.

Dream a little dream

Find your waterfront dream home in Deale

Stately homes, large lots, and great elementary schools await you in Deale. Warm weather days bring fantastic sunsets and cool breezes off of the Chesapeake. Winter nights add to the coastal allure, charm, and mystique. Captain John Smith said it best when he said that “Heaven and earth have never agreed better to frame a place for man’s habitation.” The walkability of Deale is limited.This is because it is a coastal town situated farther inland than others. All the same, Deale is a family friendly place to call home.

Common Questions About Buying a Home in Deale

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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