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Gibson Island is a glowing residential destination

Gibson Island is an elite gated community off the shore of the Chesapeake Bay. Surrounded by well-preserved nature, it's an upscale community often considered a seasonal destination. Gibson Island is known for its lush beauty and sophisticated atmosphere. With high home values and a well-maintained appearance, Gibson Island is a desirable community for families, individuals, and retirees alike.

History, nature, and proud success

Gibson Island reconciles everything you could want into one community

Gibson Island has a rich and colorful history that attracts homebuyers who value the past. Areas of the island were set aside to house community facilities as far back as the early 1900s, and the remainder of the land was divided up into residential plots sold by the Gibson Island Corporation. Revenues from those sales support efforts to maintain and beautify the community. It's no wonder Gibson Island is so breathtaking. Residents enjoy the safety of a gated community and the beauty of the land and surrounding waters. About two-thirds of Gibson Island is set aside for open natural space and recreation, meaning this community perfectly combines suburban comfort with an appreciation for the environment. Gibson Island is a popular destination for homebuyers who want a little bit of everything.

Making your Gibson Island goal a reality

Earnest can make your homebuying experience enjoyable

Gibson Island's a high-end housing destination and it’s easy to see the attraction for potential homeowners. The process of purchasing a home can be overwhelmingly complex, especially in a gated community like Gibson Island. With countless websites to sift through and open houses to attend, finding a new home can be draining. Earnest is here to help you focus on the important things in your life without feeling drowned by the details of your new residential situation. They’ll work closely with you to determine your unique financial situation and your biggest priorities when considering a new homeownership opportunity. Earnest can help you pinpoint your preferences and price range to make the process of buying a home as simple and fast as possible.

Common Questions About Buying a Home in Gibson 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.