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Buying a home in Girdletree

Girdletree is one of those small towns, that boasts charm and affordability. Located in Worcester County, not far from Snow Hill and Ocean City, this sleepy community is not far from the beach but at the same time offers rural serenity. Quaint, charming and safe are some of the choice words to describe Girdletree. If you’re looking for the perfect town to settle down in, look no further.

Girdletree 101

Fabulous Location for a Home

Girdletree’s location on the Eastern Shore of Maryland ensures that this town has four seasons for residents to enjoy. Due to its close proximity to the water, winters are sure to be blustery and cold. The warmer months present vast opportunities for fun. With several beaches nearby, there are many water sports to partake it. Additionally, there are many land-based activities for residents to enjoy like hiking. Girdletree is surrounded by a plethora of natural attractions as well historical sites. Homes in Girdletree provide an amazing location and foundation to raise a family or just enjoy one’s life.

Understanding the complexities of homebuying

Ease the Challenge with Earnest

Buying a home or property in this community can be a bit stressful. Sure, there are plenty websites that can offer assistance. But that help sometimes comes in a complex package which leads to confusion over the home buying process. Earnest is here to help alleviate the confusion regarding purchasing a new home. Earnest provides clear and concise assistance in order to offer all that you need in order what it takes to make your Girdletree home buying dreams a reality.

Common Questions About Buying a Home in Girdletree

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.