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Great Mills is an unincorporated community, leading many residents of the area travel to nearby towns, since the collective location is so tight-knit. Excellent education, and safe and secure neighborhoods, means residents thrive in Great Mills. Although there is no official local government, the area has a strong governmental background. Great Mills is a suburb of Lexington Park, MD and the Patuxent River Naval Air Station.

Great Mills is the perfect place to settle

All the history and family-friendly atmosphere you need

Historians believe that a secret Pony Express ran through the Great Mills area for over a year during the War of 1812. The Pony Express carried confidential messages all the way to Washington D.C., which provided the president with information about British naval positions. A memorial for nearly 700 African-American sailors and soldiers from St. Mary's County, MD, who served with the Union during the Civil War also exist in the area, with remarkable celebrations held three times per year. Farming, crabbing, and fishing thrive in the area, providing economic stability. Great Mills Road connects the town to Lexington Park, affixed with shopping centers and housing developments. There are also many parks in the area. Residents typically run errands and complete tasks by car.

Homebuying in Great Mills simplified

Your new home awaits you

Purchasing a home is one of the biggest decisions that people make in their lifetime. Earnest is on your side to make this process simple, affordable, and less stressful. Rates depend on your current credit score, down payment amount, and situation. With housing values that are predicted to soar within the next year, today is the day to make your dream of buying a home in Great Mills a reality. Whether you are looking to purchase your first home in Great Mills or refinance a home, Earnest is your go-to tool.

Common Questions About Buying a Home in Great Mills

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.