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Your new family home is waiting in Hampstead

Hampstead is a community and family-oriented town boasting prosperous small businesses and great local parks. With the lowest property taxes in Carrol County and a median home price below Maryland's average, Hampstead is the perfect town for sensible families. Look to Earnest loans to make owning that first family home a reality. Hampstead has also been named one of the safest areas in Maryland, according to Movoto.

Bypass traffic and opt for Hampstead

Enjoy shops, parks, and local businesses

In 2009, the Hampstead Bypass was built to help ease local traffic. Now, Hampstead enjoys the convenience and small-town benefits of increased walkability, making moving around town much easier. Not to mention that the Bypass has made local traffic more manageable on top of allowing for easy access to other areas of Maryland. The Bypass also brings consumers into town and allows commuters to go past instead of through. Non-Hampstead residents can easily visit and enjoy the beautiful local parks. And with nearly 25,000 businesses located in the Hampstead area, there are plenty of shopping, dining, and other options for customers to choose from. Hampstead's location also places it within driving distance from vibrant and historical Washington, D.C.

Hampstead homes combine quality and affordability

Earnest can make your family's dream home a reality

There's never been a better time to buy a home in Hampstead. With the lowest property taxes in Maryland and a median home price of $232,800 (well below the state average), buying a home in Hampstead is a steal. These affordable prices, with help from Earnest, can make buying that first family home achievable for all types of buyers. Buying a home in Hampstead means buying a life in close proximity to a prosperous entrepreneurship market, great local schools, and a positive community.

Common Questions About Buying a Home in Hampstead

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.