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Retire in a Jefferson home

Jefferson is a small retirement community located northern Maryland. With its many types of homes, neighborhood attributes, and attractions Jefferson offers the perfect opportunity to invest for the future. According to Zillow, homes are currently valued at $343,600 with a predicted rise of 2.7 percent in the next year. With this in mind, now is the perfect time to buy and settle down in this small, peaceful retirement community.

Now is the time to buy

Everything you should know about buying a home in Jefferson

The population of Jefferson is 2,192. This is up 100 percent from last year. Now is one of the best times to buy a home in Jefferson. Houses in this small community are currently valued at $343,600. This is up 2.8 percent from last year with a predicted rise of 2.7 percent in the next year. While the average price is already higher than the state average, the community still offers tons of options to work with every budget. The walk score is 22 which means a lot of transportation must be done via car. Jefferson is slightly more expensive than some other cities. However, the many amenities and location will provide buyers with a great investment in their futures.

Relax and unwind in Jefferson

Retire in peace

Jefferson is currently home to the popular of age graphic of 45 to 54. The area is well-educated with 97 percent of residents graduating from high school, and 44 percent graduating from college. There are historic sites and properties to visit including The Lewis Mill Complex and the George Willard House. There are currently 24,914 businesses with fewer than 10 employees. This indicates that those who may not want to retire now can find a job or start a business. For those who may have young children or grandchildren moving to the area, The Frederick County Public Schools district, which serves Jefferson, has an average GreatSchools rating of 7 out of 10. There are a total of 440 students from Jefferson currently enrolled.

Common Questions About Buying a Home in Jefferson

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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