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Which Lexington Park home is right for you?

Nestled in the quaint county of St. Mary, Lexington Park is a city located in beautiful southern Maryland. Filled with rich history, next to luscious beaches, and mere miles away from one of only two public honors colleges in the nation, there has never been a better place to call home. Whether you've dreamt of living along the riverbank or settling upland on the gorgeous greenery of Maryland, in Lexington Park you will fall in love over and over again with the place you call home.

Time stands still in Lexington Park

Museums, matinees, and Maryland crabs

Recently named for a sunken USS aircraft carrier, Lexington Park is founded on the deep roots of American history. From Native American settlements to Colonial-era tobacco farmers, each day you'll walk past history on the streets of one of America’s 13 colonies. Spend your weekends on visits to Calvert Marine Museum and the Dr. Samuel A. Mudd House Museum, or head to a mid-day matinee at the AMC Loews Theater. There’s never a dull moment in Lexington Park. Not only will you become a part of monumental history, but culinary history will surround you here as well. Your dining experience will always be Maryland fresh, with seafood caught straight from local waters. Beat the travelers and be first in line for it all. After you've worked up an appetite in the museums and movies, pick up a bucket of Maryland's famous blue crabs.

The easiest homebuying in history

Stress-free house shopping

When it comes to buying a home, the process can take some time. Lexington Park is full of beautiful houses and neighborhoods, making the selection process a bit overwhelming. Earnest can help you narrow down your options by identifying your priorities (walkability, commute time, proximity to beaches, etc.) and taking into account your financial position to select your dream price. With median house prices in Lexington Park at around $224,924, now is the perfect time to buy your forever home.

Common Questions About Buying a Home in Lexington Park

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.