Alert Message

Homebuying in Lonaconing made easy

If you are looking for a sleepy Maryland town with history, then look no further. Nestled in the Georges Creek Valley, Lonaconing is an Allegheny County town that lies on the “Big Vein” of coal. Once upon a time, Lonaconing was one of the epicenters of the coal mining industry. Prior to the coal industry, Lonaconing was a place settled by the Shawnee and Aliconie Native Americans. The name of the town translates from an indigenous language to mean “the meeting place of many streams.”

Sweeping mountain views in Lonaconing

Scenic and serene views for your dream home

Lonaconing features lush greenery, hard-working people, and quiet, peaceful surroundings. Lonaconing attractions include, but are not limited to, remnants of the industrial revolution (old silk mill building, abandoned historical buildings), Dans Rock Mountain, and the Lonaconing Blast Furnace. Regarding walkability, Lonaconing residents for the most part have a car in order to get around. Sure, it is not a far trek from Cumberland, but a car is definitely needed to get around the town as well as to get to nearby shops, restaurants, and mall. Lonaconing is a safe community with schools rated highly by the Western Maryland region. These factors alone make Lonaconing a very attractive place to consider when buying a home.

Family-friendly Lonaconing

Affordable, family-griendly community boasts traditional values

Home to the breathtaking Dans Park, Lonaconing has just the right touch of serenity for homebuyers seeking a cozier American lifestyle. Unlike the Maryland communities that border Washington, D.C., there is no hustle and bustle here. It caters to homebuyers who desire the small town, Main Street lifestyle. The stately, affordable single-family homes make for a smooth and attractive homebuying experience. Buyers will find that the homes come with plenty of space in both the front and backyards, which makes for a great, kid-friendly place to be.

Common Questions About Buying a Home in Lonaconing

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

People around a computer

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.