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Buying a house in Lusby has never been easier

Under 50 miles from Washington, D.C., Lusby is a small community with a population just under 2,000. With historic colonial homes and waterfront private communities, this quaint area has something to offer everyone. The average home price in Lusby is $247,098--higher than the national average of $221,000 but worth every extra penny. It’s the perfect time to purchase a home in Lusby, and an Earnest home loan can help you expedite the process.

Lusby is a place the whole family will love

Golf, books, and theme parks

T-off or hang out at one of Lusby’s two notable golf clubs. Enjoy the bay breeze while you make your way throughout the course. Alternatively, take a break from technology, round up the kids, and head over to the public library for some quality family bonding. Whether you're taking a ride into D.C. or heading over to Cove Point Park for some old-fashioned ball, the little town of Lusby has so much to offer. From the rural neighborhood of Cove Point/Bertha to Chesapeake Ranch Estates, the neighborhoods of Lusby are equipped with diverse and unique housing options. With 72 percent of residents consisting of families, and the unemployment rate falling below 5 percent in recent years, there’s never been a better location or economy to raise children in.

The best move-in mortgage rates in Lusby

Low rates and an efficient application process

With beautiful housing options and notable attractions, you're probably eager to purchase a home in Lusby. While the process can be a bit overwhelming--what with having to decide which attractions you wish to be closest to, comparing neighborhoods, and making endless visits to open houses--Earnest is here to help. With your list of priorities and preferred home prices, Earnest can narrow down options to your desired results. With median home prices at $227,911, on the rise since 2000, the decision to buy a home in Lusby is easy.

Common Questions About Buying a Home in Lusby

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.