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Buying a house in Mardela Springs starts here

Nestled on a cozy corridor of the Delmarva peninsula, Mardela Springs boasts a simple atmosphere for the weary traveler. Chock full of history, this quaint Maryland town is reminiscent of classic small town Main Streets across the country. The high quality architecture of the houses and the lush beauty of the natural scenery further emphasize Mardela Springs' rustic, homey energy.

Hidden history in Mardela Springs

Turn of the century secrets unearthed

Originally known as Barren Creek Springs, Mardela Springs has a lush history rooted in new world exploration. This history is tied to Native Americans and Scottish, Welsh, Irish and English settlers, who settled upon the banks of Barren Creek. Renowned locally as the “gateway to lower Delmarva,” Mardela Springs was renamed from Barren Creek in 1893 due in part to economics and the highly profitable local water bottling company. In the late 1890s, with the arrival of the railroad, local businessmen decided to bottle water for consumption. It was the fear that residents and tourists would revere the water as “creek water” that prompted the town's name change.

Cozy small town life in Mardela Springs

The quiet life on a vibrant, eastern peninsula

Houses are quite affordable in this Wicomico County town. Homebuyers can choose from single level ranchers, as well as more contemporary styles. Schools in the county are excellent, and there are an abundance of homes for sale. Not too many people are aware of this remarkable hideaway. The majority of the residents are young professionals, with over 50 percent being married couples and another 30 percent being families. The population is small and the neighborhood, in its entirety, is no more than .40 square miles. Median home prices in the area border around $69,000, which is affordable when compared to other parts of Maryland.

Common Questions About Buying a Home in Mardela Springs

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

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