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McHenry beckons families to Maryland living

Located in beautiful inland Maryland, McHenry is a small town that offers big fun no matter the season. With a wide range of recreational facilities, there are also activities for residents at all stages of life. Situated on the northern shore of Deep Creek Lake in serene Garrett County, this quaint town provides the ultimate outdoor adventure opportunity for homebuyers who embrace active lifestyles.

McHenry rocks every season

Winter, spring, summer, fall, McHenry has the weather for it all

McHenry's climate and recreational opportunities provide four full seasons of joy. The Deep Creek Lake area is bursting with attractions ranging from outdoor parks and nature facilities to unique shopping experiences you won't find anywhere else. The outdoor adventurist can enjoy everything from dog-sledding to whitewater rafting while those who prefer something a bit more laid back can shop, visit and relax while admiring the incredible views and natural beauty that define the area. Have a family with young children? It's rumored that the Shrek movie franchise setting was inspired by Deep Creek Lake, and your children will be thrilled to hear that they share a home with such an iconic character.

Making McHenry living a reality

Low rates, high payoff

McHenry is a little town bursting with life and has a lot to offer so the decision to move here might come easily. Unfortunately, the process of conducting research and securing a loan can often become an enormous hassle. With countless websites begging for your attention, buying a new home can seem daunting and overwhelming but Earnest can ease the process and get you on your more important adventures as soon as possible. After all, the experience of buying a home can be exhilarating, but what really matters are the long-term memories that you'll make in the town of your dreams. With a simple application process and low rates, Earnest can help you start a new chapter in your life in no time.

Common Questions About Buying a Home in McHenry

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.