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Home is where Monkton is

Sandwiched between Baltimore County and Harford County, Monkton is a city with a population of just under 4,500. Home to the historic Ladew Topiary Gardens and Monkton Railroad Stations, it is mere miles from Baltimore County’s abundance of restaurants and attractions. Remain close to the international airport, Amtrak stations, colleges, and universities. Monkton has something to offer everyone.

Monkton is the perfect balance

Gardens, railroads, and endless attractions

Move to Monkton and live minutes from the beautiful Ladew Topiary Gardens. Harvey Ladew purchased this 200+ acre farm in 1929. The Garden Club of America described the gardens as “the most outstanding topiary garden in America.” The Ladew Topiary Gardens are now a non-profit organization aimed to promote “the public benefit and for educational, scientific and cultural pursuits.” Monkton Station has been around since 1898 and now serves as a place to learn more about the Torrey C. Brown Rail Trail (rail-trail) and is now a museum and visitor center. The first phase of the trail, located in Gunpowder State Park, is 7.2 miles and extends to Monkton. The trail allows for activities such as horseback riding, hiking, biking, jogging, or simply just a nice walk outside.

Monkton homebuying process made easy

House shopping with light bags

Homebuying can be a long, drawn-out process. Monkton is full of unique houses and condos, making the selection process a bit overwhelming. Earnest can help you narrow down the selection process by identifying your priorities (walkability, commute time, proximity to beaches, etc.) and taking into account your financial position to select your dream price. With the median house prices in Monkton around $428,500 and a predicted rise within the next year, there’s never been a better time to buy your forever home.

Common Questions About Buying a Home in Monkton

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.