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Mt Savage an area rich with architectural history

Mount Savage was once a booming industrial town, but is now a small town with a low population and low cost of living. Despite the change in demographics and prosperity, it is still rich with gorgeous classic architecture, reminiscent of its industrial past. Glazed brick and historic landmarks can be found throughout Mount Savage, making it the perfect place for history lovers and families alike.

Mount Savage: Rich History at your fingerprints

Mount Savage is an affordable small town suitable for families

Mount Savage, is a small, blue collar community in Allegany County, Maryland. Once a booming industrial hub, the first iron rail was rolled in America at the Mount Savage Rail Mill in 1844. However, after the railroad ceased operations in the mid-20th century, while many industries were lost, hardworking traditions still remain. Remnants of the past can still be seen in the historical landmarks peppered throughout Mount Savage, including many gorgeous buildings and homes built with glazed brick, an architectural nod to the area’s past. Homes can be purchased for a median price of an incredibly low average of $90,500.

Mount Savage: A display of classic architecture

Mount Savage mixes historical architecture with mountain backdrops

Mount Savage is a history and architecture-lover’s paradise, filled to the brim with historic landmarks and classic brick architecture. Before it was an industrial center, it was pioneered by the Arnold family, Catholic farmers originally from southern Maryland. In the early 19th century, Mount Savage was a self-sufficient farming community, often attracting families from neighboring towns and states to its Catholic church—the only in the area. The farm lands and mountains are still attractive to potential homeowners, creating gorgeous vistas. The cost of living in Mount Savage is very low, with the median price to buy a house being only $90,500, with the median gross rent being a mere $370 per month. Mount Savage is an excellent place for families to settle down in a place rich with history as well as beautiful nature.

Common Questions About Buying a Home in Mount Savage

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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