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Buying a home in Olney is easy and affordable

Olney, a central-southern city in Maryland, is the ideal location for anyone who wants to live close to a major city without the cost of the city itself. Olney is perfect for families who want a picturesque place for their children to grow up, or anyone who wants a convenient location with small town amenities. Olney has an average population of just under 34,000. This extremely tight-knit community puts an emphasis on family, health, and wellness.

Go to and from Olney with ease

Public transportation to major cities is accessible and convenient

There are three large-scale public transportation options near Olney, making travel a breeze. These stations can take you around Maryland or even into D.C. The two largest cities surrounding Olney are Philadelphia, which is 118 miles away, and Washington, D.C., only 17 miles away. With public transportation, it's easy to make a quick getaway for the day or for a whole weekend. Experience what the area in and around Olney has to offer. In addition to the great opportunities for weekend trips, there are also a lot of great colleges in the area. This is perfect for families with older children who want easy access to great universities, including the University of Maryland College Park, American University, and Catholic University of America.

Swing, sip, and shop in Olney

Amenities galore for people of all ages

The amenities offered in Olney are fun for everyone. If you're a sports star, you'll love the golf courses located here: Trotters and Norbeck. These are high-quality 18-hole courses that range from professional to beginner—it's endless fun on the green for a reasonable price. If sports don't interest you, visit the Brooke Manor Country Club to enjoy a long meal and relax. You can also host large-scale events such as banquets or weddings. Or, if your brand of relaxation involves retail therapy, you're in luck: With two large shopping centers, you'll always be in style in Olney. And if food's your thing, stop at one of Olney's 64 restaurants, bars, and coffee shops. You'll never get tired of exploring when there's so much to eat, drink, and see in this exciting city.

Common Questions About Buying a Home in Olney

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.