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Come home to Saint Michaels

Located in the heart of Talbot County, Saint Michaels features top-notch schools, safe and secure neighborhoods, and a historic past. This seaside town has many residents who are committed to the community, a strong local government. You'll also find hearty residential and business districts as well as and unique services and recreation.

Saint Michaels is the perfect place to settle down

All the shopping, entertainment, and history you need

Unique entertainment, museums, parks, and shopping await you in Saint Michaels. The Chesapeake Bay Maritime Museum is an authentic and functioning wooden boat yard in which historically accurate boats are built. Educational and interesting things can be learned at the museum, where the history of the bay can be absorbed. Stop in at the Saint Michaels winery to get your drink on, and you can try whatever you wish in the tasting room. Many boat tours are also available in the area. If art is your forte, the Ouvert Gallery is also located in town.

Home buying in Saint Michaels simplified

Invest today for your dream home

Purchasing a home is one of the biggest decisions that people make in their lifetime. Earnest is on your side to make this process simple, affordable, and less stressful. Rates depend on your current credit score, down payment amount, and situation. With housing values that are predicted to soar within the next year, today is the day to make your dream of buying a home in Saint Michaels a reality. Whether you are looking to purchase your first home in Saint Michaels or refinance a home, Earnest is your go-to tool.

Common Questions About Buying a Home in Saint Michaels

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.