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A historic town with your new home

Comfortably located in Howard County just between the outskirts of the Washington D.C. metro area and Baltimore, Savage, Maryland is the ideal place for those looking for the comforts of suburban life with big city jobs. With plenty to do locally, ranging from quality food spots or amble places to shop for anything you need, or a sporty outdoor adventures, Savage is far from a dull city suburb.

Lovely historic suburb with a dream house waiting

Lovely historic suburb with a dream house waiting

Sitting almost equidistant between Washington D.C. and Baltimore Savage, Maryland stands out from the standard suburbs. Savage has a community that offers a variety of people, activities, and home choices for a person with a job in one of the two most important cities on the East Coast United States looking to live in an active area with plenty of space. Along with it’s close proximity to Washington D.C. and Baltimore, Savage is home to the National Cryptography Museum and a few places to do sporty activities like climbing and hiking.

You will truly love your new house in Savage

You will know you will love your perfect house in Savage

Savage, Maryland is much less scary of a place than the name lets on. Home to beautiful Savage Park, the National Cryptography Museum, and Historic Savage Mill. Savage has a population of just over 6,000 people is primarily a community made up of people commuting to either Baltimore or Washington D.C. for work. Savage also happens to be a short car ride from the Chesapeake Bay area and Maryland’s capital, Annapolis. Savage still has some of the aspects of the cities nearby, such as row houses, but also has the charm of suburban life with houses of all shapes and sizes. Houses range in the price range for someone starting a new job that wants to avoid living in the city to someone with an established job in the city looking to move their family to the suburbs.

Common Questions About Buying a Home in 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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