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Severna Park has the right house for you.

This Maryland town is upbeat and urban with all the comforts of a smaller community. Bowie, Baltimore, and Annapolis each lay within a few miles of Severna Park, but if you don’t need to get to the bigger cities, the town itself has all you want just outside your doorstep. You can be in one of the many restaurants, bars, coffee shops in only a five-minute walk, and the conveniently located homes are beautiful, too. Now is the time to buy a house in Severna Park.

Buy a house in Severna Park.

The town you want in the place you need to be.

Since 2000, the population of the Severna Park town has increased by over 32 percent. Now, the residents number at just over 37,000, and the town is only growing as time goes on. Severna Park offers many friendly establishments with great atmosphere, so you can eat and socialize without having to go into the larger cities. However, if you commute for work or want to get away for the day, you can take advantage of the proximity to nearby Baltimore, Annapolis, and Bowie, too. There are many options for public transport, including three Amtrak stations near Severna Park, and the drive-time to other cities is, at most, about 20 minutes. The town is also perfect for families, with access to many strong local schools as well as hospitals and larger universities. Investing in Severna Park is a smart choice.

Earnest can help you buy your new home

Investing in a home can be daunting, so we can guide you through the steps

There are many appeals to the town of Severna Park, and if you’ve been drawn in by its attractive homes and welcoming environment, you’ll want to buy a house there now. However, making that transition is not as simple as a one-time purchase. There are many details to take into account, like geography, financial status, mortgage rates, and more. At Earnest, we consider everything that goes into making the wisest purchase, beyond just the price-range. If you have a family or you’re living on your own, we understand the importance of good schools, good hospitals, and good neighbors too. We investigate all of the details you’ll need so you can buy a house with the right information, and we make sure that your investment will go far. Let us help you find your dream home in Severna Park.

Common Questions About Buying a Home in Severna Park

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.