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Takoma Park has a home for you

Takoma Park has many amenities to offer while being close to Silver Spring and Washington, D.C. Whether you want to live right outside the city or just need more space, Takoma Park has the perfect home for you. Various neighborhood attributes make the area a safe, attractive place to live and work. Make living in a dream location a reality by moving to Takoma Park.

Takoma Park has everything you'll ever need

Minutes from the city, you'll find you're close to everything you need

Takoma Park is an ideal location for someone who loves the city but wants more space. With Silver Spring less than two miles away and Washington, D.C., less than five miles away, homes in this area are close to the best of both cities while staying within budget. From entertainment to delicious restaurants, you'll have plenty to choose from in this popular area. The local economy is booming, with an estimated median household income of $72,039 in 2013, according to city-data. This is very close to the Maryland state average of $72,483. Join this thriving area today. Takoma Park is waiting to welcome you.

Affordable homes await you in Takoma Park

Earnest makes your home loan a breeze

Homebuying can seem overwhelming with the infinite amount of search engines and tools out there, but Earnest is here to help you with our easy-to-use loan calculator. Takoma Park's wonderful location and nearby amenities make it highly covetable, but it's also affordable and within most any budget. Check with your realtor to see what discounts are available for you so you can afford your next home. Your financial situation, credit score, and down payment will have an affect on your mortgage rate, but Earnest can help make these calculations simple and quick. Take advantage of our knowledge of the homebuying process today.

Common Questions About Buying a Home in Takoma 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.