Alert Message

Small town living at its finest

Temple Hills is a small town located in southern Maryland. With a population of just over 8,000, Temple Hills is a great place to settle down and enjoy the slow life. According to Zillow, the average home value in Temple Hills is $232,500, with a predicted rise of 5 percent over the next year . With this in mind, now is the perfect time to buy and settle down in this quiet little town.

Now is the time to buy

Everything you need to know about buying a home in Temple Hills

Temple Hills is small: At 8,069 residents, growth is down 2.24 percent from last year. But for those looking to slow down and relax in a calm and safe neighborhood, now is the best time to buy a home in Temple Hills. The average home is priced at $229,500, up 9.6 percent from last year, with a predicted rise of 5 percent over the next year. Increasing value isn't the only benefit of homeownership in Temple Hills, either; the average cost of a home in this quiet refuge falls well under the state average. Homebuyers should look to pay around $154 per square foot for their house.

Relax and unwind in Temple Hills

A center for entrepreneurship, education, and healthcare

Temple Hills is a hub for entrepreneurship: There are thousands of businesses with fewer than 10 employees even in this small town. It's also very child-friendly, with a large population of children and a huge school system. No less than 154 elementary schools, 177 middle schools, and 30 high schools serve the Temple Hills area. Health care is very accessible in Temple Hills; residents have access to 32 doctors that practice within the city limits and spend 9 percent less than the national average on health care goods and services. Moreover, there are 61 hospitals within 60 miles of the town--good news for young and old alike. Out of all 24 counties in Maryland, Prince George’s ranks 14th for health factors and 8th for healthy behaviors.

Common Questions About Buying a Home in Temple Hills

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

People around a computer

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.