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Mortgage rates are on the rise

Live in a laid-back, picturesque town off the coast of the Potomac River and purchase a home on Cobb Island. With many styles and sizes, there's sure to be something within your budget. Mortgage rates are steadily on the rise, making now the best time for potential homeowners to buy and secure great rates. Check out our simple calculator and find a target price that's perfect for your family.

Great for quiet living

Affordable homes and beautiful landscapes

This quiet community is great for people looking to settle down and enjoy the experiences a small town has to offer. Homebuyers and property investors will love the affordability—at a median sale of $232,500, homes in the area are both attractive and budget-friendly. Unlike other areas, Cobb Island offers plenty of spaces to build and properties at different price points. Cobb Island is a haven for peace seekers and water lovers, but you don't have to be a fisherman to enjoy the miles of sparkling water. And when you're itching for a little more, take a short car ride to one of Maryland's larger cities. Raise a family, live alone, or invest in prime property in Cobb. Earnest can help make it happen.

Finance with Earnest

We help you every step of the way

A cozy bungalow awaits you on Cobb Island, and Earnest is here to help you find it. It can be tricky to predict the exact rate of your mortgage in advance, so discussing options with your realtor--and consulting Earnest's trusted online resources--is key. For instance, you may qualify for discounts, or see specific effects from factors such as your ZIP code or credit score. Get preapproved for a home loan, and make the rest of your search a breeze as cool as the winds coming in off the shore. Similarly, when it comes to renovating your home or making some well-needed repairs, or even sending junior off to college, you can get a little help from refinancing your mortgage. Earnest will work with you to free up some extra cash by adjusting your mortgage, from lengthening the terms or switching from an ARM to fixed rate. Not sure which option is best for you? We'll help you weigh the pros and cons so you feel great about your decision.

Common Questions About Cobb Island Mortgage Rates

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.