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Gibson Island mortgage rates within your reach

Gibson Island mortgage rates are relatively low. It’s now a great opportunity to own a home in this beautiful coastal Maryland area despite the high home values. Surrounded by breathtaking scenery and home to an extremely affluent population, Gibson Island is an ideal destination for families and retirees alike. Offering the safety of a gated community and the beauty of a well-preserved east coast island, Gibson Island is a highly sought after residential destination.

A sophisticated community and proud history

Gibson Island inspires greatness

As one of the most affluent communities in Maryland, Gibson Island boasts educated and affluent residents with sophisticated tastes. The gated neighborhood is comprised of some year-round residents and many seasonal residents, making it a popular choice for families and individuals seeking a summer home as an escape from the stresses of life. With home prices starting at around $1 million, Gibson Island is an elite community that delivers on all of its promises of security and greatness. Home to interesting individuals and meticulously kept land and facilities, this neighborhood calls out to those who seek an elegant living experience in the midst of vast natural beauty.

Gibson Island's simplest loan

Low rates and a simple process take the complexity out of homebuying

Looking to buy a new home? Gibson Island is a prime pick for discerning homebuyers and so is Earnest. The first step to homeownership in Maryland is securing a home loan. Mortgage rates in the Gibson Island area are now just below 4 percent but can be influenced by a variety of factors. Check with your realtor about any discounts you may qualify for. Once you are preapproved for a loan, Earnest is ready to help walk you through the process. If you're looking to refinance your current home and already know the necessary steps, let Earnest simplify things further and help you free up funds for what you really need.

Common Questions About Gibson 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

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.