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Finance a Saint Michaels home today

Now is the best time to buy a home in Talbot County. Home values in the area have dramatically increased in the past year. There's a lot to experience in this lovely town and is a great place to invest in your future. Home values have increased dramatically with the median more than doubling since 2000. It's also a great place to work not only due to the low cost of living and high median income but also because many residents enjoy a commute time of fewer than 20 minutes when driving to work.

Affordable properties you will love

Saint Michaels awaits you with open arms

In just the past year, the value of a home in Saint Michaels has increased by 10.9 percent. This figure is expected to increase over the next year making now the right time to invest in Saint Michaels. The average income of a Saint Michaels household has increased tremendously in the last fifteen years, meaning the area's economy is healthy. The median household income in Saint Michaels was $50,321. This is a $17,743 increase from what it was in the year 2000. The town has a great walkability with some residents even completing errands on foot. Low crime rates and a steady economy help make this area safe and a good place to raise a family. It's also great for those interested in going back to school with it being less than 50 miles from seven different colleges.

A Saint Michaels home is just a click away

Take the hassle out of purchasing a home

If you are searching to buy your first home or retire in a peaceful, cultured, tight-knit community, Saint Michaels will provide you with what you are looking to find. Earnest is the first step toward making it happen! Begin your home search here with the simple loan calculator to gain comfort about the unknown aspects of home buying. When searching for properties, make sure to work with your realtor to find any potential discounts or quirks of certain homes. Perhaps you already own an existing mortgage and you wish to refinance. Earnest is here for you to assist you in the process, allowing you to gain insight about what loan amounts you would qualify for based on the financial situation of your current home.

Common Questions About Saint Michaels 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.