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Solomons, Maryland
At the mouth of the Patuxent River and the Chesapeake Bay in southern Maryland,
Solomons (also known as Solomons Island) is a charming, picturesque resort popular with vacationers. Its lovely river boardwalk (called Riverwalk), iconic lighthouse and delicious seafood restaurants are a few reasons why.
An art gallery and the Calvert Maritime Museum add a touch of culture, and community events, including the Waterman's Festival, the Harvest Taste of Solomons and the Solomons Christmas Walk, ensure that locals always have something to do. Ten or more marinas and the deep water harbor provide easy access to the Bay.
A small grocery, a liquor store and a handful of maritime shops make up the shopping venues (nearby communities have more supplies).
Many homes sit next to the water and have a dock.
Cost of Living
Solomons is a welcoming coastal town with an overall cost of living 2% above the national average.
The median household income is $84,185.
Real Estate
The median home price is $365,110. This is a 11% increase over the previous year. For comparison, the national median home price is currently $341,600.
Estimates are that Solomons real estate prices will increase by 3% over the next year.
The median rental price is $1,395 per month. Notes Solomons has 2,200 residents and has grown by 8% during the last decade.
The median age is 67. For comparison, the median age of the U.S. population is 38. There is no local hospital, but MedStar St. Mary's Hospital is 12 miles away in Leonardtown.
The crime rate is below the national average.
Although Solomons does not have a beach, tourists flock to town during the summer months.
Taxes
The county sales tax rate is 6%.
Maryland does not tax Social Security but it does tax income from public and private pensions, 401(k)s and IRAs, although people age 65 or better may claim a $33,100 exemption, less Social Security income. The retirement income tax rate is 2% to 5.75%.
The average effective property tax rate (the annual tax payment as a percentage of median home value) in Solomons is .96%. The annual taxes on a $365,110 home are approximately $3,505.
Mortgages for Retirees
As people live longer and mortgage rates are at historic lows, more and more retired folks are considering obtaining a mortgage rather than paying cash for a new home. You are never "too old" to get a mortgage, thanks to the Equal Opportunity Credit Act, as long as you have the means to do so.
Having said that, retirees face some unique challenges when it comes to qualifying for a mortgage. Most mortgage lenders will look at the same criteria as they would for a young first time homebuyer, including your credit history, debt to income ratio and monthly income. The good news is that Social Security benefits and distributions from 401(k)s, IRAs, and other retirement accounts count as income.
However, because retirement accounts become depleted over time they have a defined expiration date. As a result, a mortgage lender will want to know that the distribution income will continue for at least three years after the date of the mortgage application.
It is also important to keep in mind that if your retirement accounts consist of stocks, bonds, or mutual funds or other "volitle" investments, mortgage lenders will only use 70% of the value in the retirement accounts to determine your mortgage qualifcation.
And while Social Security counts as income, if you are drawing on a family member’s record, such as survivor benefits or spousal benefits, then the income must be documented as payable for at least three years from the mortgage application date.
If you cannot qualify for a traditional mortgage, then a reverse mortgage might be an option. Fannie Mae and Freddie Mac also have programs that can make home buying easier. Check with a reverse mortgage lender or these goverment agencies to see loans and programs available to you.
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