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Thinking of settling down in Clermont, Florida?

Located just half an hour from Orlando, Clermont is fast becoming the destination of choice for those who want to settle down in a nice community. Far away from the hustle and bustle of Orlando, yet near enough to travel to it for work, home prices are holding steady. According to listings on Zillow, a new 1,450 square-foot three-bedroom home can be had for under $75,000. If you don’t need that much space, a one-bedroom home with an area of 600 square feet can be yours for just $20,000.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.

Everyone is moving to Clermont

It is the “Choice of Champions”

Clermont is home to 30,600 residents (as of 2014). The city has seen a 207% increase in population since 2000, showing you how popular it is becoming in terms of a residential area. Most of the businesses in the area too cater to residents. There are several avenues for shopping and dining. The views are panoramic, and the city is home to the iconic Citrus Tower, one of Florida’s landmarks. The citrus fruit industry, which propelled the city to prominence, continues to thrive here. You could pick your own oranges at the Showcase of Citrus; or enjoy wine tasting at Lakeridge Winery, which is the largest in Florida. There are several elementary, middle and high schools in Clermont. The higher education needs of its residents are met by the University of Central Florida and Lake-Sumter State College, both of which share a campus here.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.
Saint Petersburg bridges

The Earnest advantage

Owning a home was never easier

Earnest prides itself on its low rates. With home prices so affordable in Clermont, there is no need to rent a home when you can own one. Simply contact us, so that we can look at your financials and pre-approve your mortgage. You could then look at homes which are priced just right, and finalize the one that best suits your requirements. There are several homes for sale in Clermont, and with it surrounded by Lake Minnehaha, Lake Minneola and the larger Lake Apopka, you will never be far away from the water. You could enjoy quiet moments, or paddle around in a kayak. There are plenty of other things to do that make living in Clermont a dream. So much that you will be wondering why you didn’t move in earlier. With Earnest, the mortgage will never be a drain on your pocket.
Saint Petersburg bridges

Common Questions About Buying a Home in Clermont

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.