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Buying a home in Davenport is a wise choice!

Davenport is a small city located in Polk County, Florida. According to the 2010 census, the city has a population of only 2,888 people. However, the neighboring cities of Davenport are experiencing rapid growth, their economies are growing at an unprecedented rate. The good thing about living in Davenport is that you can live in a place that is less crowded, in a very calm and quiet, and clean environment, yet have immediate access to employment and other modern amenities.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.

Davenport - a very ethnically diverse city

Davenport is very close to some of the major attractions in Central Florida

The 322nd largest community in Florida, Davenport is a popular tourist destination. The people who visit Davenport are those who are looking for a small, quiet town, and those who plan to visit the many attractions nearby.Walt Disney World, Universal Studios, MGM Studios, Wet 'n' Wild Water Park, Animal Kingdom, Islands of Adventure, Epcot, SeaWorld, all are just a short drive away. The city has two large golf courses. In fact, Golf is well-represented in Davenport. Within a 60-mile radius of Davenport are located some of the best health care facilities in Florida. There are a number of prominent colleges and universities located nearby as well. Davenport does not have a public transit system, however, there are three airports and Amtrak stations near to the city. It is very easy to get around the city on foot or by bicycle or by car.
Jacksonville, Florida, USA downtown city skyline on St. Johns River.

Owning a home in Davenport is feasible

Earnest can help you find a home in Davenport that suits your budget

Davenport saw an impressive housing growth in the recent years. In general, the people who move to the city are middle-class people attracted by the easy access to employment in the nearby areas, as well as the wealthy people looking for 'quiet' living. Earnest can find you the right home in Davenport. We can find you a home on a budget or a high-end home where you can just relax. Earnest can get you the best mortgage deal as well. Even if your credit score is not ideal, we can work with you to find a mortgage with a fair interest rate, and help you get it approved as quickly as possible.

Common Questions About Buying a Home in Davenport

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.