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Thinking of buying a home in Daytona Beach, FL?

The name needs no introduction. The city is home to one of the most famous NASCAR races of all time, and there are several other things that make living in Daytona Beach a pleasant experience. This needn’t be an expensive proposition either. According to listings on Zillow, you could get a 500 square-foot studio apartment for just $30,000 or a larger two-bedroom 1,200 square-foot home for under $120,000. And there is always the beach to be enjoyed.
Panama City Beach, Florida, view of Front Beach Road at night during blue hour

Live life in the fast lane

And enjoy life off it as well!

If you are a motorsport aficionado, you will definitely appreciate living in Daytona Beach. In January, there is the 24 Hours of Daytona endurance race; followed by the Daytona 500 in February. Bike Week happens in March, the Coke Zero 400 NASCAR race in July, and Biketoberfest in October. And when there is no competitive racing, you could get behind the wheel of a racecar and try your hand at the track. Daytona Beach has been nicknamed ‘The World’s Most Famous Beach’ and it is not hard to see why. This is one of the few places in the world where you can drive on the beach itself, taking in the panoramic coastline and the fresh air. There are several public schools for grades PreK-12, plus other private schools. The world famous Embry-Riddle Aeronautical University is located right here, as well as the Daytona State College.
Panama City Beach, Florida, view of Front Beach Road at night during blue hour
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Own a home in Daytona Beach

With Earnest, you won’t have to worry about a thing!

This way, you will know exactly which homes to look at. Living in Daytona Beach is guaranteed to be exciting, so you only need to find the home which meets your requirements. A realtor can help you with this or you can do this yourself. When you drive around the neighborhood looking at homes, you will understand why this is a place you can call home. Earnest’s low rates and simplified paperwork makes owning a home in Daytona Beach so much easy.
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Common Questions About Buying a Home in Daytona Beach

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.