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Buying a house in Longwood get to the city first

Longwood is a small suburban town that is located in the Seminole county, Florida. It is a small residential town that was setup in the year 1878. The median price for a house in this city is at around $269,949. After a brief slump in Q2, the prices have started to pick up again, so it is the perfect time to buy a house here. The prices are relatively low and you are likely to gain from appreciation. The median price per sq. ft is at around $129, rent sits at $1500 a month.
Tampa, Florida, USA downtown skyline on the Hillsborough River.

A steadily growing city that is still charming

Get to know the Longwood town better

The region in which this city was built has been under habitation for thousands of years. Two of the country's oldest Cypress trees can also be found here. The history of the city is closely related to the nearby Orlando, it saw wars, settlements, and resettlement over its course of existence. The city was a community that was originally built by settlers from all over the country. It is a community that was mostly composed of hard working middle income households that slowly grew in wealth over time. The median age of the city now is around 43 with 87% of the people here homeowners. Another notable fact here is that the city relies entirely on their own cars for transportation. The town is also not really a tourist hub, so it is almost always calm and peaceful.
Tampa, Florida, USA downtown skyline on the Hillsborough River.
a military man with his family in the park

Longwood could be an ideal town to retire in

Make the right decision before moving here

Have you tried getting a mortgage before looking for a home in Longwood? It may not be as easy you would like it to be. The main issue being credit scores. A sub prime credit score can really reduce your access to housing financing both in terms of how much you can borrow as well as the repayment rate on your mortgage. That is why Earnest uses a better, more advanced methodology in offering you a mortgage. We create a financial profile that is made just for you and takes into account a number of metrics, going far beyond just your baseline credit score. We try to make sure you get the house you love, not just the one you could easily afford. The process is entirely online, meaning you will be ready to speak with your realtor in no time.
a military man with his family in the park

Common Questions About Buying a Home in Longwood

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.