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Why a home in Oviedo makes financial sense

Property prices have appreciated by 48% since 2000. Coincidentally, that is also the same rate of population growth as well. More and more people are moving into Oviedo, after realizing the benefits. It is located only a few miles from the University of Central Florida, the largest in the United States by way of enrollment; and the Central Florida Research Park, the seventh-largest employer in the country. Oviedo is a great place to live, safe and offering enough amenities for young people.
One Story, Retirement Ranch House on a Bright, Sunny Day.

Life in Oviedo

A place where you can truly enjoy living

There are 38,020 residents who live in Oviedo. The city is located only 18 miles from Orlando, yet there is no need to ever drive there for anything. Oviedo offers enough avenues for recreation on its own. You could get up close with nature at the Lukas Butterfly Encounter and Nursery, enjoying its peace and tranquility. If you would like more excitement, there is an airboat ride that zooms past live alligators. There is also shopping, gaming, movies, restaurants, bars, bowling, fishing and golf to be had in Oviedo. CNN Money magazine named it one of the Best Places to Live. Several private and public elementary, middle and public schools cater to PreK-12 education needs. Higher education institutions around Oviedo also include Full Sail University, Florida Technical College and the Seminole State College of Florida.
One Story, Retirement Ranch House on a Bright, Sunny Day.
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Owning a home is Oviedo is now easy

Thanks to Earnest’s low rates and simplified paperwork

With a pre-approved mortgage (all you need to do is apply online), you can look at homes that you qualify for, and zero in the right one that meets your needs. A realtor could help you with the process, or you could do it yourself. The latter saves you thousands of dollars that you would otherwise pay as commission. Driving around Oviedo should be able to convince you why this is a place you can settle down and raise a family. It was ranked among the Top 10 Towns for Families by Family Circle, while Businessweek named it one the Best Places to Raise Kids in Florida. If you already own a home in Oviedo, take a look at Earnest’s refinancing plans. Compared to the adjustable rate mortgage that you may be on, a fixed rate mortgage protects you against rate increases in the future.
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Common Questions About Oviedo Mortgage Rates

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.