Florida Mortgage : Learning Center

As the mortgage markets were rocked last week we are constantly watching for any mortgage related issues that may affect first time home buyers.  As guidelines are continuously being updated with new restrictions I wanted to mention new private mortgage insurance, PMI, news.

Only two of the six current private mortgage insurance companies will provide Florida home buyers the needed mortgage insurance when borrowing 95% of the purchase price of their new home.  The fear is that soon the two remaining PMI companies will drop their allowed insurance coverage forcing Forida home buyers to put 10% down.

There is good news though.  Florida first time buyers who want to put the least amount towards down payments should consider a Florida FHA loan.  That is, unless they are a qualified US Veteran and can use their VA Home Loan Entitlement without PMI altogether.

If you need answers to questions regarding your first time home purchase or VA home loan eligibility; please feel free to contact our office at 888-399-0520 and speak with one of our experienced Florida mortgage consultants.

Fears that Fannie Mae and Freddie Mac may be in trouble have sent a ripple through the financial markets today that make Hurricane Bertha waves seem tame.  Fear has an interesting affect with the financial markets and unfortunately we will see Florida mortgage interest rates move up as a consequence.

Fannie Mae and Freddie Mac borrow money in the bond markets to pay for mortgages they themselves purchase from wholesale mortgage lenders or banks.  These are then sold to investors or hedge funds. Since the bond markets have increased the cost to Fannie Mae and Freddie Mac; they will in turn charge higher rates to lenders who of course will raise consumer fixed mortgage rates.

This lack of confidence in the markets also sent VA fixed rate mortgages soaring this afternoon.  This morning we were offering 30 Year Florida VA fixed rates at 6.500% with no discount points and no origination fees.  This evening Florida VA fixed rates jumped to 6.875%.

It’s amazing what fear in the financial markets will do regarding fixed rate markets.  It spreads like wildfire and forces wholesale lenders and banks to raise their fixed rates.  I do believe things will calm down eventually.  But we will have to wait and see just how high fixed rate mortgages will go before a hopeful ease in market fears helps us all.

If you want to know where Florida fixed rates are we can provide a free Good Faith Estimate for review.  Call one of our mortgage professionals today at 888.399.0520 or visit or website at BeechTree Mortgage, Inc.

Florida home prices are down and many first time buyers are seeking fixed rate mortgages with little or no down payment.  One of the oldest and best 110% financing programs still remains available to all qualifying Veterans.  The VA Home Loan.

Qualified Veterans can obtain 100% VA financing using their VA Entitlement.  In fact, there is no down payment requirement for loan amounts up to $417,000.  Other benefits include, no prepayment penalties, no monthly private mortgage insurance (PMI), and very low VA fixed interest rates.

If you are a Veteran or know  Veteran who is looking to buy thier first home here in Floirda; have them visit our website or contact one of our VA mortgage consultants at 888.399.0520 to discover all the benefits available with a fixed rate VA Home Loan mortgage.

There has been much discussion regarding the mortgage broker’s yield spread premium  and why that should be considered a disadvantage for consumers.  Many feel that since a bank doesn’t earn a yield spread premium, on paper anyways, everyone should run to their local bank for their Florida mortgage needs.

A yield spread premium is money that a wholesale lender will pay a mortgage lender or broker for providing them with a serviceable, paying, homeowner.  An example could be a current 30 year fixed rate of 6.375% might pay the mortgage company about 1.25% in yield spread premiums. On a loan amount of $150,000, that would be $1,875 in income for the mortgage business. 

Here’s the real problem with the whole yield spread issue.  A Florida mortgage company can provide a fixed rate (as shown above) with no discount points and no origination fees; and earn an income.  This income is disclosed upfront, verbally, and in print and on the HUD-1 at closing.  If that is such a big problem, then why aren’t the local bank rates any lower than what we are providing? 

The truth is; banks earn similar SRP’s, service release premiums, to pay their employees and do not have to disclose that earned income.  Get your mortgage from a mortgage Florida correspondent lender or mortgage broker business and they will disclose their earnings upfront and stick to it.  Transparency and integrity.

If banks offered lower fixed rates than what we can deliver, then I wouldn’t be so bothered.  But I guess as long as they aren’t as regulated as Florida mortgage professionals then they will keep providing our already low Florida rates.

As you can imagine, many of the calls and emails we are receiving are for Florida home pourchase mortgages.  Everyone is taking advantage of great Florida home prices as foreclosures and short-sales open the door for first time home buyer opportunities.  But Florida home owners need to make sure they take time to review their current mortgage for any improvements.

With the fall of Florida home values, Florida home owners are finally getting around to reviewing their mortgage options with Florida Mortgage Professionals.  Most considerations are whether refinancing makes sense or should the home owner sit tight with their current mortgage.   Some are reviewing the savings by changing their current ARM, adjustable rate mortgage, for a fixed rate mortgage.  Perhaps with a lower term. 

This depends on many factors and I recommend at least speaking with an experienced Florida mortgage consultant for insight and advantages or disadvantages.  For immediate, free, consultation please call our office now at 888.399.0520 or email me at BeechTree Mortgage, Inc.

If you are thinking about refinancing your current mortgage make sure you speak with a true FLorida Mortgage Professional first.  You need to know if refinancing actually makes sense and by talking to a seasoned mortgage consultant can you make an informed decision.

You will need to give basic financial information but my favorite and usually first question is ” why are you planning to refinance?”  Without this question a loan officer or bank employee may not be able to determine how to best serve your needs. 

Realize that sometimes it doesn’t even make sense for some Florida home owners to refinance.  One reason would be the time needed to recoup the closing costs.  And by the way, make sure you are speaking to someone who will offer you low fixed rate mortgages without discount points or origination fees.  And learn how much the bank or mortgage company will earn with your refinance.  It should be open discussion. 

Want to see if refinancing makes sense for your specific needs?  Call our office now at 888.399.0520 or email me directly at info@beechtreemortgage.com.

Well its June 30th and we are half way through the 2008 year.  And I thought last year was a tough one for Florida Mortgage Professionals.  This year has been riddled with new problems that affect everyone in the mortgage arena.

These include Florida home buyers, sellers, Realtors, Title companies, Florida Appraisers, home inspectors and Florida Mortgage Professionals.  Most of the calls over the past few months have been for new  Florida home buyers - which is great.  But most are looking at the fantastic discounts apparently available through foreclosed homes and short sales.  Are that is where the system gets bogged down.

The problem is most short sales are contingent upon finding a buyer, having them get approved for their Florida fixed rate mortgage, and then asking the sellers bank to approve the short-sale.  If they say no the buyer is out of luck and must start searching for their new home again.  Many clients are jumping from contract to contract in hopes to meet the sellers bank’s criteria. 

And foreclosures are causing havoc with turn around times to meet loan closing dates.  Florida buyers must obtain mortgage approval, get an appraisal, lock-in their fixed interest rate and  then wait for the REO bank’s chosen title company or attorney to close.  Some of these attorney’s are so behind they cannot even meet scheduled closing dates.  Extensions are being pushed so far back that some Florida buyers give up and start searching for a new home all over again.

Several first time buyers get pre-approved for their VA Home Loan or new Florida FHA mortgage and are excited about finding that dream home at, of course, a newly realized dream price.  The reality is that most banks are seeking the current fair market value for these Florida homes. 

That is, some homes are selling for what the current market value dictates already.  There is no real discount, the home simply is selling at market value.  Once our first time home buyers move in they must start doing home improvements to bring the home back to life.  A bargain?  Maybe.

If you are working on buying your first home and considering foreclosed homes or short-sales; make sure your Florida Mortgage Profrssional can obtain your approval quickly and of course work with a short-sale specialist (ask for references).  For more information please call our office at 888.399.0520.

Many Floridians are considering refinancing out of their ARM, adjustable rate mortgage, loans.  Refinancing now to obtain a lower Florida fixed rate loan can ease the stress of interest rate adjustments.  Choosing which fixed loan term may put a smile on your financial future.

Most home owners consider to refinance their adjustable rate mortgages into the popular 30 year fixed rate.  This allows a lower monthly payment but forces the homeowner to repeat payments already made.  There are other fixed rate mortgage loans available with lower terms and lower fixed interest rates.

These include, 25 year, 20 year. 15 year and of course the 10 year fixed rate mortgage.  By refinancing to a lower fixed rate term; you can actually save thousands in interest payments.  With every payment, more money goes towards the principal because the loan has a shorter term.  And lower termed fixed rate mortgages may come with surprisingly lower fixed rates. 

Call 888.399.0520 or visit your Florida Mortgage Professional for more details regarding lower fixed rate mortgage options.

There have been many Florida mortgage program changes over the past year.  In fact, some mortgage loan programs have either become very restrictive with respect to qualifying or have completely disappeared.  Home Equity lines of Credit, Fixed Rate 2ND mortgages, Construction-to-Permanent loans,  and Jumbo mortgages, are just a few programs that have experienced huge qualifying changes.  But first time home buyers in Florida need to know there are still ways to buy their dream with very little out of pocket expense.

Since 1934, American first time home buyers have enjoyed the benefits of an FHA insured mortgage loan.  Benefits include, no prepayment penalty and allowance of seller contributions of up to 6% of the sales price to cover buyers closing costs, prepaid tax escrows and interest rate buy downs. 

Although first time home buyers are required to contribute 3% of the loan amount (usually in the form of down payment); this can be provided by a gift from a relative, employers, or non-profit groups.  A favorite is the Nehemiah Corporation, who since 1997, has assisted over 275,000 families and individuals achieve home ownership using their gift funds.

Yes it’s true.  Today, in Florida, first time home buyers are reaping the benefits of reduced Florida home prices and negotiated seller contributions towards costs and gift fund organizations.  It’s a great time to be buying your first home in Florida.  Call your mortgage professional for more information on this and other mortgage loan programs. 888.399.0520

With the next Federal Open Market Committee, FOMC, meeting merely a week away; concerns over Ben Bernanke raising rates has already moved the Florida mortgage market. Fixed rate mortgages have jumped almost a half of one percent over the past week. The question is, where are they going from here.

It’s not that anyone is expecting the Feds to lower or raise interest rates at next weeks meeting.  The real concern is the language they will use regarding the inflationary outlook for the remaining 2008 year.Ben Bernanke has mentioned the Fed stands ready to “strongly resist” any long term inflationary expectations. Will this news and next weeks meeting push current 30 year fixed mortgage rates above 7.00%?  We will soon see…

If you are in the market for a new home in Florida or wish to consider your refinancing options; please contact your Florida Mortgage Professional soon. Interest rates can be protected - but only by locking in quickly. Call our office and ask about today’s low fixed rate conventional or VA Florida mortgage loans. 888.399.0520