Florida Mortgage : Learning Center

One of the biggest changes in the Florida mortgage arena is the way credit scores have determined interest rates.  For years it really didn’t make a difference if your credit scores were in the 660 range or the 800 range.  Of course, the higher the credit score the easier it was to obtain a conventional Fannie Mae or Freddie Mac mortgage.

Today, due to the credit squeeze and mortgage meltdown of 2007 and well 2008, credit scores do matter.  Here is a great example with a previous Florida home buyer wishing to put 20% down on their new Florida home.  30 year fixed interest rates were available at 6.375% with no discount points and no origination fees.  Pretty typical, however, when we reviewed their qualifying credit scores we learned their score was only 687.  Fannie Mae, has established credit score based pricing for banks and lenders to follow.  This simply means our client will receive a fixed rate adjustment of.125% for having a credit score less than 720.

This makes quoting an interest rate and providing upfront Good Faith Estimates much more difficult.  Make sure you know your credit score prior to seeking Good Faith Estimates.  For more information on your credit scores, Florida mortgages, or simply speaking with a Florida mortgage professional, call our office at 888-399-0520.

The United States Department of Agriculture makes available to qualified Florida home buyers, a fixed rate mortgage with benefits that most other Florida mortgage programs can’t provide. 

This guaranteed rural housing allows home buyers to borrow 100% of the purchase amount and even finance part or all of the closing costs and prepaids.  Florida first time home buyers, or not, can enjoy all this without ever paying private mortgage insurance! 

There are more advantages to this wonderful program in the Florida mortgage markets.  Please feel free to contact one of our Florida mortgage professionals and find out if you and your home or area is eligible for this guaranteed rural housing program.  Call us now at 888-399-0520.

As 2008 rolls along here in sunny Florida, public schools have reopened for eager students, the hurricane season shifted gears, and home prices have dropped enough to make Florida jumbo home seekers very happy.  But some things haven’t changed this time of the year for those new Florida dream home buyers.  Florida jumbo mortgage loans still carry very high interest rates.  What to do….

One mortgage scenario that just keeps giving Florida jumbo home buyers a huge advantage is the ever popular Split Mortgage.  Jumbo mortgage loans can be split into smaller 1st and 2nd mortgages.  This allows for lower fixed rates and lower payments, especially if the 1st mortgage is rduced to $417,000, the coventional loan size limit.  2nd mortgages can then be provided with either fixed rates or interest-only home equity lines of credit.  And some equity lines of credit in Florida are available with no closing costs, saving you even more.

There are other ways to get around today’s higher fixed rate jumbo mortgages in Florida.  For more information call one of our Florida Mortgage Professionals at 888.399.0520 or visit our website at www.beechtreemortgage.com.

Thank you to our United States Veterans, everyone currently serving in the US military, and anyone considering to serve and defend our Country.  In today’s squeezed Florida mortgage markets, it’s great to know that Veterans can enjoy some of the best Florida mortgage financing available.    The Veterans Administration provides benefits to qualified Veterans that can’t be beat in today’s Florida mortgage arena.  Our Veterans deserve the very best in Florida mortgage financing.

Florida VA home loans allow no down payments, no monthly mortgage insurance, and no prepayment penalties.  In fact, sellers can contribute towards the Veterans closing costs and even buy-down their current VA home loan interest rate.  That’s the best way to obtain a lower fixed interest rate without having to pay for the discount.  That takes care of recovery period calculations - since it was not paid by the Veteran.

VA home loans are not only available for first time home buyer in Florida.  Florida homeowners who are qualified Veterans, can take advantage of the VA IRRRL, to reduce their interest rate without income or appraisal requirements.  Veteran homeowners can also refinance and take out cash for home improvements or debt consolidation too. 

For immediate assistance with all of your VA home loan questions, contact our experienced Florida VA experts at 888.399.0520 or Florida VA answers.

I have pondered thoughts over Florida mortgage fixed interest rate advertising campaigns.  When large, well known, lenders are advertising rates that are much lower than available I have to investigate to find the truth.  The truth is always in the details.

Currently a Florida mortgage company commercial finally claiming transparency; is also advertising an extremely low fixed interest rate.  I had to investigate.  When you pause your television and read the fine print; thanks TIVO, it reads you will pay 2% in discount points.  Is that fair?  What about recovery period calculations on discount points paid?  Does it make sense for the Florida home buyer or homeowner to pay discount points?  In almost all cases it doesn’t.

Discount points should be an option for the Florida homeowner or home buyer to consider when buying down the current fixed rate mortgage.  At BeechTree Mortgage you can always rest assured knowing you will receive our lowest fixed rate Florida mortgage, with no discount points and no origination fees. 

If everyone provided upfront Good Faith Estimate without charging discount points and origination fees; then shopping for your mortgage would be one step easier.  Less confusion in what current Florida mortgage rates are available.

For your free Good Faith Estimate, call our office 888.399.0520 or visit us online at www.beechtreemortgage.com.  Remember, especially when it’s too good to be true, get it in writing.

I am glad to find that many mortgage shoppers from first time home buyers to seasoned Florida homeowners are placing integrity on their things-to-check-for list. Finding the right Florida mortgage professional is not merely about interest rate and closing costs.  Integrity is everything.

I have always said that providing a low fixed rate mortgage in Florida and offering reduced mortgage closing costs is the easy part of the mortgage industry.  The real work has always been having that new Florida homeowner-to-be walk away with learning something new in this business.

Integrity, finally, is topping the list of clients that call our office.  They want to know what you know and they should.  The greatest satisfaction we receive from clients is that they actually learned something while obtaining their Florida mortgage.  Whether its, finding out how banks and mortgage lenders get paid, what exactly determines the interest rates you receive or explaining the advantages or disadvantages, in detail, with different mortgage programs. 

When you need sound Florida mortgage advice, look for a reputable, experienced, and upfront mortgage professional known for their integrity.  Learn something new and call one of our Florida mortgage professionals at 888.399.0520 or email us at info@beechtreemortgage.com.

Whether you own your land free and clear or have contracted with a Florida builder to purchase at closing; a Florida construction to permanent mortgage may be your best friend these days. 

Florida construction to permanent loans allow you to build your new home with a construction loan and a permanent mortgage; but with only one set of closing costs; thus reducing higher costs associated with two closings. 

And with available benefits such as an interest rate cap and a free interest rate float down; it makes sense to build your home with a construction to permanent Florida mortgage.  Call one of our Florida mortgage professionals at 888.399.0520 and ask for a free construction to permanent Good Faith Estimate.

Great news regarding your VA Entitlement when searching for your new Florida VA Home Loan.  Nothing at all has changed.  Qualified Veterans can still take advantage of the following:

• Save your money - No down payment requirement    
• Lower your payment - No monthly private mortgage insurance    
• Get approved today - More credit flexible underwriting
• Save more money - No lender or bank fees at all
• No appraisal - Refinance with streamlined IRRRL; save time and money
• Lower your Jumbo Payment - VA Jumbo loan amounts allowed

With the news of the new housing bill being signed by Bush I wanted to make sure that Florida Veterans know they have one of the best and stable mortgage programs available to them.  Call one of our Florida VA mortgage professionals, 888.399.0520, and see how much home you are qualified to purchase.

Bush did sign a historic housing recovery bill today in efforts to boost Fannie Mae and Freddie Mac.  Many changes affect the Federal Housing Administration as well so let’s review some.

• $300 billion dollars to fund FHA and expand their programs.  One includes allowing qualified homeowners to refinance their homes at 90% of the current appraised values!  But this is subject to lender participation as they will be writing down principal loan balances.
• Raising the Fannie Mae, Freddie Mac and FHA loan limits in high costs areas to 115% of the median home price or $625,500.  Great stuff for high cost areas only. 
• A tax credit up to 10% of the sales price but no more than $7,500, for first time home buyers.

These are just a few of the major changes this bill has introduced to the Florida mortgage market.  This changes will take place on October 1st of 2008.  A couple of thoughts on negative changes that will affect some first time home buyers include:

• Non profit groups will no longer be allowed to extend seller-funded down payment assistance.
• The tax credit actually has to be paid back in 15 years interest free, though.
• Down payment requirements for FHA loans will increase from 3.0% to 3.5%.

If you are a first time home buyer thinking about buying your new Florida dream home; start now.  Qualifying is going to get tighter by this October with higher down payment requirements.  If you need a Florida mortgage professional to speak with call our office at 888.399.0520 or email your questions.

The big news today is President Bush signing the overdue and latest attempt to help correct the housing market crisis.  Speculators suggest the bill will help about 350,000 to 400,000 homeowners facing foreclosure by allowing them to refinance their current mortgage into a government insured FHA home loan.  But what about the rest of us?  Are we penalized for actually making our mortgage payments on time?

I believe that assistance should be focused on Florida homeowners who are actually able to afford their homes.  All we have seen is property value declines because of others.  Florida residents like you and me who continue to keep current with our Florida mortgage payments are running low on hope that legislation will bring an ease to our property devaluation issues.  Many homeowners are just walking away, causing more foreclsoures, because no one is addressing this issue. 

What if mortgage lenders and banks called and decided to drop your principal balance, like Bernanke has recommended for months, by the same percentage of property value drop in your area - What would happen?  I think many  homeowners may get so excited with that phone call from their lender, they may even tell others.  Sort of an advertising snow ball affect; with consumer confidence rising to new heights.  

Foreclosures would drop, property values would eventually begin to increase, slowly of course, but increase.  I just think it’s about time someone spoke up for the rest of us Floridians who can afford our homes but must deal with property value loss with no recognition from anyone.