I am working with a Florida homeowner recently trying to refinance his existing mortgage.  You see, he obtained a 1%interest rate loan from his mortgage broker and was never told about the negative amortization or the recasting problems. The homeowner already owes much more than he started with last year.  I helped him realize the “real” interest rate he owes is over 8% and is adjusting each month!  He is adding more than $2,700 every month to his principal balance.  Why he, the homeowner, had to learn about the details of his mortgage months after closing; is an industry problem.

After reviewing his specific objectives we proposed a 30 year fixed rate mortgage with no prepayment penalties. Later, another Florida mortgage broker contacted our client for a little competition.  However, this mortgage broker actually offered the same negative amortization program, with prepayment penalties, our homeowner already has and wants out from.  I had to explain all of the risks involved with that type of program and reminded the homeowner why he wanted to refinance in the beginning. I found myself disclosing mortgage program specifics for mortgage brokers who obviously want the business but don’t want to disclose too many details on the programs they are presenting. 

Finding a Florida Mortgage Professional should be the 1st on the list for any homeowner or home buyer.  It’s time to start searching for the professional who follows code of ethics including honor, integrity.  Ones who will fully disclose the advantages and the disadvantages of mortgage program choices to consumers.  The best place to begin searching for your Florida mortgage professional is at FAMB, NAMB, and of course the BBB.

Stephen Thaggard , FAMB, NAMB

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