As a former Boy Scout I recall the Scout Motto; “Be Prepared.”  I am reminded of this motto almost everyday now as Florida first time home buyers or owners seek out mortgage financing.  Accumulating debt has reduced qualifying credit scores for many consumers.  That coupled with some late payments has made obtaining conventional Fannie Mae mortgages, almost impossible.  My suggestion?  Be prepared.

Before seeking a home loan approval or checking into conventional Florida mortgage rates; check your own credit history.  You can do this with several credit reporting agencies on the Internet that will at least give you an idea of where you stand.  For exact credit bureau reports I recommend calling or visiting on-line, each credit reporting bureau; Equifax, Transunion and Experian.  You should be entitled to a free report annually from each bureau.

After you have your credit report you can review for accuracy and correct any reported mistakes that may keep you from some of the lowest interest rates available.  Remember, when looking for the lowest available fixed rates at the lowest costs, you want to consider a Fannie Mae type program which requires you to qualify with reasonably decent credit scores.

Of course when you have reviewed your credit history; make sure you contact a mortgage professional to assist in evaluating which mortgage program suits you best.

When the Feds finally made their move and lowered the Fed Funds rate last Tuesday; many Florida homeowners expected the fixed rate mortgage interest rates to follow suit.  Well, as mortgage loan seekers are finding out, fixed rate mortgage actually have increased.

The reasoning is simple.  The mortgage markets had expected the Fed to reduce the Fed Funds rate several weeks ago.  So over the past couple of months we have enjoyed an improving interest rate environment; while the mortgage markets expectation of a reduction was imminent.  The Feds did surprise many with a .50% drop, however, the mortgage markets had already dramatically reduced their fixed rates, even lower.

The difference in already reduced fixed rate pricing and the Feds reduction; is actually about howhigh rates increased over the past 3 days.  For those still seeking mortgage consulting for their new Florida home or perhaps a debt consolidationg refinance; fixed rate mortgages are still relatively low.  Call your favorite mortgage professional for advice and make sure you get your Good Faith Estimates in writing.

The Federal Reserve meeting ended today with Ben Bernanke and company lowering the Federal Funds rate and Discount Rate. The Fed Funds rate is for Banks to trade with each other on overnight lending. This dramatic, yet overdue, move should influence the interest that Florida homeowners pay for debts such as credit card, car loans and of course mortgage loans.

Historically the T-Bill, Treasury Index, follows the Fed Funds rate movement. So an improvement from Bernanke might ease the adjustment pains many are experiencing while their adjustable rate mortgages reset. Hopefully, Florida homeowners can use this extension of lower payment adjustments to improve their credit scores for future refinance requests. Or at least allow everyone more time to shop for their refinance needs especially when seeking fixed rate mortgage financing during this time of tightened underwriting guidelines. I expect these guidelines to loosen up a bit; we’ll have to wait and see. Of course your best move as a Florida homeowner, is to call or email a mortgage professional for answers to all your mortgage related needs.

Another Florida mortgage homeowner, during a refinance closing, realized the easy way to compare mortgage Good Faith Estimates, or in this case, the HUD-1 Settlement Statement for sensibility. They were hooked by a well known Florida mortgage lender, advertising through radio ad campaigns, attracts unsuspecting Florida homeowners with their extremely quick closings and seemingly super low fixed interest rates.

It was during the closing that thisFlorida couple started to realize that they were simply paying off a 1st and 2nd mortgage totaling about $160,000. They knew they wanted to roll-in the closing costs; but when they realized that if the new mortgage loan amount was $173,000; then the costs must be $13,000! And they questioned themselves “Is that too much?”

Thats where we came in at BeechTree Mortgage. With one call and a very accurate Good Faith Estimate; we all learned that they could accomplish the same refinance scenario with a loan amount of $164,700. This was enough to pay off both original mortgages and roll-in the closing costs and new escrow account funds.

When you are seeking a Florida mortgage refinance always ask for a Good Faith Estimate in writing before choosing your mortgage professional. And to make shopping for your new Florida mortgage; compare the interest rate of course. But don’t forget the loan amount!

As always feel free to call or write us with any Florida mortgage question; we’re here to help.

Stephen Thaggard

This question has to been asked by many of our clientele over the years and it’s a great.  I often think about what makes our companyso different than others regarding Florida mortgage financing.  Is it our low interest rates available with our free rate float-downs?  Or perhaps our extremely competitive closingcosts?  Why BeechTree Mortgage, Inc.?

After over 12 years of sharing our Florida mortgage program knowledge; we realize our volume of repeat clients and their referrals has been built our loyalty and trust with each and every Floridahome buyer or home owner.  It is putting yourself into our clients shoes and helping to find the best mortgage program out of hundreds to choose. 

I have always said that low rates and low costs are the easy part of the mortgage industry.  It is finding the right mortgage program and ensuring that Florida home owners, or buyers, learn about the details prior to making their decision. 

I wish everyone in the mortgage lending business would disclose upfront to consumers a few important disclosures.  One; why a particular mortgage program makes sense while another may not.  Two; how much money the company as a whole plans to earn on the transaction; it’s called being upfront.  And three; sticking to the agreed terms that were written in the Good Faith Estimate from the beginning.

Simple truths that every Florida mortgage seeker receives by talking to our mortgage professionals at BeechTree Mortgage, Inc. 

Stephen Thaggard

Refinancing mortgage loans from September through November seems to be more expensivein Florida.  The truth is your closing costs should remain low; however, the costs for your new escrow account is climbing as we near the end of the year.  Most Florida homeowners enjoy the convenience of escrowing for property taxes and homeowners insurances.  Their mortgage lender pays them, when due, on behalf of the home owner.  Since Florida property taxes are typically paid at the end of November; your escrow account balance should have enough accrued to pay the tax bill.

As we near the month of November, the amount collected for property taxes increases so there is enough start up funds in the account to pay the annual premium.  For mortgage loan refinances closing this month; we are collecting 13 months worth of property taxes on our Good Faith Estimates.  This allows enough to the annual, 12 month, premium and have 2 months remaining in reserves.

 One option many of our clients learn is the opportunity to roll in only the closing costs.  They choose to pay the new escrow account start up costs and simply replenish their savings when their current escrow account balance is refunded to them.  This usually takes place within 30 days from the pay-off of their original mortgage.

If you have any questions regarding your escrow account balance or refinance options; please contact one of our mortgage professionals.

Stephen Thaggard

As the mortgage markets continue to force underwriting guideline changes; first time home buyers should know that 100% mortgage programs still exist.  Fannie Mae has several options for fixed rate mortgages aimed at allowing first time home buyers to qualify for their first Florida home.

These fixed rate mortgages have qualifying guidelines that have tightened over the past few weeks; so credit, income and assets need to be reviewed with the help of a mortgage professional.  These Fannie Mae conventional mortgages are available with fixed terms up to 40 years and allow interest-only terms for the first 5 or 10 years if desired.  This would allow an even lower payment without the hassle of negative amortization or prepayment penalties.  All Fannie Mae loans are provided with no prepayment penalties and no negative amortization.

If you need first time home buyer options I encourage you to call your Florida mortgage expert or drop me an email anytime.

Stephen Thaggard 

There are many reasons Florida foreclosures are at an all time high.  One major problem is the negative amortization loans with multiple payment options.  Rates are resetting or recasting and payments are more than doubling.  Increases in homeowners insurance and property taxes are also forcing Florida homeowners into higher payments.  Even those who took fixed rate mortgages; thinking their mortgage payment would be fixed; have to deal with higher monthly payments.  Other reasons stem from employment loss or loss of hours, death of a family member, or divorce.  There are other alternatives to consider before giving up and losing your home through foreclosure.

Talk to your Lender as soon as you think you are going to get behind.  Federal and State banking regulators last week called on mortgage lenders to help struggling homeowners with their mortgages to avoid foreclosure.  There are options to consider such as forbearance or reinstatement.  Forbearance is where your Lender may reduce or temporarily suspend your mortgage payments and allow you to reinstate the amount owed at a later date.  Or perhaps a simple negotiated repayment plan that would allow you to add a portion of the past due payments to your monthly payment until satisfied.

Of course your Lender also has the ability to modify your mortgage altogether.  Your adjustable mortgage can be changed to a secure fixed rate  loan.  The amount past due can be added to your principal amount.   Or maybe adding additional years to the term to reduce the amortized monthly payment and/or recapture the past due amount.

There is light at the end of the tunnel so please call your current Lender for assistance.  Should you have any additional questions regarding how to avoid foreclosure; don’t hesitate to call your mortgage professional for answers.

Stephen Thaggard

With all of the mortgage guideline changes the past few weeks I want to reassure Florida first time home buyers.  Fannie Mae has several conventional fixed rate mortgage programs that are aimed at placing first time buyers into their dream home.

One of these programs is the My Community Mortgage.  This fixed rate mortgage is available for Florida first time buyers that have low to moderate income levels.  In fact, you can structure your fixed rate mortgage to take advantage of interest-only payments for the first 10 years.  This allows for a lower fixed monthly payment while giving you the opportunity to prepay the principal on your own schedule.

This Fannie Mae mortgage program can be obtained without any down payment and the funds for closing costs can come from many sources.  These include a gift from a family member; a grant or loan from a non-profit organization, municipality, or employer; or your own funds.  Credit histories and income sources are  given more flexible considerations.  For those buyers without credit; non-traditional credit can be utilized.  Boarder income and part-time incomes can be used to help with qualifying debt ratios.

Fannie Mae even has additional options specific to the My Community  Mortgage to assist Florida teachers, police officers, firefighters, and healthcare workers; called the Community Solutions proram.  And for borrowers with disabilities or a family member with a disability you might consider Fannie Mae’s Community Homechoice program.

Of course if you have questions or want to see if you are qualified for this Fannie Mae first time mortgage program; please contact our office.

Stephen Thaggard