When first time home buyers are searching for their new Florida home; or Florida residents are seeking to refinance, the focus is always on the rate.  Of course obtaining a low fixed rate mortgage is everyones goal but don’t forget the closing costs.  When mortgage lenders, banks or mortgage comparison websites are advertising their fixed rates; watch for hidden discount points.

I was asked to look at the national average fixed interest rates as posted on the front page of www.bankrate.com and comment.  Their current national average for a 30 year fixed rate is 5.52%.  This is a great rate, as long as you are not being charged discount points on top of closing costs.  At the bottom of these rates, written in the framed area, reads “rates may include points”.   Discount points should be optional costs used to buy-down the interest rate.

When you look further to get a quote from a reputable lender you find that a 30 year fixed rate mortgage in Florida is currently at 6.0% with no discount points.  But keep reading, the fees listed per lender are charged on top of closing costs.  Thats why it is very important to ask for a Good Faith Estimate upfront and to compare not only the fixed interest rate but also the closing cost total.

Remember, collect only accurate Good Faith Estimates from your favorite mortgage lenders, banks or credit unions and contact a Mortgage Professional who can help answer questions regarding which Florida mortgage program best suits your needs.  Interest rates are one thing but don’t lose focus on closing costs.

Trackback URI | Comments RSS