Florida Mortgage : Learning Center

Business is busier than ever with many Florida home owners or buyers asking specific mortgage program related questions such as how to finance their home as first time home buyers.  Or how to build their dream home using a specific Florida construction to permanent loan.  Of course, there are still the ones focusing on one thing only, what is the interest rate.  By the way rates went up today, again.

Now I don’t underestimate the basic necessity of obtaining the lowest possible fixed interest rate at the lowest reasonable cost.  However, there is a bigger issue to tackle in today’s credit drought.  Not only have underwriting guidelines changed, but that some mortgage rules are changing while your mortgage loan approval is being processed. 

 This is well after your preferred mortgage professional has discussed several mortgage options and with the borrower has actually narrowed down the selection of mortgages that suits the client’s financial picture perfectly.  After the loan has been approved! 

Recently we have seen construction to permanent rules change even when our Florida resident clients were just a few days away from closing.  Big banks are passing down enormous underwriting and pricing changes eve before their own employees are told what has happened.  This is an unforgiving time in the mortgage industry when very qualified Florida clients are subjected to last minute program changes.  Thats how the sub-prime lenders operated; and look where that got everyone.

I understand lending institutions are constantly recalculating mortgage risk; especially with recent defaults, but at the expense of qualified borrowers?  Not fair.  Make sure when you decide on a specific mortgage loan program you have locked in your interest rate.  Because not only are you locking in the rate, you are locking in the terms and current underwriting guidelines.  Contact your preferred mortgage professional and make sure you are updated with current Florida mortgage related events.

I have seen the Internet world evolved over the past decade.  We have moved to the more familiar Web 2.0 and if you’re not onboard you’ll be left behind.   Businesses of all types, seeking more consumers have finally come to realize how important search engine optimization, SEO,  has become.  So what’s the secret?

There are millions and millions of web sites that are never even viewed because they lack a definitive plan available from experienced SEO professionals.  Our Florida mortgage business has operated with a specific SEO plan that too changed and evolved as recommended by our secret success relationship with the bset SEO company in the industry. 

If you are serious about trusting your SEO and web site visibility with the right people, you need to contact  the Google placement geniuses at On Target Web Solutions.  Besides what good is your web site if no one ever sees it, right?

I am talking about today’s fixed mortgage interest rate advertising attempts.  In Florida we hear and read many mortgage related ad campaigns aimed at getting borrowers to call.  One of the most popular mortgage rate comparative web sites, collects information and advertises national mortgage rate averages.  That would be great tool for many Florida home buyers seeking low fixed mortgage interest rates, right? 

However, there is a less focused detail that is written in smaller font and is usually located at the very bottom of what you are reading.  It reads “Mortgage rate may include points”. 

Comparing one mortgage interest rate to another without comparing costs doesn’t make sense.  By comparing fixed interest rates only but not including discount points which some lenders or Florida mortgage companies charge; then there is no real comparison.  Getting a very low fixed rate mortgage is important; but paying thousands of dollars in “fine print” unforeseen discount points may not be so sensible. 

When shopping for fixed mortgage rates in Florida always ask for a Good Faith Estimate with no discount points and no origination fees.  Of course, unless you are dealing with a seasoned mortgage professional you might beware of the fine print too.

There are many advantages of obtaining a VA Home Loan over a Fannie Mae or Freddie Mac Conventional type mortgage.  The VA Home Loan provides awesome benefits for those who have served our Country.  We owe so much to the men and women who chose to protect our freedom and the VA Florida Home Loan provides some of the best financing benefits available.

These are just a few of those benefits Veterans enjoy when choosing a VA Florida Home Loan:

• No down payment required
• No private mortgage insurance required
• No prepayment penalties
• No Lender junk fees allowed
• More flexibility with credit history reports

The only additional cost associated with a VA Home Loan is the VA Funding Fee; and its usually financed.  This usually varies from 2.15% to 3.30% and can be dramatically reduced with a small down payment.  I truly believe that Veterans can save more money with their VA Home Loan option which offers very low fixed rate mortgages and no private mortgage insurance.  And down payments are optional.  Contact your VA Home Loan Mortgage Professional and see how much you can save with a VA Home Loan in Florida.

Today, many Florida mortgage shoppers are calling to compare only the fixed mortgage interest rates.  For example a typical call in client will simply ask “What’s your 30 year fixed rate?”  What they should add to their list of questions is for a written Good Faith Estimate.  This will allow detailed comparison of cost.

You may find a fixed interest rate that beats everyone else’s; however, you must find out if loan origination fees, discount points or other miscellaneous junk fees are being charged.  And by asking for an upfront Good Faith Estimate you can review at leasure and save.  In fact, the best way to compare one Good Faith Estimate to another is to simply ask for the lowest interest rate without any origination fees or discount points. 

Remember, discount points are optional costs the borrower can choose to buy down the interest rate.  And usually for every 1% discount point, the fixed rate is reduced by .25%.  The recovery period is almost always about 5 plus years; so make sure you plan to stay put to recover your choice.

Go out and shop for that great low fixed rate Florida mortgage; but make sure you get it in writing by asking for a Good Faith Estimate.  If you cant get one upfront in writing then you are probably working with the wrong lender.  I recommend contacting a Florida Mortgage Professional and discussing your mortgage options to make an informed decision.

Fixed Florida mortgage interest rates remain low for those considering to refinance out of an adjustable rate mortgage, ARM or to consolidate debts to reduce their monthly payments.  The only hurdle is actually qualifying for that great low fixed mortgage program. 

Refinance candidates must keep in mind that the 2 largest qualifying criteria today is the equity remaining in your home and your credit history.  Of course, verifiable income with stable employment is a must. 

If you are trying to refinance please call your Mortgage Professional and review these criteria first.  Credit reports can be evaluated and perhaps with experienced advice you can take the time to improve your credit rating.  Also, a Mortgage Professional can assist with mortgage program selection and availability; with respect to your specific equity position. 

For now, the Elite can enjoy relatively low fixed rates and should consider securing a low fixed Florida mortgage and perhaps even lowering the term.  20 year mortgages are very popular when refinancing.  Dont forget to ask for your Good Faith Estimates upfront.

The top six financial institutions together with the Federal government established the “Project Lifeline” today.  This project will place a temporary freeze on the foreclosure process for homeowners that are more than 3 months behind on their mortgage payments. 

Although this project only provides a 30 day window for Lenders to renegotiate mortgage terms and help make mortgage payments more affordable;this time, assistance is available to those in almost any type of mortgage as previous government assisted projects helped only sub prime borrowers.

I am not sure negotiations can be accomplished under a 30 day foreclosure freeze window; guess we’ll wait and see. 

Thanks goes to the Feds who in the past few weeks lowered the interest rates that banks borrow money.  Traditionally these inspired banks would in turn reduce their interest rates and pass the savings onto consumers.  We’re still holding our breath.

Florida home buyers and homeowners wanting to refinance have found that fixed interest rates are just about where they were 3 weeks ago.  No change.  The change that many Florida mortgage seekers are missing is the availability of credit.  That is, no matter wherefixed Florida interest rates are; many borrowers won’t even qualify for a new mortgage.

Maybe they did last year but the mortgage industry has changed.  Tighter underwriting guidelines with respect to credit scores, loan-to-value decreases, and of course declining market values; have made interest rates take a back seat.  It’s not the fixed interest rate that is making or breaking consumer qualifications for conventional loans. 

Remember, credit scores are important; having a secure job with verifiable income; and of course down payments and/or reasonable savings are more important now to secure that low fixed rate.  Take care of these things first; then, as usual, shop for a great mortgage product that suits your specific needs.  And always use a trusted Mortgage Professional.

There are Veterans in Florida who should take advantage of the VA’s streamlined refinance; especially when current fixed VA home loan rates are this low.  Our most recent Veteran is reducing his fixed VA mortgage rate by 1.50%.  Since his payment is dropping there is no appraisal required, and no income or asset questions.  And if you are planning to stay in your home long term, buying down the interest rate is possible with VA’s specialized home loan refinance available only to Veterans.

VA will guarantee his loan and the Florida Veteran receives a much lower interest rate and reduced monthly payments.  If you are a Veteran with a current VA home loan in Florida; it may be time to contact your VA Mortgage Professional and see if refinancing with a VA IRRRL (interest rate reduction refinance loan) make sense. 

Since Florida current VA home loan, 30 year fixed mortgage rates are below 5.875% ; it may be time to consider refinancing your VA home loan to a lower interest rate.  Before you call make a list of the following and your Mortgage Professional can prepare a very accurate Good Faith Estimate for review:

• What is the current principal mortgage balance with your VA home loan?
• How much are your annual Florida property taxes?
• How much is your annual homeowner’s insurance premium?

Florida Veterans can enjoy qualifying for this streamlined VA home loan refinance without the need for income or asset questions or even an appraisal.  Your only concern should be deciding to reduce the term of the loan to 25 or 20; or enjoy a lower 30 year VA fixed rate payment.   If you need a quick analysis to considerrefinancing with a VA IRRRL; call your Florida Mortgage Professional.