Florida Mortgage : Learning Center

When Veterans are shopping for their new home in Florida; many are pressured into obtaining their VA mortgage from a specific mortgage company or lender.  In fact, many builders own their own mortgage company and title insurance company.  If the owned an appliance store, lawn equipment or a home owners insurance company; would you simply buy everything from the builder?

It sort of like asking for lobster tail from the local fast food hamburger-type restaurant.  They don’t specialize in lobster or other seafood’s but they will find some.  Is that good eating?  Are you safe?  Why are they offering a lobster when they make and sell only burgers? 

I believe it unfair practice to force a Florida Veteran to use one particular mortgage lender when seeking a VA Home Loan.  Yes you can save money with builder credited closing costs; but you lose the ability to shop for even lower closing costs, and lower fixed VA interest rate mortgages. 

Make sure when asking for your Florida VA Good Faith Estimates; you first get all of the pertinent discounts in writing and ask about origination fees or discount points.  Perhaps soon laws will be passed in Tallahassee to prevent forcing our Florida Veterans from not having a fair choice when it comes to shopping for their VA Home Loan.  If you are in doubt about the integrity of your builder-owned mortgage company’s estimate; call our office anytime for your free VA Good Faith Estimate.

Remember, Veterans who already have a VA Home Loan in Florida can save thousands by considering a VA IRRRL, interest rate reduction refinance loan.  You can reduce the interest you are currently paying to a fixed rate below 6%.  In fact, you might even consider dropping the term to an even lower 15 year fixed rate VA mortgage.

With a 15 year VA mortgage you will save tens of thousands of dollars in long term interest.  Keep in mind, there is no income qualifying as VA has already approved your financing with the existing mortgage you have on your home. 

Florida VA fixed rates are very low and you owe yourself the opportunity to obtain the lowest possible fixed rate with your VA Entitlement.  Call your VA Florida mortgage professional today and see how you can take advantage of your VA benefit regarding a VA IRRRL.

We have all been waiting for Fannie Mae to temporarily raise their conforming mortgage loan limits.  This should provide lower conforming interest rates for many Florida homeowners seeking to refinance or new home buyers relocating to Florida.  

However, these new conforming mortgage loans are intended to help borrowers in high cost areas only.  They are allowing Florida mortgage loan amounts up to 125% of the area median Florida home price as determined by the HUD, the US Department of Housing and Urban Development.

The temporary conforming Fannie Mae loan limits of the following counties have been updated as follows:

• Palm Beach County        $423,750
• Manatee County             $442,500
• Sarasota County             $442,500
• Collier County                 $531,250
• Miami-Dade County      $423,750
• Monroe County              $729,750

Please know that these limits are to help homeowners considering purchasing a new Florida home or refinancing (no cash out allowed).  Call your Florida mortgage professional for details on the mortgage programs available and qualifying terms required.

As Fannie Mae and Freddie Mac tighten already squeezed underwriting guidelines; Florida first time buyers are finding it tough to obtain a Florida mortgage.  That is, first time buyers who are not Veterans.

Veterans have a great advantage in today’s first time home buyer mortgage market.  A qualified Veteran can borrow 100% of the home sales contract price; because VA will back the Lender with 100% guarantee against default.  Veterans can also obtain their Florida VA home loan without discount points or origination fees, and at lower rates than Fannie Mae or Freddie Mac, conventional, 100% programs. 

In fact, VA’s maximum guarantee includes loan amounts all the way up to $417,000.  If you need to borrow more, with full Entitlement, you can actually put 25% down of the difference between $417,000 and the purchase price.  And all of this is available to qualified Veterans without the need for private mortgage insurance.

If you are a Veteran and need some sound mortgage advice concerning your VA home loan or your Entitlement please feel free to contact our Florida VA mortgage professionals at BeechTree Mortgage, Inc. 

Researching Florida mortgage companies for experience , trustworthiness and of course, low interest rates and closing costs can be made easy.  Ask your friends or relatives for referrals to their favorite Florida mortgage professional.  And if you are new to Florida; Google the terms specific to your mortgage needs.  The key, however, is to get your Good Faith Estimate upfront and in writing.

Stay clear of mortgage companies or banks that will not provide a Good Faith Estimate upfront.  Without it, you have nothing to use for comparing interest rates and closingcosts.  Interest rates are important but if it costs you thousands more to save a little on rate; you might want to review recovery periods which can only be calculated with accurate closing costs.

And remember, accuracy in your Good Faith Estimates is everything.  Ask how long your mortgage professional has been in business and how accurate he or she is with respect to quoting your Good Faith Estimate. Ask which how much money the lender expects to earn.  Is this a fixed number?  These are questions that only a true Florida mortgage professional can answer quickly without hesitation.  Who is your Florida mortgage professional?

After almost 13 years originating Florida mortgage loans for new home buyers or Florida homeowners; I have come to realize something interesting.  No matter how low fixed interest rates are, there are those who choose not to lock and actually float their rates in hopes for a reduction of  .125%.  Is that too much risk in today’s environment?

By the way, based on a mortgage loan amount of $200,000 and a  fixed rate 30 year mortgage; the interest rate difference of .125% is $16.40 per month.  And, in this mortgage market, while floating the rate for that rate improvement, fixed Florida rates can and have jumped by .50% or more. 

Recently we have originated new refinance loans for clients seeking to consolidate to save hundreds on their monthly expenses.  Fixed rates were under 5.875% with no discount points and no origination fees.   Of course some thought that while reduing their monthly expenses; they could gamble and anjoy even lower rates.   These clients chose to waitand see the market reaction with additional Fed rate easing.  Well, they eased and banks haven’t passed on the savings.

In today’s mortgage market, it seems the Fed can’t encourage banks and other institutions to lower their fixed rates for new home buyers or homeowners.  I recall our 30 year fixed rate Florida mortgage was at 5.50% the week prior to the Fed reductions of 1.25%with the Fed Funds and Discount rates that banks pay. 

This is a volatile mortgage market and if you can get approved with the assistance your favorite trusted Florida mortgage professional; you should immediately lock into the fixed interest rate you were quoted.  Today isn’t the time to gamble with already low Florida mortgage fixed interest rates.  Lock-in and protect yourself. 

Many heard Ben Bernanke’s speech in Florida yesterday concerning bank principal mortgage write-downs.  Bernanke painted a very scary picture of the horrible affects that future foreclosures will have on the US economy and urged banks to improve their assitance for homeowners facing foreclosure with a “vigorous response.” 

Of course, the Feds have helped some with the FHA Secure program, HOPE Now Alliance, the 5 year rate freeze and encouraging banks to work with homeowners to avoid foreclosure.  These programs and arrangements made available with many loss mitigation departments have helped but more, much more is needed. 

Bernanke brought into perspective the ability for banks to reduce the principal that struggling homeowners owe on their mortgages.  In fact, he compared reductions in principal balances by up to 50%, to the costs of foreclosure.  He believes banks win; but more importantly, he expresses how the economy will then avoid thousands of foreclosures going forward.

If homeowners, including Florida homeowners, have no equity or are upside down in their home investment; there is no financial incentive for them to even pursue discussions with a loss mitigation department.  Bernanke’s plea gives homeowners everywhere, the incentive to make it, especially where homes have dropped in value.

Here’sone problem that must be pointed out.  If banks are going to reduce mortgage balances for troubled homeowners; what about the homeowners working hard to make their payments on time?  If this is our Government’s new plan, then principal mortgage reductions should happen across the board for every homeowner; right?

It’s March of 2008 and we are already a mere 3 weeks away from the Easter Holiday!  Florida mortgage applications have gradually increased recently and this brings a refreshing light to many in the Florida mortgage industry.  In fact, we are answering many types of calls, from Florida Veterans seeking to refinance their current VA Home Loans to Florida new home buyers seeking to move from snowy areas to our sunshine State.  I hope it keeps snowing…

I hope that 2007 was the worse for the real estate and Florida mortgage industry.  And I feel that we are gaining local consumer confidence with respect to more new home mortgage applications here in Cocoa Beach Florida. 

As a matter of fact Bobby Freeman with ReMax Elite posted this encouraging data over this past weekend:

Is the worst over? Hard to say but the facts are that we have an increase in signed sales contracts & mortgage applications. Local inventory is down and demand is increasing. For instance, Cocoa Beach and Cape Canaveral had 46 total closed condo sales this year. Currently there are 40 pending condo sales and that number is going up. Inventory continues to drop every month since last year. Total condo inventory for Space Coast Association of Realtors in January 2007 was 1,678. This past January that number was reduced to 1,317. 

Yes, I believe 2008 will be the year of recovery for our local real estate and mortgage market as well as our local economy here in Cocoa Beach.  And with the great news of Northrop Grumman’s contract with the US Air Force, things keep looking up.

Congratulations goes to everyone at Northrop Grumman who instrumented the largest defense contract ever.  Last Friday, Northrop Grumman Corporation announced they were selected by the U.S. Air Force to handle the new KC-45A Aerial Refueling Tanker. 

Even my father, a retiree of Northrop Grumman, is proud to hear of the award and hopes it will help the local economy where he currently lives in West Melbourne, Florida.

“Northrop Grumman’s vast expertise in aerospace design, development and systems integration will ensure our nation’s war-fighters receive the most capable and versatile tanker ever built. The Northrop Grumman KC-45A tanker will be a game changer,” said Ronald D. Sugar, Northrop Grumman Chairman and CEO.

This announcement will also provide an estimated 350 to 500 new jobs in the Melbourne area of Brevard County.  New jobs will of course encourage more new home purchases, new Florida mortgages, and overall help push our economy in Brevard County to a positive forward direction. 

After almost 13 years in the Florida mortgage lending arena I have come to realize the easiest tool to separate Florida mortgage professionalsfrom the misers.  Florida homeowners wanting to refinance have to sift through mortgage issues such as who has sound advice and experienced mortgage program insight;upfront Good Faith Estimates that accurately depict the final HUD-1 Settlement Statement; comparing closing costs and of course interest rates.  That’s a lot to juggle for anyone; and how can you find the Florida mortgage professional?

  The Florida mortgage professional is the one consumers lean on time and time again for specific mortgage related advice and the one who provides the home owner or new home buyer the mortgage products currently available to ensure educated mortgage program selection.  Here’s a quick tip that will surely separate the Florida mortgage professional from the rest.

Ask the question that we professionals provide upfront.  Ask how much money the mortgage company or bank will earn regarding the mortgage program selected and the upfront Good Faith Estimate.  If the answer is I don’t know or we can’t provide that now; then you are working with the wrong person. 

Last we I was asked if underwriting fees varied from lender to lender.  The answer is yes, and usually ranging from $350 to $700.  This client purchased there new Florida home and the HUD-1 Settlement Statement showed no discount points or origination fees so everything seemed reasonable.  The lender, however, did charge an underwriting fee of about $7,800 on a conventional loan amount of about $417,000.  I wondered if the original Good Faith Estimate illustrated the same costs, or was this yet another surprise at closing.  Florida has new mortgage disclosure laws regarding earnings as of October 1st 2007. 

Ask the question upfront and listen for the answer.  The Florida mortgage professional will answer directly.  The others will be tongue tied.