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. 

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