Florida Mortgage : Learning Center

If you are thinking about refinancing your current mortgage make sure you speak with a true FLorida Mortgage Professional first.  You need to know if refinancing actually makes sense and by talking to a seasoned mortgage consultant can you make an informed decision.

You will need to give basic financial information but my favorite and usually first question is ” why are you planning to refinance?”  Without this question a loan officer or bank employee may not be able to determine how to best serve your needs. 

Realize that sometimes it doesn’t even make sense for some Florida home owners to refinance.  One reason would be the time needed to recoup the closing costs.  And by the way, make sure you are speaking to someone who will offer you low fixed rate mortgages without discount points or origination fees.  And learn how much the bank or mortgage company will earn with your refinance.  It should be open discussion. 

Want to see if refinancing makes sense for your specific needs?  Call our office now at 888.399.0520 or email me directly at info@beechtreemortgage.com.

Well its June 30th and we are half way through the 2008 year.  And I thought last year was a tough one for Florida Mortgage Professionals.  This year has been riddled with new problems that affect everyone in the mortgage arena.

These include Florida home buyers, sellers, Realtors, Title companies, Florida Appraisers, home inspectors and Florida Mortgage Professionals.  Most of the calls over the past few months have been for new  Florida home buyers – which is great.  But most are looking at the fantastic discounts apparently available through foreclosed homes and short sales.  Are that is where the system gets bogged down.

The problem is most short sales are contingent upon finding a buyer, having them get approved for their Florida fixed rate mortgage, and then asking the sellers bank to approve the short-sale.  If they say no the buyer is out of luck and must start searching for their new home again.  Many clients are jumping from contract to contract in hopes to meet the sellers bank’s criteria. 

And foreclosures are causing havoc with turn around times to meet loan closing dates.  Florida buyers must obtain mortgage approval, get an appraisal, lock-in their fixed interest rate and  then wait for the REO bank’s chosen title company or attorney to close.  Some of these attorney’s are so behind they cannot even meet scheduled closing dates.  Extensions are being pushed so far back that some Florida buyers give up and start searching for a new home all over again.

Several first time buyers get pre-approved for their VA Home Loan or new Florida FHA mortgage and are excited about finding that dream home at, of course, a newly realized dream price.  The reality is that most banks are seeking the current fair market value for these Florida homes. 

That is, some homes are selling for what the current market value dictates already.  There is no real discount, the home simply is selling at market value.  Once our first time home buyers move in they must start doing home improvements to bring the home back to life.  A bargain?  Maybe.

If you are working on buying your first home and considering foreclosed homes or short-sales; make sure your Florida Mortgage Profrssional can obtain your approval quickly and of course work with a short-sale specialist (ask for references).  For more information please call our office at 888.399.0520.

Many Floridians are considering refinancing out of their ARM, adjustable rate mortgage, loans.  Refinancing now to obtain a lower Florida fixed rate loan can ease the stress of interest rate adjustments.  Choosing which fixed loan term may put a smile on your financial future.

Most home owners consider to refinance their adjustable rate mortgages into the popular 30 year fixed rate.  This allows a lower monthly payment but forces the homeowner to repeat payments already made.  There are other fixed rate mortgage loans available with lower terms and lower fixed interest rates.

These include, 25 year, 20 year. 15 year and of course the 10 year fixed rate mortgage.  By refinancing to a lower fixed rate term; you can actually save thousands in interest payments.  With every payment, more money goes towards the principal because the loan has a shorter term.  And lower termed fixed rate mortgages may come with surprisingly lower fixed rates. 

Call 888.399.0520 or visit your Florida Mortgage Professional for more details regarding lower fixed rate mortgage options.

There have been many Florida mortgage program changes over the past year.  In fact, some mortgage loan programs have either become very restrictive with respect to qualifying or have completely disappeared.  Home Equity lines of Credit, Fixed Rate 2ND mortgages, Construction-to-Permanent loans,  and Jumbo mortgages, are just a few programs that have experienced huge qualifying changes.  But first time home buyers in Florida need to know there are still ways to buy their dream with very little out of pocket expense.

Since 1934, American first time home buyers have enjoyed the benefits of an FHA insured mortgage loan.  Benefits include, no prepayment penalty and allowance of seller contributions of up to 6% of the sales price to cover buyers closing costs, prepaid tax escrows and interest rate buy downs. 

Although first time home buyers are required to contribute 3% of the loan amount (usually in the form of down payment); this can be provided by a gift from a relative, employers, or non-profit groups.  A favorite is the Nehemiah Corporation, who since 1997, has assisted over 275,000 families and individuals achieve home ownership using their gift funds.

Yes it’s true.  Today, in Florida, first time home buyers are reaping the benefits of reduced Florida home prices and negotiated seller contributions towards costs and gift fund organizations.  It’s a great time to be buying your first home in Florida.  Call your mortgage professional for more information on this and other mortgage loan programs. 888.399.0520

With the next Federal Open Market Committee, FOMC, meeting merely a week away; concerns over Ben Bernanke raising rates has already moved the Florida mortgage market. Fixed rate mortgages have jumped almost a half of one percent over the past week. The question is, where are they going from here.

It’s not that anyone is expecting the Feds to lower or raise interest rates at next weeks meeting.  The real concern is the language they will use regarding the inflationary outlook for the remaining 2008 year.Ben Bernanke has mentioned the Fed stands ready to “strongly resist” any long term inflationary expectations. Will this news and next weeks meeting push current 30 year fixed mortgage rates above 7.00%?  We will soon see…

If you are in the market for a new home in Florida or wish to consider your refinancing options; please contact your Florida Mortgage Professional soon. Interest rates can be protected – but only by locking in quickly. Call our office and ask about today’s low fixed rate conventional or VA Florida mortgage loans. 888.399.0520

There seems to have always been a great mystery surrounding mortgage fixed rates and how they vary from mortgage lender to mortgage lender.  No matter if you are seeking a local banks’30 year fixed rate, googling for fixed mortgage rates online, or gaining trusted advice from your favorite Florida mortgage professional; determining the fixed rate works the same for everyone.

First, the bank loan office, mortgage broker or mortgage lender determines the profit margin for their business.Banks earn servicing release premiums (SRP) while mortgage brokers or lenders earn yield spread premiums (YSP).

If 1.5% were the goal for a bank or mortgage lender; and 6.500% for a 30 year fixed rate mortgage were paying about 1.5% then all is well. The problem is mortgage lenders and brokers have to disclose the YSP to consumers while banks are not required to disclose their SRP.

Everyone in Washington believes mortgage brokers and lenders raise fixed rates that consumers would otherwise be entitled. The truth is, if mortgage brokers and lenders were raising rates, without even charging discount points and origination fees (some banks do), then why are bank rates not any lower? We earn a living the same way banks do. Only, we disclose the whole truth.

Mortgage disclosures are very regulated here in Florida and I am glad to be an upfront disclosing mortgage professional. I only wish banks were as upfront with either lowering their mortgage rate to not earn their SRP or at least disclosing the fact that it exists and consumers are paying for it.

Gasoline prices have passed the $4 per gallon. Inflationary woes have led the Feds to consider raising rates. Not as fast as gas prices but fixed mortgage rates are moving. And tomatoes are banned but we are still paying for them. Times are tough, so how do we survive?

Start by trading in the gas-eatingSUV. The powerhouse-vehicleof the old America I once knew.  I am only thankful my lease is up soon and I can trade in my HEMI V-8 gas loving SUV for a bicycle or some corn-loving hybrid. We can beat the gas problem; it starts with using less; simple, huh?

And if you were thinking about refinancing to a lower fixed mortgage rate; do it very soon. In fact, Florida home prices are very low and great deals are being found everywhere; just make sure you lock in your fixed mortgage rate immediately. We have seen Florida fixed interest rates move from 5.50% in January to 6.50% in June. And this move is due to the Fed’s announcement to counter inflation and strengthen the dollar. Interest rates will continue to go up; so get them while their relatively low. Call 888.399.0520 for your Mortgage Professional.

And whats with the tomato pricing in this country? I love tomatoes. But when you are on the run and forced to eat out once in a while – you get no relief. Sure we see signs that read “no tomatoes served here”; but then where is our discount?  We are still paying the same. Restaurants are saving with no tomatoes available and not passing it on to us; their clients. Food for thought.

Enough grumbling from me; have a great, relaxing Fathers Day weekend and remember; we can survive.  Just trade in your SUV, refinance or buy your new Florida home and don’t pay for missing tomatoes.

Everyday Florida mortgage loan shoppers end up searching for one thing; the lowest interest rate. That is fine; but please know there is much more to consider when searching for a trusted Mortgage Professional.

The first and most important consideration is listening for upfront disclosed information. You should be asked how long you expect to own or reside in your home. Information about how the mortgage company or bank gets paid and how much. You will be informed about things such as mortgage program choices, prepayment penalties, and why these programs were recommended.

Next, you want to speak to an experienced Mortgage Professional who will not only provide an upfront Florida Good Faith Estimate; but who will not confuse comparisons by charging origination fees or discount points. Start with companies that offer no discount points or originations fees. You can always choose to buy-down the rate later and consider paying these fees – at your discretion.

Last.  You want to know and compare the years of experience Mortgage Professionalsor their companies have with respect to conventional Fannie Mae or Freddie Mac mortgages. Or test their knowledge with current FHA or VA home loan questions.

Last week I was informed one of clients found us on the Internet while shopping for their VA Jumbo fixed rate home loan. This client spoke to several mortgage loan officers and was told he couldn’t borrow more than $417,000 with his VA Entitlement. They just didn’t have the experience.

Remember, shopping for rates are important. But speaking with the right Florida Mortgage Professional can save you thousands of dollars in costs and wasted time.

Interest rates today moved up from yesterday in Florida as Ben Bernanke’s comments pushed the bond markets even higher. Concerns about inflation growth coupled with the ever weak US dollar may encourage Bernanke to start raising rates this year.

The next Federal Reserve meeting is scheduled for June 25th and we expect the Fed won’t lower rates. The question is will they begin to raise rates?  Raising rates will move fixed rate mortgages but keep in mind there are benefits.The US dollar should strengthen and oil prices as well as other commodities should drop. We’ll have to wait and see.

Florida home shoppers are encouraged to call their Florida Mortgage Professional today to review lock-in procedures. Florida homeowners considering to refinance to a lower fixed rate should call now. Even VA fixed rate home loans inched upward today. Protect your new fixed rate and lock in as soon as possible. Call our office and ask for one of our Mortgage Professionals. 888.399.0520

For almost 13 years I have consulted with Florida home buyers and homeowners in their quest for sound mortgage advice. Putting in long hours at the office, keeping current with mortgage product knowledge, and weathering through some of the toughest financial times our mortgage industry has endured, led me to this morning’s thought.

Make sure you focus on what’s really important in life. My son, Blake, turns 12 today! Time does fly when you are having fun or sitting at the office working. Make sure you keep work-time in perspective and spend more time with your family. I know I will.Happy Birthday Blake! Dad