Florida Mortgage : Learning Center

I made the decision this morning to promote lower Florida mortgage fixed rate availability, by offering 30 year fixed rate conventional mortgages with a 1% origination fee.  For over 13 year we have provided conventional fixed rate mortgages to future home buyers or Florida home owners with no discount points and no origination fees.  Florida mortgage pricing has altered the recovery period calculations to consider when paying the mortgage professional directly and receiving a lower fixed rate mortgage.

When paying a 1% fee for Florida conventional mortgage loans, the interest rate offered is typically reduced by .25%.  The recovery periods usually run about 60 to 66 months.  But today’s pricing in this mortgage market mess can provide better recovery periods.  As I mentioned in an earlier post, a 30 year fixed mortgage interest rate can improve by .50% which drops the recovery periods to anywhere from 32 to 38 months. 

Remember to ask for 2 Good Faith Estimates from your local Florida Mortgage Professional.  One should include the lowest fixed rate without origination fees or discount points.  The other should provide an even lower fixed rate by simply paying a 1% origination fee.  Comparing these scenarios allows you, the borrower, to choose some of the best Florida mortgage financing today.  For free Good Faith Estimates please call our office at 888.399.0520 or contact us directly at BEECHTREEMORTGAGE.COM.

After almost 14 years of originating Florida mortgages I am reconsidering my thoughts on no points and no origination fees.  As recent as 2 weeks ago, Florida 30 year fixed rate mortgages were available at 4.875% with no points and no origination fees.  Many clients took advantage and locked in immediately.  However, with today’s fixed mortgage rates pushing up consistently every day; we must explore ways to save more.

We have always recommended shopping for the lowest fixed Florida mortgage rate available; without having to pay discount points or origination fees.  Because when calculating recovery periods home buyers and owners realized it takes anywhere form 5 to 6 years to recoup the cost.  Keep in mind, a 1% origination fee typically buys down the fixed interest rate by .25%.  Things have changed…

Lately, conventional 30 year fixed rate mortgages can improve by .50%, with a 1% origination fee or discount point.  The lower mortgage rate and payment now has a lower recovery period of about 3 1/2 years.  This may make sense then if you are planning to stay in your home long term. 

When asking for Good Faith Estimates, remember to ask how much lower the fixed mortgage rate would be with a 1% origination fee or discount point; you may be surprised how much long term interest you can save.  For today’s current interest rates or to receive an upfront Good Faith Estimate call one of our Florida mortgage experts at 888.399.0520.

Many Florida home buyers are calling and asking for conventional mortgages with smaller down payments.  And in today’s Florida mortgage market, home buyers should look at mortgage program availability for detailed comparison.  I have a rule of thumb for home buyers, as the mortgage markets have dried up a bit, with lower down payments or first time home buyers.

If you have less than 5% to use towards a down payment you should take advantage of an FHA Florida mortgage.  In fact, if you are planning on using only 5% towards a down payment consider this – private mortgage insurance, PMI, is only available (as I write this) through one PMI company.  And the payment is much higher than the monthly insurance payment required with FHA. 

Planning to put at least 10% in down payment?  You must then review and compare the Conventional Fannie Mae or Freddie Mac type mortgage with PMI against the FHA mortgage with PMI.  The only big difference now is the UFMIP or the upfront mortgage insurance premium that is required with FHA loans and is usually rolled into the loan amount.  For 30 year fixed rate mortgages that would be 1.75% of the amount borrowed.

If you have saved enough to apply at least 15% towards your down payment; you should focus on a Conventional fixed rate mortgage.  Because the PMI required is much lower than you would expect and can be removed after 2 years if you have reached a 20% equity position.  FHA/ loans require the PMI to be paid for at least 5 years before asking to have it removed.

For more information regarding Florida first time home buyer programsor to simply obtain an upfront Good Faith Estimate for comparison, call your trusted local Florida Mortgage Professional.

If you have been thinking about refinancing into a lower fixed rate mortgage; now is the time to lock.  Interest rates are available, at least at BeechTree Mortgage, at 4.875% with no discount points and no origination fees.  The 2 areas of concern when Florida homeowners contact our office is the current appraised value – yikes; and the clients credit score.

It does make sense to inquire about your own credit scores while seeking to refinance at today’s record breaking fixed mortgage rates.  For those with credit scores above 740; you need not worry.  Remember Fannie Mae and Freddie Mac introduced risk based pricing which can affect the interest rate or costs if your credit scores are less than 740.

It pays to talk to an experienced Florida Mortgage Professional who can provide detailed information and an upfront Good Faith Estimate; before you move forward.  As always our office is open to accept questions or to simply put in writing what we can deliver.  And today, 30 year Florida mortgage fixed rates are available at 4.875%.  Call our Cocoa Beach office soon at 888.399.0520.  And if the phone is busy leave a message on my cell 407.733.6425; I want to help as many Florida homeowners and home buyers as possible.

The efforts made in 2008 to kick start the mortgage and housing markets, by the Feds, seemed never-ending.  Politicians in Washington kept coming out with new proposals to stimulate the mortgage meltdown in hopes to prevent more and more foreclosures.  And of course, focused mostly on ways to lower current available mortgage rates for home buyers.

There was the typical lowering of the Fed Funds Rate which allows banks and other lending institutions to lend balances at the Federal Reserve to other banks and lending institutions overnight.  Banks are now lending with each other at rates as low as zero percent!  And consumer 30 year fixed rates remain stuck in the 5% to 5.5% range.  Bank greed?  I wonder.

When new legisation pushed HUD to allow refinancing for families facing foreclosure at around 90% of their current appraised values; I was thrilled.  But, again, banks actually told members of the Financial Services Committee, that they would probably never use this method of mortgage renegotiation; but it was a great idea.  Who is in control, Congress or big Banks?

But in November, the Treasury Department purchased billions in mortgage backed securities (MBS).  This did inspire banks to give in and finally lower available consumer mortgage fixed rates.  In fact, we saw Florida mortgage rates improve by almost .75%.  Something that worked, finally!

Going forward into 2009, we can expect Feds know that a stimulus package from team Obama can and will push banks to lower available consumer fixed mortgage rates.  It worked before.  It will work again.  Keep your eye and ears on when and how much the first 2009 MBS buyback from the Treasury Department.  Florida mortgage fixed rates should then see major improvements.