Jan 23 2009
Interest rates soar for Florida mortgages – what to do…
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.
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