Florida Mortgage : Learning Center

As Florida mortgage interest rates improve the phones are ringing and the emails are full of homeowner requests to take advantage.  The biggest problem isn’t qualifying for the new lower fixed rate mortgage.  It’s determining how low the homes current value has fallen. Many Florida homeowners can’t refinance even though they are over-qualified for the conventional, Fannie Mae or Freddie Mac, loan program. 

There is, however, a new program many lenders are working on that includes refinancing homes up to 105% of the current appraised value.  I am not confident that will help here in Florida s property values have dropped significantly over the past 2 years. 

There is always hope.  Another solution is using a VA home loan.  Veterans can refinance up to 100% of the current appraised value while lowering their fixed mortgage interest rate.  Perhaps more conventional mortgage programs will follow suit.  We’ll see.

After Ben Bernanke’s announcement of the 1.2 trillion dollar plan to help kick start the mortgage markets; all was quiet.  We waited in anticipation for banks to reset their available Florida mortgage interest rates.  And guess what happened?  Not much!

Our 30 year fixed Florida mortgage interest rate was already at 4.875% for qualified homeowners or home buyers.  And with no points and no origination fees.  Mr. Bernanke’s surprise move had many lenders and big banks thinking hard overnight on where to set their new available fixed mortgage interest rates.  The best improvement we noted was one bank which only improved their fixed rate by .125%.  And that didn’t last long.

Are banks getting greedy by keeping interest rates artificially higher?  Consider this.  30 year fixed interest rates are running around 5% with no points and no origination fee.  And banks lending rates (the Fed Funds Rate) is at it’s lowest ever, 0% to 0.25%.  Yet, almost 6 years ago, when the 30 year fixed rate were available at the same 5% with no point and no origination fees; the Fed Funds Rate for banks was running 3% to 3.25%.  The spread between consumer rates and banks more than doubled. 

Why are banks not sharing Washington’s efforts to reduce, even temporarily, fixed mortgage rates?  Interesting.

Many Florida first time home buyers have done their homework before seeking their first Florida mortgage.  They have reviewed and corrected any mistakes found on their credit reports.  All while saving and saving, towards that initial down payment investment.  For most first time home buyers, the least amount required for down payment helps to keep more of their savings for future home improvements, furniture, etc.

Veterans can enjoy using your VA Entitlement which allows no down payment for loan amounts up to $417,000.  For other first time home buyers, an FHA mortgage allows you to put as little down as 3.5% of the purchase price. 

Other ways to save out of pocket expenses include negotiating seller contributions towards the first time home buyers closing costs.  Florida VA home loans allow seller contributions of up to 4%; while Florida FHA mortgages allow up to 6%.  This can help by reducing the expenses required at closing to just the down payment.

For more information on first time home buyers mortgage program benefits please call our office at 888.399.0520 or email me directly at steve@beechtreemortgage.com.

The never ending squeeze with conventional mortgages guidelines has led many condominium home buyers out in the cold.  Whether you are looking into refinancing your Florida mortgage or purchase your dream Forida condo; lenders and banks are turning down many over-qualified consumers.

Lately, the best way to obtain condominium financing here in the Florida mortgage markets was to put at least 25% towards the down payment.  As long as the condo met Fannie Mae warrantability rules, Florida home buyers were pressing forward to close.  But that is changing as I write.

After speaking with a few Florida mortgage wholesale and retail lenders  this morning, it seems some are considering and some have already pulled out of offering any conventional mortgage financing for Florida condominiums.   Having very well qualified home buyers is the easy part.  It’s when reviewing and approving the condominium.  Tough times keep getting tougher.  There must be light somewhere out there for Florida condominium buyers. 

We have seen many Lenders and banks completely pull out of providing Florida construction to permanent mortgages.  With the declining market issues and mortgage defaults it’s been almost impossible to find the funds you and your builder need to build.  Today, BeechTree Mortgage has positioned itself with one of the best construction to permanent programs available which include these highlights:

• Interest only payments during the construction loan period – based on outstanding balance.
• Borrow up to 80% of the sales price.
• Interest rate is locked prior to closing, through modification.
• Modification into a fixed rate mortgage is possible, with qualifying, once home is completed.
• No prepayment penalties at all.
• Use current market value of Lot, if owned more than 6 months, towards equity.
• Jumbo mortgage rates available.
• One closing upfront eliminates repeating closing costs upon completion of home.

If you are considering building your new dream home in Florida; it pays to contact your upfront Florida Mortgage Professionalsat BeechTree Mortgage.  We’ll show you how easy it is to start building with a construction to permanent mortgage loan today.  Call us at 888.399.0520.

For over a decade we have been ridiculed about our upfront Florida mortgage philosophy.  Detailing, to consumers, how we get paid and it’s direct affect on interest rate and/or closing costs is standard operating procedure here at BeechTree Mortgage, Inc. 

Whether you are getting your Florida mortgage from a mortgage lender, broker or banker; there are things you should know and ask.  First, since the interest rate affects their income or profit; ask how much they will earn in disclosed yield spread premiums (mortgage brokers) or undisclosed service release premiums (banks).  Second, ask for an upfront Good Faith Estimate to get a visual on how much it will costs you to obtain their fixed Florida mortgage interest rate.  The devil is in the details.  If you can’t get an upfront estimate without paying hundreds of dollars; call our office in Cocoa Beach – the estimates are free and accurate.

Personnaly, I have been accused, by other Florida mortgage proefssionals of providing too much information to the consumer!  Imagine?  Being transparent and upfront seems to be an issue for many in the Florida mortgage arena.  There is fun for us upfront Florida Mortgage Pros.  Federal disclosures are on the way and pretty soon everyone will have to express upfront and in LARGE FONT; exactly how much they will earn on any given Good Faith Estimate.  Fun for us because we have always done that for our clients.  Not so much fun for the “let’s keep everything a secret”  Florida mortgage brokers.

Hang on because this ride is just beginning as new structured Florida mortgage disclosures are just around the corner.  For more information on disclosures updates or to simply get your upfront Good Faith Estimate call our office at 888.399.0520.