Florida Mortgage : Learning Center

Aimed at providing clearer upfront mortgage disclosure with easily comparable standardized Good Faith Estimates;  the RESPA 2010 rules begin January 1st.  One of the enhancements is enforcing quoted lender or bank fees, with a “no tolerance” rule.  That is, once you have received your Good Faith Estimate, the mortgage lender or banks charged fees cannot be changed; period.

This is tough news for those mortgage knuckleheads who were ambiguous with changing initial quoted interest rates and/ or adding additional discount points and other miscellaneous mortgage fees at closing.  You know, the ones who preyed on first time buyers who perhaps didn’t know that changing the mortgage terms at closing violated laws already written. 

For career minded and experienced Mortgage Professionals, however, the new RESPA changes are welcomed.  Disclosing upfront closing costs and delivering the same at closing is par for the course.  It’s interesting that the entire Good Faith Estimate had to be reinvented with tolerance laws when we could have simply enforced laws already in place.  Besides, these new RESPA changes are about 5 years late and most of the rogue rip-off mortgage bankers and brokers have left the industry.

2010 is destined to be a great year for those who have survived the FL mortgage market.  Let’s embrace the RESPA changes which are simply trying to put first time home buyers in a better position, and saving them money, while shopping for their new mortgage.

When a first time home buyer chooses a Realtor and begins the search for their new dream home; most are hoping to keep as much of their savings to furnish or spruce up their home.  There are a few mortgage programs with low down payment requirements, and scenario considerations as follows.

The best mortgage program available with no down payment requirement, is a VA home loan.  Our hero Veterans  may qualify for their first home without the need of any down payment.  In fact, the seller can even contribute up to 4% towards the Veterans closing costs and prepaid interest, property taxes and homeowners insurance.  With little or no out of pocket expense, Veterans can keep more of their savings and earn interest instead of paying interest.

Another practical first time home buyer program is the use of an FHA mortgage loan.  FHA mortgages allow first time buyers to put as little as 3.5% towards a down payment.  Keep in mind, HUD is considering changing the 3.5% to 5% soon – so get your Realtor and call your FL Mortgage Professional to secure a contract soon.  Also, sellers can contribute up to 6% towards the buyers closing costs, prepaid interest, property taxes and homeowners insurance.  At a loan-to-value of 96.5%, FHA has proven to be the most popular mortgage loan of first time home buyers.

Although there are more  mortgage programs with little or no down payments; the VA home loan and FHA mortgage loan seem to serve first time buyers the best.  For more information on these mortgage loans and more please contact your favorite FL Mortgage Professional.

When shopping online for a new FL mortgage to purchase your next home or to refinance a current mortgage; many FL Mortgage Professionals recommend the following safeguards to protect your best interest.

• Work with a FL Mortgage Professional who will provide upfront Good Faith Estimates.  If they won’t put it in writing – call someone else.
• How experienced is your Loan Officer?  Experience will not only save you time and money; you’ll find the mortgage loan that suits you best.
• Comparing low interest rates is only important if you are comparing closing costs side-by-side.
• Thinking about refinancing?  Ask about long term interest savings and recovery periods.  Your experienced Mortgage Loan Officers will assist as these are imperative when refinancing.
• Don’t think you are locked into an interest rate until you receive an interest rate lock-in agreement in writing.  Ask for it – and read the details (lock in period, rate, etc.)

Whether you are working with a large bank, a small mortgage company or anywhere in between; it’s the Mortgage Professional who will pave a smooth path for your next FL mortgage need.

We have all seen them.  Advertised FL mortgage fixed interest rates that seem too low or too good to be true.  Whether you are looking at FL FHA mortgage rates, FL VA home loan rates or conventional loan rates; some rate seem much lower than any others.  Some are printed in the local newspaper and can be easily compared to other local lender rates.  Others are advertised on the television with promotions like; this sale ends on November 30; or fixed rates under 4.5% (currently?).  Thousands of mortgage lenders or banks advertise their mortgage rates everyday on the Internet.  And some of those rates are awesome – or are they?

The truth about advertising interest rates for home buyers to compare is; not everyone is advertising within the same parameters.  Many newspaper ads come with a fine printed disclaimer which states the interest rates advertised may include a discount point of 1% or an origination fee of 1%.  Television ads are the same – the devil is in the details – or very fine print.  If you have a large screen and can pause the ad; try reading the disclaimer about their interest rate.  One very well known company claims that the rate displayed includes 2 discount points!  Wow – that’s expensive.  And the Internet marketers for mortgage rates always have a small link located somewhere on their interest rate page.  That link will provide details like additional discount points, additional lender fees, and more.  The rate all of a sudden doesn’t look that attractive.

Yes – in today’s FL mortgage markets you must either read the fine newspaper print; purchase a larger television so you can see the details; or spend hours online searching for the truth about that low fixed mortgage rate.  Or – you can call an experienced and trusted Mortgage Professional; who will provide an upfront Good Faith Estimate detailing everything for fair comparison.  Remember, if it’s too low, look for the truth or pick up the phone, inquire and ask for an upfront Good Faith Estimate.  If you have any FL mortgage question related to interest rates please email or call 321-987-9876.

Home buyers usually turn to the Internet searching for their first FL mortgage in hopes to obtain very low fixed rates.  Many first tome buyers focus on FL VA home loans, FL FHA mortgages or even USDA Rural Housing loans.  Whichever FL mortgage loan desired; first time buyers should watch out for too much junk!

Always contact a couple of experience FL Mortgage Professionals and get your Good Faith Estimates, GFE’s, upfront and in writing.  Interest rate is important but make sure you are also reviewing lender junk fees.  I have recently reviewed other lender estimates with junk fee costs over $1,300!  You can find these fees on the Line items numbered in the 800’s.  Watch out for too much junk.

Interest rate shopping will be much easier when comparing upfront Good Faith Estimates and reviewing the junk fees.  Get your estimates in writing and only work with experienced Mortgage Professionals.  Are you paying too much junk for your low FL fixed mortgage rate? 

When shopping for a FL mortgage online many home buyers focus only on the interest rate.  This is important, however, there is more to consider than a seemingly low advertised interest rate. 

• What about experience in the FL mortgage professional whether on the phone or in person? 

An experienced FL mortgage loan officer knows today’s mortgage program details that may help you make better informed decisions.  Popular mortgage programs in FL include FHA loans for first time buyers with small down payments; FNMA or FHLMC conventional mortgages for those with 20% or more saved for down payments; and of course FL VA home loans which allow qualified Veterans to finance the entire purchase amount with no private mortgage insurance.

• How about upfront FL Good Faith Estimates? 

FL home buyers and home owners are entitled to receive their Good Faith Estimates upfront so discount point and other closing costs are easily comparable with other lenders allowing the shopper to find the best terms available.

• What about those discount points for your FL mortgage? 

Many advertisers (you’ve seen them on TV) illustrate reasonably low fixed interest rates, yet, when you pause your DVR your read they are charging 2.125% in discount points – for primary residence mortgages with 20% down and credit scores above 750!  Hmmm…

Get the lowest interest rate you can for your FL mortgage, but make sure you find an experienced FL mortgage professional who knows FL mortgage program details, will provide an upfront Good Faith Estimate, and who will not charge discount points on primary or secondary homes.  For more information on your next FL mortgage call, 888.399.0520, or contact me anytime.

Everywhere we turn it seems everything is going up, up and away.  Unemployment is up to it’s 26 year high of 9.4%.  Gasoline prices have and continue to rise.  Even fixed interest rates for Florida mortgages have steadily increased over the past 2 weeks, with no slow down expected.  Bad news?  Consider this…

The good news is people will still continue to purchase new homes especially since the price for that new home is at all time lows, practically.  There are great savings to be found when searching for your Florida dream home.  Whether you’re seeking an FHA first time home buyer loan, a VA Home Loan, or a conventional mortgage, there are always mortgage options out there to discover.

If you, your Florida Realtor, or someone you know needs an experienced Florida mortgage professional; call our office at 888.399.0520 or contact us via email.  Interest rates aren’t going to stay low forever.

Remember when shopping online for your next Florida mortgage; there are basic necessities each Florida home owner or first time buyer require to make sound mortgage loan decisions.  One of these is reviewing your upfront Good Faith Estimate.

Everyone in the banking and mortgage industry knows consumer focus is always on one thing, the interest rate.  Interest rate is very important, however, so are the costs associated with obtaining that interest rate.  Costs are what separates the upfront Florida mortgage professional from the small print con artists.  Well, that may be a little rough, but my point is simple. 

Florida mortgage prfoessionals will provide upfront Good Faith Estimates for you to compare with others while shopping online for your new Florida mortgage.  Interest rates must be compared only when you have written upfront Good Faith Estimates to review.  If  4.75% sounds like a great 30 year fixed rate; wouldn’t you like to know how much you are being charged for that rate?  Get it in writing! 

And remember when you are reviewing a Good Faith Estimate with discount points; always ask what the interest rate would be without paying discount points.  If you need someone to review your Good Faith Estimate; feel free to contact your local Florida Mortgage  Professional.  If you have a great rate at low costs, he or she will let you know.  Get it in writing – always.

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.

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.