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FLORIDA MORTGAGE NEWS

Category: First-Time Home Buyer

Find out what a first-time home buyer really means. If you knew all the advantages created for a first-time home buyer mortgage you would want to go back to it every time. Know the facts and buy your home the right way!

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Latest Florida mortgage news

Stay up to date on what is happening on the real estate world and the latest home loan news on the Florida state.
October 19, 2021
How to Apply for a Mortgage: 4 Steps Every First-time Homebuyer Should Know

Applying for a mortgage can be daunting, especially if it's your first time. There are many components that...

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October 5, 2021
4 Important Questions to Ask Yourself Before Buying Your First Home

Buying your first home is a major step in your life. You may have been dreaming about this moment for many years...

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May 12, 2021
DPA Advantage Program: What You Need to Know

Most first-time homebuyers struggle to save for a down payment, not knowing that there are down payment assistance...

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April 7, 2021
Three Questions to Ask Before Refinancing Your Home Mortgage

Refinancing your mortgage is a big decision. Ask yourself these questions to find out if refinancing is right for you.

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March 24, 2021
How to Avoid Paying Private Mortgage Insurance

Private mortgage insurance is an additional cost to homebuying. But what is it really and how can you avoid it? A down payment is required when applying for a conventional mortgage. However, if...

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October 4, 2020
5 Mistakes You're Making As A First-time Homebuyer

Educational video about the 5 frecuents errors by the fisrt-time homebuyers

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FLORIDA MORTGAGE RATES frequently asked questions 

Buying a home is big step in the life of a person, that is why it is very important to understand every document and stage of the process. You can come here every time you have questions and find some answers. If you don't find all the answers you require, or if you need more details, make sure you contact us and ask your questions.
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Are mortgage rates different between primary homes and rental properties?

Yes. Mortgage rates on primary homes tend to be 1% lower than rental properties. Why? If your financial situation goes wrong at some point, you are more likely to do everything you can to save your home where you and your family live, the rest of the properties usually come second. That is why there is less risk attributed to primary homes thus the lower mortgage rates.

Are mortgage rates the same for every state?

No, because the mortgage rate varies due to several key factors, and one of those is the loan sizes. The bigger the loan size the lower the mortgage rate a lender may offer since part of what they earn is based on the loan size. So, for example, in New York the median home prices are much higher than of Florida, then you are going to find lower mortgage rates.

Should you get an adjustable-rate mortgage?

Adjustable rates tend to be uncertain on how much their mortgage payments can fluctuate when the teaser rate expires. That is why most borrowers with fixed income avoid them. However, you may find borrowers willing to play that game. They understand the risks involved and have the certainty that they will pay off the total of the mortgage loan, or they will sell the owned property before the rates start to adjust.

How to prepare yourself to get the best mortgage rate on a home loan?

Since the credit score is the most important factor in determining your mortgage rate, be sure to have your credit card balances down to no more than 35% of your credit limit at least 30 days before applying for a home loan. It also helps to obtain a personal copy of your credit report from all three credit bureaus to ensure that there are no errors in your credit report such as collection accounts. As long as your credit score is over 740, you are good to go since lenders typically offer the same rate to borrowers with a credit score of 740 plus.

Is your monthly loan payment obtained from the mortgage rate only?

In many cases, your monthly mortgage payment comes from several factors, not just the mortgage rates. If you are putting less than 20% down payment on a conventional mortgage, your monthly payment is significantly affected by your mortgage insurance premium. If you look at two borrowers with the same mortgage rate, they could have significantly different mortgage interest just because of their credit scores. The lower the credit score the higher the mortgage insurance and thus the higher your monthly loan payment.

Can closing costs become part of the mortgage payment when buying a home?

Closing costs can only be rolled into the loan when refinancing a mortgage. When purchasing a home, you can either convince the seller to cover closing costs as a seller concession or if you are working with a low-cost lender or broker you can look at rate options that provide lender credit to cover all or part of the closing costs. If none of the stated options work, then you will have to pay for the closing costs out of pocket.

Are mortgage rates for single-family homes the same as condos?

Mortgage rates for condos in Florida are usually higher than those for single-family homes. Mortgages loans for single-family homes tend to be easier to qualify for since they have fewer restrictions compared to a condo. Condos in addition to the usual requirements need HOA approval, a review of condo bylaws, HOA master insurance, and occupancy ratios, and more.

Do loan terms affect mortgage rates?

Yes, mortgage rates vary by loan terms. The lower the term, the lower the rate. If you look at a 15-year mortgage, it has a much lower rate than a 30-year mortgage. That is because the borrower has to pay more mortgage each month and the debt will be paid faster, which makes the mortgage loan a less risky operation.

What mortgage programs have the lowest rate?

VA loans where the borrower is exempt from the VA funding fee due to disability, are the lower mortgage rates you can find, but this program is for military-related personnel only. Then you have conventional mortgage loans, which offer the lowest mortgage rates when the homebuyer is putting 40% down payment.

Are Florida mortgage rates different by county?

It would be illegal to discriminate borrowers based on the county they live in, so no, mortgage rates are the same for the counties in Florida. But mortgage rates are predominantly based on credit scores, loan amounts, down payment, the type of mortgage loan. The way you are using the house also influence your rate, investment property rates tend to be higher compared to single-family homes or condos. Mortgage lenders with higher mortgage rates usually speak for their profit and not the county.

What are the current mortgage rates?

Mortgage rates may change several times during the day. They vary significantly from lender to lender, even banks, based on their profit margins. Usually, you are going to find lower rates with small mortgage lenders or mortgage brokers. This is primarily due to their lower overhead and cost of acquisition on a loan. But in general, when you look at the current mortgage rates, make sure to compare rates on the same day.
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