| | | Whether you're a first time buyer or a veteran, the more you know about buying a home mortgage, the easier it will be. The hardest part is knowing what to expect and where to begin. At Florida Mortgages.org, we can provide you with guidance on the process and your options, so you can focus on finding the home of your dreams. Maybe you're considering refinancing your home. At Florida Mortgages, we make refinancing simple - no matter what your goal. Many factors go into determining if refinancing is right for you – We will help you understand what those factors are so you can make the decision that's right for you.
Whether you're purchasing or refinancing, Florida Mortgages can find the right product for you. Our full-service mortgage bank and our broker relationships with other lenders allow us to provide you with many programs to choose from:
-Pay Option Arm Mortgages (Starting At 1.00 %!)
-Interest Only Loans
-Adjustable Rate Loans
-Construction Loans
-Fixed Rate Loans
-Investment Property Loans
-Jumbo Loans
-2nd Home Loans
-FHA/VA
Pay Option Arm Mortgages
What are the benefits of a Pay Option Arm Loan?
This Pay Option ARM offers Florida Mortgages.org clients the opportunity and flexibility to strategically manage their cash flow by offering four monthly payment options. Traditional mortgages such as a 15, or 30 year fixed rate mortgage, offer a single payment choice that consists of principal plus interest. After your lender deducts the interest portion due, the principal is then invested by the lender, with no benefit to you. With the Florida Mortgages Pay Option ARM, you have the option to select the payment method that best suits your financial situation every month. Thus, it gives you control over your loan payment hence the name pick a payment loan.
The Florida Mortgages Pay Option ARM gives you the flexibility to decide whether you would like to match your loan payments to your variable or seasonal income, or whether you would like to put more money into a business, investments, or large expenses like college tuition. In essence, it gives you control over how you pay your mortgage so you can do what makes sense - for you. View a sample monthly statement by clicking here.
Option ARM One - A 15 year fully amortizing payment. This allows you to accumulate equity in your home at a faster rate. This would obviously create a quicker payoff and save a substantial amount of interest over time.
Option ARM Two - A 30 year fully amortizing payment, which allows you to pay your loan off in a 30 year timeframe as most families are accustomed to, yet take advantage of fluctuations in the market with the Adjustable Rate nature of the program.
Option ARM Three - An interest only payment which allows you to take full advantage of the potential tax savings from a 30 year mortgage while investing or utilizing the principal portion for retirement planning, college planning, debt consolidation or any number of other needs that may arise.
Option ARM Four - The minimum monthly payment option, has a low start rate (currently 1.00% to 4.95% depending on the investor you choose, credit, income and other market factors). This option not only maximizes cash flow giving you more cash each month for other expenses, but also defers payment of interest on your loan. This may allow you greater flexibility in managing your tax deductions.
The four payment options let you decide every month how to tailor your mortgage payments to achieve your short and long-term cash flow needs.
Interest Only Loans
An Florida Mortgage Interest Only Loan allows borrowers to take control of their monthly cash flow while still having the option of paying down principle. These programs can allow consumers to qualify for more expensive homes while still maintaining a monthly payment within their budget. The most common program a is the Florida Mortgage 5-Year Interest Only Loan where the borrower has a fixed rate for five years (60 Months) and is only obligated to pay the interest owed every month. This could mean hundreds of dollars in monthly savings, increased purchasing power (since you may qualify on the interest only payment) and greater flexibility.
Please consult an Florida Mortgage professional to see if an Interest Only Loan is right for you!
Who Should Get An Florida Interest Only Loan?
Interest-only mortgages are pushed aggressively nowadays by lenders and brokers, but they're not for everyone.
An Florida interest-only mortgage might be a good fit for:
· someone whose income is mostly in the form of infrequent commissions or bonuses;
· someone who expects to earn a lot more in a few years;
· someone who truly will invest the savings on the difference between an interest-only mortgage and an amortizing mortgage, and who is confident that the investments will make money;
Florida Financial advisers don't recommend interest-only mortgages to regular wage earners who take out moderate-size home loans and don't have a strategy for investing the savings.
With an interest-only mortgage loan, you pay only the interest on the mortgage in monthly payments for a fixed term. After the end of that term, usually five to seven years, you either refinance, pay the balance in a lump sum, or start paying off the principal, in which case the payments jump skyward.
If there were such an animal as a typical Florida interest-only borrower, it would be an Florida executive who earns a moderate salary and whose main income is from bonuses once or twice a year, says Jim McFadden, program manager for private mortgage banking for Wells Fargo. An Florida interest-only mortgage would provide the lowest possible monthly payment for lean months, yet allow the executive to pay down big chunks of principal when bonus time rolls around.
Florida Business owners with unpredictable incomes might benefit from interest-only mortgages, too, because they need to maximize their cash flows as much as possible, and this is a great way of doing it. In addition, borrowers have the option of paying down principal whenever they want.
Historically, Florida interest-only mortgages were for affluent borrowers, however now that is not the case. When you go too far down-market, Florida interest-only loans don't save enough money to be worthwhile. Let's say you borrowed $200,000 at 7 percent. For the first three years, the savings from an interest-only loan would amount to less than $200 each month. Double the loan amount to $400,000 at 7 percent, and an interest-only loan saves more than $325 in the first month.
Florida interest-only mortgage can sometime allow one to buy more house than one can afford. These loans appeal to people on the career fast track, "younger borrowers who have a future of increased earnings ahead of them ... and really want to maximize their buying power now.
J. David Lewis, a certified financial planner with Resource Advisory Services in Knoxville, Tenn., generally frowns upon interest-only mortgages. He says they might be legitimate for Florida fast-trackers who need to present an upscale image for career success. "I can see, having dealt with a few executives, that it's important sometimes to have a home that you can do entertainment in," Lewis says. "I can't see the average guy doing an interest-only mortgage because I can see him digging himself into a big trap."
Among the traps are the risks that the house will lose value and that the borrower will lose a job.
Mortgage bankers McFadden and Larsen say Florida interest-only mortgages benefit borrowers who invest the money they would have paid as equity. They come out ahead if their investment returns exceed the rate of home appreciation.
To Find Out if an Florida Interest Only Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
Adjustable Rate Mortgages
Florida Adjustable-rate mortgages (also called ARMs) feature an interest rate that periodically adjusts with changing market rates. Florida ARMs are attractive because they offer start rates that are lower than the interest rates of fixed rate home loans. This typically enables you to begin with lower monthly payments and qualify for a larger loan.
Florida ARMs are available in government, conforming and jumbo loan amounts. A start rate, also known as the initial interest rate, gives you a special low monthly payment for a set amount of time.
After the start rate period is over, your interest rate is based on the performance of a financial index, such as the average interest rate or yield on treasury bills. For a better understanding and a historical perspective, see ARM financial indices. Before you agree to an ARM, be sure you can afford the highest payments that could result after the start rate period expires.
Consider an Florida adjustable-rate loan if you:
* Need extra borrowing power
* Need a lower initial rate to afford to buy the home you want
* Want to save money in the first few years of home ownership
* Plan to move or refinance in a few years
* Are confident your income will rise enough in the coming years to handle any increase in payments
* Are purchasing or refinancing at a time when interest rates are comparatively high
Construction Loans
Construction loans are story loans and have been extremely popular in Florida in recent years. The lender has to know the story behind the planned Florida construction before they're willing to loan you money. Because it's a story loan, it's not going to be standardized like mortgage loans underwritten to Freddie Mac or Fannie Mae guidelines. That said, there are some common features to a construction loan. Florida Construction loans typically require interest-only payments during construction and become due upon completion. Completion for homeowners means that the house has its Florida certificate of occupancy.
Florida Construction loans are usually variable-rate loans priced at a spread to the prime rate or some other short-term interest rate (12-Month Treasury). You, the contractor and the lender establish a draw schedule based on stages of construction, and interest is charged on the amount of money disbursed to date.
Another variable in Florida construction loans is how much of the project cost the lender is willing to lend. If you already own the land, then that can be considered as equity on the construction loan. Many homeowners use Florida construction-to-permanent financing programs where the construction loan is converted to a mortgage loan after the certificate of occupancy is issued. The advantage is that you only have to have one application and one closing.
Depending on your view on interest rate trends, you could also purchase a rate-lock agreement valid through the expected completion of the construction. Just make sure you allow for the inevitable construction delays.
An Florida construction loan, unlike a mortgage, isn't meant to be around for a long time. If you're taking out a $200,000 construction loan for six months and you pay an extra 0.5 percent on the loan, it costs you an additional $250. (Assumes an average $100,000 loan balance over a six-month construction period.)
You may be willing to pay a higher rate on the construction loan if you're doing construction-to-permanent financing and can get better mortgage terms or a longer, better rate lock from that lender. To Find Out if an Florida Construction Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
Fixed Rate Mortgage
The fixed rate Florida Mortgage is the most common type of Florida mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable.
Florida Fixed rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also "biweekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. (Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.)
Florida Fixed rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages.
During the early amortization period, a large percentage of the monthly payment is used for paying the interest. As the loan is paid down, more of the monthly payment is applied to principal. A typical 30 year fixed rate mortgage takes 22.5 years of level payments to pay half of the original loan amount.
To Find Out if an Florida Fixed Rate Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
Investment Property Loans
You may be thinking about buying a with investment property in Florida. Owning an investment property in Florida means that the owner will not occupy the home. The owner collects the rent as income.
If you're considering owning an Florida investment property, it is important to discuss your financing options with a professional. The guidelines for owing a property for investment purposes are different than owing a home for your primary residence. For example the interest rate may be higher for an investment property. The number of units in the property must not exceed 4 units otherwise that property qualifies as a commercial property. Qualifying for the property also varies from traditional lending for a primary residence. The homeowner can use a percentage of the rental income to qualify for the home loan. That's why it is very important to discuss your finances with an Florida Mortgage Broker as your first step in becoming an investment property homeowner.
At Florida Mortgages.org, our home mortgage brokers can provide you with many options for financing your investment property. Our mortgage products for investment properties consist of fixed-rate loans; one, three and five year adjustable mortgages; and jumbo loan amounts for high end investments.
To Find Out if an Florida Investment Property Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
Jumbo Loans
If you need to borrow more than $417,600, then an Florida jumbo loan might be right for you. A jumbo loan is also called a non-conforming loan because it does not conform to the loan limits set by Fannie Mae (The Federal National Mortgage Association or FNMA) or Freddie Mac (The Federal Home Loan Mortgage Corp. or FHLMC) [see Conforming Loan definition]. These are the two government-sponsored enterprises that help facilitate the availability of home loans by investing throughout the country. Non-conforming loans typically have a higher interest rate and different down payment requirements. Please contact me for detailed information.
Choose a jumbo loan if you:
* Want to finance larger and/or more expensive properties and can handle larger monthly payments
* Are an investment-minded buyer who wants to leverage your assets more effectively
At Florida Mortgages.org, we offer jumbo loans up to $8,000,000.00 through out the entire state.
To Find Out if an Florida Jumbo Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
2nd Home
Florida Mortgages.org has extensive expertise in mortgages for second homes. We have experienced Florida mortgage brokers who have worked with customers throughout the state to finance a second home, whether it's for vacation or investment. Our competitive rates and service are what attracts customers who are looking to purchase or refinance a vacation home. We are qualified to originate loans in all 50 states and can refer you to a Realtor to help you find your dream second home.
Florida Mortgages.org understands that many residents enjoy a home in the canyons or a home by the lake and can help borrowers finance as much as 100% of the purchase price for an Florida 2nd home. To Find Out if an Florida 2nd Home Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
FHA/VA
Federal Housing Administration (FHA) Loans
Florida FHA mortgages help low-to-moderate-income homebuyers purchase homes with low down payments and flexible qualifying guidelines.
These loans are insured by the Federal Housing Administration (FHA), which sets loan limits that vary by area. With an FHA mortgage, you can use a gift or unsecured loan for down payment and closing costs.
Florida FHA mortgages are available in fixed-rate and adjustable-rate options and have no maximum income/earning limitations. Insurance from the federal government replaces private mortgage insurance. Maximum loan amounts vary by county - contact me for details.
Consider a FHA loan if you:
* Need a low down payment (usually three percent of the FHA appraisal value or the purchase price, whichever is lower)
* Have limited savings and/or moderate incomes
* Are a first-time homebuyer concerned about not having enough funds for down payment and closing costs on a new home
Veteran Affairs (VA)
Florida VA loans are available only to eligible veterans. They offer a significant advantage: no out-of-pocket expenses may be required. Interest rates and points are negotiated and paid up-front.
With an Florida VA loan, you won't have to make a down payment. It provides more flexible qualification guidelines than FHA or conventional loans and there is no monthly insurance requirement. And, your out-of-pocket expenses can come from a gift. It is available in fixed-rate loans only.
Consider a VA loan if you:
* Are a qualified veteran, reservist, active serviceperson or the spouse of one of these (check with your regional VA office to see if you are eligible)
* Have limited funds for down payment and closing costs
To Find Out if an Florida FHA/VA Home Mortgage is right for you, Request A Quote now and one of our Florida Mortgage Brokers will contact you to answer any questions you may have.
| | | Fannie, Freddie woes raising mortgage rates (MSNBC)
Jeff Jaye, a mortgage broker in Northern California, used to rely on homeowners looking to refinance their loans for more than two-thirds of his business. Today, he rarely bothers with those applications because he knows most homeowners can't qualify for a new loan.NH regulators, mortgage company reach settlement (AP via Yahoo! Finance)
A mortgage company that does business in New Hampshire, Maine and Massachusetts has agreed to pay $425,000 as part of a settlement with New Hampshire banking regulators. Mortgage lender promotes sale to Santander (AP via Yahoo! Finance)
British mortgage lender Alliance & Leicester urged shareholders on Tuesday to accept a $2.4 billion takeover offer from Spain's Banco Santander as the best protection for their investment amid extreme financial market turbulence and the deteriorating outlook for the domestic economy. Trouble with U.S. mortgage giants spreads (UPI)
WASHINGTON, Aug. 19 (UPI) -- Fears over two U.S. mortgage giants collapsing are rippling through financial systems and putting a strain on the system, analysts said. Market down on US mortgage fears (Irish Examiner)
NEW concerns about US mortgage market heavyweights Fannie Mae and Freddie Mac caused a drop in financial shares worldwide yesterday. Broker implicated in mortgage fraud scheme pleads guilty (Minneapolis-St. Paul Star Tribune)
A Twin Cities mortgage broker charged in connection with a $4.9 million mortgage fraud scheme involving dozens of homes in Minneapolis and one in Golden Valley pleaded guilty today to one count of racketeering just minutes before he was to go to trial, said Hennepin County Prosecutor Tom Fabel. Mortgage Choice profit dips 1.2% (The West Australian)
Mortgage originator Mortgage Choice Ltd has reported a 1.2 per cent fall in annual profit but says it is well positioned for the new financial year. Net profit for the year ended June 30 was $19.33 million, down from $19.59 for the previous year. 'Mortgage market to shrink 20%' (Channel 4)
The UK mortgage market is expected to shrink by nearly 20% this year as the credit crunch continues to take its toll on lenders, according to a report. NH banking dept., mortgage company reach agreement (Boston Globe)
A mortgage company that does business in New Hampshire, Maine and Massachusetts agreed to pay $425,000 as part of a settlement announced Monday by New Hampshire banking regulators. Dubai introduces mortgage law to regulate sector (Arab News)
DUBAI: The ruler of Dubai has issued a new mortgage law as part of moves to regulate the Gulf business hub’s booming real estate sector, the chief executive of the Real Estate Regulatory Authority said. | |
