FLORIDA MORTGAGE NEWS

Yes. Mortgage rates on primary homes tend to be 1% lower than rental properties. Lenders usually charge more for a property that an owner doesn't plan to live in. Why? If your financial situation goes wrong, you are more likely to save your home where you and your family live—the rest of the properties usually come second. There is less risk attributed to primary homes thus the lower mortgage rates.

No. 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 where the median home prices are much higher than in Florida, then you are going to find lower mortgage rates.

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.

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 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.

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.

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. If you are working with a lender or broker that has a lower cost, 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.

Mortgage rates for condos in Florida are usually higher than those for single-family homes. Mortgage 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.

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.

VA loans, where the borrower is exempt from the VA funding fee due to a disability, are the lowest mortgage rates you can find. But this program is for military-related personnel only. If you are not qualified for a VA loan, you can opt for conventional mortgage loans, which offer the lowest mortgage rates when the homebuyer settles a 40% down payment.

It would be illegal to discriminate against borrowers based on the county they live in. So, no, mortgage rates are the same for all counties in Florida. However, keep in mind that mortgage rates are predominantly based on credit scores, loan amounts, down payment, the type of mortgage loan. How you're going to use the house you'll purchase also influences your rate, as 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.

Mortgage rates can change several times daily. They vary significantly from lender to lender, even banks, based on their profit margins. Usually, you are going to find lower rates with small-scale mortgage lenders or mortgage brokers. This is primarily due to their lower overhead and cost of acquisition on a loan. In other words, it would be best to compare rates from different lenders on the same day.