Article by Leonard Wallace, FreeMortgageIndex.com
Introduction
Considering something as intricate as purchasing a home or a piece of an immovable property, the mass psychology usually goes towards making a single shot investment instead of several smaller ones and mortgage loans fit the picture just right. However, the rates of interest for a mortgage loan fluctuate as per the market conditions and the mortgage rates at Florida are currently on a downward slope that’s pulling in more number of investors within the mortgage sector. Appealing options are galore, the prime reason being custom designed packages that are tailored to suit individual preferences.
Loan Types
Florida, for quite some time is under the staple diet of fixed rate loans that span over 15 years or 30 years; they are also a hot choice among the Florida people because of their predictability. Also popular are the ARM or Adjustable rate mortgage loans, the interest rates of which decrease every month along with the reducing principle. People who change their homes every few years time after repayment find the ARM more appropriate to their needs, while the other varieties like hard equity loans, interest only loans and cross- collateralization of properties are the choice of the people who intend to spend longer periods at the property. The other kinds of loans available in Florida are 100% cash out refinance, construction loans, commercial mortgage loans, farmer’s home loans, no PMI (Private Mortgage Insurance) loans, vacant land and acreage mortgage loans; however, choices are also plenty if second or refinance mortgage loans and bad credit mortgage loans are the requirements.
Loan Rates
Every state in the US has its own set structures of interest; for Florida, the list is as follows:
- 30-year Fixed: 6.125% to 6.173% APR
- 20-year Fixed: 6.000% to 6.063% APR
- 15-year Fixed: 5.750% to 5.828% APR
- 1 year LIBOR ARM: 5.00% to 5.070% APR
- 3 year LIBOR ARM: 5.625% to 5.698% APR
- 5 year LIBOR ARM: 5.750% to 5.824% APR
Among the loans serving for a longer tenure, the interest pattern is:
- 30-year Jumbo fixed: 6.375% to 6.4% APR
- VA 30-year Fixed: 6.250% to 6.469% APR
N.B. Apart from the Jumbo loans that span from $400,001 to $650,000, the rest usually vary between $125,000 and $400,000.
The Force
Now the question remains: Are the Florida mortgage brokers as flexible and customer-friendly as much as the loans they are providing? We are going to provide an account of how they are like and leave the conclusion upon the reader.
Licensed and regulated by the state of Florida, the Florida mortgage dealers have been found so far to serve dedicatedly their customers with excellent service and shall make use of their knowledge and expertise to provide their customers with the right type of mortgage to best suit the individual needs. This is a habit they pick up from attending the extensive training modules and later, by clearing the exams - a must if a person wants to receive the mortgage broker license.
Mortgage brokers in Florida stay registered under the Florida Association of Mortgage Brokers, which require clearing a qualifying examination. The full-time professionals are the best choices; however, it is always better to avoid the one who insists upon getting into written contracts. It is also a wise decision to ask about these fee structures and the points system (a form of brokerage fees) applicable for the mortgage under consideration. Sometimes, certain contracts require a good faith application deposit; it is a rule that the deposit should be made under an escrow account and not otherwise.