Mortgage & Finance

Getting approved for a mortgage can be a big help when it comes to financing your home. Here are some tips about mortgages in Florida.

On mortgage information: The best way to get information when shopping for a mortgage loan is to directly approach a loan officer. Talking to a loan officer before or during the early stages of the home-buying process allows you to inquire about mortgage plans that suit you best, as well as current interest rates and incentives. Don’t hesitate to ask questions so you can make informed decisions. This process might be easier for you if your chosen realtor works with a reputable lender.

On factors you should consider when looking for a loan program: In Florida, you can either partner with a mortgage broker or work directly with a lending company. To identify the best program or plan for you, consider the following: broker fees, loan term, inspection costs, credit report fees, prepayment penalties, points, application fees, and appraisal costs, among others. The Southern Beach Real Estate team will help you obtain the mortgage plan that works best for you.

On the difference between an adjustable rate mortgage and a fixed rate mortgage: In a fixed rate mortgage, the amount and interest rate you need to pay remain fixed or static throughout the loan term. The adjustable rate mortgage, on the other hand, is less stable as your rate depends on the current interest rates in the economy. While much lower than its fixed counterpart, getting an adjustable rate mortgage can be dicey especially in the advent of an economic downturn.

On where to shop for a mortgage loan: Financial institutions, which includes banks, credit unions, mortgage bankers, and insurance companies, can help you finance your real estate endeavor. Ask your realtor to direct you to a reputable institution to avail the most suitable loan package for you.

For more information, log on to http://www.usa.gov/topics/family/homeowners/buyingselling/mortgages/types.shtml and http://www.bankrate.com/florida/mortgage-rates.aspx.

Good luck!