You have spent months shopping the market for the perfect home, and now that you have found it, you might think that your shopping days are over, but in some ways, they are just beginning. Now comes the search for a mortgage company that understands your needs and can provide you with payment terms that fit your budget. Ask yourself these questions as you look for a mortgage broker.
Do they charge an inflated amount for points and fees?
The cost of a mortgage can be broken down into three segments, points, fees, and interest rate. Points are upfront fees paid to the lender and usually run you 1% of the total loan. Look out for companies that charge more than 1% or if you are short on a down payment, look for a company that will forego the point in exchange for a higher interest rate.
Do they provide good customer service?
In your search for a lender, make sure that customer service is a high priority. It is important that you find a mortgage broker that is willing to listen to you and quickly get back to you with the answer to any questions that you may have. You also want them to be quick with deadlines, as it is essential that the broker is able to meet your closing date. Ask around and then choose a lender with a good reputation that truly seems interested in finding the best mortgage for your needs, rather than the best mortgage for his pocketbook.
Do they offer assistance programs?
Find out if you qualify for any special programs designed to assist veterans, low income families, or first time homebuyers. If you fall into one of these categories, make sure you find a broker that offers programs that help you get the mortgage help that you need.
Try using one of ABC Loan Guide's Recommended Florida Mortgage Lenders.
Finding a mortgage broker to finance your home can seem like a daunting task, but if you remember the guidelines above, you will be unlocking the door to your new house in no time.
View our recommended lenders for a Mortgage Lender servicing Florida. Also, view our recommended sources for a 3 Bureau Credit Report For Free.
วันพุธที่ 30 กันยายน พ.ศ. 2552
วันอังคารที่ 29 กันยายน พ.ศ. 2552
Bad Credit Florida Mortgage Loans
Mortgage loans are the loans taken while purchasing a house or property. There are various kinds of mortgage loans namely, FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans.
Mortgage loan rates in Florida have seen a decreasing trend lately. The real estate market is booming with lower interest rates and presence of a wide range of loans offered competitively by several mortgage loan companies. Even people with bad credit records are being offered mortgage loans, albeit at a slightly higher interest rate. These kinds of loans are known as bad credit mortgage loans. They are also known as sub prime mortgages. Florida bad credit mortgage loans are for Florida citizens who have an unfavorable credit record. There are mortgage loan companies in Florida that specially offer mortgage loans for such kind of customers. They can help customers who have been denied loans from other companies as well. Now, even this has become a competitive market with several bad credit mortgage loan companies vying with each other for customers. Hence, even bad credit mortgage loans are also being offered at competitive rates. Even bad credit loans, if repaid on time, would help to improve the credit rating and clear the way for future loans at good rates. Moreover, bad credit loans can be secured or unsecured.
Bad credit mortgage loans also come with several options. The loans can be customized to suit the individual customer’s preferences. Companies are also offering mortgage loans in the form of packages. A bad credit mortgage loan company also offers assistance in repairing the past credit history by providing refinance loans or consolidation loans for previous mortgages in order to improve the credit rating. Bad credit loans are also offered to clients who have declared bankruptcy, repossession, foreclosure or divorce.
There are some basic guidelines considered while approving a candidate for a bad credit mortgage loan. They are: a FICO score of 620 or lower, two (or more) 30 day delinquencies in the past 12 months, one 60 day delinquency in the past 24 months, a foreclosure or charge-off in the past 24 months, any bankruptcy in the last 60 months, qualifying debt-to-income ratios of 50% or higher and limited ability to cover family living expenses each month.
There are several bad credit mortgage loan companies in Florida. Information about these companies can be found through websites on the Internet. Since there are so many companies, look for the company’s past history and its specialization and compare it with those of the other companies. Provide good documentation relating to past credit and income statement. A letter from the employer ensuring good conduct and job security would also be useful. Other things considered are the collateral (loan amount relative to the home value), other debts and cash reserves.
Florida Mortgage Loans provides detailed information about Florida mortgage loans, Florida commercial mortgage loans, Florida mortgage loan calculators, and more. Florida Mortgage Loans is affiliated with Florida Mortgage Broker.
Mortgage loan rates in Florida have seen a decreasing trend lately. The real estate market is booming with lower interest rates and presence of a wide range of loans offered competitively by several mortgage loan companies. Even people with bad credit records are being offered mortgage loans, albeit at a slightly higher interest rate. These kinds of loans are known as bad credit mortgage loans. They are also known as sub prime mortgages. Florida bad credit mortgage loans are for Florida citizens who have an unfavorable credit record. There are mortgage loan companies in Florida that specially offer mortgage loans for such kind of customers. They can help customers who have been denied loans from other companies as well. Now, even this has become a competitive market with several bad credit mortgage loan companies vying with each other for customers. Hence, even bad credit mortgage loans are also being offered at competitive rates. Even bad credit loans, if repaid on time, would help to improve the credit rating and clear the way for future loans at good rates. Moreover, bad credit loans can be secured or unsecured.
Bad credit mortgage loans also come with several options. The loans can be customized to suit the individual customer’s preferences. Companies are also offering mortgage loans in the form of packages. A bad credit mortgage loan company also offers assistance in repairing the past credit history by providing refinance loans or consolidation loans for previous mortgages in order to improve the credit rating. Bad credit loans are also offered to clients who have declared bankruptcy, repossession, foreclosure or divorce.
There are some basic guidelines considered while approving a candidate for a bad credit mortgage loan. They are: a FICO score of 620 or lower, two (or more) 30 day delinquencies in the past 12 months, one 60 day delinquency in the past 24 months, a foreclosure or charge-off in the past 24 months, any bankruptcy in the last 60 months, qualifying debt-to-income ratios of 50% or higher and limited ability to cover family living expenses each month.
There are several bad credit mortgage loan companies in Florida. Information about these companies can be found through websites on the Internet. Since there are so many companies, look for the company’s past history and its specialization and compare it with those of the other companies. Provide good documentation relating to past credit and income statement. A letter from the employer ensuring good conduct and job security would also be useful. Other things considered are the collateral (loan amount relative to the home value), other debts and cash reserves.
Florida Mortgage Loans provides detailed information about Florida mortgage loans, Florida commercial mortgage loans, Florida mortgage loan calculators, and more. Florida Mortgage Loans is affiliated with Florida Mortgage Broker.
วันจันทร์ที่ 28 กันยายน พ.ศ. 2552
Florida Mortgage Loans
Buying a home is one of the most important investments a person can make. Most people look for a mortgage or a loan while buying a house. The Florida real estate market is currently booming with falling interest rates and easy loans, and mortgage loan lenders are offering several kinds of loans and special mortgage loans to attract customers.
A mortgage rate is the rate of interest that is charged on the loan used for buying a house or a property. Mortgage rates keep changing over a period of time. A lower mortgage rate means a lesser cost of the house and lower monthly payments. A mortgage lending company looks after all the aspects that need to be considered such as the length of the mortgage period (fifteen-years or thirty-years), the kind of interest rate (fixed or variable), and even home inspections, taxes and property appraisals. Most people do not understand the typical mortgage terminology like PMI (Private Mortgage Insurance), APR, settlement costs, points etc. In such cases, a professional mortgage company would prove to be very useful. The main factors that are considered when issuing a mortgage loan are income of the applicant and his/her credit record.
Only Florida citizens are eligible to receive Florida mortgage loans. The various kinds of mortgage loans available in Florida are: FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans. Mortgage loans can also be refinanced. Refinanced mortgage loans have several benefits like lower monthly payments, lower interest paid, and cash equity. There are also bad credit mortgage loans that are offered at a slightly higher rate of interest for people who have bad credit records. The most popular kind of mortgage loans in Florida is the fixed rate loans- because of their predictability. The typical term of this loan is 15 years or 30 years. The ARM (Adjustable rate mortgage) loans are also popular because the interest rate is likely to decrease sometime in the future. This is generally preferred by people who plan to sell off the home in a few years time after paying off the loan. Other kinds of special Florida Mortgage loans are: hard equity loans, interest only loans, 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 and cross- collateralization of properties.
Florida offers very competitive mortgage rates. The best way to find a good mortgage lender in Florida is to ask friends or family members for suggestions. The Internet is a great source to find good mortgage companies who are advertising extensively about good rates and terms and also best service.
Florida Mortgage Loans provides detailed information about Florida mortgage loans, Florida commercial mortgage loans, Florida mortgage loan calculators, and more. Florida Mortgage Loans is affiliated with Florida Mortgage Broker.
A mortgage rate is the rate of interest that is charged on the loan used for buying a house or a property. Mortgage rates keep changing over a period of time. A lower mortgage rate means a lesser cost of the house and lower monthly payments. A mortgage lending company looks after all the aspects that need to be considered such as the length of the mortgage period (fifteen-years or thirty-years), the kind of interest rate (fixed or variable), and even home inspections, taxes and property appraisals. Most people do not understand the typical mortgage terminology like PMI (Private Mortgage Insurance), APR, settlement costs, points etc. In such cases, a professional mortgage company would prove to be very useful. The main factors that are considered when issuing a mortgage loan are income of the applicant and his/her credit record.
Only Florida citizens are eligible to receive Florida mortgage loans. The various kinds of mortgage loans available in Florida are: FHA (Federal Housing Administration) loans, consolidation loans, land loans, conventional loans, balloon loans and refinance mortgage loans. Mortgage loans can also be refinanced. Refinanced mortgage loans have several benefits like lower monthly payments, lower interest paid, and cash equity. There are also bad credit mortgage loans that are offered at a slightly higher rate of interest for people who have bad credit records. The most popular kind of mortgage loans in Florida is the fixed rate loans- because of their predictability. The typical term of this loan is 15 years or 30 years. The ARM (Adjustable rate mortgage) loans are also popular because the interest rate is likely to decrease sometime in the future. This is generally preferred by people who plan to sell off the home in a few years time after paying off the loan. Other kinds of special Florida Mortgage loans are: hard equity loans, interest only loans, 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 and cross- collateralization of properties.
Florida offers very competitive mortgage rates. The best way to find a good mortgage lender in Florida is to ask friends or family members for suggestions. The Internet is a great source to find good mortgage companies who are advertising extensively about good rates and terms and also best service.
Florida Mortgage Loans provides detailed information about Florida mortgage loans, Florida commercial mortgage loans, Florida mortgage loan calculators, and more. Florida Mortgage Loans is affiliated with Florida Mortgage Broker.
วันอาทิตย์ที่ 27 กันยายน พ.ศ. 2552
Florida Mortgage Brokers - The Only Choice When You Need A Mortgage
If you’re looking for assistance in acquiring a mortgage, you may first contemplate using your bank. However, Florida mortgage brokers can offer you more. The fact is that Florida mortgage brokers only do well when they provide excellent customer service and they understand this. Florida mortgage brokers are consultants, who have been licensed by the state of Florida and will work with you and help you to determine what your mortgage needs are. As they specialize in mortgages only, they will be able to find you the mortgage that will suit your needs best.
Florida mortgage brokers are dedicated to providing you with excellent service as they rely solely on themselves for generating income. They get paid only when a mortgage has closed and therefore, will provide their knowledge and expertise to help you to determine what type of mortgage will best suit your needs. Florida mortgage brokers, in dealing with mortgages only, will educate you in the mortgage process and help you to feel comfortable in the decisions you’ll be making.
Florida mortgage brokers are also licensed and regulated by the state of Florida. In order to receive their mortgage broker license, they must first complete 24 hours of classroom instruction and can only do this at a qualified school that also meets requirements. Once they’ve completed the 24 hours of instruction, they then must pass a written examination.
This examination covers the Florida Mortgage Brokerage and Lending Act, the Patriot Act, the Florida Fair Lending Act, and all federal housing regulations. They must also have a thorough knowledge in FHA/VA and conventional mortgages, as well as Fannie Mae underwriting guidelines and the closing process. They must also be able to perform financial calculations, requiring strong math skills and understand basic real estate knowledge. Once Florida mortgage brokers have received their license, they must receive another 14 hours of continuing education within the following two year period.
The fact is Florida mortgage brokers are educated in the mortgage industry and only after passing a rigorous written examination, they can receive their license. These Florida mortgage brokers are dedicated to helping the individual realize his or her dream in owning a home and they pride themselves on their ability to help one do this. They do not work the scheduled hours of a bank and will be there when you need them. If you’re in the market for a mortgage, make sure you contact one of the Florida mortgage brokers today.
Matt Morrison is a regular writer for
Florida South Homes Rothstein.
Florida mortgage brokers are dedicated to providing you with excellent service as they rely solely on themselves for generating income. They get paid only when a mortgage has closed and therefore, will provide their knowledge and expertise to help you to determine what type of mortgage will best suit your needs. Florida mortgage brokers, in dealing with mortgages only, will educate you in the mortgage process and help you to feel comfortable in the decisions you’ll be making.
Florida mortgage brokers are also licensed and regulated by the state of Florida. In order to receive their mortgage broker license, they must first complete 24 hours of classroom instruction and can only do this at a qualified school that also meets requirements. Once they’ve completed the 24 hours of instruction, they then must pass a written examination.
This examination covers the Florida Mortgage Brokerage and Lending Act, the Patriot Act, the Florida Fair Lending Act, and all federal housing regulations. They must also have a thorough knowledge in FHA/VA and conventional mortgages, as well as Fannie Mae underwriting guidelines and the closing process. They must also be able to perform financial calculations, requiring strong math skills and understand basic real estate knowledge. Once Florida mortgage brokers have received their license, they must receive another 14 hours of continuing education within the following two year period.
The fact is Florida mortgage brokers are educated in the mortgage industry and only after passing a rigorous written examination, they can receive their license. These Florida mortgage brokers are dedicated to helping the individual realize his or her dream in owning a home and they pride themselves on their ability to help one do this. They do not work the scheduled hours of a bank and will be there when you need them. If you’re in the market for a mortgage, make sure you contact one of the Florida mortgage brokers today.
Matt Morrison is a regular writer for
Florida South Homes Rothstein.
วันเสาร์ที่ 26 กันยายน พ.ศ. 2552
Florida Mortgage Rate Refinance
Florida offers some of the lowest refinancing rates on the market. So if you wish to refinance your home mortgage, a Florida lender is the best option. You can also research on the Internet to get the best rates.
Refinancing a mortgage has several benefits. A decision to refinance a mortgage comes only when you can save two or more percentage points on interest. But it is another burden that you have to carry for so many years. So it’s better to clear all your doubts regarding the rates before you finalize on one. Or you may be thinking of getting a fixed-rate mortgage with attractive terms instead of your current adjustable-rate mortgage.
You can also consolidate your first and second mortgages into a single mortgage by refinancing. The benefits are many, but the difficult part is to get the best mortgage refinance rate.
Currently, the rates in Florida have touched a 20-year low. So it’s easy for you to get a mortgage even if you have bad credit. You can improve your credit by paying installments on time. Some lenders check your job security and income sources before they agree to refinance. So it’s easy to get refinance options in Florida even if you have bad credit.
There are two types of mortgages: fixed-rate and adjustable-rate. Cashing out is another type of refinancing that allows borrowers to borrow money against their own home for paying off the loans. Refinancing is available in Florida for all types of loans like conventional loans, VA loans and bad credit loans.
Florida Mortgage Rates provides detailed information on Florida Mortgage Rates, Florida Mortgage Rate Refinance, Florida Mortgage Interest Rates, Best Mortgage Rates In Florida and more. Florida Mortgage Rates is affiliated with Florida Interest Only Mortgages .
Refinancing a mortgage has several benefits. A decision to refinance a mortgage comes only when you can save two or more percentage points on interest. But it is another burden that you have to carry for so many years. So it’s better to clear all your doubts regarding the rates before you finalize on one. Or you may be thinking of getting a fixed-rate mortgage with attractive terms instead of your current adjustable-rate mortgage.
You can also consolidate your first and second mortgages into a single mortgage by refinancing. The benefits are many, but the difficult part is to get the best mortgage refinance rate.
Currently, the rates in Florida have touched a 20-year low. So it’s easy for you to get a mortgage even if you have bad credit. You can improve your credit by paying installments on time. Some lenders check your job security and income sources before they agree to refinance. So it’s easy to get refinance options in Florida even if you have bad credit.
There are two types of mortgages: fixed-rate and adjustable-rate. Cashing out is another type of refinancing that allows borrowers to borrow money against their own home for paying off the loans. Refinancing is available in Florida for all types of loans like conventional loans, VA loans and bad credit loans.
Florida Mortgage Rates provides detailed information on Florida Mortgage Rates, Florida Mortgage Rate Refinance, Florida Mortgage Interest Rates, Best Mortgage Rates In Florida and more. Florida Mortgage Rates is affiliated with Florida Interest Only Mortgages .
วันพฤหัสบดีที่ 24 กันยายน พ.ศ. 2552
Florida Mortgage Loan Advice
Florida offers a promising variety of mortgage loan programs. It is just a matter of choosing the right one for you and is largely dependent on your financial situation and circumstance. But with all the many options and terms and the confusing business of getting a mortgage loan, where do you start? Here are some basic things you should know.
3 C's Equals LTV
Collateral, capacity, and credit. These are the three things banks and brokers look into to determine the rate of mortgage and the LTV or Loan to Value. To define the 3 C's:
-Collateral is a property or asset that the borrower pledges to the lender to secure a loan. It is subject to seizure in the event that borrower is not able to meet the terms or agreement
-Capacity is the ability of the borrower to pay back the loan according to the terms and can be determined by the borrower's income or employment
-Credit is the capacity to borrow which should entail a good or clean credit history
If the property is of great value and the capacity and credit are excellent, then there should be no problem in obtaining a loan. However, if one or two is unsatisfactory, the lender will make some adjustments and set more conditions, and this could mean interest bumps.
Online help and tools
One of the best resources for mortgage loan programs in Florida is the Internet. Hundreds of brokers and firms have websites that are very informative and outlines their available programs. What is most useful as well is the on-site Internet tools that can help you determine if you are pre-qualified for a loan and help you estimate your mortgage value. These websites also offer a checklist that you can go through to know what documents and other requirements you need.
Finding a mortgage broker
Hiring a mortgage broker to scout the best options for you is also a wise move. Since mortgage brokers find the best deals for mortgage loans for a living, chances are they know the inside stuff that could help you with your decision. Looking for a mortgage broker could be a daunting task, though. Just make sure that the broker is trustworthy, looks out for your best interest and is not just pushing a program on you for the sake of selling and reaping higher profits. A good broker "custom-fits" services by assessing what you need and reviewing your financial situation, and recommending the most suitable program accordingly.
Florida Mortgage Loans provides detailed information on Florida Mortgage Loans, Bad Credit Florida Mortgage Loans, Florida Mortgage Loan Calculators, Florida Mortgage Loan Rates and more. Florida Mortgage Loans is affiliated with Second Home Equity Mortgage Loans.
3 C's Equals LTV
Collateral, capacity, and credit. These are the three things banks and brokers look into to determine the rate of mortgage and the LTV or Loan to Value. To define the 3 C's:
-Collateral is a property or asset that the borrower pledges to the lender to secure a loan. It is subject to seizure in the event that borrower is not able to meet the terms or agreement
-Capacity is the ability of the borrower to pay back the loan according to the terms and can be determined by the borrower's income or employment
-Credit is the capacity to borrow which should entail a good or clean credit history
If the property is of great value and the capacity and credit are excellent, then there should be no problem in obtaining a loan. However, if one or two is unsatisfactory, the lender will make some adjustments and set more conditions, and this could mean interest bumps.
Online help and tools
One of the best resources for mortgage loan programs in Florida is the Internet. Hundreds of brokers and firms have websites that are very informative and outlines their available programs. What is most useful as well is the on-site Internet tools that can help you determine if you are pre-qualified for a loan and help you estimate your mortgage value. These websites also offer a checklist that you can go through to know what documents and other requirements you need.
Finding a mortgage broker
Hiring a mortgage broker to scout the best options for you is also a wise move. Since mortgage brokers find the best deals for mortgage loans for a living, chances are they know the inside stuff that could help you with your decision. Looking for a mortgage broker could be a daunting task, though. Just make sure that the broker is trustworthy, looks out for your best interest and is not just pushing a program on you for the sake of selling and reaping higher profits. A good broker "custom-fits" services by assessing what you need and reviewing your financial situation, and recommending the most suitable program accordingly.
Florida Mortgage Loans provides detailed information on Florida Mortgage Loans, Bad Credit Florida Mortgage Loans, Florida Mortgage Loan Calculators, Florida Mortgage Loan Rates and more. Florida Mortgage Loans is affiliated with Second Home Equity Mortgage Loans.
วันพุธที่ 23 กันยายน พ.ศ. 2552
Florida Mortgage - Wake Up Call
No Exaggeration
There are a staggering number of Florida mortgage customers that will be impacted by the changes in the mortgage industry. Maybe you have heard that twenty percent of all homes purchased nationwide in recent years were purchased using subprime mortgage products. The Florida real estate market is one of the most active in the country and the percentage of subprime mortgages utilized here in the last five years is over twenty-five percent. These subprime products, although not entirely extinct yet, are vanishing at an accelerating pace. What are the implications?
Sorry, No Refinance For You
If you are one of the millions of Florida mortgage customers that purchased homes using a subprime mortgage it is time to examine your situation. Most subprime mortgages have adjustable rate features. The most typical subprime product is fixed for a period of two years before it adjusts. Some are timed to adjust after three years. Do you have an adjustable rate mortgage? Do you know when it will adjust? Will you be able to afford the higher payment? If you used subprime financing to purchase your home and your situation has not improved enough to allow you to qualify for a conventional mortgage you may not be able to refinance. If you cannot afford your new adjusted payment and you cannot qualify for a refinance, what will you do?
The Spillover Effect
Subprime borrowers are not alone in their quandary. As the subprime mortgage market has shut down, lenders that offered creative financing options to prime borrowers have begun to rethink their product line. Stated income programs, also known as SISA, or no-income verification mortgages are in danger of extinction as well. Guidelines are being tightened daily. Of some additional concern are the possible actions of the States who have begun to discuss banning these mortgage products within their borders. This has not occurred in Florida, but given the recent upswing in mortgage defaults, it is conceivable.
The Florida Prime Mortgage Market Impact
I’m thinking of all of the prime Florida mortgage customers, even those with exemplary scores in the seven hundred plus range that utilized SISA or no-doc programs in the past. As a Florida mortgage broker I can attest to the popularity of these products among my customers. I can’t predict the impact of the elimination of these prime products, but at the very least these borrowers will face considerably more paperwork when they apply for a mortgage. In some cases these borrowers may no longer qualify for financing at all. I do expect, however, that mortgage lenders will find a way to continue to offer some form of low-doc financing options to borrowers with excellent credit.
He Who Hesitates is Lost
Do yourself a big favor. Take action today. Take a close look at your situation. Pull out your mortgage note if you need to. Figure out when your mortgage will adjust. Should you refinance right now while there are still mortgage programs that will accommodate your credit and income profile? Call your friendly Florida mortgage broker and have a chat. I promise you that there is some action that you can take today to make sure that there is a reasonable solution tomorrow.
Credit Repair
Credit repair is entirely legal and often underestimated. Most borrowers that are relegated to the subprime category have credit issues. Without exception, every credit impaired subprime borrower can take action to improve their credit and graduate into a prime borrower class. How is your credit? If you have had credit issues in the past it is essential to become pro-active about your credit. Please, please, never imagine that there is nothing that you can do about your credit. Too many people simply give up on themselves. A bit of attention could very well mean a one hundred point improvement in your credit score and a whole new outlook on life. Don’t doubt. Speak to a credit repair professional.
Knowledge is Power
Whatever your situation in life you will always be better off truly knowing the facts as well as your options. Everyday is an opportunity to turn your situation around. Pick up the phone. Call your Florida mortgage broker or a credit repair expert. Ask questions. Almost every reputable financial professional offers a free consultation. Take advantage. Learn something new everyday. You will, without fail, discover that you have infinitely more control over your future than you thought. Invest some time in your own life. That investment will pay amazing dividends.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage broker based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great mortgage and credit tips visit the Florida Mortgage Blog.
There are a staggering number of Florida mortgage customers that will be impacted by the changes in the mortgage industry. Maybe you have heard that twenty percent of all homes purchased nationwide in recent years were purchased using subprime mortgage products. The Florida real estate market is one of the most active in the country and the percentage of subprime mortgages utilized here in the last five years is over twenty-five percent. These subprime products, although not entirely extinct yet, are vanishing at an accelerating pace. What are the implications?
Sorry, No Refinance For You
If you are one of the millions of Florida mortgage customers that purchased homes using a subprime mortgage it is time to examine your situation. Most subprime mortgages have adjustable rate features. The most typical subprime product is fixed for a period of two years before it adjusts. Some are timed to adjust after three years. Do you have an adjustable rate mortgage? Do you know when it will adjust? Will you be able to afford the higher payment? If you used subprime financing to purchase your home and your situation has not improved enough to allow you to qualify for a conventional mortgage you may not be able to refinance. If you cannot afford your new adjusted payment and you cannot qualify for a refinance, what will you do?
The Spillover Effect
Subprime borrowers are not alone in their quandary. As the subprime mortgage market has shut down, lenders that offered creative financing options to prime borrowers have begun to rethink their product line. Stated income programs, also known as SISA, or no-income verification mortgages are in danger of extinction as well. Guidelines are being tightened daily. Of some additional concern are the possible actions of the States who have begun to discuss banning these mortgage products within their borders. This has not occurred in Florida, but given the recent upswing in mortgage defaults, it is conceivable.
The Florida Prime Mortgage Market Impact
I’m thinking of all of the prime Florida mortgage customers, even those with exemplary scores in the seven hundred plus range that utilized SISA or no-doc programs in the past. As a Florida mortgage broker I can attest to the popularity of these products among my customers. I can’t predict the impact of the elimination of these prime products, but at the very least these borrowers will face considerably more paperwork when they apply for a mortgage. In some cases these borrowers may no longer qualify for financing at all. I do expect, however, that mortgage lenders will find a way to continue to offer some form of low-doc financing options to borrowers with excellent credit.
He Who Hesitates is Lost
Do yourself a big favor. Take action today. Take a close look at your situation. Pull out your mortgage note if you need to. Figure out when your mortgage will adjust. Should you refinance right now while there are still mortgage programs that will accommodate your credit and income profile? Call your friendly Florida mortgage broker and have a chat. I promise you that there is some action that you can take today to make sure that there is a reasonable solution tomorrow.
Credit Repair
Credit repair is entirely legal and often underestimated. Most borrowers that are relegated to the subprime category have credit issues. Without exception, every credit impaired subprime borrower can take action to improve their credit and graduate into a prime borrower class. How is your credit? If you have had credit issues in the past it is essential to become pro-active about your credit. Please, please, never imagine that there is nothing that you can do about your credit. Too many people simply give up on themselves. A bit of attention could very well mean a one hundred point improvement in your credit score and a whole new outlook on life. Don’t doubt. Speak to a credit repair professional.
Knowledge is Power
Whatever your situation in life you will always be better off truly knowing the facts as well as your options. Everyday is an opportunity to turn your situation around. Pick up the phone. Call your Florida mortgage broker or a credit repair expert. Ask questions. Almost every reputable financial professional offers a free consultation. Take advantage. Learn something new everyday. You will, without fail, discover that you have infinitely more control over your future than you thought. Invest some time in your own life. That investment will pay amazing dividends.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage broker based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great mortgage and credit tips visit the Florida Mortgage Blog.
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