All posts in Interest Rates

No Closing Cost Refinance

by Justin Miller on September 8, 2011 in Interest Rates, Refinance with No comments

The saying is that if it sounds too good to be true then it must be.  So what’s the catch with a no cost refinance for your Fort Lauderdale and South Florida home?  You will get a higher interest rate than those who pay their own closing costs or roll it into their loan.  It is a great option right now and one you should consider.  This is not for everyone and you need to look at the pros and cons.

The good thing about the no closing cost refinance is that if rates drop further you can refinance again without a cost.  The downside is if interest rates never go lower you won’t have the lowest rates available.   Can rates go lower?  Anything can happen but the odds are not in our favor but that is just my opinion. 

Everyone’s circumstances are different so make sure to consider all options and discuss them with your mortgage professional.  What’s best for your neighbor, co-worker, family member, etc. isn’t always best for you.

Advertised Mortgage Rates & Why They Are Different Than What You are Quoted

by Justin Miller on September 6, 2011 in Interest Rates with No comments

I have talked about this numerous times but it is nice to see the article from this morning’s Wall Street Journal title “Mortgage Rates Plumb The Depths, but Hard Part Is Getting That Quote” to back me up.

“The gap between the lowest advertised mortgage rate and the average rate that borrowers actually get is as high as it has been in two years, save a single week last September. As of last week, the lowest available rate—according to a survey of more than 200 lenders by LendingTree.com—was 3.75% for a 30-year fixed mortgage, but the average rate was 4.39%. At the current 0.64 percentage-point spread, the difference in rates could mean an extra $53,000 in interest payments over the life of a 30-year, $400,000 mortgage.”

The main reason for this is what you see online can be a loan to value of 60% or less, 15 day lock period, etc. along with people trying to hedge the market and quoting interest rates that don’t yet exist hoping rates drop by the time you call.

This is why it is more important to deal with someone you trust and who is an expert than the person quoting you the lowest rate because it’s not what you are quoted, it’s what you are locked in at.

Fort Lauderdale Mortgage Interest Rates Update: September 1, 2011

by Justin Miller on September 1, 2011 in Interest Rates with No comments

Mortgage-backed securities, which move interest rates, are trading higher right now which is good for interest rates ahead of job’s report tomorrow.  Interest rates paying NO Points in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

  • 4.375% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.596%)
  • 3.375% on a 15 Year Conforming Fixed rate mortgage with 20% down (APR 3.533%)
  • 4.25% on a  30 year FHA fixed rate mortgage with 3.5% down (APR 5.14%)

Contact me for interest rates on Jumbo Mortgages and Adjustable Rate Mortgages (ARMs) in Fort Lauderdale and South Florida.  Rates are subject to change without notice.

What’s Most Important When Choosing Who To Use For A Mortgage?

by Justin Miller on August 27, 2011 in Interest Rates, Mortgage Education 101 with No comments

That’s a tough question.  Although the institution you are using is part of it they are only as good as the person they employ.  My opinion is that the most important part isn’t the interest rate or the fees but making sure you are working with an expert and someone you can trust.

Unfortunately too many people choose their Mortgage Banker or Broker based on their rates and fees and when you do that you can get burnt.  The interest rate you are quoted means nothing.  It’s the interest rate you get locked in at that is.  No matter what product or service you need in life you will be able to find it cheaper somewhere but anytime you gain something you are giving up something.  You really do get what you pay for in life.  If you were getting surgery done would you want the cheapest doctor?  I know I don’t.

So how do you find out if this person is honest and an expert?  Most times you are referred to this person which is better than randomly calling someone but doesn’t mean that they are the best.  I suggest doing some research and Google their name to see what you can find and learn about that person.

Times have changed and although everyone in the past was always told to shop for a mortgage whether that was the best thing to do previously or not times have changed and I don’t think that holds true today.   The more you shop the more you will confuse yourself and you might just get stuck with the biggest liar.

Be very careful especially if you are looking for a mortgage in Fort Lauderdale and South Florida because I swear everytime I look at my RSS Feed their is another person getting caught for running a Ponzi scheme.  Fort Lauderdale and South Florida are top in the country for mortgage fraud too.

I am always happy to review anything mortgage related whether you intend on using my services or not and I can promise you I will give you a straight answer.

Fort Lauderdale Mortgage Interest Rates Update: August 17, 2011

by Justin Miller on August 17, 2011 in Interest Rates with No comments

Mortgage-backed securities, which move interest rates, are pretty much unchanged this morning.  Interest rates paying NO Points in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

  • 4.25% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.471%)
  • 3.375% on a 15 Year Conforming Fixed rate mortgage with 20% down (APR 3.533%)
  • 4.25% on a  30 year FHA fixed rate mortgage with 3.5% down (APR 5.14%)

Contact me for interest rates on Jumbo Mortgages and Adjustable Rate Mortgages (ARMs) in Fort Lauderdale and South Florida.  Rates are subject to change without notice.

An Appraisal Can Change Your Interest Rate

by Justin Miller on August 16, 2011 in Appraised Values, Interest Rates with No comments

I have talked about this before and how the interest rate isn’t the most important part of the mortgage and how important the appraisal is.   This is especially true in a housing market like Fort Lauderdale and the rest of South Florida due to having so many foreclosures and short sales. 

Jack Guttentag who writes a lot of real estate related articles agrees with me in his latest article “Appraisal Can Trip Up The Mortgage Quote.”  I highly recommend reading this article.

“Changes in property value may affect the price by shifting the ratio of loan amount to property value (called the “LTV”) into a higher or lower band. These bands are 65.01 to 70, 70.01 to 75, 75.01 to 80, 80.01 to 85, 85.01 to 90, and 90.01 to 95. Borrowers who take a loan amount that places them at the top of an LTV band are highly vulnerable to a price increase resulting from even a small reduction in value.”

Lock Your Interest Rate In!

by Justin Miller on August 13, 2011 in Interest Rates with No comments

I am going to make this very easy for you.  If you are purchasing a home lock your interest rate in.  Don’t Be Greedy!

If you are refinancing and the current rate makes sense and is saving you money lock it in and never look back.

Interest rates are at all time lows.  Yes they can go lower but they can also go higher.  It is better to be locked wishing you were floating than to be floating wishing you were locked.

Ed Conarchy, a mortgage professional, likes to say “it’s better to be on the ground wishing you were flying than to be flying wishing you were on the ground.

You can certainly reference this post if rates go lower and tell me I was wrong and that’s fine however I am not about to gamble my client’s rate away and if they drop again you can always refinance again.  If they go up and you didn’t refinance you are stuck with that higher rate.

Fort Lauderdale Mortgage Interest Rates Update: August 12, 2011

by Justin Miller on August 13, 2011 in Interest Rates with No comments

Mortgage-backed securities, which move interest rates, have been improved over the past week substantially but are just above their lows.  Interest rates paying NO Points in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

  • 4.25% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.471%)
  • 3.625% on a 15 Year Conforming Fixed rate mortgage with 20% down (APR 3.783%)
  • 4.25% on a  30 year FHA fixed rate mortgage with 3.5% down (APR 5.14%)

Contact me for interest rates on Jumbo Mortgages and Adjustable Rate Mortgages (ARMs) in Fort Lauderdale and South Florida.  Rates are subject to change without notice.

What Does The Credit Downgrade Mean For Mortgage Rates?

by Justin Miller on August 8, 2011 in Interest Rates with No comments

There is no way to know exactly what rates will do but I do know one thing, don’t be greedy and wait because you read something that states they could drop further.  If you lock in a rate today and rates improve dramatically you can renegotiate your rate to a lower rate but make sure to consult your mortgage professional on the rules.

I saw rates this low right before QE2 was announced in November and once the Federal Reserve announced it rates shot up.  It’s better to be locked wishing you were floating than to be floating wishing you were locked.

KCMBlog.com had a great post on this too so make sure to read it but at the end of the day you need to be dealing with an expert who isn’t going to gamble your rate away or let you gamble it away.

Fort Lauderdale Mortgage Interest Rates Update: August 2, 2011

by Justin Miller on August 2, 2011 in Interest Rates with No comments

Mortgage-backed securities, which move interest rates, rallied today due to a flight to safety with a weakening US economy which is  good for rates.  Interest rates paying NO Points in Fort Lauderdale and South Florida are as follows today on a $250,000 purchase price, 740 credit score, 25 day lock period, primary residence, single family detached home, with escrows are:

  • 4.375% on a 30 year Conforming fixed rate mortgage with 20% down (APR 4.596%)
  • 3.75% on a 15 Year Conforming Fixed rate mortgage with 20% down (APR 3.908%)
  • 4.25% on a  30 year FHA fixed rate mortgage with 3.5% down (APR 5.14%)

Contact me for interest rates on Jumbo Mortgages and Adjustable Rate Mortgages (ARMs) in Fort Lauderdale and South Florida.  Rates are subject to change without notice.

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