There are many new mortgage programs for a wide range of financing needs in Florida. Various mortgage lender specific conditions apply to all mortgage loan programs, depending on the size of the mortgage, down payment, loan to value ratio, credit and other conditions. If you need help with your down payment or closing cost, there are local Charities in Florida charities for a grant.
Adjustable rate products
10 Year Fixed (30 year)
7 Year Fixed (30 year)
5 Year Fixed (30 year)
3 Year Fixed (30 year)
1 Year Fixed (30 year)
6 Month Fixed (30 year)
Stated income products
1 Year Fixed (30 year)
3 Year Fixed (30 year)
5 Year Fixed (30 year)
7 Year Fixed (30 year)
15 Year Fixed (30 year)
30 Year Fixed (30 year)
Balloon products
7 Year balloon (30 year)
5 Year balloon (30 year)
B and C products
1 Year Fixed (30 year)
3 Year Fixed (30 year)
5 Year Fixed (30 year)
7 Year Fixed (30 year)
10 Year Fixed (30 year)
30 Year Fixed (30 year)
Monthly principal and interest payments do not change over the term of the loan, which means your mortgage expenses are easily anticipated. If you believe interest rates are going to increase, this may be the best option for you. Compare local Florida and National lenders, No Hassle Quotes!
The interest rate on this loan is fixed for a stated period of time and will then become adjustable for the remainder of the loan. For example, a 5-year fixed (30-year) loan would have a fixed interest rate for the first five years and then convert to an adjustable rate for the remaining 25 years.
This adjustment is based on changes in a pre-selected index, and will take place according to a pre-defined schedule (generally once a year). Your interest rate and monthly payment will fluctuate based on changes in your index. The most common indices effecting Florida are the treasury Bill, Certificate of Deposit (CD), LIBOR and COFI.
Adjustable rate mortgage loans have more risk due to the possibility that the interest rate could increase. However, because you are assuming additional risk the lender will generally reward you with a lower interest rate and monthly payment during the initial fixed interest period. These loans are of particular benefit to Florida borrowers that plan to either sell the property or refinance before reaching the adjustable period.
A balloon loan has uniform monthly payments up to a predetermined date and a lump sum or "balloon" payment due at the end of the loan period to complete the payoff of the loan. Because of the structure of the payment schedule, the uniform monthly payments tend to be lower than those for many other types of fixed rate or standard adjustable rate products. Florida balloon mortgages usually have a predetermined refinance option (the terms are not negotiable) that the borrower may use if they believe they will have difficulty paying the balloon payment. A balloon mortgage might be attractive to someone who planned on selling a home before the balloon payment was due.
In qualifying for these products, the mortgage lender will not require you to provide standard explanations of your income, such as tax returns. This means that there is no verification of your income, but you must state the source of your income. Individuals likely to be interested in a stated income loan are typically self-employed or individuals who write-off a large portion of their income such as contractors, waiters & waitresses.
Loans with prepayment penalties generally offer lower interest rates, however the lender will penalize you if you wish to pay off part or all of the loan balance in advance of the predetermined schedule. Generally, Florida prepayment penalties for ARM products would be incurred if you made full or partial prepayments within three years from the date of your note. A prepayment penalty on a fixed rate product would be incurred if you paid off the loan balance early. The penalty varies by mortgage program.
A combination mortgage loan is a loan that has a first and second mortgage combined. Usually, a combination loan is used when a borrower does not have the usual 10 to 20 percent for a down payment. For example, one type of combination loan is an "80/10/15." On this loan, you get a first mortgage for 80 percent of the loan amount, and a second mortgage at the same time for the remainder of the loan balance. Qualify with a loan specialists to help you decide if this kind of loan is right for you.
Home equity line of credit (HELOC):
A home equity line of credit is a form of revolving credit in which your home serves as collateral. Think of it as a credit card that is secured by the equity in your home. Many Florida homeowners use these credit lines for major items such as debt consolidation, travel expenses and home improvements.
A home equity loan enables you to borrow money in a lump sum against the equity (the value of your home minus what you owe) you have built up in your home. This second loan is subordinate to the existing first mortgage. Florida buyers commonly use a second mortgage to keep their first mortgage in the conforming range (which keeps the rate lower) and to avoidPMI.Home equity loans are often used to pay off credit card debt, buy a car or to make major renovations to a home.
