When It Comes to Florida Home Loans, Don’t Focus on Rates

Mortgage rates can rise to mountainous highs, or plummet to great lows. This has been especially true over the last few years, as we have endured through a global pandemic. Rates for Florida home loans may be rising now but it’s important to place your focus elsewhere, rather than on those numbers. If you try monitoring the ebb and flow of mortgage rates, you will exhaust yourself waiting for the lowest rate.

In reality, it is much more important to focus on how much you can afford monthly. A good Florida mortgage broker will be able to tell you from your monthly payments how much you qualify for in total for a house. They will take into consideration the type of loan you are trying to secure, whether you are escrowing taxes and insurance, and a myriad of other factors that will skew your debt-to-income ratios to come up with an amount.

Contrary to what some may believe, there is much more to mortgage rates than simply finding the lowest number. In some cases, first time home buyers in Florida with lower rates may actually pay more in total than their counterparts with higher loan rates. By weighing the full scope of factors – home price, down payment, loan term, interest rate type, loan type, credit score, and even more – it becomes more evident which rate is the best for you. Attempting to tackle this alone is surely difficult but when you partner with trusted mortgage brokers, they can assess your situation and find the best loan.

Remember that mortgage brokers and lenders adhere to very strict government guidelines on what they are able to do for you based on your income, credit score, and ability to pay back the loan. The amount you qualify for is based independently on your credentials. Additionally, don’t be fooled by bait and switch products. These would be advertised rates with fine print on who qualifies for those rates. The general pool for who qualifies for those advertised rates is usually pretty small.

You must get a loan estimate in writing in order to understand what the lender is promising. Do not think that verbal conversations are the same thing as written estimates. Even written estimates will change, but at least you have a starting off point to see what FL mortgage lenders can do for you.  

Disclaimer: The opinions expressed above are meant for illustrative purposes only. For specific questions about mortgages or your lending needs, please contact Arco Financial www.arcofinancial.com. Some restrictions apply. NMLS # 2149692