Florida homeowners and first-time home buyers, based on encouraging drops to the Florida home loan rate, know that the time is great for a refinance or purchase of a new home. The Florida home loan that will work best for you will depend on how much you wish to borrow, your income level and credit rating, as well as the Florida home loan rate and other loan terms. Thinking about these areas will help you make a good choice for selecting a Florida home loan.
For home loans in Florida, your best source of information is a Florida mortgage broker. This professional can explain all of the options available to you for purchasing or refinancing a home in Florida. However, there are basic elements of the most common Florida home loans that you can learn about initially, in order to be more conversant on Florida home loans in general.
You will, of course, want to select a Florida home loan amount that works with your budget. This can be accomplished by taking a look at the price of homes you like, and then discussing with a mortgage broker what the monthly payment amount would be. In this way, you can see if you can cover that amount with your current income.
Your credit rating may also come into play in terms of the Florida home loan rate that you are offered. In general, you will be given a lower interest rate if you have a good or excellent credit rating. If you do not, do not despair, however, because your mortgage broker may be able to offer other home loans that will work for you as well. You will see that the rates for home loans in Florida are listed as a simple interest rate and an APR, or annual percentage rate, which is a bit higher. The simple rate is the basic rate charged, while the APR is the combination of fees charged plus the interest rate that is compounded over a year, which is called the compound interest rate. In short, you will be paying the APR each month, so this is the rate to which you need to make comparisons when shopping for a home loan in Florida.
The terms of a home loan in Florida can vary, but there are two commonly used types of home loans: the fixed-rate and the adjustable-rate, or ARM. You will get the lowest interest rates for a shorter-term fixed loan, such as fifteen years, and a higher rate for a longer Florida home loan, like a thirty-year fixed. ARMs offer the lowest rates during the grace period of five to seven years, but them home owners need to be prepared to pay a substantially higher monthly payment when the loan adjusts.
Your mortgage broker can answer your questions about these home loans in Florida so that you will be prepared to select the best one for your circumstances.