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Florida Mortgage Tips
When shopping for a Florida Mortgage there are a few things to consider:
Will this be a vacation home or your primary residence? The answer to this question will have an affect on what type of financing is right for you. I generally recommend a long term fixed rate mortgage for any home. It lowers your risk of increased payments in the future therefore giving you better tools for retirement planning.
How long do you plan to own the home? Many people think they will buy a home and stay there for decades watching their kids grow up and go off to college. The statistics, however, do not support this theory. On average, home owners keep their home less than 7 years, and keep the same mortgage for less than 4 years. With this in mind, your Florida Mortgage should be a blessing and not a nightmare.
What are the best terms available for a Florida Mortgage? The answer to this question is on a sliding scale as terms and guidelines change frequently and without notice. But, there are a few things that will remain constant.
The more you are willing to put into the transaction as a down payment, the better your terms and the cheaper your cost of financing will be. Ideally, a 20% down payment for a primary residence would be the highest and best use for your money. With that, you will avoid private mortgage insurance (PMI) which is required on any Florida Mortgage loan that has less than a 20% down payment.
For a vacation home, it is usually best to put down 25% to 30% due to the increased rate and worsening of terms with a smaller down payment.
If it is economically feasible, I would highly recommend a 15 year fixed rate mortgage over a 30 year loan. It will certainly increase your monthly payment, but the overall savings over the life of the loan is huge (as much as $100,000 in interest savings on a $250,000 mortgage).
Now that you know a little more about what to expect with your Florida Mortgage, give me a call to start the process. You can reach me at 850-221-8334.
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