Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update 1
May 7, 2008
When you are looking to by your Fort Lauderdale real estate home or condo you are going to want to get the best mortgage rates that you can find. While you are searching for your Fort Lauderdale real estate home or condo it will be much easier if you know in advance that you are approved for a mortgage and you know that you can buy the home you desire.
I work with America’s #1 Mortgage Broker and I can assure you that Brian Brady will get you the best mortgage possible when you are ready to buy your Fort Lauderdale real estate home or condo.
Here’s what Brian has to say this week regarding the mortgage market here in the Fort Lauderdale real estate area:
Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update
FHA Loans are back in Fort Lauderdale! Our expensive real estate has dropped in value and the FHA loan limits were increased by The Economic Stimulation Act of 2008.
Single-family homes and condominiums are now eligible for FHA loans to a limit of $697,500.
Duplexes have a FHA loan limit of $892,950, Triplexes have an FHA loan limit of $1,079,350 and four-unit properties can get an FHA loan up to $1,341,350.
FHA loans are useful because they allow for a downpayment as low as 3%. There are no “declining market limits” imposed on FHA loans.
This means that a family looking to buy a duplex, for $800,000, can buy that home for less than $25,000 cash-to-close.
Sellers can contribute up to 6% towards a buyer’s closing costs and the down payment can be a gift from an interested party.
Credit guidelines are relaxed with scores allowed down to 580 FICO score. Alternative credit sources, like utility bills, rent, phone bills, and private loans can be used to build a “thin” credit file.
Also, for non-FHA loans we have another great product, let’s lock all mortgages rates at application, regardless of when its closing. I think this is about as good as it gets for a while.
I still see 30 year fixed rates a tad under 6% (5.875%) but the good economic data, released today, could drive Fort Lauderdale real estate mortgage rates up next week.
I recommend a 7/1 ARM today. Rates offered for a 7/1 ARM, for loans under $417,000, are OVER a half a percentage point less than the 30 year fixed (5.25%). Most borrowers will feel comfortable with a seven year time frame.
I know that ARM’s have had a bad image because of the mortgage crisis but these ARM’s are different. These are 7/1 ARM mortgages which means that the 5.25% rate is locked in for 7 years- that’s until 2015!
All loans offered to the consumer at the wholesale or “par” rate. We are paid 1% by the consumer.
To give you an idea of how long 7 years is, Disneyland’s California Adventure opened in early 2001. You probably thought it was around forever.
If you want to lock in on a mortgage for the Fort Lauderdale real estate home or condo that you are buying, then now is the time to do so. The bond traders won’t be merciful next week unless recessionary data is overwhelming. Jump on these low rates now.
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If you are interested in learning more about buying a home or condo in Fort Lauderdale or anywhere in South Florida; or if you need any information about the Fort Lauderdale real estate market, please feel free to contact me and it would be my pleasure to assist you.You can contact me at the number shown below or please feel free to contact me by the form below and I, or one of my assistants, will be sure to get right back to you within a few hours, if not sooner.
If you are inquiring about a specific property shown on this site, please include the address of the property in the comment section of the contact form below.
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Robin Sing-Cunningham
robins@robinashley.com
Access USA Realty
Local Fort Lauderdale | South Florida : 954-709-7461
My Assistants:
Barry Johnson: bjohnson@robinashley.com
