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Conventional Loans

2.875% (2.981% APR)
2.625% (2.812% APR)
2.25% (2.506% APR)

FHA & VA Loans

2.75% (3.986% APR)
2.75% (3.248% APR)

Conventional Loans

2.875% (2.981% APR)
2.625% (2.812% APR)
2.25% (2.506% APR)

FHA & VA Loans

2.75% (3.986% APR)
2.75% (3.248% APR)

Rates, terms, and fees as of July 24, 2020 3:00 pm and subject to change without notice. Select a product to view important disclosures, payments, assumptions, and APR information. Please note we offer additional home loan options not displayed here.

Does the amount of down payment affect your mortgage rate?

It depends on the type of loan you are applying for.  For instance, if you are getting an FHA loan, it doesn’t change your note rate whether your put the minimum 3.5% down or 20% down payment.  On the other hand, if you are getting a conventional mortgage, there is a slight difference in the cost associates with the mortgage rate for a borrower putting 5% down payment versus another borrower that puts 20% down. Finally, on a conventional mortgage putting 20% down helps you avoid the PMI which results in a lower annual percentage rate (APR).

How does your credit score affect your mortgage rate?

One of the most important factors that determines your mortgage rate is your credit score. The lower the credit score, the higher the interest rate. Usually any borrower with a credit score of 740 and higher receives the same rate as someone with a credit score of 800.  On the other hand, below 740 credit scores, the lenders typically break up the rate adjustment every 20-point increment.  For instance, a borrower with a credit score of 700 will have a higher rate than a borrower with a 720 credit score.   This does not mean that a borrower with a 680 credit score cannot get the same rate as a borrower with an 800 score.

Are mortgage rates the same for all home loan types?

No. The interest rate for a conventional mortgage is different than an FHA loan or a VA loan. Depending on your credit score and the amount of down payment, the effective rate otherwise known as annual percentage rate (APR) will vary on each loan type.  For instance, a borrower with a 620 credit score putting 5% down payment on a conventional mortgage loan will have a much higher APR than a borrower obtaining an FHA loan with the same score and down payment. This is primarily because the mortgage insurance (PMI) on a conventional mortgage is score driven and much higher for borrowers with low credit scores compared to FHA mortgage insurance which is not score driven meaning that a 620 credit score borrower will have the same mortgage insurance factor as someone with a 780 credit score.

Are mortgage rates different for buying a home to be used as your primary home versus rental properties?

Yes.Rates on owner occupied primary homes are typically 1% lower than a rental property.  This is due to higher risk associated with investment properties. Simply put, if your life turns upside down due to unforeseen financial stress, you are more likely to do everything you can to save the property that you occupy with your family versus a rental property that might be empty or if you have issues with collecting rent from your tenant.Thus, makes sense why lenders adjust mortgage rates based on risk factors. Lower the risk, the better the rate.  Higher the risk, the higher the rate.

Are mortgage rates the same for every state?

No. For instance, Mortgage rates in Orlando Florida are different than mortgage rates in New York.  One of the key factors is loan sizes. Lenders make a portion of their yield based on loan sizes.  New York’s median home prices are much higher than of Florida, thus enabling a lender to offer a lower rate in states with higher home prices.

Should you get an adjustable rate mortgage?

Most people hate adjustable rate mortgages due to uncertainty of how much their mortgage payments can fluctuate when the teaser rate expires.  Having a fixed rate mortgage gives borrowers a peace of mind their principal and interest portion of their mortgage payment always stays the same.  This is particularly important for fixed income borrowers.  On the other hand, adjustable rate mortgages can be attractive for borrowers with risk appetites and certainty that they will either pay off their mortgage fully or sell the property before the teaser rate starts to adjust.

How are VA loan rates different than conventional mortgage rates?

The note rate on a VA home loan is usually .25-.5% better than a conventional mortgage rate.  This is because the risk associated with a VA mortgage is much lower than any other mortgage since it is Guaranteed by the Veterans administration.

How do refinance mortgage rates vary in Florida?

Several factors affect refinance mortgage rates. For instance, rate/term refinance rates are much lower than cash out refinance transactions.  Also, shorter term mortgages such as 15 year fixed have almost .5% lower mortgage rates than a 30 year fixed mortgage. Also, borrowers that have a lot of equity in their home get a much lower mortgage rate than borrowers with little or low equity.

How to prepare yourself to get the best mortgage rate on a home loan?

Since credit score is the most important factor in determining your mortgage rate, be sure to have your credit card balances down to no more that 35% of your credit limit at least 30 days prior to applying for a home loan.  It also helps to obtain a personal copy of your credit report from all three credit bureaus to ensure that there are no errors on your credit report such as collection accounts.  As long as your credit score is over 740, you are good to go since lenders typically offer the same rate to borrowers with credit score of 740 plus.

Is your monthly payment only based on your mortgage rate?

No. If you are putting less than 20% down payment on a conventional mortgage, your monthly payment is significantly affected by your mortgage insurance premium.  The lower the credit score the higher the PMI factor.  For instance two borrowers can get the same mortgage rate but their pmi can be significantly different based on their individual credit scores thus increasing the monthly payment of a 620 credit score borrower much more than a 740+ score borrower.

Can closing costs be rolled into the mortgage when buying a home?

Closing costs can only be rolled into the loan when refinancing a mortgage.  When purchasing a home, you can either convince the seller to cover closing costs as a seller concession or if you are working with a low cost lender or broker you can look at rate options that provide lender credit to cover all or part of the closing costs.  If none of the stated options work, then you will have to pay for the closing costs out of pocket.  Typical closing costs like doc stamps and title charges and pre-paid items such as home insurance and property tax equate to about 3% of the purchase price.

Are mortgage rates for Single family homes the same as condos?

Mortgage rates in Florida for single family homes are usually much lower than rates on a condo. Also, single family homes have less restrictions on financing compared to a condo which requires HOA approval and review of condo bylaws, HOA master insurance and occupancy ratios, etc.

Do loan terms affect mortgage rates?

Mortgage rates vary by loan terms. Lower the term, lower the rate.   For instance, a 15 year mortgage has a much lower rate than a 30 year mortgage.  There is usually a half a percent rate difference between the two mortgages.  On the other hand, 20 year mortgage rates are usually an eighth of a percent lower that 30 year mortgage rates.

How to get the best rate quotes when buying a home?

Apply for a mortgage with three different mortgage lenders, brokers or banks and compare their rates by obtaining an official loan estimate on the same exact day since mortgage rates change daily. Pay attention to the adjusted loan origination charges associated with each rate quote and the annual percentage rate to determine which quote gives you the best effective rate.

What is the difference between mortgage rate and Annual percentage rate (APR)?

Your mortgage rates is used to determine your principal and interest payment.  Your annual percentage rate is the true cost of the loan once you consider the origination charges and PMI factors associated with your home loan.  The higher the origination charges for a mortgage rate and the higher the pmi factor, the higher the APR on a mortgage.  Therefore, whenever your see a rate advertised you will also see an APR next to the rate. When comparing different loans its important to compare the APR as well.

What is the National average for mortgage rates?

The national average can be skewed since majority of homebuyers fail to shop around for the best mortgage rate. Less than 25% of borrowers call multiple mortgage lenders to compare rates and get the lowest rates available in the market.  The other 75% end up with a higher mortgage rate which affects the national average.

How does loan purpose affect mortgage rates?

Mortgage rates are lower for home buying purposes compared to getting a cash-out refinance mortgage to consolidate debt or do home improvements.

How does your property value affect mortgage loan rates?

Risk plays a big factor on mortgage rates.  The more equity you have in your property the less risk for the lender when it comes to conventional mortgage loans.  For instance, if you are trying to get a loan for cash-out refinance, your interest rate is much better when the loan-to-value is under 60% of the property value.

What type of loan programs offer the lowest mortgage rate?

Conventional mortgage loans offer the lowest mortgage rates when the homebuyer is putting 40% down payment based on the purchase price.  Other loan programs like FHA loans do not offer a lower rate based on the amount of down payment or property value.  On VA loans where the borrower is exempt from the VA funding fee due to disability, the mortgage rate works out to be even lower than the best conventional mortgage rate regardless of the amount of down-payment or home value.

What are current mortgage rates?

Mortgage rates change daily and sometimes multiple times during the day.  They vary significantly from lender to lender or bank based on their profit margins.  Typically small mortgage lenders or mortgage brokers offer lower rates than the big lenders.  This is primarily due to their lower overhead and cost of acquisition on a loan.  When comparing for current mortgage rates, be sure to compare rates on the same day and pay attention to the adjusted origination charges.

Are Florida mortgage rates different by county?

No.  It would be illegal to discriminate borrowers based on the county they live in. For instance, Miami-Dade county will have the same rate loans as Orange county borrowers.  Today’s mortgage rates are predominantly based on credit scores, loan amounts, loan-to-value based on amount of down-payment, loan type such as conventional mortgage versus FHA loans, occupancy type such as investment property versus owner occupied and type of property such as single family home or a condo.  Mortgage lenders that offer higher mortgage rates than others are purely based on profit margins and not county.

What is the minimum down payment required to buy a home?

Each loan program requires a certain percentage.  A typical conventional loan will require 5% down payment on owner occupied properties.  FHA loans require a minimum of 3.5% down payment.  Finally, VA loans may require zero down payment depending on the eligibility of the veteran. Lastly, Investment properties require a minimum of 20% down payment but if you are trying to get the lowest mortgage rate then you should put 25% down on an investment property loan.

Mortgage Rate Straight Talk

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