Tampa FL Mortgage Rates Articles and Tips

A Closer Look at Tampa, Flordia Home Equity Loans

Sat, 14 Nov 2009 14:45:15 -0600

Do you currently own a Tampa, Flordia home, but you need a little extra dough? A Tampa home equity loan allows homeowners to borrow money by using the equity in their home as collateral for the loan. You can use the additional money any way you want: to pay for home renovations, college tuition, or even to consolidate debt. What’s more, the interest payments of a home equity loan may be tax deductible.

Understanding the Repercussions
In essence, a home equity loans depletes the value of your home equity. Receiving a Tampa home equity loan is a big decision, because if you fail to repay the loan, the lender may sell your home to earn back what was borrowed.

How Much Can I Borrow?
To establish the potential amount of your Tampa home equity loan, your Tampa lender will take the current appraised price of your home and subtract your current mortgage balance. They will also consider your employment status.

What’s the Difference Between a Home Equity Loan or a Line of Credit?
A Tampa home equity loan is basically a second mortgage. It is a one-time payout for borrowers who need a lump sum of cash. A Tampa home equity loan usually has a set interest rate that you lock in when you secure the loan. Borrowers must repay the total amount of the loan if they sell their home. Don’t borrow more than you need, because you’ll pay interest on entire home equity loan amount, whether or not it’s being used.

You might also want to consider a Tampa home equity line of credit, which acts more like a credit card. With a Tampa home equity line of credit, you can borrow money multiple times over the life of the loan, until you’ve reached your spending limit. A home equity line of credit has an adjustable interest rate that can increase or decrease, depending on the market. A line of credit is ideal for Tampa homeowners who have recurrent financial needs. Another benefit is that you just pay interest on what you borrow, not the entire loan sum.

When choosing between a Tampa home equity loan and home equity line of credit, assess your goals, monthly budget, other outstanding debts, the length of time you plan to live in your current home, and your ability to cope with financial risk.

Disadvantages of a Tampa Home Equity Loan
A Tampa home equity loan, like a conventional loan, has an application fee, preparation fee, appraisal fee, and other closing costs. Ask you Tampa lender if any fees can be waived. Also ask if there is a prepayment penalty.

Benefits of a Tampa Home Equity Loan
Many Tampa homeowners use home equity loans to consolidate other debts. The lower interest rate of a home equity loan allows the borrower an easier way to pay off credit card debt with just one monthly payment.

If you are a conservative borrower with a good repayment history, a home equity loan is an easy way to borrow additional cash at a reasonably low, tax deductible interest rate.

The Do's and Don'ts of Purchasing a Tampa, Flordia Short Sale

Sat, 14 Nov 2009 14:40:00 -0600

Given the current real estate market, it’s a great time to purchase a short sale. With many Tampa, Flordia homes destined for foreclosure, some homeowners are having to sale their home at a lowered price to avoid losing it altogether. A short sale is when a home sells for less than what the owner still owes on his or her mortgage loan. In a short sale, the seller will not earn money from the sale; rather, a short sale prevents outright foreclosure and the lender pardons any outstanding debt.

Similar to foreclosures, Tampa short sales offer great buying opportunities. Continue reading to learn how to purchase a short sale at a bargain price.

Work with a Licensed Tampa Realtor
Work with a knowledgeable Tampa realtor who has worked with short sale properties before. Don’t hesitate to ask as many questions as you can, so that you become knowledgeable about short sales, too.

Choose a Desirable Property
Sometimes lenders may not list the home as a short sale. A good way to find out if the home is a short sale is to look for wording on the property’s information sheet that says ”Lender Approval Required”. These are most likely short sale properties. Also keep in mind that, the longer the home has been on the market, the more price reductions it may have and could also be a short sale.

Check the Property
Buying a short sale property means that you may not have the chance to have it inspected. If you get an opportunity to tour the home, bring an expert to help you estimate the value of the Tampa property and identify potential issues that might be expensive to fix.

When you buy title insurance on the short sale, be sure that the insurance company performs a detailed check on the property. This exposes any debts, liens, or back taxes on the property. Make sure that the title is clear, or you may end up owning someone else’s financial problems.

Make an Offer
One difficult aspect of buying a Tampa short sale is that your offer needs to be as close to the appraised property value as possible. The seller and bank, however, often do not tell you the appraised value. The final decision to accept or reject your offer is up to the lender. Even if the seller accepts your offer, the lender may reject it if they feel it does not meet the market value.

Be Smart
It will take time to get answers, because every decision needs lender approval, and inquiries go through a hierarchy of lending supervisors. Be patient, and if you hear that your offer was refused as too low, simply make another offer at a higher price. Even if you make a higher bid, you can still get a good deal on a Tampa short sale since many homes in today’s market When your offer is accepted, you can usually close within 30 days.

Federal Housing Administration Loans

Sat, 14 Nov 2009 14:37:17 -0600

In 1965, the Department of Housing and Urban Development introduced the Federal Housing Administration (FHA). The goal of the FHA is to assist prospective homebuyers in getting low-rate home loans. Now, Americans in cities across the country, including Tampa, Flordia rely on the FHA to help them secure an affordable mortgage.

Small Down Payment Available
When Tampa, Flordia homebuyers apply for a mortgage, Tampa mortgage lenders generally require a 20 percent down payment. Many applicants, however, cannot afford such a large up-front expense. If this is the case, the FHA steps in to insure the mortgage. The Federal Housing Administration does not fund loans or guarantee them, they simply insure them. This home loan insurance removes the risk that Tampa lenders encounter when approving a loan that has a down payment smaller than 20 percent.

In layman's terms, FHA loans offer low down payment amounts and low closing costs. The FHA loan down payment can be as little as 3.5%, and even come from a family member, your employer, or a charity.

Less Than Perfect Credit is OK
FHA loans also offer simple credit qualifying, as opposed to the more strict eligibility requirements required by conventional Tampa loans. If you have a blemished credit history, you may still qualify an FHA loan. Even if you have declared bankruptcy or foreclosed on a previous home in the past, you may still be able to obtain an FHA loan. What's more, if you encounter difficult financial times after you purchase your home, the Federal Housing Administration has many options to help you stay in your home and evade foreclosure.

FHA Loans Offer Competitive Rates
Another popular feature of FHA loans is that they offer reduced monthly mortgage payments and outstanding loan terms to Tampa homebuyers. FHA loans have low interest rates because they are insured by the government. And since these loans are government-insured, Tampa mortgage lenders often give excellent loan terms that make qualifying that much simpler.

Though FHA loans do not have income limit qualifications, they are usually offered to first-time Tampa homebuyers or those with moderate monthly cash flow.

Popular FHA Loans
Popular Federal Housing Administration loans include fixed-rate loans, adjustable-rate loans, and reverse mortgages. Most FHA-insured mortgages are fixed-rate, meaning that your interest rate and monthly payment amount stay the same during the entire loan period. An adjustable-rate loan has a reduced initial interest rate that could rise or fall over the life of the loan. A Federal Housing Administration reverse mortgage lets Tampa homeowners over the age of 61 convert home equity into accessible money.

The Many Reasons to Buy Your First Home, Right Now

Sat, 14 Nov 2009 14:25:39 -0600

Considering buying your first Tampa, Flordia home? Act now and take advantage of reduced home prices in Tampa. What’s more, if you purchase a home by November 30, 2009, you are eligible for the government’s First-Time Homebuyer Tax Credit worth up to $8,000. The purpose of the tax credit is to improve the economy by making homes more affordable. Read below to learn more about the government tax credit.

If you missed this deadline, continue reading to learn many vital first-time home-buying tips.

Establish a Budget
The first thing a homebuyer should do is to determine their home-buying needs and establish an accurate budget by listing all monthly expenses. From this, you can figure out how much you can afford for your monthly Tampa mortgage payment.

Choose the Best Tampa Mortgage Lender
Next, compare various Tampa mortgage lenders. Select the lender offering low rates, excellent terms, and outstanding customer service. Contact us and we will pair you with an accredited Tampa lender today!

Know Which Mortgage is Right for You
For first-time Tampa homebuyers, selecting the right kind of mortgage can be an intense process. Let’s take a look at three popular Tampa mortgage types.

First-time Tampa homebuyers love Fixed Rate Mortgages (FRM) because they are clear-cut and predictable. A Tampa FRM has a fixed interest rate and monthly payment amount that stays the same for the life of the loan. A FRM is a good option for conservative first-time Tampa homebuyers who expect to stay in their home for ten or more years, or those able to lock in a low interest rate.

Less conservative Tampa homebuyers often choose an Adjustable Rate Mortgage (ARM). An ARM has a variable interest rate that fluctuates according to current market rates. An ARM is a good option for Tampa homebuyers who plan to move from their home in less than 7 years, or for those wanting to benefit from an ARM’s low preliminary interest rate.

Tampa Interest Only Mortgages give borrowers the opportunity to just pay the interest on their mortgage for an initial time period. After this interest-only period, borrowers are responsible for both interest and principal payments. An Interest Only Mortgage is a great option for first-time homebuyers who currently have limited cash flow but expect an increase in income in the future, or for Tampa homeowners who can pay off the loan in just a few years.

The Government’s Tax Credit Explained
First-time Tampa homebuyers may use the tax credit to pay for closing costs, lock a lower interest rate, or increase their down payment amount in order to lessen their principal balance and increase home equity.

Who qualifies for the government tax credit?
-- You or your spouse must not have owned a home in the past three years.
-- The house must be your main residence.
-- The tax credit equals 10% of the home’s purchase price, up to $8,000.
-- Single buyers with incomes less than $75,000, or married couples with incomes less than $150,000, may receive the maximum credit amount. The credit amount lowers for buyers earning slightly more.
-- Single buyers with incomes over $95,000, or couples earning more than $170,000, are ineligible.
-- Tampa homebuyers must not repay the tax credit if they remain in the home for at least three years.

Is a Second Tampa Florida Mortgage Right for Me

Sat, 14 Nov 2009 13:36:07 -0600

For Tampa homeowners who are considering a second mortgage, proceed with caution. Tampa banks consider a second mortgage as a secured loan, because the applicant is putting their home up as collateral for the loan. For this reason, second mortgages are usually easy to get. Not everyone, however, should pursue a second mortgage.

The Worst-Case Scenario
What happens to Tampa borrowers who don’t have the financial means to repay their second mortgage? In this case, it is highly likely that you will lose your home. The bank will sell your home to recoup their loss.

Since losing your home is a possible result of taking out a second Tampa mortgage, borrowers should carefully assess the risks of leveraging their home for cash.

A Second Tampa, Florida Mortgage is a Good Option for…
Prior to applying for a second Tampa mortgage, lenders require that you have a sufficient amount of income and a satisfactory amount of home equity. Different lenders have different regulations, so it may be wise to shop around.

If you meet the lender’s qualifications, a second Tampa mortgage may be a good option for you if:
•    you need extra cash for only a few years, maximum;
•    interest rates are projected to fall;
•    you plan to sell your home in a couple of years, but need extra cash now;
•    you need money to repair your home;
•    you want to reduce the interest rates of other debts.

Don’t Apply for a Second Tampa Mortgage If…
Though a second mortgage is a good way to get fast cash, it is not a good option for everyone. You should not consider getting a second Tampa mortgage if you:
•    have a history of falling behind on monthly payments;
•    have an income or employment status that is subject to change;
•    recently bought your Tampa home and want to use a second mortgage to pay for the down payment. Substituting a down payment with another home loan is the easiest way to become financially hyper-extended. If you need a loan with a small down payment requirement, consider a Federal Housing Administration loan. This loan type allows borrowers to put down just 3 percent on their mortgage.

A Good Option for Responsible Borrowers
A second Tampa mortgage can often resolve current financial issues, but be sure to get all of your questions answered before signing the dotted line. In taking out a second mortgage, realize that you are risking what is most likely your safest asset: your house.

If you are a responsible homeowner with a good credit history, a second Tampa mortgage is a good option. It’s an easy way to receive cash at a moderately low interest rate. And better yet, the interest you pay on your second mortgage is often tax deductible!

How to Choose a Tampa FL Mortgage Broker

Tue, 25 Aug 2009 08:50:05 -0500

Buying a home in Tampa, Florida is a smart move. It provides you with a terrific place to live as well as an asset that you can sell at a future date as needed. However, you may find that purchasing a home here is confusing for you, especially if this is the first time that you’ve ever bought a house. The best solution for you is to resolve your confusion by hiring a Tampa, Florida mortgage broker to assist you in learning all that you need to know about getting a great loan for buying your perfect Tampa home.

A mortgage broker is someone who works with you to connect you to lenders that are appropriate for meeting your needs. This person explains the lending process for you, assists you in determining what types of mortgages will be best suited to your personal financial situation and then advocates for you with lenders to make sure that you get the best deal possible. Of course, you need to hire a good mortgage broker for this process to work. A good Tampa, FL mortgage broker is someone who is familiar with the area, communicates in a way that you understand and comes to you with good recommendations.

It is important for your mortgage broker to have a solid understanding of the Tampa area and the real estate market there. This does not mean that the mortgage broker must be based in Tampa but it does mean that he or she should have a working knowledge of the area. The broker should also have a network of connections in the lending industry here. Look for mortgage brokers that have been working with Tampa lenders for at least a few years.

Next, you want to make sure that you can communicate well with your Tampa mortgage broker. The goal here is for you to understand all that you’re being told about getting this mortgage. You should be comfortable asking questions and you should understand the answers that you receive. As you interview mortgage brokers, you’ll get a good feel for whether or not they can answer all of your questions. If they can’t then move on to choosing someone who can.

How do you go about finding these lenders in the first place? Your best bet is to ask for recommendations from the people that have already worked with a mortgage broker in the past. If you don’t know people who have used a mortgage broker to buy Tampa real estate then you’ll want to get recommendations through online sources and forums. Alternatively, you can work with a service such as ours. We’ve already done the work for you to select a Tampa, FL mortgage broker who can meet all of your needs. This allows you to make sure that you get the best loan possible and that you understand the loan in full.

Best Rates on Tampa, FL Mortgage Loans

Sun, 12 Jul 2009 16:07:44 -0500

Selecting your Tampa, FL mortgage type is an important decision that should not be taken lightly. Speak with your mortgage lender or Tampa financial advisor to learn which mortgage best suits your needs and your budget. Below are explanations of three popular mortgage types, as well as the current best Tampa, Florida mortgage loan rates.

Types of Mortgages & Current Tampa, Florida Mortgage Loan Rates*

Fixed Rate Mortgage (FRM): A Fixed Rate Mortgage is a mortgage in which the interest rate stays the same for the life of the loan, meaning that your monthly mortgage payment will always be the same. This is the most common type of mortgage due to its simplicity and security.

Tampa, FL Fixed Rate Mortgage Rates:

15-year Fixed: 4.375%; 4.731% APR
20-year Fixed: 4.750%; 5.033% APR
30-year Fixed: 5.000%; 5.112% APR

Adjustable Rate Mortgages (ARM): An Adjustable Rate Mortgage has an interest rate that rises and falls as general market rates adjust. An ARM generally starts out with a lower interest rate than a FRM, but the flexible rate presents a larger risk for the borrower.

Tampa, FL Adjustable Rate Mortgage Rates:

10/1 Year ARM: 4.250%; 4.426% APR
7/1 Year ARM: 4.125%; 4.393% APR
5/1 Year ARM: 3.625%; 4.277% APR
3/1 Year ARM: 3.250%; 4.289% APR
1 Year ARM: 3.375%; 4.420% APR

Interest Only Mortgages: An Interest Only Mortgage allows borrowers to only pay the interest on their loan for a set number of years. For example, if you get a 5-year Interest Only Mortgage, you will only pay the adjustable interest rate for those 5 years. After that time, you’ll pay both interest and principal.

Tampa, FL Interest Only Mortgage Rates:

Interest Only 7/1 Year ARM: 4.375%; 4.617% APR
Interest Only 5/1 Year ARM: 3.875%; 4.526% APR
Interest Only 3/1 Year ARM: 3.875%; 4.379% APR

* July 8, 2009 loan rates based on a $200,000 mortgage; Source: Informa Research Services.