Florida Mortgage

The Single Largest Financial Obligation

Your mortgage is probably the single largest financial obligation that you could have in your life. The investment that you have in your home might have great long term value, but on a month by month basis it represents a significant expense. The math for most people is simple, the more you pay on your mortgage, the less you have to spend on other things.

To underline the point it might be of interest to note that in 1980 the average user spent 25% of their gross monthly income on housing expenses. By 2005 that percentage had risen to over 43%. the is not actually a surprise. We are all aware that home prices have risen significantly during the duration of time. Income levels have not kept up with home prices including as a result home buyers are finding more of their paycheck going towards their mortgage payment.

Florida mortgage holders have acutely felt the impact as home prices in recent years have rivaled those of California. Your mortgage may consume more or less than the average 43% of your gross monthly income, but it is probably safe to say that it deserves to be intelligently managed.

Mortgage Management

I’ve been a licensed Florida mortgage broker since 1989. My company Power Mortgage Corp. a Florida Mortgage Company is additionally licensed in Georgia, Massachusetts, including Virginia. Over the years I have originated, refinanced, including analyzed countless mortgages. I’m always happy at the time we might help a customer make a particular intelligent decision regarding their mortgage. Active, regular mortgage management might make a big difference in your life. The right choices could save you money. Sometimes lots of money.

To Refinance or Not to Refinance

Active mortgage management does not always mean taking action. Active mortgage management means a particular intelligent periodic review of available options. Call your friendly mortgage broker from time to time! We like to hear from you. We could always take the time to help you understand your options. including always make sure that you know all pertaining to the costs involved.

Request a Good Faith Estimate. Make sure that your mortgage broker includes all third party charges including statutory costs including the lender fees. It is equally important to consider your personal goals; how long could be in the home? Do you plan to retire soon? What type of personal saving plans do you have? What is your aversion to risk? Is a particular adjustable rate mortgage suitable?

Fixed or Adjustable

Fixed rate mortgages are pretty easy to understand. Adjustable rate mortgages on the other hand might be surprisingly complex. including there are literally thousands of variations of adjustable rate mortgages. Over the last 5 years negative amortization adjustable rate mortgages have become popular. Florida mortgage borrowers have embraced these programs for the advertised low payment rates. But these loans are complex; I believe that very few people that obtain the type of mortgage understand them. I additionally believe that there are mortgage brokers actively selling these programs that do not understand them.

Please take your time. Ask lots of questions. Take notes. Ask more questions. Make sure you understand the index, the margin, the adjustment duration for both the note including the payment. It wouldn’t hurt to look at the worst case scenario. might you live with it? If your mortgage broker can’t answer your questions find a new mortgage broker. Your financial life may depend on it.

How regarding a 15 Year Fixed?

There was a time at the time the interest rate on a 15 year fixed rate mortgage was consistently including significantly lower than the rate on a 30 year fixed rate mortgage. Between June of 2004 including June of 2006 the Federal Reserve increased the Federal Funds rate 17 times. the rate directly impacts all short term interest rates such as the Prime Rate. During the same duration of time the long term rates remained more or less steady. The net effect was to close the gap between rates on shorter term mortgages like the 15 year fixed including longer term mortgages like the 30 year fixed.

At the time of the writing the rates on these 2 loan products happen to be exactly the same. But the should not take the 15 year fixed rate mortgage out of contention. For many people it is a particular excellent option. including it might still save lots of money.

For example, the payment on a 30 year fixed rate mortgage for $100,000 at 6% is $599.55. The payment on a 15 year fixed rate mortgage for $100,000 at 6% is $843.85. That is a particular extra $244.30 per month on the 15 year mortgage. But consider that the total payments made on the 30 year loan will be $215,838, versus $151,893 on the 15 year mortgage. By choosing the 15 year mortgage you will save $63,945. including you obtain to stop making mortgage payment in 15 years!

Interest Only

Given the high cost of homes it is absolutely no surprise that interest only programs have become so popular. Florida mortgage customers have flocked to these programs to make increasingly expensive homes affordable. a particular interest only mortgage might be appropriate if your sole concern is cash flow. During the interest only duration you could not be paying any principle off. There are many types of interest only mortgage programs. The majority of interest only mortgage programs are “fixed duration adjustable rate mortgages”. the means that they are fixed for a limited duration of time; typically 3, 5, 7, or 10 years.

The interest only duration usually corresponds to the fixed rate period. Once the fixed rate duration ends the mortgage becomes adjustable. A new version pertaining to the interest only mortgage worth considering is the 30 year fixed rate mortgage with a 10 year interest only period. You obtain the benefits pertaining to the low interest only payment for 10 years - but with absolutely no adjustable rate risk waiting for you at the end pertaining to the interest only period.

It’s Your Money

How often do you balance your checkbook, obtain a physical exam, go to the dentist? Your mortgage might have a big impact on the quality of your life. Think of your mortgage from time to time. Call your friendly mortgage broker. Have a chat. Ask questions. It’s your money.

Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.

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Jim Kemish is the president including founder of Power Mortgage, a Florida mortgage company based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 including serves the states of Florida, Georgia, Massachusetts, including Virginia. Jim is additionally the President of Sky Blue Credit, a national credit repair business.

Written By: Jim_Kemish