FLORIDA KNOWLEDGE CENTER

Although all real estate loans are financed along the same guidelines there are some differences in purchase money loans and refinance loans.

A refinance loan allows you to take cash out and has a three day right of rescission. Purchase loans do not have either of these features.

The Purchase money mortgage process is more cumbersome than getting a refinance because of the time constraints involved.

With a refinance loan you may take cash out, if you have the equity available, lenders won't allow cash out on a purchase.

When a homeowner is looking to do a refinance transaction, the lender is required to make sure that the loan has a "net tangible benefit" to the borrower.
An example of a "net tangible benefit" would be when the borrower is taking cash-out to pay off high interest rate credit cards and lowering their monthly obligations.

Many lenders will place purchase transaction loan files ahead of refinances in their underwriting departments. This is because purchases are often much more time sensitive and frequently must ahere to a specific closing date. In a refinance transaction, although the borrower often feels time constraints, closing the loan a few days late usually does not present any hardships.

Refinancing today has become an incredibly fast and easy process compared to the first time you purchased a home.

Many times a person can purchase a home with one loan program with the direct intent to refinance after a handful of months. Several factors can play into such a scenario, such as a flow of income to be provided after the purchase, or credit repairs, or the value of the home raising quickly, etc...However, most companies require that the initial mortgage be 'seasoned' for a set amount of months before a new refinance is allowed.

In most cases, a refinance to replace the current mortgage with one with a shorter term or a lower interest rate has the same underwriting requirements as a purchase loan. For instance, refinancing a current 30 year mortgage with a 15 year mortgage is often treated the same a purchase money mortgage. On the other hand, a Cash-Out refinance in which the home owner withdraws from the equity built in the house has somewhat stricter qualification threshold.

No new deed is required for a refinance unless one of the current owners is being taken off of the property. Many other costs associated with a purchase money transaction such as a home inspection and survey may not be required.

A "contract" is involved in a purchase loan which is not involved in a refinance.

Some lenders will offer enhancements to the interest rate for new home purchases and higher down payments.

Ironically some lenders will create a purchase as a refi, if you are in a lease option and have 12 months cancelled checks, you can potentially "refinance" the property based on appraised value and get a lower loan to value.

One of the biggest differences is there maybe loan to value reduction if you are planning to take money out on a refinance.

When you refinance their is a 3 day right of rescission period. Where as on a purchase, the transaction will fund that day.

Florida Mortgage Rates

Getting the right Florida Mortgage Program and Rate is probably the most important part of choosing your Florida Mortgage Loan. Having the best Florida Mortgage Rates will save you thousands of dollars through out the course of the mortgage Loan.

At American Mortgage Rates, we strive on finding the best Florida Mortgage Program and Rate possible for you, the client! Our Licensed Florida mortgage brokers constantly educate them selves on the latest and best Florida mortgage programs to better serve you. There are many different loan programs to choose from which all have different Florida Mortgage Program and Rate, so by staying educated in this area allows us to find you the best Florida Mortgage Program and Rate possible.

Fortunately, due to our production in the mortgage industry we have been able to meet certain standards with our lenders and banks. These standards allow us to pass additional savings to you the client because of our preferred pricing on our Florida Mortgage Program and Rate. Your Florida mortgage broker should go over all the possible Florida Mortgage Program and Rate when choosing your Florida Mortgage.

When inquiring about a Florida Mortgage to your Florida Mortgage broker, be sure to ask about what kind of pre-payment penalty that is associated with that particular Florida Mortgage Program and Rate, some Florida Mortgage Program and Rate have no pre-payment penalty where some have very high penalties. This is something your Florida Mortgage broker should go over with you when choosing the best Florida Mortgage Program and Rate for you.

Feel free to call or inquire over the web about today's Florida Mortgage Program and Rate, we will be happy to quote today's best Florida Mortgage Program and Rate that we have available to us.

Since we work with many Lenders we get the best Florida Mortgage Program and Rate available where when dealing with one particular bank they are limited to there own loan products where they might not have the best available Florida Mortgage Program and Rate that day, when banks compete with each you the savvy mortgage shopper could take advantage of this by working with a real good Florida Mortgage Broker who is up on the Florida Mortgage Program and Rate.

A fixed rate mortgage is a mortgage that has a fixed interest rate for the term of the fixed rate mortgage term. This means your principal and interest payment will not change for the entire term of the loan until it is paid off. A 30 year fixed rate mortgage means that you mortgage is fixed for 30 years. A 15 year fixed means the same that your payment will not change for 15 years and then your mortgage will be paid off.

An Adjustable rate mortgage is a mortgage that has an adjustable interest rate for the term of the mortgage. This means your principal and interest payment will change for the entire term of the loan until it is paid off. Adjustable mortgages can adjust monthly, yearly, or sometimes mat be fixed for 2, 3, 5, 7 and 10 years and then start to adjust more often.

For more information about our many loan programs and Florida Mortgage Program and Rate please call us at 954-475-8787 or fill out our short mortgage form.

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