FLORIDA KNOWLEDGE CENTER

When Ben Bernanke of the Federal Reserve (The Fed) gives testimony to Congress and/or when the Federal Reserve meets, how does this affect mortgage rates? The next paragraphs will examine the role Ben Bernake and the Federal Reserve play in determining the direction of mortgage rates.

Ben Bernanke and the Fed have a major influence on the interest rates and even more importantly the mortgage rates that we borrow on. To explain this as easily as possible, during the Fed testimonies, they usually outline what is going on with economical data and what measures the Fed plans to take based on this data. This in turn directly affects the mortgage rates.

Ben Bernanke is the chairman of the Federal Reserve and sets the federal funds interest rate. The federal funds interest rate affects the 10 year bond and mortgage rates. If growth is slow the Fed will lower rates. If inflation is high the Fed will raise rates.

Similar to how the President gives a State of the Union, Mr. Bernanke gives a "State of the US Economy" in his testimony and written Fed statements. Many times, the omission of previously noted problems in the economy and/or acknowledgement of new economic issues can cause a shift in interest rates.

The Federal Funds Rate is the interest rate in which banks can borrow money overnight to meet their reserve requirements. The Prime Rate, which is the base for most Home Equity Lines Of Credit(Heloc's) is directly correlated to the Federal Funds rate.

In his testimony, Ben Bernanke goes on in detail how he feels the economy is faring as a whole. His opinions about inflation can have a significant affect on mortgage rates in particular. For example, if Mr. Bernanke states that inflation poses a serious risk in the future, there is a great likelyhood that mortgage rates will adjust upward.

Keep your eye on Mortgage Backed Securities to get an idea where Mortgage Rates are headed. A mortgage-backed security is an asset-backed security whose cash flows are backed by the principal and interest payments of a set of mortgage loans.

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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