FLORIDA KNOWLEDGE CENTER

Money advanced by an individual (builder, seller, etc.) to reduce the monthly payments for a home mortgage either during the entire term or for an initial period of years.

Lender funded and borrower discount points can buydown the interest rate to help borrowers qualify for more House. Its also Great for those who forsee more income in a few years or to help with the increased housing payment.

Paying points or buying down your mortgage occurs when a sum is paid initially by the borrower to receive a lower interest rate over the life of the loan. The borrower is prepaying interest by paying point or buying it down.

We offer several programs which offer lender paid buydown accounts to borrowers with qualifying credit. Please contact us at 954-475-8787 for more information

Buydowns are counted as prepaid interest and may be tax-deductible. Be sure to consult with your tax advisor.

Discount points paid to reduce your interest rate may also help you qualify for your new mortgage payment.

With interest rates on the rise, this is one way that a borrower can get their interest rate lower for either the entire term or for an inital period. Borrower's can "buydown" or pay points to get their note rate lower.

When paying points to "buy down" your intetest rate, be sure to calculate the savings over a period of time you expect to live in the home. If you plan on at least 5 years, then have your mortgage consultant run an analysis to see if the cost of the points up front will save you money over the long term. Sometimes the lower rate can save you money and sometimes it turns out to be a lower cost to keep the higher rate and save the point money.

One of the more common buydowns is a 2-1 buydown. The first year your mortgage payments will be based on a rate that is 2% less than your long term rate, the second year the rate will be 1% less and then the 3rd year will be the full rate. Example: Your loan amount is $100,000. Your long term rate is 6.75%. Your first year payments will be based on 4.75% and your second year will be based on 5.75%. Therefore your first years payments will be $521.65, your second year the payment will be $583.57, and from the 3rd year on your payment will be $648.60.

Another buydown is the 3-2-1 buydown. Similiar to the 2-1 buydown but spread over a longer period of time with easier payments for the first few years. Example: Long term rate of 7%. 1st year at 4%, 2nd year at 5%, 3rd year at 6% and 4th year on at the full rate of 7%.

Some savvy buyers will negotiate a seller paid buy down as part of their purchase contract. This is similar to using a seller concession to help with closing costs, except that the seller contributes a certain amount to help lower your interest rate. If you think a seller paid buy down is right for you be sure to mention it to your preferred mortgage professional.

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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