FLORIDA KNOWLEDGE CENTER

A seller concession helps a borrower to pay some or all of their closing costs. The realtor write a seller concession into the purchase agreement usually before placing a bid on a property. Anywhere from 3%-6% (this is a percentage of the purchase price) is a typical seller concession. This is helpful for borrowers who do not have the necessary amount of money to pay for closing costs and for borrowers who would rather hold onto their money instead of tying it up into their mortgage.
Example of how a seller concession works:
House for sale, asking price 100,000, you place a bid for 98,000 and request the seller pays 3% of your settlement charges. Seller concession amount is equal to $2,940 to be used to pay for your closing costs.

If you do not qualify for a seller assist, the seller will not agree to one, or it does not cover enough of the closing costs you may want to consider a 103% mortgage program. This type of loan finances an additional 3% fo the purchase price to help pay for the closing costs.

By structuring a sales contract to include a sellers concession to assist with closing costs, you can keep more of your savings as a cushion or to help pay for any necessary repairs on your new home.

Make sure the real estate agent you are working with knows to write your offer to purchase with seller concessions. It may cause problems and delay the purchase of your new home if the realtor has to ask for an amendment to the original offer to purchase.

Most lenders will not allow you to use the seller concession to profit from a purchase. You can use the money to payoff costs but not get cash in hand at the end of escrow.

If you have little or no cash to purchase your home, seller concessions are a great way to get into a home with little or no money out of pocket. Be sure to speak to both your realtor AND mortgage professional before signing the P&S to ensure it is worded properly.

The market is turning from a seller's market to a buyer's market. Therefore to keep housing prices stable, sellers may be more willing to offer concessions. Depending upon the lender, seller concessions may only be limited to non recurring costs, such as title insurance, appraisal costs, points paid, interest rate buydown, broker fees, etc. This means then that recurring costs could be covered by the seller - 6 months PITI, homeowners insurance, etc.

One unique seller concession is for the sellers to pay points for the buyers to lower their interest rate. What a great incentive for a seller to offer to lower the buyer's mortgage rate by 0.500, 0.750, or 1.000 %!

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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