Mortgage FAQs

It should not be a problem. Many programs today require less than 5% down: conventional loans start at 3% for qualified first-time buyers, FHA at 3.5%, and VA loans for eligible veterans can be 0% down. The best thing to do is call us and we will find the right program for you. See low and zero down options.

Yes. Loan programs change constantly, and we find the best loan scenario for each client. Unlike big banks that are limited to their own programs and rates, we have access to many lenders, so we find the lender that best fits your needs. Call us and let us show you what we can do.

Yes, you can. The tax rules and penalties for withdrawals and plan loans change, so talk to your accountant or plan administrator first about the best way to do it. We can then document the funds for your lender.

With a fixed rate mortgage, the interest rate and the amount you pay each month remain the same over the entire mortgage term, traditionally 15, 20 or 30 years. Several variations are available, including five- and seven-year fixed rate loans with balloon payments at the end. With an adjustable rate mortgage (ARM), the interest rate fluctuates per the indexes. Initial interest rates of ARMs are typically offered at a discounted ("teaser") interest rate lower than fixed rate mortgage. Over time, when initial discounts are filtered out, ARM rates will fluctuate as general interest rates go up and down. Different ARMs are tied to different financial indexes, some of which fluctuate up or down more quickly than others. To avoid constant and drastic changes, ARMs typically regulate (cap) how much and how often the interest rate and/or payments can change in a year and over the life of the loan. Several variations are available for adjustable rate mortgages, including hybrids that change from a fixed to an adjustable rate after a period of years.

It depends. Because interest rates and mortgage options change often, your choice of a fixed or adjustable rate mortgage should depend on: the interest rates and mortgage options available when you’re buying a house, your view of the future (generally, high inflation will mean ARM rates will go up and lower inflation that they will fall), and how willing you are to take a risk. When mortgage rates are low, a fixed rate mortgage is the best bet for most buyers. Over the next five, ten or thirty years, interest rates are more apt to go up than further down. Even if rates could go a little lower in the short run, an ARM’s teaser rate will adjust up soon and you won’t gain much. In the long run, ARMs are likely to go up, meaning most buyers will be best off to lock in a favorable fixed rate now and not take the risk of much higher rates later. Keep in mind that lenders not only lend money to purchase homes; they also lend money to refinance homes. If you take out a loan now, and several years from now interest rates have dropped, refinancing will probably make sense.

Private mortgage insurance (PMI) reimburses the lender up to a certain amount if a borrower defaults. Most conventional loans with less than 20% down require it. Premiums are usually paid monthly, and some lenders offer single-premium or lender-paid options. On a conventional loan you can ask to cancel PMI once your balance reaches 80% of the home’s original value, and it ends automatically at 78% if your payments are current. FHA mortgage insurance follows different rules. Your loan servicer will have the cancellation requirements.

A bank can only offer its own programs and rates. As a broker we compare many wholesale lenders for your scenario, which often means a lower rate, lower costs or approval for a loan your bank does not offer. See how a Florida mortgage broker works.

Most conventional loans need a 620 score. FHA loans can go to 580 with 3.5% down, and VA loan minimums are set by each lender. A higher score gets a better rate, so it pays to check your options before you shop.

Most purchase loans close in about 21 to 30 days from a complete application. Refinances can be faster. Having your income, asset and ID documents ready is the best way to keep things on schedule.

Closing costs include lender fees, title insurance, appraisal, recording and Florida’s documentary stamp and intangible taxes, plus prepaid taxes and insurance. Our rate pages show the closing costs attached to every rate, so you can compare before you apply.