October 2015 Florida home interest rates are starting the month on a good note. Florida FHA 30-year mortgage rates have remained below 4% percent for over nine weeks now. Many Florida borrowers will still be seeing the same rates compared to last week, with the gains being seen in the form of lower closing costs or higher lender credit. There have only been a few days better for interest rates since May 2015.
As October begins, FHA interest rates are in the 3.625% range for buyers paying no added discount points. USDA and VA loans are always about the same as FHA rates. Be mindful that the rates assume best case scenario – generally borrowers that have a credit score over 740. Of course loan applicants with lower credit scores will pay slightly increased rates due to the increased risk to financial institutions. Borrowers paying 1 point will generally see rates about .25% lower. Whether paying points is a good idea or not, will depend on many variables your loan officer will discuss.
All mortgage rates ( VA, FHA USDA and Conventional loans) are near their lowest level in 4 months. If you are under contract to close in the next 60 days, now may be a time to lock in your interest rate. Please read more about locking in your loan rate below. Keep in mind that rates change nearly each day – Florida and Georgia home buyers that need a quick rate quote are encouraged to contact us at ph: 800-871-2636 or just submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here.
What Exactly does it mean to “Lock In” Your interest rate?
“Locking” your mortgage means that you and your lender (broker or mortgage company) have agreed on an interest rate and price for your home loan. Once your loan is locked, that’s the rate and price you get, regardless of what happens in the financial markets. If rates go up, you’re protected but if rates go down, you won’t benefit of a lower rate either. Your rate is set and you close your loan at the rate you’ve locked it. Locks have expiration dates ranging from 30 to 120 days with most lenders, and the longer your lock period, the more it costs. Example – if the par interest rate today is 3.75% for a 30 days lock, it might be 3.875% for a 60 day lock. If you don’t close your loan by the end of the lock expiration date, you could end up paying a higher interest rate or lock extension fees.
When Should A Borrower Lock In Their Rate?
You can lock in your loan at any time during the process. Until you lock your interest rate, you are said to be “floating” your mortgage. The only obvious requirement is that you lock in before you can close on your purchase or refinance. The decision to lock or float your loan can have a long term impact so it’s important you make the right choice. Your trusted loan specialist can often time provide some insight on rates and the upcoming economic events that may impact rates.
Simple Refinance Options:
Existing home owners that currently have a FHA, VA or USDA loan have some flexible streamline refinance options available – even if you have no equity.
USDA Rural Housing – Learn more about the USDA Pilot Refinance here.
FHA – Learn more about the FHA streamline refinance here.
VA – Learn all about the VA IRRRL loan here.
All of these refi options are streamline and require little documentation. In addition, there is no equity requirements or out of pocket costs. Underwater on your home loan? It’s OK because these program do not require a new appraisal value. In most cases borrowers can add there closing costs into their new loan to eliminate out of pocket expenses as well.
Questions? We want to help – Fla & GA home buyers please contact us at www.FiveStarsMortgage.com for more information.