Florida Mortgage Rates Update
In case you hadn’t heard, Florida mortgage rates are shooting up faster than a 4th of July firework right now. This comes in light of some ‘positive’ economic data and speculation that the end of government stimulus is at a near.
A stimulus, in this broad sense, is when the government takes actions to try to stimulate the economy and get it moving in the right direction. When it is believed that the country is back on the right track, typically the stimulus will be ended and the country’s economy left to grow organically. Basically, Uncle Sam was helping to hold current mortgage rates down for a while and is now most likely going to ‘back off’ and let the market determine the interest rates.
So what are the current rates now?
The good news is that Florida mortgage rates are still incredibly low so it isn’t too late if you’re looking to buy or refinance your home. The key is to try to get yourself locked in as soon as possible. You do not want to leave anything to chance with such a volatile market, especially since it could mean the difference between you getting approved or denied for the loan; which leads us to our next point…
Why else is it important to get the best rate?
Not only does the interest rate directly affect how much you pay every month for you home, but it also impacts a very important figure that your very loan approval hinges on; your Debt-to-Income Ratio (‘DTI’ for short). Debt to income is calculated as follows: monthly gross income/monthly debt. Most home loan products have a certain maximum allowable DTI (somewhere between 30-55% of your gross income, depending on the lender and product). Since increasing your interest rate would also increase your monthly mortgage payment, it will raise your debt-to-income ratio and make it even more difficult to get a loan.
What can I do to get the best rate now?
Fill out an application with a local mortgage company and see what your options are now, before it’s too late. You may be one of those people that are right on the borderline for loan approval and a cheaper Florida mortgage rate may be just what you need to get it done!
When presented with your options, ask how soon you can lock your interest rate in. Depending on the circumstances, you may want to have all of your loan documentation put together already to expedite the process and ensure you lock that rate in as soon as possible.