What to do if housing mortgage rates in Florida do not drop during 2024?
If you are planning to buy a property in Florida for investment or to live in, but the current interest rates in the real estate market are affecting your purchase purpose, you could consider taking action on some issues that will benefit your financing process in the future. Waiting for interest rates to drop for a mortgage loan can be a double-edged sword, since this depends on the national economy, inflation, and the fluctuation of the dollar, among other factors. Likewise, it is not often considered that while people wait for interest rates to fall, property prices continue to rise. For this reason, we recommend that you analyze the items that we will mention below.
Consider all loan alternatives:
Home buyers generally request a conventional 30-year mortgage loan, but when interest rates are not low, you could explore other financing alternatives, such as obtaining a 15-year mortgage, which could help you have a better interest rate and therefore shorten the time of purchasing the property. At New Florida Lending, we have a wide variety of financing programs that adapt to different buyer profiles. One of the options you could choose is to pay additional money in the down payment to guarantee a lower rate, this is known as buying mortgage points. Talk to a loan officer: A strategic action is to consult with a loan officer or loan officer (name in English) to tell you what could be the best alternative for you taking into account not only your profile, but your financial needs. For example, researching the benefits of a 15-year mortgage could be a good option for you if your goal is to secure the lowest rate and pay off your new property as quickly as possible.
Improve your credit score (this point does not apply to international clients)
Reducing your debts, paying your credit card payments on time, and avoiding applying for new credit will improve your credit score. It is important to note that banks provide the lowest mortgage rates and the best financing conditions to those people who have the highest credit profiles. Buy now and refinance later: Waiting for interest rates to drop could also mean that someone else buys that property that you liked so much and that suits your needs. Remember that rates are cyclical and can go down at some point, which is a good option for you since you will be able to refinance at a new lower rate when they go down. If you want to know more benefits about the refinancing process, contact us now. Since 2023, there has been speculation about the possibility that mortgage interest rates will drop, however during the first months of 2024 this has not happened and it is not known with certainty if they will drop. In recent decades, mortgage interest rates have often been in the double digits, making the current average rate of 6.99% for a 30-year loan relatively low. Do not put aside your purpose of buying a property, perhaps the best option is to buy now instead of waiting for a positive evolution. Ask us about adjustable rate mortgages and the option of purchasing mortgage points, our entire team is willing to advise you.
