Florida mortgage borrowers might be interested in a great article from Dan Green over at The Mortgage Reports.com where he provides an comparative analysis of 30 year mortgages vs. 15 year mortgages. I think Florida mortgage shoppers need to know this stuff – so I’ve pulled out some of the key points Dan makes to show you.
In his breakdown, Dan presents scenarios for 15-year fixed rate mortgage as compared to its 30-year mortgages. At the beginning of the year, the was little to no difference between how each of these mortgage products would act and perform. However, things have changed. (See Chart Below)
Dan points to these two key facts:
- December 2008: 0.250 percent difference in mortgage rate
- October 2009: 0.570 percent difference in mortgage rate
Dan states that “In December, there wasn’t much reason to opt for the 15-year fixed over the 30-year. Today, though, the 15-year fixed rate mortgage is a no-brainer for homeowner that don’t mind its aggressive amortization schedule.”
A similar argument is made for 5 year ARM loans.
Not 5 months ago, the 5-year ARM’s pricing was worse than that for 30-year fixed mortgages. Looking at rate sheets today for Florida mortgages, it’s about a half-percent better.
Therefore, homeowners planning for a new Florida home loan in 2010 would do well to leave their future mortgage strategy flexible – say, with a 5 year ARM. However, as Dan points, you need to be careful about locking in your plans until you are sure which way you want to play things out. He’s right.
The Market – she is a fickle lady. What holds true today will likely not hold true tomorrow.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
Related posts:
- Florida Mortgage Update: Now is a Good Time to Consider a 5-Year ARM According to the Freddie Mac weekly mortgage rate survey, Florida...
- The Fed Adjourns From A 2-Day Meeting Today And What It Means For Mortgage Rates The Federal Reserve adjourns from a scheduled, 2-day meeting today....
- Mortgage Rates Spike On The Federal Reserve’s January 2010 Meeting Minutes The Fed Minutes is a follow-up document, delivered 3 weeks...
