Direct Express Mortgage Loan Programs in Tampa, Clearwater, and Largo

"Lowest Monthly Payments Per Month "

Fixed Rate Loans/Mortgages

30-Year Fixed Rate Mortgage = Long Term Security and Low Monthly Payments

Pros: The 30-year fixed rate mortgage is probably the most popular loan in Tampa Bay, and in today’s market. It offers long-term security with interest rates that will never change. Interest rates on a 30-year mortgage are at an all-time low, so the payment you have today will be the same 30 years from now! You will have the lowest monthly payments per month out of all fixed rate mortgages available.

Cons: You will end up paying more money to the bank in interest. 30-year fixed rate loans are front-loaded with interest which means the banks collect all their interest during the first 15 years. Then you get to pay off what you borrowed over the last 15 years of the loan.

20-Year Fixed Rate Mortgage = The Second-Best Loan in Tampa Bay

Pros: This is the second-best loan in Tampa Bay, Clearwater, and Largo because you knock ten years off of your mortgage, resulting in tens of thousands of dollars in interest savings depending on your loan amount. Your interest rate will normally be the same as a 30-year fixed mortgage, maybe .125% lower.

Cons: You are repaying your loan in 20 years. This will result in a higher monthly mortgage payment compared to a 30-year fixed

15-Year Fixed Rate Mortgage = The BEST Loan in Tampa Bay and the U.S.

Pros: This is the BEST loan in Tampa Bay and the U.S. because you knock off 15 years off of your mortgage compared to a 30-year loan, resulting in sometimes hundreds of thousands of dollars in interest savings. Your interest rate will be between .375 and .5 percent lower than a 30-year fixed in most cases.

Cons: You are repaying your loan in 15 years. This will result in higher monthly mortgage payments compared to a 30-year fixed.

No Pre-Payment Penalty

All of these loan programs have no pre-payment penalty so you can choose a 30-year fixed rate mortgage and pay more in any given month without penalty.

If you win the lottery, you can pay your loan off any time you would like without penalty.

Adjustable Rate Mortgages (ARM)

These loans have received a bad rap as of late. However, these loans, if explained and used with a plan are great to minimize monthly payments and maximize returns on investment. These loans also have an interest-only option where you only have to pay your interest, and therefore lowering your monthly payment.

Understanding the Adjustable Rate Mortgage (ARM)

You will hear these loans referred to as 3/1, 5/1, 7/1, and 10/1 ARMs

With each figure number listed above, the first numbers (3, 5, 7, and 10) represent the number of years your loan will be fixed. In the case of 5/1, “5” is the number of years your loan will be fixed for. During the first five years, your interest rate and payment will NOT change.

The second number, "1" signifies that after the fixed time period specified by the first number, your mortgage rate can be adjusted upward or downward "1" time every year. In the case of “5/1”, after the fifth year, your mortgage rate can be adjusted one time every year.

At the end of the fifth year, your interest rate is determined by your index and margin clearly noted in your mortgage or note.

Your adjustable rate mortgages have lower interest rates than your fixed rate mortgages.

3/1 Adjustable Rate Mortgage (ARM)

Fixed for three years and adjusted once a year, every year after the first three years

The loan should ONLY be used if you have a clear plan or exit strategy.

This loan usually has the lowest interest rate out of all loan programs offered in today’s market

5/1 Adjustable Rate Mortgage (ARM)

Fixed for five years and adjusted once a year, every year after the first five years.

When you understand how mortgages work along with statistics released by the National Association of Realtors, most of the time the five-year option is an interesting option to consider against a 30-year fixed rate mortgage.

The National Association of Realtors released a statistic that most people buy or sell a house every five to seven years and refinance every two to three years.

So knowing that all 30-year fixed rate mortgages are front-loaded in interest, the 5/1 can serve as a way to keep payments lower if you plan on refinancing or moving in the next five years. Plus all ARMs have an interest-only option.

Rates on a 5/1 are lower than all other mortgages with the exception of the 3/1.

There are two other adjustable rate options: the 7/1 and the 10/1, however, these loans are rarely used because the 30-year fixed rate mortgage interest rates are lower. So if you could get a 30-year fixed with an interest rate lower than the 7/1 or the 10/1, then you go with the security of a 30-year fixed.

Have questions? Give us a call at (727) 827-2884 to speak to one of our loan officers about our loan programs in Tampa, Clearwater, Largo, and throughout Florida. We are available to answer any and all questions you have, Monday through Saturday from 9:00

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For more information on how you can Buy, Sell and Invest in Real Estate with Direct Express call: 727-827-2884

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