Pinellas Mortgage Rates

Pinellas County Mortgage Rates

There are dozens of local and national banks in Clearwater that will try to secure your business with some enticing offers. There a few important things to remember when comparing mortgage rates:

• Compare apples to apples. Be sure the rates you are comparing are for the same type of loan and term. Often banks try to lure you in by quoting you a lower rate than most of their competitors, while in actuality it is for an interest-only or adjustable rate mortgage. Specifically ask for the rate of the product you are interested in.
• Know when the rates change. Some banks change their rates every day in response to market fluctuations whereas smaller banks typically change them once a week or even every two weeks. This keeps you from calling the same places over and over and can save you time and money.
• Lock it in. Once you find the rate you want, it is important to find out exactly how to lock in the rate and do it. Some places require an application and typically an application fee to lock in your rate, so know what you are agreeing to. In most cases, once you lock in a rate you are stuck with that rate so be sure you do your homework.

Refinancing in Pinellas County

Refinancing your mortgage in a resort town like Clearwater is a dangerous game. When property values in the area drop dramatically, most people are upside-down in their mortgages. This means that people tend to owe more on their house than it is currently worth on the market. If you are refinancing in order to get money out of your house, it is important to be careful not to borrow more than 80% of the value of your home. This puts you at risk should real estate prices fall again, but also subjects you to paying private mortgage insurance. If your property value has dropped more than 10%, it is typically not worth refinancing your original mortgage. Wait out the real estate storm to be sure you can use your home for all it is worth.

If you are refinancing to lower your payment, be careful not to get sucked in with promises of payments that sound too good to be true. Often the lowest monthly payments are attributed to interest-only mortgages which do not pay down the principal on your loan and result in larger payments down the road. Weigh out all your options before refinancing to be sure it is the right thing for you.

FHA Mortgage Loans in Pinellas County

Given the high cost of living in Florida, especially the coastal regions, FHA mortgage limits are higher than in the rest of the nation. If you are willing to forego coastal access or buy a condo, the FHA loan limits are enough to fetch up to 5 bedrooms and 3 baths. If you are moving to Clearwater for the gulf views, you will sacrifice space and end up with a 1,500 square foot home with three bedrooms and maybe two baths. FHA loans do not have to limit your dreams; they are such a good deal for a consumer that being a short walk to the beach is definitely worth it.