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Mortgages seem to be at a record low these days, but while these rates are advertised, they are not always available to everyone. When buying real estate and purchasing a home in the Florida Keys, several important factors come into play when it comes to qualifying for a great mortgage rate. Showing that you are at low-risk to lenders will bring you the best mortgage rate offer.

According to a recent article in The New York Times, there are several ways for consumers to show lenders that they are low-risk borrowers.

Consider these factors when shopping for the best mortgage rate

1)The higher the credit score, the better the chance of a lower rate. The ideal borrower has a FICO score of 740 or higher said Thasunda Brown Duckett, the senior vice president of Chase Mortgage’s East Region.

2)Property type will be a factor. Higher risk is perceived for property purchased that will be rented out. Duplexes or four unit buildings and even condominiums may have a rate premium added. Commercial properties will have highest rates.

3)A significant down payment can also play a factor in obtaining the best mortgage rate. Higher equity may bring a rate break. At least 25 percent down may bring lower mortgage rate pricing. Ask your lender about options available.

4)The length of the loan will also be considered in a mortgage rate offer. A 15 year fixed rate will be lower than one of 30 years. Consider the proper length of the loan that you need.

5)Transaction speed helps the lender reduce it’s risk. A rate discount may be received in exchange for a shorter lock period.

6)Points or a 1 percent of the loan amount are usually paid to lenders when receiving the lowest mortgage rate. Ask to compare rates with a zero point quote as well.

When purchasing a home and figuring monthly payments, a buyer must consider all the costs of home ownership including property taxes, insurances and maintenance.

Source: New York Times Article (Jan 12,2012)