Rising Mortgage Rates Prompt Florida Homebuyers to Revisit Budgets
News related to:Mortgage Expert · 2 min read
Mortgage rates have been on the rise, squeezing the budgets of Florida homebuyers even before home prices change. According to a national mortgage-rate benchmark from August 13 to September 30, homebuyers who received preapprovals several weeks ago should revisit their payment estimates and compare mortgage quotes to ensure they are not overextending their finances. The benchmark reflects national conditions, not a personalized quote or a Florida average.
Shahram Sondi, a Florida licensed mortgage loan originator with Mortgage Expert, advises buyers to check their payment estimates again before making an offer.
Sondi recommends that buyers ask their mortgage professionals to update the numbers for the specific property and include realistic estimates for homeowners insurance, property taxes, and any HOA or CDD charges. The principal-and-interest payment alone is not the full housing budget. For Florida buyers still shopping with a payment estimate from several weeks ago, that is a reason to revisit the budget before making an offer.
A preapproval is a starting point, not a frozen monthly budget. Buyers should ask their mortgage professional to update the numbers for the specific property and include realistic estimates for homeowners insurance, property taxes, and any HOA or CDD charges. The principal-and-interest payment alone is not the full housing budget.
A Realtor referral or an existing bank relationship can be a useful place to start. It does not replace comparing the proposed mortgage with other options. Banks, credit unions, mortgage lenders, and mortgage brokers can have different programs, pricing, and service strengths. "Don’t stop at 'What’s your rate?'" Sondi said.
To make a useful comparison, buyers should provide each company with the same purchase price, down payment, estimated credit score, property type, occupancy, and expected closing date. They should also ask for the same loan program and lock period, preferably on the same day. Review the rate and APR, discount points, lender or broker fees, lender credits, estimated payment, and funds needed at closing.
Sondi emphasizes that price is not the only consideration.
Mortgage Expert, a Florida mortgage broker, advises buyers to be proactive and not be shy about shopping around.